PM MUDRA Yojana — Micro Units Development & Refinance Agency
By Ministry of Finance, Govt of India
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Quick Answer
Collateral-free loans up to ₹20 lakh for micro and small non-farm businesses
- Funding amount
- Up to ₹20 Lakhs
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
Collateral-free loans for non-farm micro/small businesses via banks, NBFCs and MFIs. Tiers: Shishu (up to ₹50,000), Kishor (₹50,001–₹5 lakh), Tarun (₹5–₹10 lakh), Tarun Plus (₹10–₹20 lakh). MUDRA provides refinance to lenders; borrower gets a RuPay MUDRA card for working capital.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Grant providers
The Ministry of Finance is the apex ministry of the Government of India responsible for the country's economic and fiscal policy. Headquartered at North Block, New Delhi, it administers taxation, public expenditure, financial-sector regulation, capital markets and the Union…
Learn moreBenefits & Funding
- Amount
- Up to ₹20 Lakhs
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
PM MUDRA Yojana offers collateral-free loans ranging from ₹1 to ₹20 lakh across four tiers (Shishu, Kishor, Tarun, Tarun Plus), making institutional credit accessible to micro-enterprises that typically lack assets to pledge. MUDRA provides refinance to lending institutions, enabling them to extend affordable credit to borrowers. A unique feature is the RuPay MUDRA card for working capital, which allows on-demand drawdown. There is no equity dilution — MUDRA loans are pure debt — but the absence of collateral requirements significantly lowers the barrier to entry for first-time and existing micro-entrepreneurs in any non-farm sector.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Obtain Udyam Registration (recommended, not mandatory
Obtain Udyam Registration (recommended, not mandatory for all tiers).
You - 2
- 3
- 4
- 5
- 6
How to apply
Four steps from draft to disbursement — one action each.
- 1
Draft your application
Answer the form inside the grant tracker — AI drafts each response using your past answers, so you're not starting from a blank page.
- 2
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 3
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 4
Submit on the official portal
Use the official application link and verify all details before final submission.
- 5
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is PM MUDRA Yojana and who is it for?
PM MUDRA Yojana provides collateral-free loans to non-farm micro and small businesses through banks, NBFCs, and MFIs. It covers manufacturing, trading, and service enterprises. Both first-time borrowers and existing businesses can apply.
What are the loan tiers under MUDRA?
MUDRA has four tiers: Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh), and Tarun Plus (₹10 lakh to ₹20 lakh). Each tier targets a different stage of business growth.
Is collateral required for a MUDRA loan?
No collateral is required for MUDRA loans. The scheme is specifically designed to provide collateral-free credit to micro and small businesses.
What is the RuPay MUDRA card?
Borrowers receive a RuPay MUDRA card linked to their working capital limit, allowing them to draw funds as needed rather than taking a lump sum. This helps manage cash flow efficiently.
Is equity taken under PM MUDRA Yojana?
No. MUDRA loans are debt instruments — no equity or ownership stake is taken. The loan must be repaid with interest to the lending institution.
How do I apply for a MUDRA loan?
You do not apply to MUDRA directly. Visit any MUDRA-participating bank, NBFC, or MFI branch with your business details and documents. You can also check mudra.org.in or apply through the Udyamimitra portal for online applications.
News
- PM Mudra Yojana Empowers Women Entrepreneurs with INR 32.6 Lakh Crore Disbursalsgoodreturns.in · 2 weeks ago
- Global Fintech Fest 2026: DFS Secretary Sanjay Lohiya unveils UPI credit for KCC, MUDRA borrowersm.economictimes.com · 4 weeks ago
Source: Google News aggregated
