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Mudra loan under PMMY: Shishu, Kishore, Tarun, Tarun Plus

  • Mudra loans are collateral-free bank loans up to ₹20 lakh for small businesses, in four slabs.
  • Deadline: Any time; apply before the spend, since the loan funds new or expanding activity
  • Done in 5 working days to prepare the file; bank decision is up to the lender (RBI norm 14 working days for MSE loans up to ₹25 lakh)
  • Prepared by your Savvy, checked by a CA
  1. Aadhaar, PAN or Voter ID
  2. How much do you need
  3. Eligibility check
  4. Application number and acknowledgement
The law and the stepsPay and start · ₹2,999One time, + 18% GST

Answer in brief

Mudra loans are collateral-free bank loans up to ₹20 lakh for small businesses, in four slabs. We pick the right slab, prepare the project report and documents, apply on JanSamarth or at your bank, and follow up until a decision.

Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

  • Pradhan Mantri MUDRA Yojana (PMMY), Department of Financial Services

    Collateral-free loans through Member Lending Institutions: Shishu up to ₹50,000; Kishore above ₹50,000 up to ₹5 lakh; Tarun above ₹5 lakh up to ₹10 lakh; Tarun Plus above ₹10 lakh up to ₹20 lakhSource

  • PMMY limit enhancement, effective 24 October 2024 (Union Budget 2024-25 announcement)

    Tarun Plus is only for borrowers who have availed and successfully repaid earlier loans under the Tarun categorySource

  • Credit Guarantee Fund for Micro Units (CGFMU), NCGTC

    PMMY loans, including the enhanced Tarun Plus loans, are covered by CGFMU guarantee; SBI notes the cover runs five years, so its maximum tenure for these loans is 60 monthsSource

  • RBI Master Direction, Lending to MSME Sector, para 4.1(1), as amended 9 February 2026 (effective 1 April 2026)

    Banks must not accept collateral security for loans to micro and small enterprises up to ₹20 lakhSource

  • RBI Master Direction, Lending to MSME Sector, paras 4.4(4), 4.7(1) and 4.7(4)

    Credit decision on MSE loans up to ₹25 lakh within 14 working days; application acknowledgement with unique number; main reasons for rejection conveyed in writingSource

  • Government fee

    No government fee. Bank processing fee is set by the lender; SBI example: nil for Shishu and Kishore loans to MSE units, 0.50% of loan plus tax for Tarun. Interest is linked to the bank's external benchmark (EBLR at SBI). Source: https://sbi.bank.in/web/business/sme/sme-government-schemes/pmmy

On the portal

  1. Open jansamarth.in and choose the Business Activity Loans category (Mudra)
  2. Register or log in with mobile number and Aadhaar-linked OTP
  3. Answer the eligibility questions about the business
  4. Fill the application and upload KYC, quotation and other documents
  5. Select a lender from the options shown and submit
  6. Track status in the account; SMS and email updates are sent

What trips people up

  • Branch asks for collateral or a third-party guarantor on a small Mudra loan

    Point to the RBI rule: no collateral for MSE loans up to ₹20 lakh sanctioned or renewed from 1 April 2026; escalate in writing if refusedSource

  • Names, addresses or business proof do not match across documents

    Align KYC, bank and registration details before applyingSource

  • No project report for Tarun or Tarun Plus

    Prepare a plan with fund use, cost estimates, expected earnings and repayment scheduleSource

  • Slow processing with no status update

    Keep the acknowledgement, follow up weekly and track onlineSource

  • Rejected by one bank with no clear reason

    Ask for the specific reason in writing, correct the file and reapplySource

  • Applying for more than the business can justify

    Choose the slab that matches real need and historySource

People ask

Can I get ₹20 lakh as a first Mudra loan?

No. Tarun Plus (above ₹10 lakh up to ₹20 lakh) is only for those who took and repaid a Tarun loan.Source

Do I need collateral?

No. Mudra loans are collateral-free and covered by CGFMU guarantee. The bank takes hypothecation of assets bought with the loan.Source

Is there a processing fee?

It depends on the lender. SBI charges nil for Shishu and Kishore and 0.50% for Tarun.Source

How long can I repay?

Lender-specific. SBI: up to 5 years with up to 6 months moratorium below ₹5 lakh; up to 7 years with 12 months moratorium for ₹5 lakh to ₹10 lakh.Source

Where do I apply online?

JanSamarth, PSB Loans in 59 Minutes or Udyamimitra, or directly at any bank, RRB, small finance bank, NBFC or MFI that lends under PMMY.Source

Do I have to put my own money in?

SBI asks nil margin up to ₹50,000 and 20% above it; other banks differ (Karnataka Gramin Bank asks 15%).Source

IDFD

How we solve it: 4 steps

Every line tracked live.

Step 1 of 4 · What we need from you

Tap each one you already have

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  • Aadhaar, PAN or Voter ID
  • Residence address proof
  • Two recent photographs
  • Quotation or activity description
  • Business registration or trade licenceOptional
  • Last six months bank statementsOptional
  • Project report or business planOptional
  • Udyam registrationOptional
  • Earlier Tarun loan closure proofOptional
  • Caste certificate, if applicableOptional

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One time. Delivered in 5 working days to prepare the file; bank decision is up to the lender (RBI norm 14 working days for MSE loans up to ₹25 lakh). Due: Any time; apply before the spend, since the loan funds new or expanding activity

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