Mudra Yojana Loans: Shishu, Kishore, and Tarun Explained
- Published 17 September 2026
- Last updated Updated 1 hour ago
- 5 min read
- founders
- 0 views
Apply for Mudra Yojana loans up to ₹10 Lakh. Learn about Shishu, Kishore, and Tarun categories, eligibility, and how to apply for micro-enterprise funding.
The Pradhan Mantri Mudra Yojana (PMMY) is a flagship scheme of the Government of India designed to provide financial support to the non-corporate, non-farm small/micro-enterprise sector. By facilitating easy access to credit, the scheme aims to foster entrepreneurship and create employment opportunities across the country.
Managed by the Micro Units Development & Refinance Agency (MUDRA), this scheme offers collateral-free loans to diverse business owners including shopkeepers, vendors, and small manufacturers. It serves as a vital bridge for businesses that were previously underserved by formal banking institutions.
Whether you are starting a new business or expanding an existing one, the Mudra Yojana provides three distinct loan categories tailored to different stages of business growth and funding requirements.
Info
This scheme is administered by Ministry of Finance. Applications are accepted only through the official portal.
What is this scheme?
MUDRA (Micro Units Development & Refinance Agency Ltd.) is a financial institution set up by the Government of India to provide funding to the non-corporate small business sector. It does not lend directly to individuals but acts as a refinancing agency for Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs.
The loans are extended under the Pradhan Mantri Mudra Yojana (PMMY) brand. These loans are specifically targeted at income-generating activities in manufacturing, trading, and services sectors, as well as activities allied to agriculture like poultry and dairy.
The primary focus is to bring small enterprises into the formal financial system, often referred to as 'funding the unfunded'. Since the loans are collateral-free, they significantly reduce the entry barriers for first-generation entrepreneurs and micro-units.
Objective
To provide institutional credit to micro-enterprises, promote entrepreneurship among youth, and ensure financial inclusion by offering collateral-free loans for income-generating activities.
Key features
- Collateral-free loans (no security required)
- Three categories: Shishu, Kishore, and Tarun
- Processing fee waiver for Shishu loans
- Flexible repayment tenure up to 5 years
- Mudra Card provided for working capital needs
- Applicable for manufacturing, trading, and service sectors
Financial benefits
Eligible applicants can avail loans ranging from ₹50,000 to ₹10 Lakh depending on the category. Interest rates are determined by the lending bank as per RBI guidelines and the applicant's credit profile.
| Benefit | Amount |
|---|---|
| Shishu Loan | Up to ₹50,000 |
| Kishore Loan | ₹50,001 to ₹5 Lakh |
| Tarun Loan | ₹5,00,001 to ₹10 Lakh |
Who is eligible?
- Must be a citizen of India
- Small business owners, shopkeepers, and street vendors
- Micro-manufacturers and service providers
- Individuals involved in agricultural-allied activities (dairy, beekeeping, etc.)
- Must have a viable business plan for income-generating activity
- Applicants must not be defaulters to any financial institution
Required documents
- ☑ Aadhaar card
- ☑ PAN card
- ☑ Proof of residence
- ☑ Business identity/address proof
- ☑ Recent passport size photographs
- ☑ Bank statements (last 6 months)
- ☑ Quotations for machinery or items to be purchased
Tip
Keep scanned copies (PDF/JPG, under 200 KB each) ready before you start the online form.
How to apply — step by step
- Prepare a detailed business plan highlighting the nature of business and fund requirements.
- Identify the appropriate loan category: Shishu, Kishore, or Tarun.
- Visit the nearest authorized Commercial Bank, RRB, or NBFC.
- Fill out the PMMY application form accurately.
- Submit the required KYC documents and business proof.
- Complete the verification process initiated by the bank.
- Receive the loan sanction and Mudra Card upon approval.
- Optionally, apply online via the Udyamimitra portal.
Important dates
| Event | Date |
|---|---|
| Application Deadline | Open throughout the year |
| Scheme Validity | Ongoing as per Government of India directives |
Important
Deadline: applications close on Open throughout the year. Apply well before the last date — portals get slow on the final day.
Important links
| Resource | Link |
|---|---|
| Official MUDRA Portal | Official MUDRA Portal |
| Udyamimitra (Online Application) | Udyamimitra (Online Application) |
| PMMY Guidelines | PMMY Guidelines |
| Helpline | 1800-180-1111 |
| help@mudra.org.in |
Conclusion
The Mudra Yojana stands as a powerful tool for economic empowerment, turning job seekers into job creators. By providing structured credit across Shishu, Kishore, and Tarun stages, it ensures that financial constraints do not hinder entrepreneurial dreams. Whether you are a small vendor or a growing manufacturer, this scheme offers the necessary leverage to scale. To stay updated on the latest financial schemes, interest rates, and application guides, sign up on YojanaRadar today and never miss an opportunity to grow your business.
Good to know
Track this and hundreds of other government schemes automatically — create your free YojanaRadar profile and get alerts before every deadline.
Comments (0)
Sign up to join the conversation.