Pradhan Mantri Mudra Loan Yojana: Eligibility, Process & Benefits
12 min read2 March 2026
Financial Disclaimer
Disclaimer: This information is for educational purposes only. Always consult a certified financial advisor before making any financial decision.
What is Pradhan Mantri Mudra Yojana (PMMY)?
Launched in 2015, PMMY provides loans up to ₹10 Lakh to small and micro businesses through banks, NBFCs, and MFIs. The scheme is divided into three categories based on business stage and loan requirement.
Three Categories
- Shishu: Loans up to ₹50,000 — for businesses just starting
- Kishore: Loans ₹50,001 to ₹5,00,000 — for growing businesses
- Tarun: Loans ₹5,00,001 to ₹10,00,000 — for established businesses seeking expansion
Mudra Loan Details
| Feature | Shishu | Kishore | Tarun |
|---|---|---|---|
| Loan Amount | Up to ₹50,000 | ₹50K - ₹5 Lakh | ₹5L - ₹10 Lakh |
| Interest Rate | ~10% - 12% | ~11% - 14% | ~11% - 16% |
| Collateral | Not Required | Not Required | May be Required |
| Repayment | Up to 5 years | Up to 7 years | Up to 7 years |
How to Apply
- Visit any bank branch (SBI, PNB, BoB, or any scheduled bank)
- Submit your business plan, ID proof (Aadhaar), and address proof
- For Shishu loans, minimal paperwork is needed
- Apply online through udyamimitra.in or mudra.org.in
Key Benefits
No collateral required for loans up to ₹10 Lakh. Available at all public and private banks. Special priority given to SC/ST, OBC, women entrepreneurs, and minorities. Processing fee is minimal or zero for Shishu category.