Three Loan Slabs
Shishu, Kishore and Tarun categories allow progressive funding as the business grows, from micro needs to larger requirements.[web:32][web:45]
Collateral-Free Micro Business Loan
Mudra Loan
Pradhan Mantri Mudra Yojana (PMMY)
Government scheme providing collateral-free loans to micro and small businesses
in non-farm
sector through Shishu, Kishore and Tarun categories.
Who Can Apply?
✓
Eligible Borrowers
Micro and small business units in manufacturing, trading and services, including small vendors and artisans.[web:31][web:45]
✓
Age Criteria
Generally 18–60 years at the time of loan, as per individual bank policy.[web:37]
✓
Business Stage
New and existing micro enterprises seeking funds for starting, running or expanding their business.[web:31]
✓
Loan Categories
Shishu: up to ₹50,000; Kishore: ₹50,001–₹5,00,000; Tarun: ₹5,00,001–₹10,00,000.[web:32][web:45]
✓
Lending Institutions
Public and private sector banks, RRBs, cooperative banks, SFBs, MFIs and NBFCs participating in PMMY.[web:31][web:36]
✓
Creditworthiness
Borrower should have viable business plan and acceptable credit profile as per lender’s norms.[web:31][web:41]
Key Features
🧾
📝
For Multiple Uses
Funds can be used for working capital, machinery, equipment, vehicle purchase and other business purposes allowed by the lender.[web:36]
🏦
Wide Network
Available through a large network of banks, NBFCs and MFIs across India for easy access to small borrowers.[web:31][web:36]
💳
Rupay Card / OD
Many banks offer Mudra loans as term loan, overdraft or working capital with debit card access to the limit.[web:32][web:47]
🚀
Fast Processing
Simplified appraisal and documentation help micro businesses get relatively quick approvals compared to regular SME loans.[web:32][web:41]
👩💼
Support to New Entrepreneurs
Encourages first-time entrepreneurs and small units that lack collateral but have viable income-generating activities.[web:31][web:46]
Scheme Benefits
Collateral-free funding for micro and small businesses, reducing dependence on informal lenders.[web:31][web:45]
Flexible use for working capital, inventory, equipment or vehicle purchases linked to business.[web:36]
Accessible through multiple banks and financial institutions across India, including rural and semi-urban areas.[web:31][web:36]
Structured categories Shishu, Kishore and Tarun to match different stages of business growth.[web:32][web:46]
No or minimal processing charges for lower ticket sizes in many banks, especially under Shishu.[web:29][web:32]
Supports self-employment, small traders, artisans, service providers and micro manufacturing units.[web:31][web:42]
Application Process
01
Choose Bank / NBFC
Select a PMMY-participating bank or NBFC and decide the suitable category (Shishu, Kishore or Tarun) based on your requirement.[web:31][web:47]
02
Prepare Business Details
Prepare basic project details or business plan, cost estimates and repayment idea for discussion with the lender.[web:36][web:41]
03
Submit Application & KYC
Fill Mudra / loan application form and submit KYC, business proofs, bank statements and any other documents asked by the lender.[web:35][web:38]
04
Appraisal & Disbursement
Lender appraises your proposal and, on approval, sanctions and disburses the Mudra loan limit as per agreed terms.[web:31][web:41]
FAQs
Frequently Asked
Questions
Questions
Under PMMY, Shishu covers loans up to ₹50,000, Kishore covers ₹50,001–₹5,00,000
and Tarun covers ₹5,00,001–₹10,00,000.[web:32][web:46]
Mudra loans are generally offered without collateral or third-party guarantee
for eligible borrowers, though lenders may set their own risk conditions within
guidelines.[web:31][web:45]
Non-farm income-generating micro enterprises in manufacturing, trading and
services sectors such as shopkeepers, small units, artisans and service
providers can apply.[web:31][web:36]
You can apply by visiting a PMMY-participating bank or NBFC branch, or through
designated online portals such as Udyamimitra, and submitting the required forms
and documents.[web:31][web:44][web:48]
Mudra is primarily a collateral-free credit scheme; interest rates are decided
by individual lenders as per RBI guidelines and there is usually no separate
interest subsidy component.[web:31][web:32]
Contact
Let’s Build
Intelligent Things
Intelligent Things
E-mail address
Info@naavbharat.com
Phone number
+91 90812 22372