Pradhan Mantri Mudra Yojana (PMMY) — Benefits, Eligibility & Apply Kaise Karein (2026)
Collateral-free business loans up to ₹20 lakh
Overview
The Pradhan Mantri Mudra Yojana (PMMY) provides collateral-free business loans to non-corporate, non-farm small and micro-enterprises in India. Loans are provided by public, private and regional-rural banks as well as NBFCs and MFIs, under the refinance arrangement of MUDRA Ltd. The 2024 enhancement introduced a new Tarun Plus category, increasing the cap to ₹20 lakh for entrepreneurs who have previously repaid a Tarun loan.
Launched: 2015 For: Non-corporate micro-enterprises & self-employed
Key Benefits
- Shishu — loan up to ₹50,000 (for new & micro enterprises).
- Kishor — ₹50,000 to ₹5 lakh (expanding businesses).
- Tarun — ₹5 lakh to ₹10 lakh (established small enterprises).
- Tarun Plus — ₹10 lakh to ₹20 lakh (post-Tarun borrowers with good repayment).
- No collateral and no processing fee (for most Shishu/Kishor loans).
- Interest rate as per RBI norms — generally 8.5–12% depending on category & lender.
Eligibility
- Indian citizen with a viable business plan in manufacturing, trading, services or allied agri-activities (excluding crop loans).
- Individual, proprietor, partnership, MSME, SHG, company — all eligible.
- No minimum credit score; however CIBIL is checked for Kishor & Tarun.
- Existing Mudra Card holders can top-up under Tarun Plus.
Zaroori Documents
- KYC — Aadhaar, PAN, address proof
- Business plan (with projections for Kishor/Tarun)
- Proof of business existence (GST, Udyam, shop establishment)
- Bank statement of last 6 months
- Income/ITR of last 2 years (for higher slabs)
- Quotations for machinery (if asset finance)
Apply Kaise Karein — Step by Step
- Visit the nearest bank (PSB, private, RRB) or apply online via JanSamarth / Udyamimitra.
- Choose the loan category (Shishu / Kishor / Tarun / Tarun Plus).
- Submit application form with KYC + business documents.
- Bank does assessment, sanctions loan and disburses via RuPay Mudra Card or bank transfer.
Aksar Poochhe Jaane Wale Sawaal
Is Mudra loan really collateral-free?
Yes. Under PMMY, banks cannot ask for collateral security or third-party guarantee up to the sanctioned amount.
What is Tarun Plus under Mudra?
Tarun Plus is a new category (2024) offering loans of ₹10 lakh–₹20 lakh to entrepreneurs who have previously taken and successfully repaid a Tarun loan.
Do I need a CIBIL score for Mudra loan?
A very low or poor score will hurt your chances, especially for Kishor and Tarun. Shishu loans up to ₹50,000 are more lenient.
Can salaried employees take a Mudra loan?
No. Mudra is for non-corporate, non-farm small/micro enterprises and self-employed individuals — not salaried employees.
Related Govt Schemes
PM Awas Yojana (PMAY)
Housing for All — interest subsidy up to ₹2.67 lakh on home loans
Sukanya Samriddhi Yojana (SSY)
Best small-savings scheme for girl child — 8.2% tax-free
PM Jan Dhan Yojana (PMJDY)
Zero-balance bank account + ₹2 lakh accident insurance
Atal Pension Yojana (APY)
Guaranteed pension of ₹1,000 to ₹5,000 per month after 60
PM Kisan Samman Nidhi
₹6,000 per year directly to farmer bank accounts
Ayushman Bharat (PM-JAY)
₹5 lakh per family per year health cover at 27,000+ hospitals