PMMY · Ministry of Finance · MUDRA Ltd
Pradhan Mantri MUDRA Yojana
Collateral-free credit for micro units in manufacturing, trading, services and allied agriculture, in four graded categories from ₹50,000 up to ₹20 lakh.
- Ticket size
- Up to ₹20 L
- Categories
- Four
- Collateral
- Not required
Key features
What the scheme actually provides
- Shishu — facilities up to ₹50,000, typically for very small and new activities
- Kishore — above ₹50,000 and up to ₹5 lakh, for units scaling up
- Tarun — above ₹5 lakh and up to ₹10 lakh, for established micro units
- Tarun Plus — above ₹10 lakh and up to ₹20 lakh, for borrowers who have repaid an earlier Tarun loan
- Available as term loan, working capital or composite facility
- Guarantee support for eligible loans is provided through the Credit Guarantee Fund for Micro Units
Who is eligible
- Non-farm income-generating micro enterprise in manufacturing, trading or services
- Allied agricultural activities other than crop loans
- Individuals, proprietorships, partnerships, private limited companies and other entities
- Clean repayment record; Tarun Plus specifically requires a previously repaid Tarun loan
Benefits
- No collateral for the facility, within the applicable limits
- Wide lender base — public and private banks, RRBs, small finance banks, NBFCs and MFIs
- Simple documentation relative to larger credit facilities
- A practical first formal credit line for a micro business
Where we come in
How FIN.SWITCH handles a PM MUDRA Yojana file
- 01
Match the right category and lender to your requirement instead of applying blind
- 02
Prepare a clean, verifiable business note and cash flow
- 03
Correct the documentation gaps that cause most micro-loan rejections
Questions
PM MUDRA Yojana, answered plainly
No. MUDRA is a refinance and lending framework for micro units; CGTMSE is a guarantee trust for micro and small enterprise credit. Eligible MUDRA loans are guaranteed under a separate fund, CGFMU.
Tarun Plus is intended for borrowers who have already availed and repaid a Tarun loan. A first-time borrower would normally start lower.
Compare
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Not sure whether PM MUDRA Yojana fits your business?
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