PMMY Shishu — MUDRA Loan up to ₹50,000
By Ministry of Finance, Govt of India
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Quick Answer
Collateral-free micro loan up to ₹50,000 for businesses in their earliest stage
- Funding amount
- Up to ₹50,000
- Funding type
- Debt
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this loan
The Shishu category under Pradhan Mantri MUDRA Yojana (PMMY) provides collateral-free loans up to ₹50,000 for micro-enterprises in their infancy — artisans, street vendors, small traders, home-based businesses, and first-time entrepreneurs setting up or expanding a non-farm income-generating activity. Loans are disbursed through scheduled commercial banks, regional rural banks, MFIs, and NBFCs empanelled under MUDRA. Priority is given to new entrepreneurs and Shishu-category units. A MUDRA RuPay debit card may be issued for working capital needs. No collateral or guarantee fee is required; the MUDRA guarantee backstops the lender.
Eligibility
See if you're eligible
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 ₹50,000
- Fund type
- Debt
- Equity
- Equity-free
- Repayment
- Repayable
What You Get
PMMY Shishu provides collateral-free loans up to ₹50,000 for micro-enterprises at the earliest stage of their journey. No guarantee fee is charged to the borrower — the MUDRA guarantee covers the lender's risk. A MUDRA RuPay debit card may be issued alongside the loan for convenient working capital access.
Funds can be used for any non-farm income-generating activity including stock purchases, equipment, tools, and day-to-day working capital. The scheme is available on a rolling basis with no fixed application window, through banks, RRBs, MFIs, and NBFCs across India.
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
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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
Submit on the official portal
Use the official application link and verify all details before final submission.
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Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
Who can apply for a PMMY Shishu loan?
Any non-farm micro-enterprise or entrepreneur — including artisans, street vendors, small traders, home-based businesses, and first-time entrepreneurs — can apply through a MUDRA-empanelled bank, MFI, or NBFC.
What is the maximum loan amount under Shishu?
Up to ₹50,000 under the Shishu category. For higher amounts, you would apply under the Kishore (up to ₹5 lakh) or Tarun (up to ₹10 lakh) categories.
Is collateral required?
No collateral or third-party guarantee is required. The MUDRA guarantee backstops the lender, making this accessible even without property or assets.
Does my startup or business need to be registered?
Formal registration is not mandatory. Street vendors, artisans, and informal micro-entrepreneurs are eligible. However, having a business plan or proof of activity helps the lender assess your loan request.
What can the loan be used for?
The funds can be used for working capital (stock, raw materials, wages) or capital expenditure (tools, equipment) for any non-farm income-generating activity.
How do I apply?
Visit a MUDRA-empanelled scheduled commercial bank, regional rural bank (RRB), MFI, or NBFC near you, or apply online through the Jansamarth portal at jansamarth.in.
