PM MUDRA Yojana (Collateral-free Business Loan)

What is it

A collateral-free loan to start or grow a small business or self-employment — the honest alternative to high-interest private hand loans, with no poverty-line test.

Am I eligible

For any Indian citizen with a viable non-farm income-generating business — a shop, services, trading, small manufacturing, or activities allied to agriculture. It is NOT limited to below-poverty-line families: eligibility is about the business, not your income category. You apply through a bank, and the bank assesses your plan.

What you get

Collateral-free loans in four categories: Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh) and Tarun Plus (₹10 lakh to ₹20 lakh, for borrowers who have already repaid a Tarun loan). The interest rate is set by the lending bank and varies, so ask the bank for its current rate.

Documents needed

Tick off what you have. Use “Download checklist” to print a clean list to carry.

How to apply

1. Decide the loan category you need (Shishu, Kishore, Tarun or Tarun Plus) based on how much you want to borrow.
2. Go to any bank, small finance bank or NBFC that gives MUDRA loans, or apply online on the Jan Samarth portal (janSamarth.in) or Udyamimitra portal (udyamimitra.in).
3. Fill the MUDRA loan application with your business details and attach the documents.
4. No collateral is required — if a bank asks for security for a MUDRA loan, ask why and raise it with the branch manager.

Official link

Last verified: 2026-09-25