Central government · Department of Financial Services

Pradhan Mantri MUDRA Yojana PM MUDRA

Collateral-free loans up to ₹20 lakh from banks and other lenders for small non-farm businesses in manufacturing, trading, services and allied farm activities.

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Cost to apply
Free to apply. Lender charges vary.
Status
Open
Run by
Department of Financial Services, Ministry of Finance, through banks, NBFCs and microfinance institutions
Official website (external site)

What you get

  • Shishu, loans up to ₹50,000
  • Kishor, loans above ₹50,000 and up to ₹5 lakh
  • Tarun, loans above ₹5 lakh and up to ₹10 lakh
  • Tarun Plus, loans above ₹10 lakh and up to ₹20 lakh for borrowers who took and fully repaid a Tarun loan, available from 24 October 2024
  • No collateral required
  • Covers both term loans and working capital, including allied activities such as poultry, dairy and beekeeping

Who can apply

  • Open to businesses in manufacturing, services, trading and farming, fisheries and livestock.
  • Nano and micro enterprises.
  • The most on offer is ₹20 lakh.
  • Any individual otherwise eligible to borrow, with a business plan for an income-generating activity
  • Non-corporate and non-farm activities
  • Tarun Plus only after successful repayment of an earlier Tarun loan

How to apply

  1. Prepare a short business plan with the amount needed
  2. Apply at a bank branch or other lender, or online through the Jan Samarth portal
  3. The lender appraises and sanctions the loan

In person, any bank branch, NBFC or microfinance institution

In Kerala, any bank branch, small finance bank, NBFC or microfinance institution lending in Kerala

Worth knowing

Running since 8 April 2015. By 27 March 2026 about 57.79 crore loans worth ₹40.07 lakh crore had been given.

Where we found this

An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.

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External website

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