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Central SchemeLoan: Up to ₹0.5 Lakh
Last Verified: 22 Aug 2026

PM Mudra Yojana — Shishu

Collateral-free micro loans up to ₹50,000 for starting or small business operations.

Authority:Department of Financial Services (DFS), Ministry of Finance

Overview & Objectives

Pradhan Mantri Mudra Yojana (PMMY) Shishu tier provides collateral-free institutional credit up to ₹50,000 to micro-entrepreneurs, shopkeepers, fruit/vegetable vendors, and artisanal units through commercial banks, RRBs, Small Finance Banks, and MFIs.

Financial Benefit Structure

₹0.1 Lakh – ₹0.5 Lakh
Interest rate set by lending bank; typically 9.5%–12.0% p.a.

Eligibility Criteria

Indian citizens with a viable non-farm business idea or small existing enterprise. No collateral required.

Eligible Sectors:
ManufacturingServicesTradingFood Processing

Required Documents Checklist

  • Identity Proof (Aadhaar / Voter ID / Passport)
  • Address Proof (Electricity Bill / Aadhaar)
  • Proof of Business Enterprise (if operational)
  • Bank Account Statements (past 6 months)
  • Passport size photographs (2 copies)

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