Pradhan Mantri MUDRA Yojana: The Central Government started the Mudra Scheme in April 2015, so that small businessmen and shopkeepers can easily start their work. The biggest feature of this scheme is that a loan up to Rs 20 lakh is available without any guarantee or mortgage of property. It is specially designed for street vendors, artisans and new startups, so that they can fulfill their dreams without any financial hindrance.

What is Mudra Yojana?

Under the Pradhan Mantri Mudra Yojana, small businessmen can now get business loans up to Rs 20 lakh, the limit of which has been doubled from Rs 10 lakh in the Budget 2024-25. This scheme is mainly divided into four categories like Shishu, Kishore, Tarun and Tarun Plus. Especially for those starting a new business, under ‘Shishu Loan’, assistance up to Rs 50,000 is given without any guarantee or security.

How much loan is available in which category?

• Shishu: Financial assistance up to Rs 50,000 to start a new business on a small scale.


• Kishore: Loan ranging from Rs 50,000 to Rs 5 lakh to expand the work further.


• Tarun: An amount of Rs 5 lakh to Rs 10 lakh to take the established business to a bigger level.


• Tarun Plus: Loan ranging from Rs 10 lakh to Rs 20 lakh to expand further business, which is available to those who have repaid the Tarun Loan on time.

How to get loan without guarantee?

The biggest feature of Mudra Loan is its easy process. The government wants to promote self-employment, so there is very little paperwork involved. The special thing is that for ‘Shishu Loan’ up to Rs 50,000 you neither have to give any guarantee nor pay any processing fee.

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What documents will be required for loan

• Government proof like Aadhar Card, PAN Card and Voter ID or Driving License.


• Recent passport size photograph and bank statement of last 6 months are required.


• If the business is running, then its registration certificate or license.


• The bank may also ask you for a project report of your work.

How to apply for loan?

• To avail the benefits of this scheme, first go to Udyamimitra.in or JanSamarth Portal and select ‘Apply Now’.


• Then fill your personal information and the loan amount required.


• After this, upload all the required documents in digital form and submit the form.


• You can also apply by visiting any government or private bank branch nearest to you.