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MUDRA provides collateral-free, guarantor-free working capital and term loans to non-farm micro and small businesses through commercial banks, microfinance institutions, and cooperative banks.
Government benefits · MSME
MUDRA loan: collateral-free business loan up to ₹20L (Tarun Plus)
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Provisions
MUDRA (Micro Units Development Refinance Agency) | PM Mudra Yojana
Analysis
Three categories: • Shishu: Up to ₹50,000 (new micro businesses, street vendors) • Kishore: ₹50,001 to ₹5L (established micro businesses) • Tarun: ₹5L to ₹10L (growth-stage small businesses) • Tarun Plus (new 2024): ₹10L to ₹20L (for businesses with strong repayment history) Interest rate: Determined by the lending institution (no fixed MUDRA rate), typically base rate + 1-3% for Shishu/Kishore, market rates for Tarun. Subsidised for specific sectors (SC/ST entrepreneurs, women-owned businesses, NER states). How to apply: Any PSU bank, private bank, microfinance institution. Online: udyamimitra.in. Eligibility: Non-farm business, not defaulter on any loan, MSME registration (Udyam).
Close
- Udyam Registration Certificate (MSME registration, free, online at udyamregistration.gov.in)
- Business proof, GST registration / shop licence / trade licence
- Last 2 years ITR (if available) or 6 months bank statement
- Proof of business premises (rent agreement / utility bill)
- Business plan / purpose of loan (2-3 pages for Tarun)
- Aadhaar, PAN, passport photo of proprietor/partners
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