PMMY Kishore — MUDRA Loan ₹50,000 to ₹5 Lakh
By Ministry of Finance, Govt of India
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Quick Answer
Collateral-free business loan ₹50,001–₹5 lakh for growing micro-enterprises
- Funding amount
- ₹50,001 – ₹5L
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
The Kishore category under Pradhan Mantri MUDRA Yojana (PMMY) targets micro-enterprises that have already started but need capital to grow — small manufacturers, service providers, retailers, and repair shops needing to scale equipment, inventory, or working capital. Loans range from ₹50,001 to ₹5 lakh with no collateral requirement. Channelled through banks, RRBs, MFIs, and NBFCs; the lender assesses repayment capacity on the basis of business cash flows rather than physical security. Interest rates vary by lender (no statutory cap at this tier beyond RBI guidelines).
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
- ₹50,001 – ₹5L
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
PMMY Kishore provides collateral-free loans between ₹50,001 and ₹5 lakh for micro-enterprises already in operation and looking to grow. No physical security is required; lenders evaluate your business cash flows and repayment capacity instead. Interest rates are determined by the lender within RBI''s MSME lending guidelines.
Funds can be used for equipment, inventory, working capital, or market expansion across manufacturing, services, and trading sectors. The scheme is available year-round through banks, RRBs, MFIs, and NBFCs empanelled under MUDRA.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Register or log in on the
Register or log in on the Jan Samarth portal (jansamarth.in) and select 'Business Loan' → 'Pradhan Mantri MUDRA Yojana'.
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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
Who is eligible for a PMMY Kishore loan?
Non-farm micro-enterprises that are already operating and need capital to grow — including small manufacturers, service providers, retailers, and repair shops — can apply through any MUDRA-empanelled bank, MFI, or NBFC.
What is the loan range under Kishore?
₹50,001 to ₹5 lakh. For smaller needs, apply under Shishu (up to ₹50,000); for larger requirements, consider Tarun (up to ₹10 lakh) or Tarun+ (up to ₹20 lakh).
Is collateral required?
No collateral is required. Lenders assess repayment capacity based on business cash flows rather than physical security.
What interest rate will I pay?
Interest rates vary by lender. There is no statutory cap at the Kishore tier beyond RBI''s general MSME lending guidelines. Compare rates across banks, RRBs, MFIs, and NBFCs before applying.
What can the loan be used for?
Any non-farm income-generating activity — scaling equipment, increasing inventory, expanding to new markets, or managing working capital needs for manufacturing, services, or trading.
How do I apply?
Visit any MUDRA-empanelled scheduled commercial bank, RRB, MFI, or NBFC, or apply digitally through the Jansamarth portal at jansamarth.in.
News
- Increase in limit of Mudra Loan Schemesanskritiias.com · 2 months ago
Source: Google News aggregated
