Pradhan Mantri Mudra Yojana: Loan Categories and Eligibility Details

Pradhan Mantri Mudra Yojana now gives loan support up to ₹20 lakh for small business owners. The scheme has four parts to help with different money needs.

Loan Categories

Shishu gives loans up to ₹50,000. Kishor covers amounts from ₹50,000 up to ₹5 lakh. For bigger needs, Tarun offers loans between ₹5 lakh and ₹10 lakh. Also, the new Tarun Plus category gives loans from ₹10 lakh up to ₹20 lakh.

These loans do not need collateral. You can apply through banks, regional rural banks, small finance banks, NBFCs, and microfinance institutions. Use these funds for shops, service centres, making goods, transport, or farm-related work like dairy or beekeeping. Lenders decide interest rates and who can apply based on your business needs and ability to repay, following RBI rules.