Pradhan Mantri Mudra Yojana (PMMY)
Collateral-free business loans from ₹50,000 up to ₹20 lakh, with no security to pledge
A Mudra loan is a business loan you can take without pledging land, gold or any other security. It runs from ₹50,000 up to ₹20 lakh, split into Shishu, Kishor, Tarun and Tarun Plus categories depending on how big your business is and how well you have repaid before. You apply at a bank branch, and the bank cannot ask you for collateral for these loans.
Who can apply
- Any Indian citizen running or starting a small non-farm business, trade, shop or service
- Has a business idea or existing business the bank can assess
- No default on an existing loan with the bank
What to take with you
- Aadhaar card and PAN card
- Bank statement of the last six months
- Quotation or cost estimate for the machinery or stock you want to buy
- Proof of business address, if the business already exists
- Passport size photographs
How to apply
Apply at any bank branch that gives Mudra loans, or online through the Udyami Mitra portal at udyamimitra.in. Take a simple written note of what you will spend the money on, since that is the first thing the bank asks.
Rejected or still waiting? Check these first
Most applications fail for a correctable reason, not because the applicant was ineligible. Before assuming you do not qualify, check each of these:
- Poor credit history or an existing loan default
- No clear plan for what the money will be used for, so the bank cannot assess the business
- Bank asked for papers that were never submitted, and the file was closed as incomplete
Still stuck after checking all of these? Tell us what happened and we will help you work out which office to approach.