Mudra Yojana Loans: Shishu, Kishore, and Tarun Categories
- Published 5 October 2026
- Last updated Updated 1 hour ago
- 5 min read
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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) stands as a cornerstone initiative by the Government of India to foster entrepreneurship at the grassroots level. It provides essential financial support to non-corporate, non-farm small and micro enterprises across the country.
By facilitating credit through various financial institutions, the scheme empowers small business owners to expand their operations and generate employment. Whether you are starting a new venture or scaling an existing one, Mudra loans offer a collateral-free path to formal credit.
Since its inception, the scheme has bridged the funding gap for millions of 'unfunded' entrepreneurs. It categorizes loans based on the stage of growth, ensuring that every business finds a suitable financial product for its specific needs.
Info
This scheme is administered by Ministry of Finance. Applications are accepted only through the official portal.
What is this scheme?
Mudra, which stands for Micro Units Development and Refinance Agency Ltd., is a financial institution set up by the Government of India. It does not lend directly to individual entrepreneurs but acts as a refinancing agency. It provides credit to Banks, NBFCs, and Microfinance Institutions (MFIs), which in turn lend to micro-businesses.
The Pradhan Mantri Mudra Yojana (PMMY) is the flagship scheme that offers these loans. The primary focus is on the 'Non-Corporate Small Business Sector' (NCSB) which includes small manufacturing units, service sector units, shopkeepers, fruits/vegetable vendors, and truck operators.
The scheme is divided into three distinct products: Shishu, Kishore, and Tarun. These categories signify the stage of growth or development and the funding needs of the beneficiary micro unit. This structured approach helps in monitoring the progress of the enterprise from a budding stage to a fully matured business.
Objective
The scheme aims to provide formal financial assistance to micro-enterprises, promote self-employment, and integrate the informal economy into the mainstream banking system.
Key features
- Collateral-free loans for all categories
- No processing fee for Shishu and Kishore loans
- Flexible repayment tenure up to 5 years
- Mudra RuPay card for working capital needs
- Available through Commercial Banks, RRBs, and NBFCs
Financial benefits
Beneficiaries can avail credit ranging from ₹50,000 to ₹10 Lakh depending on the business stage. Interest rates are determined by the lending bank based on RBI guidelines and the borrower'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, startups, and micro-entrepreneurs
- Engaged in non-farm income-generating activities
- Business should be in manufacturing, trading, or service sector
- Applicant must not be a defaulter to any financial institution
Required documents
- ☑ Aadhaar card
- ☑ Voter ID or PAN card
- ☑ Proof of business address
- ☑ Recent passport size photographs
- ☑ Business registration certificate
- ☑ Bank statements for the last six months
Tip
Keep scanned copies (PDF/JPG, under 200 KB each) ready before you start the online form.
How to apply — step by step
- Identify a nearby bank or NBFC branch authorized to provide Mudra loans.
- Prepare a comprehensive business plan or project report.
- Download the application form from the official Mudra portal.
- Submit the completed form along with required KYC and business documents.
- The lender will review the application and conduct due diligence.
- Once approved, the loan amount is sanctioned and disbursed to the account.
- Receive a Mudra RuPay card for easy access to funds for daily operations.
Important dates
| Event | Date |
|---|---|
| Scheme Validity | Ongoing through FY 2026-27 |
| Application Window | Open throughout the year |
Important links
| Resource | Link |
|---|---|
| Official Mudra Portal | Official Mudra Portal |
| Udyamitra Apply Online | Udyamitra Apply Online |
| PMMY Guidelines | PMMY Guidelines |
| Helpline | 1800-180-1111 |
| help@mudra.org.in |
Conclusion
The Pradhan Mantri Mudra Yojana continues to be a vital instrument for economic empowerment in India. By providing structured financial support to micro-enterprises, it ensures that small-scale innovators have the resources to succeed. If you are an aspiring entrepreneur, leverage these collateral-free loans to turn your business vision into reality. Stay updated on the latest financial schemes and government notifications by signing up for YojanaRadar today. We bring you verified information to help you navigate the world of government benefits with ease.
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