Banking, Financial Services & Insurance
Central schemeDepartment of Financial Services, Ministry of Finance
Pradhan Mantri MUDRA Yojana
What the scheme does
A credit-support framework for eligible non-corporate, non-farm micro and small enterprises through lending institutions.
Who it is for
Eligible non-corporate, non-farm micro or small business borrowers can approach participating banks, NBFCs, MFIs and other lenders. The lender assesses the business proposal, repayment capacity and current product conditions.
Current benefit
MUDRA loans are categorised as Shishu (up to ₹50,000), Kishor (above ₹50,000 to ₹5 lakh), Tarun (above ₹5 lakh to ₹10 lakh) and Tarun Plus (above ₹10 lakh to ₹20 lakh for borrowers who successfully repaid an earlier Tarun loan). These are loans, not grants, and the lender sets the sanctioned amount and terms.
How to access it
Prepare a business proposal and approach a participating bank, NBFC, MFI or other eligible lending institution. The lender decides eligibility, documentation, credit appraisal and sanction; use the official MUDRA or Department of Financial Services information to identify the right lender route.
Conditions to know
Keep KYC, business or project details, bank records, estimates and any lender-requested registrations ready. MUDRA is a lending framework, so sanction is subject to the participating lender’s due diligence and repayment assessment.
Exam answer in one line
Remember: non-corporate, non-farm micro enterprises; Shishu up to ₹50,000, Kishor ₹50,000–₹5 lakh, Tarun ₹5–10 lakh, Tarun Plus ₹10–20 lakh for eligible repeat Tarun borrowers; loan, not subsidy.