PM Mudra Loan
Apply for a collateral-free business loan up to Rs 20 lakh under the Pradhan Mantri Mudra Yojana (PMMY) through any bank, NBFC, or the Udyamimitra portal, categorized as Shishu, Kishor, or Tarun.
Required Documents
Step-by-Step Process
Choose Your Loan Category
Identify whether you need Shishu (up to Rs 50,000), Kishor (Rs 50,000-5 lakh), or Tarun (Rs 5-20 lakh) based on your business stage and funding need.
Apply via Bank or Udyamimitra Portal
Apply at any bank/NBFC branch or online via udyamimitra.in, which lets you compare and apply to multiple lenders at once.
Submit Business and KYC Documents
Submit identity/address proof, business existence proof, and a brief write-up of how the loan will be used.
Bank Assessment and Sanction
The lender assesses your application based on business viability - no collateral or guarantor is required for Mudra loans.
Receive the MUDRA Card and Disbursal
Upon sanction, funds are disbursed to your account, and you may also receive a MUDRA Card (like an overdraft/credit line) for working capital needs.
Pro Tips & Warnings
- Mudra loans require no collateral or processing fee for most categories - be cautious of anyone asking for upfront payment to 'guarantee approval'.
- A simple, realistic business write-up with expected income improves approval chances more than a lengthy formal project report.
- Repaying on time builds a credit history that helps you graduate from Shishu to Kishor to Tarun category loans in future cycles.