Apply for Mudra Loan Yojana 2025 and get up to ₹10 lakh business loan without collateral. Know eligibility, interest rate, required documents & online application steps.
PM Mudra Loan Yojana 2025 – Complete Guide to Get ₹10 Lakh Business Loan Without Collateral
Are you planning to start your own business or expand your small enterprise? The Pradhan Mantri Mudra Yojana (PMMY) is a government-backed loan scheme that provides easy funding of up to ₹10 lakh without the need for any security or guarantor.
With zero processing fees, high approval rates, and low interest rates, this scheme is especially beneficial for small business owners, entrepreneurs, shopkeepers, and women entrepreneurs. Let’s understand the full details, eligibility, interest rates, benefits, and how to apply online for Mudra Loan in 2025.
What is PM Mudra Yojana?
Launched in April 2015, PM Mudra Loan Yojana is a central government scheme that provides financial support to micro and small businesses under the Micro Units Development and Refinance Agency (MUDRA).
The objective is to promote entrepreneurship among youth, SC/ST, OBC, and women by giving easy access to credit without collateral security.
Loan Categories Under PMMY
Mudra Loans are divided into 3 categories depending on the stage of the business:
| Category | Loan Amount | Ideal For |
|---|---|---|
| Shishu | Up to ₹50,000 | Startups, New businesses |
| Kishor | ₹50,001 – ₹5 lakh | Growing businesses |
| Tarun | ₹5 lakh – ₹10 lakh | Established businesses |
Benefits of Mudra Loan Yojana
🏦 Loan up to ₹10 lakh without collateral
📈 Encourages small and micro business growth
🚫 No processing fee
🧾 Minimal documentation
🕐 Quick approval and disbursement
👩 Special preference for women, SC/ST, and OBC entrepreneurs
Interest Rates and Repayment Terms
| Loan Type | Interest Rate | Repayment Tenure |
|---|---|---|
| Shishu | 8% – 11% | Up to 5 years |
| Kishor | 9% – 12% | Up to 7 years |
| Tarun | 10% – 13% | Up to 7 years |
Note: Interest rates vary by lender and applicant profile. Some banks may offer subsidized rates for women borrowers.
Eligibility Criteria
To qualify for the PMMY loan:
- Must be an Indian citizen (18 to 65 years age)
- Should have a business in manufacturing, trading, services, or allied agriculture
- No loan default history
- Business plan or proposal must be viable
Documents Required
- Aadhaar Card & PAN Card
- Proof of business or ownership
- Address Proof (Electricity bill/Ration card)
- Quotation for machinery/equipment
- 6-month bank statement
- Passport-size photos
- CIBIL score (if applicable)
How to Apply for Mudra Loan Online
You can apply online or offline through any of the approved financial institutions.
✅ Apply Online:
Visit: www.udyamimitra.in
Register your business
Fill in Mudra Loan Application Form
Upload required documents
Submit for approval
✅ Apply Offline:
You can also visit the nearest branch of:
SBI
PNB
HDFC
ICICI
Bank of Baroda
Regional Rural Banks or Small Finance Banks
Ask for the Mudra Loan Application Form, attach documents, and submit.
Purpose of Mudra Loan
You can use the Mudra loan amount for:
Starting new business
Purchasing inventory or raw material
Buying machines or equipment
Expanding current operations
Digital service business setup
Allied agriculture like dairy, poultry, beekeeping
Is There a Guarantee?
Yes. All loans under PMMY are covered under Credit Guarantee Fund for Micro Units (CGFMU). This means the lender has government assurance for loan repayment, making it easier for borrowers to get approval without any personal guarantee or collateral.
Pro Tips to Get Mudra Loan Easily
Maintain a clean CIBIL score
Prepare a clear business plan
Approach banks with required paperwork
Apply via official websites or reputed banks only
Avoid agents and middlemen
Important Note for Applicants
The Mudra loan is not a direct benefit transfer or subsidy. You must repay the amount on time to avoid penalties and to become eligible for higher loans under the Tarun Plus category in the future.
Important Links
If you are looking to start your own business or grow your current venture, the Mudra Loan Yojana 2025 offers the most affordable and secure way to get funding. Whether you’re a first-time entrepreneur or an existing MSME, this scheme ensures that lack of capital doesn’t hold you back.
Apply today and take your business to new heights with government-backed financial support.