Up to ₹20 lakh for your small business — no collateral, no guarantor.
Pradhan Mantri MUDRA Yojana has funded 57.79 crore loans since 2015. Four categories run from Shishu loans of up to ₹50,000 all the way to ₹20 lakh (Tarun Plus, for borrowers who repaid a Tarun loan), guaranteed through CGFMU. Applying is free at any bank or on Udyamimitra / Jan Samarth. What we add: the right loan size, a business plan lenders understand, a side-by-side lender comparison, and follow-up until the money is in your account.
- Category check — Shishu, Kishor, Tarun or Tarun Plus — and loan sizing
- Business plan / project report for Kishor and Tarun files
- Document pack: KYC, business proof, bank statements, quotations
- Online application on Udyamimitra / Jan Samarth, or branch filing
- Lender follow-up through appraisal, sanction and disbursement
- Mudra Card set-up guidance + 12-month repayment calendar
The Mudra framework in 2026
Four categories — Shishu (≤₹50K), Kishor (≤₹5L), Tarun (≤₹10L) and Tarun Plus (≤₹20L) — one guarantee fund (CGFMU), and every kind of lender. MUDRA refinances the lenders; you borrow from a bank, NBFC or MFI.
How PMMY works:
- Launched April 8, 2015 — "funding the unfunded"
- MUDRA refinances lenders; it doesn't lend directly
- Borrow from banks, RRBs, SFBs, cooperative banks, NBFCs or MFIs
- Apply free at a branch or on udyamimitra.in / jansamarth.in
- Guaranteed by CGFMU (NCGTC) — no collateral, no guarantor
Categories:
- Shishu: up to ₹50,000
- Kishor: ₹50,000 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
- Tarun Plus: ₹10 lakh to ₹20 lakh — repaid Tarun borrowers only (from Oct 24, 2024)
What it funds:
- Manufacturing, processing, trading and services
- Allied agriculture: dairy, poultry, beekeeping
- Term loans, working capital, MUDRA RuPay card on CC limits
What it isn't:
- Not a grant — no subsidy in PMMY
- Not for personal consumption
- No fixed government interest rate — lender-set
Mudra is right for you if...
- You run (or are starting) a small non-farm business — shop, workshop, food unit, salon, repair, transport, services — and need up to ₹20 lakh
- You have no property to pledge — Mudra loans are collateral-free; lenders are covered by the CGFMU guarantee
- You're in dairy, poultry, beekeeping or another activity allied to agriculture — these are explicitly covered
- You need working capital with flexibility — a Mudra Card lets you draw and repay against your limit
- You repaid a Tarun loan and want to grow — Tarun Plus goes up to ₹20 lakh
- You want a quick, simple route — no subsidy paperwork, no training requirement, no new-unit condition
Look elsewhere in these scenarios...
- You need more than ₹20 lakh — look at a CGTMSE-backed loan (up to ₹10 crore)
- You want Tarun Plus but haven't repaid a Tarun loan — first-time borrowers top out at ₹10 lakh
- The money is for personal use (a car, a wedding, home repairs) — Mudra is only for income-generating business activity
- You're a first-time founder who qualifies for a subsidy — PMEGP gives 15-35% of project cost as margin money; Mudra gives none
- You have a recent loan default — lenders check credit history; clear it first
- You're looking for a grant — Mudra is a loan, repayable in full with interest
What Mudra actually delivers
Collateral-free credit up to ₹20 lakh · a four-step ladder · term loans, working capital and the Mudra Card · allied agriculture included · any lender, two free portals · proven with 57.79 crore loans.
Collateral-Free up to ₹20 Lakh
Mudra loans need no collateral and no third-party guarantee. Lenders are protected instead by the Credit Guarantee Fund for Micro Units (CGFMU), run by the National Credit Guarantee Trustee Company (NCGTC), which has covered eligible micro loans since April 8, 2015. Since October 24, 2024 the guarantee extends to the full ₹20 lakh Tarun Plus limit. For a first-generation business owner with no property, that's the difference between getting formal credit and borrowing from a moneylender.
Four-Step Ladder That Grows With You
Shishu up to ₹50,000 · Kishor ₹50,000-5 lakh · Tarun ₹5-10 lakh · Tarun Plus ₹10-20 lakh. The categories signal stage of growth: a street-food cart starts at Shishu, a small workshop moves to Kishor, an established unit uses Tarun. Tarun Plus is reserved for borrowers who have taken and repaid a Tarun loan — so a clean repayment record is what unlocks the next ₹10 lakh.
Term Loan, Working Capital and the Mudra Card
Mudra covers term loans (machinery, equipment, vehicles for business, shop fit-out) and working capital (stock, raw material, receivables). For cash-credit limits, lenders issue a MUDRA RuPay card, so you can draw at ATMs and card machines as needed. With a cash-credit limit, interest is typically charged only on what you actually use, which keeps costs down for seasonal businesses.
Allied Agriculture Included
Mudra is for non-farm income-generating activity — manufacturing, processing, trading and services — but PIB confirms it also covers activities allied to agriculture such as dairy, poultry and beekeeping. That makes it one of the few collateral-free routes for small livestock and apiculture units that don't fit crop-loan products.
Every Kind of Lender · Two Online Portals
MUDRA itself doesn't lend — it refinances the lenders. You borrow from public and private sector banks, RRBs, small finance banks, cooperative banks, NBFCs or MFIs. You can walk into a branch or apply online at udyamimitra.in or jansamarth.in, both free. Interest is set by each lender under RBI guidelines, so comparing two or three lenders matters.
Proven at Scale · Built for First-Timers
As of March 27, 2026: 57.79 crore loans sanctioned worth ₹40.07 lakh crore. About two-thirds went to women and 51% to SC/ST/OBC entrepreneurs, and roughly one in five loans went to first-time entrepreneurs. Unlike PMEGP, there is no new-unit rule, no age-band scheme test and no training requirement — existing businesses borrow just as easily.
Coming soon: the Mudra journey
Category and sizing → documents and plan → application → lender appraisal → sanction → disbursement and Mudra Card → on-time EMIs that unlock the next category. In 2 minutes.
3-phase journey · Application to repayment
Amber = preparation (days 1-7). Gold = lender appraisal (weeks 1-4). Green = disbursement and repayment. Shishu is quickest; Tarun files take longer because the lender reviews a project report and usually visits the site.
Category + Size
Loan sized against the business; Tarun Plus only with a repaid Tarun loan.
File + Plan
KYC, business proof, statements; plan or project report for Kishor and above.
Apply Free
Branch, udyamimitra.in or jansamarth.in — whichever is fastest for you.
Appraisal + Sanction
Credit check, site visit for Kishor+, sanction with rate, fees and tenure.
Disbursement
Funds to supplier or account; MUDRA RuPay card for cash-credit limits.
EMIs on Time
The repayment record is what unlocks the next category.
6 eligibility scenarios
Documents for the lender application
Identity and address, business proof and financial documents. Shishu needs very little; Kishor and Tarun need a plan or project report. Most clients share documents on WhatsApp — we check them before anything goes to the lender.
Identity + Address
- Aadhaar (linked to mobile for online OTP)
- PAN of applicant
- Recent photographs
- Residential address proof
- Category certificate (SC/ST/OBC/minority), if applicable
- Partnership deed, for partnership firms
Business Proof
- Business address proof (ownership / rent agreement)
- Shop / trade licence or registration, if any
- Udyam registration (commonly asked for Kishor+)
- GST registration, if registered
- Quotations for machinery / equipment / stock
- Photos of premises or existing activity
Financial Documents
- Bank statements — last 6-12 months
- ITRs — last 1-2 years (existing businesses, Kishor+)
- Business plan / project report (Kishor, Tarun, Tarun Plus)
- Projected cash flows for loans above ₹2 lakh
- Tarun loan closure / repayment proof (for Tarun Plus)
- Existing loan statements, if any
Check your category and monthly EMI
Enter the amount you need, the interest rate you've been quoted and the tenure. Shows your Mudra category, the maximum you can get, EMI, total interest and what documents to expect. Rates are lender-set — try a couple of values.
Mudra vs CGTMSE vs PMEGP · Which route fits
16 dimensions comparing Mudra (micro loan up to ₹20 lakh), CGTMSE (guarantee for loans up to ₹10 crore) and PMEGP (subsidy scheme for new units). Many businesses use all three at different stages.
| Criteria | Mudra (PMMY) | CGTMSE | PMEGP |
|---|---|---|---|
| Nature | Collateral-free micro loan | Guarantee to lender | Loan + margin money subsidy |
| Maximum size | ₹20 lakh (Tarun Plus) | ₹10 crore per borrower | ₹50L mfg / ₹20L service |
| Guarantee | CGFMU (NCGTC) | CGTMSE (75-90% cover) | Can be CGTMSE-covered |
| Subsidy | None | None | 15-35% of project cost |
| Collateral | None | None on covered part | None up to scheme limits |
| Who can apply | New + existing micro units | New + existing MSEs (Udyam) | NEW units only |
| Age test | Lender policy only | Lender policy only | 18+ |
| Training | None | None | EDP mandatory |
| Family limit | None | None | 1 per family |
| Extra cost | Interest + any lender fees | AGF 0.37-1.20% p.a. | Interest |
| Typical timeline | 1-4 weeks | 3-6 weeks | 3-6 months |
| Where to apply | Branch · udyamimitra.in · jansamarth.in | Through lender | kviconline.gov.in |
| Allied agriculture | Dairy · poultry · beekeeping | MSE activities | Per PMEGP list |
| Working capital card | MUDRA RuPay card | Lender product | Lender product |
| Next step up | Tarun → Tarun Plus → CGTMSE | Secured lending | Second loan / CGTMSE |
| Best for | Small tickets, quick | Growing MSEs ₹25L-10Cr | First-time founders |
India Mudra map · 6 frameworks in one chart
Every Mudra dimension in one view: how MUDRA and PMMY work, the four categories, the CGFMU guarantee, what the loan can be used for, the lenders, and what is not eligible.
Day 1 to disbursement · then a clean repayment record
Phase 1: category and sizing. Phase 2: file and application. Phase 3: appraisal and sanction. Phase 4: disbursement and on-time EMIs — the record that unlocks your next category.
Right category, right amount
We size the requirement against the business — machinery, stock, working capital — and fix the category. Asking for too much is as damaging as too little: the lender appraises repayment capacity from your cash flows.
Tarun Plus (₹10-20L) only after a Tarun loan has been taken and repaidDocuments, plan and application
KYC, business proof and bank statements collected; a business plan or project report for Kishor and Tarun files. Application filed online on Udyamimitra / Jan Samarth or at the branch — whichever gets the fastest response for your profile and area.
Applying is free. MUDRA does not use agents — never pay anyone who "guarantees" a Mudra loanLender review and sanction
The lender checks KYC, credit history, the business and repayment capacity; a site visit is common for Kishor and above. Shishu loans are often decided within days; Kishor and Tarun usually take two to four weeks.
Interest rate and processing fee are lender-set — compare before you signUse it, repay it, build the record
Term-loan funds go to the supplier or your account; cash-credit limits come with a MUDRA RuPay card. Keep business and personal spending separate and pay every EMI on time — that record is what qualifies you for the next category.
Default is reported to credit bureaus — the guarantee protects the lender, not you6 common Mudra mistakes — and how to avoid them
#1: paying an agent who "guarantees" a Mudra loan. #2: asking for Tarun Plus without a Tarun track record. #3: using the money for personal spending. Plus no business plan, not comparing lenders, and treating Mudra as a grant.
Paying an agent for a "guaranteed" Mudra loan
MUDRA states that it does not engage agents or middlemen, and applying on Udyamimitra or Jan Samarth is free. Fraudsters use the Mudra name to collect "file charges" or "approval fees" and disappear. No one outside the lender can guarantee a sanction.
Asking for Tarun Plus without a Tarun track record
Tarun Plus (₹10-20 lakh) is only for borrowers who have availed and repaid a Tarun loan. First-time applicants who apply for ₹15 lakh get either a rejection or a quiet downgrade — and lose weeks.
Using the loan for personal spending
Mudra is for income-generating business activity. Using the money for a family event or a personal vehicle breaks the purpose of the loan, leaves nothing to repay it from, and is a common route to default.
No real business plan for Kishor and Tarun
For loans above ₹50,000, lenders want to see how the money becomes income — what you'll buy, what it will produce or sell, and how EMIs will be paid. A one-line "business expansion" request is the most common reason files stall.
Not comparing lenders
Mudra has no fixed government interest rate — each lender prices it under RBI guidelines, and processing fees vary. Borrowers accept the first offer from the nearest branch or an app and pay more than they need to for five years.
Treating Mudra as a grant
Mudra is a loan, not a subsidy. The CGFMU guarantee compensates the lender if you default; you still owe the full amount, the default is reported to credit bureaus, and future borrowing becomes much harder. (PMEGP is the scheme with a subsidy.)
Pick your plan
Shishu (≤₹50,000)? Apply yourself — we'll guide you free on WhatsApp. Kishor with your own banker? ₹3,000. Want us to run the whole process? ₹6,000 End-to-End (recommended). Repaid a Tarun loan and ready for ₹10-20 lakh? ₹10,000.
- Category and loan sizing
- Document checklist + QC
- Short business plan with EMI coverage
- Online application on Udyamimitra / Jan Samarth
- Lender comparison (rate · fees · tenure)
- Answers to lender queries
- Shishu (≤₹50,000)? We'll guide you free on WhatsApp
- Everything in Kishor Assist +
- Bank-style project report with projections
- Branch coordination through appraisal
- Site-visit preparation
- Sanction letter review (rate · fees · tenure)
- Disbursement coordination + Mudra Card set-up
- Udyam registration if needed
- 12-month EMI + compliance calendar
- Best for ₹2-10 lakh working-capital + equipment loans
- Everything in End-to-End +
- Tarun repayment record compiled for the lender
- Detailed project report for ₹10-20 lakh
- GST + bookkeeping set-up if needed
- Graduation plan to CGTMSE (up to ₹10 Cr)
- 12-month bookkeeping check-ins
- For established micro units ready to scale
Prefer a call back?
Leave your number and a good time — we call within business hours (Mon–Sat, 10 am–7 pm) about Mudra Loan.
MSME funding desk · ₹120+ Cr facilitated in FY26
The Tax Paramarsh desk
"Mudra is the easiest government credit to get — and the easiest to get wrong. People pay agents for something that is free, ask for Tarun Plus without a Tarun history, or accept the first rate a branch offers for five years. Our job is simple: size the loan honestly, write a plan the lender understands, compare two or three lenders, and follow up until the money arrives. If you only need a Shishu loan, we'll tell you to apply yourself."
What business owners say after Mudra with us
Common questions
Straight answers on categories, collateral, interest, fees, timelines and Tarun Plus. Still curious? WhatsApp us anything.
What is a Mudra loan and who gives it?
Pradhan Mantri MUDRA Yojana (PMMY) was launched on April 8, 2015 to give collateral-free loans to small and micro businesses — non-corporate, non-farm, income-generating activity in manufacturing, processing, trading and services, plus activities allied to agriculture such as dairy, poultry and beekeeping.
MUDRA does not lend directly. It refinances the lenders. You borrow from a public or private sector bank, RRB, small finance bank, cooperative bank, NBFC or MFI — at a branch, or online through udyamimitra.in or jansamarth.in.
Scale (as of March 27, 2026): 57.79 crore loans, ₹40.07 lakh crore; about two-thirds to women; 51% to SC/ST/OBC borrowers.
What are Shishu, Kishor, Tarun and Tarun Plus?
- Shishu: up to ₹50,000 — starting out, minimal documents
- Kishor: above ₹50,000 up to ₹5 lakh — growing units
- Tarun: above ₹5 lakh up to ₹10 lakh — established units
- Tarun Plus: above ₹10 lakh up to ₹20 lakh — only for borrowers who have availed and repaid a Tarun loan; announced in Budget 2024-25, effective October 24, 2024
By number, 74% of Mudra loans are Shishu and 24% Kishor; by value, Kishor is the largest share at 43%. Tarun Plus is still very new — a tiny fraction of loans so far.
Do I need collateral or a guarantor?
No. Mudra loans are free of collateral and third-party guarantees. Lenders are protected by the Credit Guarantee Fund for Micro Units (CGFMU), managed by NCGTC, which covers eligible micro loans sanctioned since April 8, 2015 — now up to ₹20 lakh.
Assets bought with the loan (machinery, equipment, stock) are normally hypothecated to the lender — that is standard and is not collateral. Some lenders pass on the guarantee cost; ask about all fees before you sign.
Mudra vs PMEGP vs CGTMSE — which should I choose?
- Mudra — the loan itself, up to ₹20 lakh, new or existing business, no subsidy, fast. Guaranteed via CGFMU.
- PMEGP — bank loan plus 15-35% margin money subsidy, only for new units, with EDP training; slower (3-6 months) but the subsidy is real money.
- CGTMSE — a guarantee that lets banks lend collateral-free to micro and small enterprises up to ₹10 crore.
Rule of thumb: first-time founder who qualifies for subsidy → try PMEGP first. Small, quick need up to ₹20 lakh → Mudra. Bigger or growing beyond ₹20 lakh → CGTMSE.
What interest rate will I pay?
There is no fixed government rate. Each lender sets Mudra interest under RBI guidelines, usually as its benchmark rate plus a spread for your risk profile, tenure and category. PSBs are often cheapest; NBFCs and MFIs are faster but usually cost more.
What moves your rate: credit history, business vintage and bank statements, loan size, and the lender type. Some lenders offer concessions for women borrowers.
History: in 2020-21 the government ran a one-year 2% interest subvention for prompt-paying Shishu borrowers. That was a one-time COVID measure, not a standing Mudra benefit.
What fees are there?
- Government: none — applying on Udyamimitra or Jan Samarth is free, and MUDRA does not use agents
- Processing fee: lender-set; often nil or minimal for Shishu, sometimes a small percentage for larger loans
- Guarantee cost: CGFMU is paid by the lender; some lenders recover it from the borrower
- Documentation / stamp duty, insurance on financed assets, as applicable
We put every fee side by side for the lenders we compare, so you see the true cost — not just the headline rate.
Is there any subsidy in a Mudra loan?
No. Mudra is a loan, repayable in full with interest. There is no margin-money or capital subsidy in PMMY itself. If you're starting a new unit and qualify, PMEGP gives a 15-35% subsidy on project cost. Some state schemes offer interest subsidies that can apply to loans from banks — we check what is currently available in your state.
What happens if I can't repay?
The CGFMU guarantee compensates the lender, not you. You still owe the full amount. A default is reported to credit bureaus, which makes future loans — including the next Mudra category — much harder, and the lender can enforce against the assets bought with the loan.
If trouble is coming: talk to the branch before you miss EMIs. Rescheduling or restructuring is far better than default. Keep two or three months of EMIs as a buffer from the start.
How long does a Mudra loan take?
- Shishu: often a week or two once documents are complete
- Kishor: typically 2-3 weeks
- Tarun / Tarun Plus: typically 3-4 weeks, with a site visit and project report review
Timelines depend on the lender and how complete the file is. Online applications through Udyamimitra or Jan Samarth can speed up the first step, but the lender still appraises the file.
Can I apply myself without an adviser?
Yes — and for Shishu loans we usually recommend it. Applying is free at a branch or on udyamimitra.in / jansamarth.in. MUDRA does not use agents, and nobody can guarantee a sanction.
Where an adviser helps: Kishor and Tarun files, where a clear business plan, correct loan sizing and a lender comparison make a real difference to approval, rate and speed. That is what our fee pays for — preparation and coordination, never access to the scheme. We never ask for OTPs, passwords or a share of the loan.
How do I qualify for Tarun Plus (₹10-20 lakh)?
Tarun Plus is for entrepreneurs who have availed and successfully repaid a loan under the Tarun category. If you haven't had a Tarun loan, your ceiling under Mudra is ₹10 lakh.
What helps: the closure letter or repayment statement for the Tarun loan, a detailed project report for the new amount, and — often — going back to the lender that already knows your account. If you need more than ₹10 lakh now without a Tarun history, a CGTMSE-backed loan is the right route.
Can my dairy, poultry or beekeeping unit get a Mudra loan?
Yes. Although Mudra is for non-farm activity, PIB confirms it covers activities allied to agriculture such as dairy, poultry and beekeeping. Crop cultivation itself is served by agricultural credit products (such as the Kisan Credit Card) rather than Mudra.
Allied-activity files work best with a simple plan showing animal or hive numbers, feed and input costs, output and the market you sell into.
Let's find your Mudra category.
WhatsApp us what your business does, how much you need and what it's for. Free 30-minute review: category, realistic loan size, documents and the lenders worth comparing. Shishu? We'll guide you free. Kishor Assist ₹3,000. End-to-End ₹6,000. Tarun Plus Growth ₹10,000.