PMMY Shishu — MUDRA Loan up to ₹50,000 — Frequently Asked Questions
Answers to the questions founders most often ask about PMMY Shishu — MUDRA Loan up to ₹50,000 — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much funding can I get under PMMY Shishu?
The maximum loan amount under the Shishu category is ₹50,000. For higher amounts, you can apply under Kishore (up to ₹5 lakh) or Tarun (up to ₹10 lakh) categories.
What is the application deadline?
The scheme is open on a rolling basis with no fixed deadline. You can apply at any time through MUDRA-empanelled lenders.
Who is eligible to apply?
Any non-farm micro-entrepreneur — including artisans, street vendors, small traders, home-based businesses, and first-time entrepreneurs — can apply. Both new and existing businesses are eligible. There are no restrictions on state or entity type; formal registration is not mandatory.
Is DPIIT or MSME registration required?
No, DPIIT or MSME registration is not required. However, a simple business plan or proof of activity may help the lender assess your application.
Does the program take equity?
No, PMMY Shishu is a debt-based loan, not equity. It is non-dilutive; you repay the principal with interest.
What documents are typically needed?
KYC documents such as Aadhaar and PAN, a simple business plan or description of your income-generating activity, and any relevant business proof (GST, Udyam, or informal records) if available.
How do I apply?
You can apply directly at any MUDRA-empanelled scheduled commercial bank, regional rural bank, MFI, or NBFC branch. Alternatively, apply online through the Jansamarth portal at jansamarth.in, which matches you to a lender.
Can the loan be used for farm activities?
No, the loan is only for non-farm income-generating activities. Farm-related activities are not covered under MUDRA.
Is there a guarantee fee or collateral?
No. The loans are collateral-free, and no guarantee fee is charged to the borrower. The MUDRA guarantee covers the lender's risk.
Who offers PMMY Shishu — MUDRA Loan up to ₹50,000?
PMMY Shishu — MUDRA Loan up to ₹50,000 is offered by Ministry of Finance, Govt of India, a government body. It is provided as non-dilutive funding.