Mudra Loan

A Mudra Loan is a government-backed financial scheme under the Pradhan Mantri Mudra Yojana (PMMY) aimed at empowering micro, small, and medium enterprises (MSMEs). It helps entrepreneurs access funding without complex procedures, collateral, or high interest rates.

Categories of Mudra Loan:

1. Shishu Loan – Up to ₹50,000 for small startups and initial stage businesses.

2. Kishore Loan – ₹50,001 to ₹5 lakh for business expansion or working capital needs.

3. Tarun Loan – ₹5 lakh to ₹10 lakh for well-established small businesses seeking larger financing.

Key Benefits:

• Quick and easy approval process

• No collateral for loans up to ₹10 lakh

• Flexible repayment tenure

• Designed for micro-enterprises, startups, and small entrepreneurs

• Can be used for working capital, machinery purchase, or business expansion

Who Can Apply:

• Small shopkeepers, vendors, and traders

• Service providers (salons, repair shops, transportation)

• Artisans and small-scale manufacturers

• Startups and self-employed individuals

Mudra Loans empower small businesses to grow, create employment, and contribute to the economy while benefiting from government support and minimal formalities.