Pradhan Mantri MUDRA Yojana

About This Scheme

MUDRA (Micro Units Development and Refinance Agency) provides collateral-free loans up to 20 lakh rupees to non-corporate, non-farm small and micro enterprises across India. Loans are available in four categories. Shishu covers up to 50,000, Kishore covers 50,001 to 5 lakh, Tarun covers 5,00,001 to 10 lakh, and Tarun Plus covers 10 lakh to 20 lakh for borrowers who have already repaid a Tarun loan. Loans are available through all scheduled commercial banks, regional rural banks, small finance banks, microfinance institutions, and NBFC-MFIs. Since its 2015 launch, MUDRA has disbursed over 50 crore loans totalling more than 25 lakh crore rupees, making it one of India's most impactful small business credit programmes.

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
• Tarun Plus: Loans from ₹10,00,000 to ₹20,00,000 for borrowers who have repaid a previous Tarun loan
• No collateral required
• Low interest rates compared to informal lending
• MUDRA Card for managing working capital
• Available at all bank branches, with 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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