Key takeaways
- MUDRA loans are for non-farm micro and small businesses, with three size categories.
- Loans under the scheme are generally offered without collateral.
- Limits and rules are revised, so confirm the current scheme on the official portal.
What MUDRA is
The Pradhan Mantri MUDRA Yojana (PMMY) helps small enterprises get credit from banks, small finance banks, NBFCs and microfinance institutions. The loan is not given by MUDRA itself; you apply to one of these lenders.
The three categories
- Shishu: for businesses just starting, with loans up to ₹50,000.
- Kishor: for businesses that need to grow, with loans above ₹50,000 and up to ₹5 lakh.
- Tarun: for established businesses, with loans above ₹5 lakh and up to ₹10 lakh.
A higher limit under a “Tarun Plus” category has been announced for borrowers who repaid earlier Tarun loans. Check the current terms before you apply.
Who can apply
- Small manufacturers, traders, shopkeepers, service providers and artisans.
- Food-processing, transport (commercial vehicles) and similar non-farm activities.
- Individuals, proprietors and small partnerships, subject to the lender’s policy.
Documents commonly asked for
- KYC (Aadhaar, PAN) and address proof.
- Business proof such as Udyam registration, shop licence or GST registration, where applicable.
- Bank statements and a short business plan or quotation for equipment.
Tips
- Prepare a clear plan for how you will use and repay the loan.
- Keep your personal credit record clean: how to improve your score.
- Apply only through official channels and never pay an agent to “approve” a MUDRA loan.
Compare more options in small business loan types or on the business loan page.
This article is for general information only and is not financial, legal or tax advice. Interest rates, fees and rules change, so confirm current terms with the lender or the regulator before you decide. Examples use illustrative figures. Last reviewed: October 2026.
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