Ministry of Finance · MUDRA
Mudra LoanPradhan Mantri MUDRA Yojana
Collateral-free loans up to ₹20 lakh for shops, traders, small manufacturers and service businesses.
Kirana shops, tailors, tiffin services, small food stalls, beauty parlours, transport operators and micro manufacturers.
What you get
- No collateral or third-party guarantee required
- Available from public & private banks, small finance banks, NBFCs and MFIs
- Term loan for machinery plus working capital / overdraft
- Repay over 3 to 7 years depending on the bank
Who can apply
- Any Indian citizen with an income-generating, non-farm business plan
- Manufacturing, trading, services and allied agri activities (dairy, poultry, bee-keeping)
- Not a defaulter with any bank or financial institution
- Tarun Plus only after fully repaying a Tarun loan
Step-by-step process
- 1Tell us your requirement
- 2Choose Shishu / Kishore / Tarun category
- 3Project report & documents prepared
- 4Application filed with the right bank
- 5Bank verification visit
- 6Sanction & disbursement
Documents needed
Calculate
Mudra Loan Finder
Shishu, Kishore, Tarun or Tarun Plus — which one fits you.
No collateral · No guarantor · Any bank, NBFC or MFI
Also consider
Schemes that work well with this one
Start a new manufacturing or service unit and get up to 35% of the project cost as a government subsidy.
- ₹50 L
- Max project · manufacturing
- ₹20 L
- Max project · service
- 5–10%
- Your own contribution
Get a bank loan without pledging your house or land — the government guarantees it for you.
- 75–90%
- Guarantee cover
- 0
- Property to mortgage
- MSE
- New & existing units
For pickle, papad, masala, bakery, snacks, flour, oil and dairy units — 35% subsidy up to ₹10 lakh.
- 35%
- Credit-linked subsidy
- 10%
- Your contribution
- ₹40 K
- Seed capital per SHG member
Scheme details are summarised from official guidelines and may change. Final eligibility, loan amount and subsidy are decided by the bank and the implementing agency.