Mudra Loans (PMMY)
Collateral‑free business loans for micro enterprises under the Pradhan Mantri Mudra Yojana, with CGFMU guarantee support, offered as term loans or working capital and optional RuPay Mudra Card for OD usage.
What are Mudra Loans?
Mudra loans are collateral‑free credit facilities up to ₹20 lakh for non‑farm micro enterprises, categorized as Shishu (up to ₹50,000), Kishore (₹50,001–₹5 lakh), Tarun (₹5–10 lakh), and Tarun Plus (₹10–20 lakh) to match business growth stages.
Facilities can be sanctioned as term loans and/or working capital, with an optional RuPay Mudra Card that provides an overdraft‑style revolving limit for day‑to‑day expenses and repayments.
Focused
Secure
Fast
Trusted
Why choose our Mudra support?
Up to ₹20 Lakh
Access micro credit from Shishu to Tarun Plus based on the enterprise’s stage and funding need
Collateral‑Free
No collateral required; credit risk is backed by CGFMU portfolio guarantee for lenders
Mudra Card (RuPay)
Working capital via an OD‑like card to draw, spend, and repay flexibly, lowering interest cost
Term + WC
Combine term loans for assets with working capital for inventory, utilities, and operations
Broad Eligibility
Individuals, proprietorships, firms, companies, and SHGs running non‑farm micro enterprises
Sector Coverage
Transport, retail and services, food processing, textiles/handicrafts, and agro‑allied activities
Eligibility Criteria
Who Can Apply?
- New or existing non‑farm micro enterprises engaged in income‑generating activities
- Eligible applicants include individuals, proprietorships, partnerships, companies, LLPs, AOPs, and SHGs
- Satisfactory credit history with no willful default at banks/FIs as per lender policy
- Purpose may include term asset purchase and/or working capital for daily operations
- Activities span manufacturing, trading, services, and specified allied agriculture
Conditions
- Loan categories: Shishu (≤₹50k), Kishore (₹50,001–₹5L), Tarun (₹5–10L), Tarun Plus (₹10–20L)
- Collateral‑free; primary security is typically hypothecation of assets created from bank finance
- Interest rate, margin, and tenure are as per the lending bank’s policy within PMMY norms
- Working capital can be availed through a RuPay Mudra Card with OD‑style usage
- Guarantee cover provided under CGFMU to eligible lenders for PMMY loans
Simple Application Process
Apply with Lender
Submit basic KYC and business details to a bank/NBFC participating in PMMY and choose the right category
Appraisal
Lender assesses income generation potential, credit history, and structures term/WC as needed
Sanction
Receive sanction terms covering amount, pricing, tenure, margins, and Mudra Card if opted
Disbursal & Usage
Use term funds for assets and the Mudra Card/CC for operations; repay per agreed schedule
Apply with Lender
Submit basic KYC and business details to a bank/NBFC participating in PMMY and choose the right category
Appraisal
Lender assesses income generation potential, credit history, and structures term/WC as needed
Sanction
Receive sanction terms covering amount, pricing, tenure, margins, and Mudra Card if opted
Disbursal & Usage
Use term funds for assets and the Mudra Card/CC for operations; repay per agreed schedule
Required Documents
Document Checklist
Important: Exact documentation varies by lender, facility type, and ticket size; requirements are finalized during appraisal.
Frequently Asked Questions
Ready to apply under PMMY?
Get category mapping (Shishu/Kishore/Tarun/Tarun Plus), documentation, and bank coordination support for faster sanction and disbursal.
₹500Cr+
Funded
20K+
Businesses
95%
Success Rate