Are you a small business owner, a budding entrepreneur, or someone with a startup dream but no collateral?
The Pradhan Mantri Mudra Yojana (PMMY) is designed just for you! This government-backed initiative enables micro and small enterprises to access easy, collateral-free loans and start or grow their business.
PMMY is a flagship scheme by the Government of India that provides loans up to ?10 lakh (and in some cases, extended to ?20 lakh) to non-corporate small businesses — without any collateral.
PMMY offers loans under the following categories, based on the business stage:
| Category | Loan Amount | Ideal For |
|---|---|---|
| Shishu | Up to 50,000 | New & early-stage businesses |
| Kishor | 50,001 to 5 lakh | Growing businesses |
| Tarun | 5 lakh to 10 lakh | Business expansion |
| Tarun Plus | 10 lakh to 20 lakh | Available via select institutions |
Interest Rate: 7% – 12% (varies by lender)
Repayment Tenure: Up to 5 years
Processing Fees: Nil or very nominal for most categories
Visit your nearest bank, NBFC, or microfinance institution.
Alternatively, apply online via Udyami Mitra Portal.
Submit your business plan and required documents.
Loan will be processed and directly credited to your bank account.
Expert Tip: Create a brief business/project plan to increase your chances of approval.
Neetu from Kanpur utilized a ?50,000 Shishu loan to start a tailoring business. She now trains women and supports her family — proving how small loans can create big impacts.
Swapna, an MBA graduate from Thane, took a Kishor loan to expand her startup Desi Toys, focusing on traditional Indian playthings. Her toys now sell across India and even abroad.
You can get up to ?10 lakh. However, some institutions now offer Tarun Plus loans up to ?20 lakh under similar guidelines.
No. PMMY loans are completely collateral-free and backed by the Credit Guarantee Fund for Micro Units (CGFMU).
Yes. Even if you're starting out, you can apply under the Shishu category with a viable business idea and basic documentation.
All public sector banks, private banks, NBFCs, small finance banks, regional rural banks (RRBs), and microfinance institutions (MFIs) offer Mudra loans.
Yes, if they have a genuine business idea or wish to start a micro-enterprise.
It usually takes 7–15 working days, depending on document verification and business viability.
No direct subsidy is provided. However, if the loan is linked to other government schemes, you might be eligible for a subsidy.
You can contact your lending bank or track your application through the bank's loan portal or customer service.
Take the first step toward your dream business today.
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