Pradhan Mantri Mudra Yojana
Collateral-free loans up to ₹20 lakh for micro and small business — the most widely accessed credit scheme in India.
What you get
Shishu up to ₹50,000 · Kishor ₹50,000–₹5 lakh · Tarun ₹5–10 lakh · Tarun Plus ₹10–20 lakh
Nodal ministry
Ministry of Finance
Support type
Loan / Credit
Best suited for
Ideation · Seed / Early Stage
Typical timeline
Bank processing typically 2–6 weeks
What this scheme actually is
MUDRA is a refinancing institution, and PMMY is the scheme through which banks, NBFCs and MFIs lend to non-corporate, non-farm micro and small enterprises. It is collateral-free, available at every bank branch in the country, and covers trading, manufacturing, services and activities allied to agriculture. For most first-time founders, this is the realistic first credit line.
Implementing agency: Department of Financial Services / MUDRA
What the scheme sets out to do
Who can apply
What you get
Documents to have ready
How to apply, step by step
- 1
Pick the right category
Shishu, Kishor, Tarun and Tarun Plus differ in documentation intensity as well as amount. Asking for ₹9 lakh when ₹4 lakh is defensible slows the file down.
- 2
Pull your credit report first
PMMY is collateral-free, not assessment-free. A defaulted credit card from five years ago will surface — deal with it before applying.
- 3
Prepare the project report
Cost, own contribution, revenue plan and repayment capacity. Even a ₹5 lakh application benefits from a proper one.
- 4
Apply at a bank branch, through Jan Samarth or Udyamimitra
MUDRA loans are available at all bank branches and through NBFCs and MFIs, or online via the portals.
- 5
Follow up — persistently
The single biggest reason a MUDRA file stalls is that nobody chased it. A weekly, documented follow-up cadence changes outcomes.
What we actually do on a PMMY mandate
Services this usually needs
No consultant can guarantee a sanction — that decision sits with the evaluating committee, bank or incubator. We commit to an honest eligibility view, an application built to the evaluator’s format, filing inside the window and a documented follow-up cadence. That is stated in every engagement letter we sign.