PM Mudra Yojana – Mudra Loan Scheme India 2026
Get collateral-free Mudra Loan under Pradhan Mantri Mudra Yojana (PMMY) for startups, small businesses, and micro enterprises. Apply online for Shishu, Kishor, Tarun, and Tarun Plus loans with ease.
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Get step-by-step guidance for applying Mudra Loan under Pradhan Mantri Mudra Yojana (PMMY). We provide educational assistance for Shishu, Kishore and Tarun loans.
- ✔ Understand eligibility & documents
- ✔ Learn correct application process
- ✔ Avoid mistakes & rejections
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Mudra Loan Information
Understand the scheme, eligibility, and how we assist you
What is Mudra Loan?
Mudra Loan is a government-backed scheme for micro & small businesses offering collateral-free loans up to ₹10 lakh.
Who Can Apply?
Small shop owners, traders, manufacturers, service providers and self-employed individuals.
Our Role
We help you understand the official application process and prepare correctly.
Introduction & Background
What is PMMY?
Pradhan Mantri Mudra Yojana (PMMY), launched in 2015, provides institutional finance to small and micro enterprises. It helps entrepreneurs who struggle to get loans due to lack of collateral or credit history.
Background of PMMY
India has a large number of micro and small enterprises contributing to employment and GDP. MUDRA Bank facilitates collateral-free loans via banks, NBFCs, and microfinance institutions, integrating micro-businesses into the formal financial system.
Vision & Mission
- Promote entrepreneurship and self-employment across India
- Provide accessible and affordable institutional credit
- Encourage growth of micro and small enterprises
- Reduce dependency on informal money lenders
- Support women, SC/ST, and marginalized entrepreneurs
- Foster financial literacy and awareness
Mudra Loan Categories
PMMY offers four loan categories – Shishu, Kishore, Tarun, and Tarun Plus – to cater to businesses at different stages of growth.
Shishu Loan
Up to ₹50,000 for startups and early-stage businesses.
- Inventory, equipment, or working capital
- Target: Micro businesses & home-based enterprises
- Collateral: Not required
Kishore Loan
₹50,001 to ₹5,00,000 for business expansion.
- Hiring staff, buying machinery, working capital
- Target: Small business owners & shopkeepers
- Collateral: Not required
Tarun Loan
₹5,00,001 to ₹10,00,000 for scaling established businesses.
- Expanding operations or entering new markets
- Target: MSMEs & manufacturing units
- Collateral: Usually not required
Tarun Plus Loan
Up to ₹20,00,000 for large-scale projects and investments.
- Target: Established MSMEs and growing startups
- Collateral: Minimal or CGTMSE guarantee
- Supports scaling and diversification
Selecting the right loan category ensures higher approval chances and financial support tailored to your business needs.
Eligibility & Documents
Eligibility Criteria
- Indian citizen above 18 years
- Non-corporate, non-farm businesses
- Income-generating business
- Identity Proof: Aadhaar, PAN
- Address Proof: Utility bills, Aadhaar
- Business Proof: Registration, GST (if applicable)
- Bank account for loan disbursement
Important Clarifications
- Mudra Yojana does not guarantee loan approval
- No direct subsidy or grant is provided
- Interest rates vary by lender
- Additional documents may be required
- This website is informational only
Interest Rate, Repayment & Application Process
Interest & Repayment
- Interest rate set by lending institution
- Shishu: up to 3 years | Kishor: up to 5 years | Tarun: up to 7 years
Application Process
- Apply through authorized bank/NBFC branch
- Submit required documents & loan form
- Bank assesses creditworthiness & approves
- Loan disbursed to bank account upon approval
Benefits, Challenges & Tips
Benefits
- Financial inclusion for micro entrepreneurs
- Promotes self-employment & women empowerment
- Collateral-free loans
Challenges & Tips
- Challenges: lack of awareness, interest rate variability
- Case Examples: Street vendor, tailoring unit, manufacturing units
- Tips:
- Maintain business records
- Use a separate bank account for business
- Understand interest & repayment schedules
- Use loans strictly for business purposes
Mudra Loan EMI Calculator
Calculate your monthly EMI for Shishu, Kishore and Tarun Mudra Loans under Pradhan Mantri Mudra Yojana (PMMY). This free calculator helps small business owners plan repayments easily and avoid financial stress.
EMI Calculator
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We provide neutral, educational guidance about Mudra Loans. Learn how these loans can help grow your business safely and effectively.
Contact UsAbout Yojana.info
Yojana.info is an educational platform sharing accurate and updated information on government schemes and financial literacy programs like PMMY. We do not provide loans or financial advice.
Learn MoreFAQs, Case Studies & Guidance
FAQs
Who can apply? Indian citizens above 18 with eligible micro/small business.
Collateral required? No, only identity and business verification required.
Women entrepreneurs? Encouraged to apply, often priority guidance.
Loan usage? Strictly for business purposes.
Repayment period? Shishu: up to 3 years, Kishor: up to 5 years, Tarun: up to 7 years.
Case Studies & Tips
Examples: Street vendor, tailoring unit, manufacturing, organic farm, stationery shop, handicraft units – showing growth and success.
- Prepare a clear business plan
- Use a separate business bank account
- Maintain accurate records
- Understand EMI and interest rates
- Apply only when fully ready
Common Mistakes
- Mixing personal and business funds
- Delaying repayments
- Using loan for non-business purposes
- Ignoring scheme updates or guidelines
Summary & References
Summary
PMMY empowers micro and small enterprises through collateral-free loans under Shishu, Kishor, and Tarun categories, promoting financial inclusion, entrepreneurship, and growth for small businesses across India.
Disclaimer
Yojana.info is purely educational. We do not provide loans, financial advice, or guarantee approval. Loan approval, interest rates, and repayment schedules are determined solely by the lender.