Pradhan Mantri MUDRA Yojana

About This Scheme

MUDRA (Micro Units Development and Refinance Agency) provides loans up to ₹10 lakh to non-corporate, non-farm small/micro enterprises. Loans are available in three categories — Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5,00,001 to ₹10 lakh). No collateral is required and loans are available through all commercial banks, RRBs, and MFIs.

Ministry: Ministry of Finance

Eligibility

Any Indian citizen with a business plan for a non-farm income generating activity in manufacturing, trading, or services sector; existing small businesses needing funds for expansion. Loans available to individuals, proprietorship firms, partnership firms, and private limited companies.

Key Benefits

• Shishu: Loans up to ₹50,000 for new entrepreneurs
• Kishore: Loans from ₹50,001 to ₹5,00,000 for expansion
• Tarun: Loans from ₹5,00,001 to ₹10,00,000 for established units
• No collateral required
• Low interest rates compared to informal lending
• MUDRA Card for managing working capital
• Available at all bank branches — over 10 crore loans disbursed annually

Application Process

1. 1Visit any bank branch, NBFC, or MFI offering MUDRA loans
2. 2Or apply online through Udyami Mitra portal (udyamimitra.in)
3. 3Submit filled application form with business plan
4. 4Provide KYC documents and business proof
5. 5Bank processes the application — usually sanctioned within 7-14 days

Documents Required

• Identity proof (Aadhaar/PAN/Voter ID)
• Address proof (Aadhaar/utility bill/passport)
• Business plan or project report
• Passport-size photos
• Caste certificate (if applicable for priority)
• Quotation of machinery/equipment (if applicable)

Official Links

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