Basic Plan
₹****All inclusive
- Professional consultation
- Document preparation
- Government filing
Mudra loans are categorized into three schemes:
Shishu: This scheme provides loans up to ₹50,000 to
micro-enterprises in their early stages. It targets entrepreneurs who need a
small amount of capital to start their ventures.
Kishor: Under this scheme, loans ranging from ₹50,000 to ₹5,00,000 are provided to businesses that have already started and need funds for expansion.
Tarun: This scheme offers loans ranging from ₹5,00,000 to ₹10,00,000 to
established businesses looking for further growth and development.
These
loans are typically collateral-free and are available through various banks,
microfinance institutions, and non-banking financial companies (NBFCs) that are
registered under the Mudra Yojana scheme. The government aims to promote entrepreneurship and boost economic growth by providing accessible credit facilities to small businesses through the Mudra loan scheme.
A clear, structured delivery process from start to finish
CA/CS specialist reviews your requirements and confirms scope.
We share a checklist and collect through our secure portal.
Our team files all applications with government authorities.
Certificates and audit-ready documentation delivered on time.
Practical answers curated by our CA and CS desks for MUDRA LOAN.
The Pradhan Mantri MUDRA Yojana (PMMY) is
a government initiative that provides financial support to non-corporate,
non-farm micro and small enterprises engaged in manufacturing, trading, or service
sectors.
New or existing micro-enterprises,
proprietorships, partnerships, small businesses, and individuals running
income-generating activities in eligible sectors can apply.
The scheme was launched to provide easy access to credit for small entrepreneurs who lack collateral or a formal credit history, promoting financial inclusion and entrepreneurship.
Activities like setting up or expanding manufacturing units, trading businesses, service enterprises, equipment purchases, and allied agricultural services are eligible.
The applicant must be an Indian resident running a legitimate business in an eligible sector, not a defaulter to any bank, and applying within the loan limit set by the scheme.
No, MUDRA loans are primarily collateral-free, especially for smaller loan amounts under the “Shishu” category.
Required documents include identity and address proof, business registration or license (if applicable), bank statements, project report, and basic KYC documents.
Applicants can approach any participating bank, NBFC, or microfinance institution with the necessary documents and apply under the appropriate loan category.
Repayment terms vary by lender and
category but generally range from 3 to 7 years, including a possible moratorium
period.
The borrower must use funds strictly for business purposes, maintain repayment discipline, and adhere to the terms set by the lender.
Violating terms or defaulting on repayments can result in penalties, withdrawal of benefits, or recovery actions by the lending institution.
Benefits include collateral-free credit,
simple processing, lower interest rates compared to informal loans, and
financial empowerment for small entrepreneurs.
Borrowers should ensure timely repayment, maintain business viability, and use funds only for business-related purposes to avoid future complications.
Avoid applying without a clear business plan, misusing funds, neglecting repayment schedules, or failing to maintain records of business expenses.
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