Micro Units Development & Refinance Agency
Pradhan Mantri Mudra Yojana (PMMY)
Collateral‑free loans for non‑farm micro enterprises up to ₹20 lakh via Shishu, Kishore, Tarun, and Tarun Plus
₹20L
Max Loan
Shishu/Kishore/Tarun
Categories
RuPay
Mudra Card
No Collateral
Intent
- Shishu
- Up to ₹50,000
- Kishore
- ₹50,001–₹5,00,000
- Tarun
- ₹5,00,001–₹10,00,000
- Tarun Plus
- ₹10,00,001–₹20,00,000
- Processing
- Bank/NBFC-led
- Purpose
- Manufacturing • Trading • Services
01Overview
About PMMY (Mudra)
PMMY facilitates collateral‑free credit to non‑farm micro and small enterprises through banks, NBFCs, MFIs, and other RBI‑regulated institutions, with refinancing support from MUDRA Ltd.
Loans are categorized as Shishu (up to ₹50,000), Kishore (₹50,001–₹5 lakh), Tarun (₹5–10 lakh), and Tarun Plus (₹10–20 lakh, for borrowers who have successfully repaid Tarun), improving graduation across growth stages.
Pricing and tenure are per lender policy and RBI caps where refinance applies; Mudra Card provides a RuPay OD facility for working capital with flexible drawdown and repayment.
- 01
Collateral‑Free
No collateral security required; lending based on viability and lender policy within PMMY norms.
- 02
Graduated Tiers
Structured tiers from Shishu to Tarun Plus enable step‑up funding as the enterprise grows.
- 03
Mudra Card
RuPay debit/OD card for working capital; draw and repay flexibly to reduce interest burden.
- 04
Wide Sector Coverage
Eligible for trading, services, and manufacturing non‑farm activities per PMMY objectives.
02Who can apply
Eligibility Criteria
Borrower Eligibility
3 points- Any Indian citizen with a viable non‑farm income‑generating business plan in manufacturing, trading, or services.
- New and existing micro/small units; self‑employed, proprietors, partnerships, companies, and other eligible entities.
- Age and KYC per lender policy; not a defaulter as per bureau checks.
Loan Categories
4 points- Shishu: up to ₹50,000.
- Kishore: ₹50,001 to ₹5,00,000.
- Tarun: ₹5,00,001 to ₹10,00,000.
- Tarun Plus: ₹10,00,001 to ₹20,00,000 for successful Tarun borrowers.
Purpose & Coverage
3 points- Working capital and term loans for eligible non‑farm activities.
- Mudra refinance and RBI interest caps may apply for banks/RRBs/NBFCs availing refinance.
- Collateral‑free intent; primary security is typically assets financed and cash flows.
03Paperwork
Required Documents
0 / 9 ready
Tick the documents you already have
KYC & Profile
Business Proofs
Proposal & Category
04Step by step
Application Process
- 01
Choose Category & Lender
1–3 DaysIdentify the appropriate PMMY tier (Shishu/Kishore/Tarun/Tarun Plus) and apply through a bank/NBFC/MFI.
Use Mudra Mitra app to locate lenders and forms.
- 02
Appraisal & Sanction
3–7 DaysLender evaluates eligibility, viability, KYC, and credit history; terms and pricing as per lender policy and RBI guidance.
Processing timelines vary by institution.
- 03
Disbursement
1–2 DaysFunds disbursed to the borrower; Mudra Card/OD may be issued for working capital where applicable.
Usage as per sanction conditions.
- 04
Repayment & Graduation
1–7 YearsRepay per schedule; graduate to higher tiers upon satisfactory track record (Tarun Plus requires successful Tarun repayment).
Tenure varies by lender and product type.
05Why it's worth it
Key Benefits
Collateral‑Free Access
Enables first‑time and small entrepreneurs to access formal credit without collateral.
- Bank, NBFC, MFI channels
- Lower entry barrier
- Supports formalization
Step‑Up Funding
Shishu → Kishore → Tarun → Tarun Plus enables scale‑up based on repayment track.
- ₹50k → ₹20L span
- Track‑record based
- Term + WC flexibility
Mudra Card
RuPay OD facility for working capital; draw/repay to optimize interest outgo.
- ATM/POS enabled
- Flexible cycles
- OD based
Affordable Pricing
RBI‑linked caps with refinance can reduce borrower rates; final pricing per lender policy.
- Bank/RRB/NBFC caps
- Refinance impact
- Transparent slabs
06Questions
Frequently Asked Questions
- Shishu up to ₹50,000; Kishore ₹50,001–₹5 lakh; Tarun ₹5–10 lakh; Tarun Plus ₹10–20 lakh (for successful Tarun borrowers).
- Any Indian citizen with a viable non‑farm income‑generating activity in trading, manufacturing, or services through participating lenders.
- No, Mudra loans are intended to be collateral‑free; lenders may take primary security over assets financed and cash flows.
- A RuPay debit/OD card providing working capital access with flexible draw and repay, reducing interest cost.
- Rates are per lender policy within RBI/refinance caps where applicable; tenure typically 1–7 years depending on facility and institution.
- Tarun Plus (₹10–20 lakh) is available to borrowers who have successfully repaid a Tarun loan; apply through the same or any participating lender.
Plan your EMI before you apply
See the monthly instalment, the real cost of interest and how the balance falls, year by year.
EMI Planner
Drag the sliders — everything updates live
Monthly EMI
₹32,241
Total interest
₹4.34 L
Total payable
₹19.34 L
Principal 78%
Interest 22%
Every ₹1 borrowed costs ₹1.29 in total.
What you pay each year
Illustrative only. Your actual rate depends on the lender, scheme and your credit profile.
Real outcomes
Success Stories
“Graduated from Shishu to Kishore, expanded inventory, and added two machines with Mudra Card support.”
Seema GuptaTailoring & BoutiqueFunded: ₹2.5 Lakhs“Tarun working capital top‑up stabilized seasonal cash flows and improved supplier terms.”
Arun TradersElectronics RetailFunded: ₹9 Lakhs“Tarun Plus enabled multi‑location rollout after clean repayment track under Tarun.”
GreenBite FoodsQuick Service KioskFunded: ₹12 Lakhs
PMMY
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