What is mudra loan

A Mudra loan is a credit facility under the Pradhan Mantri Mudra Yojana (PMMY) designed to provide collateral-free funding to non-corporate, non-farm small and micro-enterprises in India. Launched in 2015, it aims to promote entrepreneurship and financial inclusion. Loans are available in four categories:

• Shishu: Up to Rs. 50,000 for nascent businesses
• Kishore: Rs. 50,001 to Rs. 5 lakh for established units
• Tarun: Rs. 5,00,001 to Rs. 10 lakh for business expansion
• Tarun Plus: Up to Rs. 20 lakh for eligible entrepreneurs

These loans are disbursed through commercial banks, RRBs, small finance banks, MFIs, and NBFCs.