PM Mudra Yojana: small-business loans without collateral
Last updated: 1 July 2026
PM Mudra Yojana provides loans to non-corporate, non-farm small/micro enterprises through banks, NBFCs and MFIs — usually without collateral. This is general information; loan approval and terms are decided by the lender.
Independent information — not a government app
Saathi AI is not affiliated with, endorsed by, or operated by any government body. This page is general guidance only. Verify all official details on:
Loan categories
- Shishu — smallest loans, for very early-stage businesses.
- Kishore — mid-size loans to grow an existing business.
- Tarun — larger loans for established micro units.
- Exact limits are set by the scheme and lender; check the official site.
Who can apply
Any Indian citizen with a viable small business plan for manufacturing, trading, services, or allied agriculture activities can approach a bank/NBFC/MFI. There is no processing fee for many Shishu loans.
How to apply
- Prepare a simple business plan and your KYC documents.
- Approach a bank, NBFC or microfinance institution offering Mudra loans.
- Submit the application with quotations/estimates for your business need.
- The lender assesses and, if approved, disburses the loan.
Ask Saathi in your own language
Get a personal answer by voice or text, free — in Hindi, English and 21 more Indian languages.
Ask Saathi: “How do I apply for a Mudra loan for my small business?”Frequently asked questions
Is a Mudra loan collateral-free?
Mudra loans are generally given without collateral, but approval and terms depend on the lender's assessment of your business.
Related guides
General information, not professional, legal, medical, or official advice. See our disclaimer. Browse all guides.