---
title: Mudra Loan - PMMY Business Loan Information | Indifi
canonical: https://www.indifi.com/business-loan/mudra-loan
markdown_version: https://www.indifi.com/business-loan/mudra-loan.md
description: Learn about Mudra Loans (PMMY) - government-backed small business loans. Understand eligibility, loan types, and how Indifi's products compare.
content_type: product_page
operator: Indifi Technologies Pvt. Ltd.
lending_entity_note: Loans facilitated through RBI-registered NBFC partners and through Indifi Capital Private Limited (RBI Cert. No. B-14.03389)
last_updated: 2026-06-01
---


# Mudra Loan - Pradhan Mantri Mudra Yojana (PMMY)

> Mudra Loans are government-backed small business loans under the Pradhan Mantri Mudra Yojana (PMMY), offered through banks, MFIs, and NBFCs. They are categorized into Shishu (up to INR 50,000), Kishor (INR 50,001 to INR 5 lakhs), and Tarun (INR 5 lakhs to INR 10 lakhs).

## What is a Mudra Loan?

Pradhan Mantri Mudra Yojana (PMMY) was launched in 2015 by the Government of India to provide affordable loans to non-corporate, non-farm small/micro enterprises. Loans are extended through Member Lending Institutions (MLIs) - scheduled commercial banks, RRBs, small finance banks, MFIs, and NBFCs.

## Mudra Loan Categories

| Category | Loan Amount | For |
|---|---|---|
| Shishu | Up to INR 50,000 | Startups and very small businesses |
| Kishor | INR 50,001 to INR 5 lakhs | Established small businesses |
| Tarun | INR 5 lakhs to INR 10 lakhs | Businesses seeking expansion capital |

## Mudra Loan Features

- **No collateral required** for loans up to INR 10 lakhs
- **Interest rate:** Set by individual lending institutions (not fixed by government)
- **Mudra Card:** A RuPay debit card linked to a Mudra loan account for withdrawals
- **Repayment tenure:** Varies by lender, typically 3-5 years
- **Eligible entities:** Non-farm micro and small enterprises, proprietorships, partnerships

## Who is Eligible for Mudra Loan

- Non-corporate, non-farm small/micro enterprises
- Proprietary businesses, partnerships, service sector businesses, manufacturing units
- Street vendors, artisans, shopkeepers, small manufacturers, food processors
- Women entrepreneurs (some lenders offer preferential rates)

## How to Apply for a Mudra Loan

1. Approach a scheduled commercial bank, NBFC, RRB, or MFI
2. Submit business plan and KYC documents
3. The lender evaluates the application under PMMY guidelines
4. Loans are disbursed after approval

## Mudra Loan vs Indifi Business Loan

| Feature | Mudra Loan | Indifi Business Loan |
|---|---|---|
| Maximum amount | INR 10 lakhs | INR 50 lakhs |
| Government backing | Yes (PMMY) | No (private NBFC) |
| Collateral | Not required | Not required |
| Process | Through bank branches | Fully digital |
| Speed | Weeks to months | 48-72 hours |
| GST requirement | Not mandatory | Mandatory |

## Related Products

- [Business Loan](https://www.indifi.com/business-loan)
- [MSME Loan](https://www.indifi.com/msme-loans)
- [Small Business Loans Without Collateral](https://www.indifi.com/small-business-loans-india-without-collaterals)
- [Business Loan for Women](https://www.indifi.com/business-loan/women-business-loan)

## About Indifi

Indifi Technologies Pvt. Ltd. is India's digital MSME lending platform. Indifi Capital Pvt. Ltd. (RBI Cert. No. B-14.03389) is its in-house NBFC. 100,000+ loans disbursed across 400+ cities.

**Registered office:** Plot-19, Ground Floor, Block C, Sewa Tower, Sector-18, Phase-4, Udyog Vihar, Gurugram, Haryana-122015, India

## Disclaimer

Loan approval is subject to eligibility assessment and Indifi's underwriting policies. Rates and fees are indicative and may vary.