Subsidy
MUDRA Loans (PMMY)
Pradhan Mantri MUDRA Yojana (PMMY) provides collateral-free loans for income-generating micro and small activities in manufacturing, trading, services and agri-allied activities such as dairy, poultry and beekeeping. Loans are given by banks, regional rural banks, small finance banks, NBFCs and MFIs.
Loan categories
| Category | Loan amount |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishore | Above ₹50,000 up to ₹5 lakh |
| Tarun | Above ₹5 lakh up to ₹10 lakh |
| Tarun Plus | Above ₹10 lakh up to ₹20 lakh, for borrowers who have availed and successfully repaid a Tarun loan |
Key terms
- No subsidy: MUDRA is a loan scheme. Interest is set by the lender under RBI norms.
- Guarantee: loans are covered by the Credit Guarantee Fund for Micro Units (CGFMU), managed by NCGTC, which is why collateral is not required.
- Applying: at any bank, NBFC or MFI branch, or online through the JanSamarth portal.
- Documents: KYC, business plan or quotations, address and category proof, bank statements and, where applicable, Udyam registration.
MUDRA units with a good track record can seek a second loan for upgradation under PMEGP, subject to that scheme's continuation. For loans above MUDRA limits, see CGTMSE cover for collateral-free MSE loans. Stand-Up India, sometimes mentioned alongside MUDRA, lapsed on 31 March 2025 and is not covered here.
How we help
For Kishore, Tarun and Tarun Plus loans, a clear project report and cash-flow plan makes the bank's decision easier. We prepare it, check the repayment against your cash cycle with our EMI calculator and help you choose between MUDRA and other routes.
Sources
Scheme terms change; verify on the official portal; last checked 2 Oct 2026. This page is general information for planning, not a guarantee of eligibility, sanction or disbursement. See our Terms of Use & Disclaimer.
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