Pradhan Mantri Mudra Yojana provides collateral-free loans to micro and small enterprises. Learn about Shishu, Kishore, and Tarun loan categories.
Mudra Loan Categories
Shishu loans up to Rs. 50,000 target nascent entrepreneurs starting small businesses. These are typically for purchasing equipment, raw materials, or basic infrastructure needs.
Kishore loans between Rs. 50,000 and Rs. 5 lakhs support established businesses requiring expansion capital. Businesses using Shishu loans can upgrade to Kishore upon growth.
Tarun loans from Rs. 5 lakhs to Rs. 10 lakhs help mature businesses achieve higher growth. These funds support technology upgrades, market expansion, and capacity enhancement.
Eligibility
Any individual with a business plan can apply. Small manufacturing, service, or trading enterprises qualify. No minimum education or experience required. Women, SC/ST, and OBC candidates receive priority.
Loans are available for new and existing businesses. Businesses already financed by other banks can also apply for additional Mudra financing. The scheme covers both manufacturing and service sectors.
Application Process
Visit any bank, NBFC, or microfinance institution offering Mudra loans. Submit the application form with business plan and required documents. Banks assess the proposal based on viability.
Jan Dhan accounts simplify the process for applicants. Bank representatives guide applicants through the Mudra portal. Loans up to Rs. 10 lakhs typically get processed within 7-15 days.
Interest Rates
Banks set interest rates based on borrower profile and loan amount. Rates typically range from 8% to 15% per annum. MUDRA cards allow drawing credit as needed, with interest charged only on amounts used.
