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Pradhan Mantri MUDRA Yojana

MUDRA

Ministry of FinanceUpdated: 12 January 2026

About the Scheme

Collateral-free loans up to Rs 10 lakh for micro and small enterprises under three categories

Benefits

No collateral required, low interest rates (varies by bank), flexible repayment up to 5 years, no processing fee for loans up to Rs 50,000

Eligibility Criteria

Non-corporate, non-farm small business owners aged 18+ with viable business plan

Documents Required

Aadhaar card, PAN card, business plan, bank statements of last 6 months, passport size photo

Step-by-Step Application Process

1
Apply online at mudra.org.in or visit nearest bank branch
2
select loan category (Shishu up to Rs 50K
3
Kishor up to Rs 5L
4
Tarun up to Rs 10L)
5
submit application with documents
6
loan disbursed in 7-15 days

Frequently Asked Questions

What are the loan categories under MUDRA?

Shishu (up to Rs 50,000), Kishor (Rs 50,001 to Rs 5 lakh), Tarun (Rs 5,00,001 to Rs 10 lakh)

Can freelancers and gig workers apply?

Yes, all non-corporate non-farm small business owners including freelancers are eligible

Is there any government guarantee fee?

No guarantee fee for MUDRA loans; loans are covered under Credit Guarantee Fund Trust

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Scheme Info

Categorybusiness
Helpline1800111944
Last Updated12 January 2026