- PMMY offers collateral-free loans of up to ₹20 lakh to eligible micro and small businesses.
- The scheme supports new and existing micro-businesses across multiple sectors.
- PMMY offers four loan categories: Shishu, Kishor, Tarun, and Tarun Plus, based on the loan amount.
- PMMY State-wise Toll-Free Helpline Numbers
- Jansamarth Helpline Number: 079-69076111
- Jansamarth Helpdesk Email: customer.support@jansamarth.in
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Summary of the Scheme
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| Name of Scheme | Pradhan Mantri Mudra Yojana (PMMY) |
| Benefits | Collateral-free loans up to ₹20 lakh |
| Beneficiary | Small and micro-business entrepreneurs |
| Nodal Agency | Department of Financial Services (DFS), Ministry of Finance |
| Subscription | Subscribe here to get Update Regarding Scheme |
| Mode of Apply | Online through the JanSamarth Portal |
Pradhan Mantri Mudra Yojana (PMMY): Collateral-Free Business Loans of Up to ₹20 Lakh
Many small entrepreneurs can’t get a formal bank loan because they have no property to pledge. The Pradhan Mantri Mudra Yojana (PMMY) gives eligible micro and small businesses collateral-free loans of up to ₹20 lakh through banks, NBFCs and microfinance institutions. You can apply online on the JanSamarth portal or at a lender’s branch, all year round.
This is a loan, not a subsidy. PMMY pays no cash benefit or DBT. The lender decides the rate and the amount, and applying doesn’t guarantee approval.
What is the scheme?
The Government of India launched PMMY on 8 April 2015, and the Department of Financial Services (DFS), Ministry of Finance, oversees it. It promotes entrepreneurship, creates jobs and brings small businesses into the formal credit system. It covers both new and existing businesses, and both working capital and term loans. MUDRA (Micro Units Development and Refinance Agency Ltd.) refinances the lenders.
Latest update: On 11 November 2026, the Union Cabinet approved continuing the Credit Guarantee Fund for Micro Units (CGFMU) for five more years, up to 31 March 2031, with a corpus of ₹5,000 crore. It is expected to facilitate over ₹12.5 lakh crore in MUDRA loans. The approval also covers guarantee support for collateral-free loans up to ₹20 lakh under PMMY and reduced guarantee fees to encourage lending.
Scheme at a glance
| Benefit | Collateral-free loans up to ₹20 lakh |
| Who can apply | Individuals and micro-enterprises with an income-generating activity |
| Nodal agency | Department of Financial Services, Ministry of Finance |
| Mode of application | Online (JanSamarth) or offline at a bank, NBFC or MFI |
| JanSamarth helpline | 079-69076111 |
| customer.support@jansamarth.in |
The four loan categories
| Shishu | Kishor | Tarun | Tarun Plus | |
|---|---|---|---|---|
| Loan amount | Up to ₹50,000 | Above ₹50,000 to ₹5 lakh | Above ₹5 lakh to ₹10 lakh | Above ₹10 lakh to ₹20 lakh |
| For | Small or early-stage activities | New or existing businesses needing working capital or expansion | Higher funds for growth, expansion or equipment | Further expansion after repaying a Tarun loan |
| Collateral | Not required | Not required | Not required | Not required |
Tarun Plus began on 24 October 2024. It is only for entrepreneurs who have taken and successfully repaid a Tarun loan, and the application needs the details and repayment record of that loan.
Processing fee, interest rate and repayment period are set by the lender, with interest in line with RBI guidelines. Eligible loans also get guarantee cover under CGFMU, managed by NCGTC.
What can you use it for?
- Transport vehicles: goods vehicles, auto-rickshaws, e-rickshaws, small goods carriers, taxis, commercial two-wheelers, and tractors, trolleys and power tillers for commercial use
- Social, community and personal services: salons, beauty parlours, gyms, boutiques, tailoring, dry cleaning, cycle and motorcycle repair, DTP and photocopying, medicine shops and courier agents
- Food products: papad, pickle, jam and jelly making, sweet shops, canteens, catering and food stalls, cold chain vehicles, cold storages, ice and ice cream units, and biscuit, bread and bun making
- Textiles: handloom, powerloom, khadi, chikan, zari and zardozi work, embroidery, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerised embroidery, and non-garment products such as bags and furnishing accessories
- Traders and shopkeepers: support for shops, trading and service enterprises
- Equipment purchase to set up a micro enterprise
- Agriculture-allied activities: pisciculture, bee keeping, poultry, livestock, dairy, agri-clinics, agribusiness centres and food and agro-processing
Who is eligible?
- You must plan an income-generating business activity.
- It must fall under manufacturing, trading, services or eligible agriculture-allied activity, as a micro-enterprise.
- You must meet the lender’s eligibility and documentation requirements.
- For Tarun Plus, you must have repaid a Tarun loan.
The source doesn’t state an age or income limit.
Documents you may need
Requirements vary by loan size, business and lender.
- Aadhaar card and PAN card
- Udyam details, if available
- Sales details
- Business plan or project report
- Identity and address proof (self-attested)
- Proof of business address
- Business registration or constitution documents, where applicable
- Recent photographs, not more than six months old
- Quotations for machinery, equipment or other purchases
- Financial statements or business records, where applicable
- Bank account details
- Proof of category if you belong to SC, ST, OBC or a minority
How to apply
Online, through JanSamarth
- Open the JanSamarth portal, choose Business Activity Loan and click Check Eligibility.
- Enter your business details, project cost and personal contribution.
- If eligible, click Apply Now and register with your mobile number and email, verified by OTP.
- Log in and select Pradhan Mantri Mudra Yojana.
- Complete Aadhaar and PAN verification and add Udyam details if you have them.
- Fill in your business, financial, ownership and bank details.
- Upload KYC and business documents.
- Review and submit.
- Compare bank offers, choose a bank and a branch.
- Visit the branch if asked, for verification and loan processing.
Offline, at a lender
- Visit a participating bank, NBFC or MFI branch.
- Ask for the PMMY form and choose your category (Shishu, Kishor, Tarun or Tarun Plus).
- Fill it in, attach documents and business details, and submit.
- The lender verifies and assesses your credit.
- If approved, complete the loan documentation.
- The lender disburses the loan as per the terms.
Participating lenders
- Public sector banks: Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Punjab & Sind Bank, Union Bank of India and UCO Bank
- Private banks: Axis, Bandhan, CSB, City Union, DCB, Dhanlaxmi, Federal, HDFC, ICICI, IDBI, IDFC FIRST, IndusInd, J&K Bank, Karnataka Bank, Karur Vysya, Kotak Mahindra, Nainital Bank, RBL, South Indian Bank, Tamilnad Mercantile and YES Bank
- Others: state cooperative banks, regional rural banks, microfinance institutions and non-bank finance companies
Related schemes
- PMEGP: subsidy support for new micro-enterprises
- PM SVANidhi: collateral-free working capital loans for street vendors
Need help?
- JanSamarth: 079-69076111, customer.support@jansamarth.in
- PMMY state-wise toll-free numbers are on the MUDRA website
Frequently asked questions
What is the maximum loan?
₹20 lakh, under Tarun Plus.
Do I need collateral?
No, for eligible loans, subject to scheme and guarantee conditions.
Is it a subsidy or free money?
No. It is a loan you repay.
Does PMMY give money through DBT?
No.
Can I use it for personal purposes?
No. It is for an income-generating business activity.
What is the last date to apply?
There is none. Applications are accepted throughout the year.