Is Mudra available to farmers?

Mudra is primarily for non-farm micro-enterprises, but activities allied to agriculture — dairy, poultry, fisheries — are eligible.

Pradhan Mantri Mudra Yojana (PMMY) — Eligibility, Process & Documents

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Overview

PMMY, launched in 2015, provides collateral-free credit to non-corporate, non-farm micro and small enterprises through scheduled commercial banks, RRBs, small finance banks, MFIs and NBFCs. It is one of the most widely used MSME schemes in India.

Key features

Shishu: loans up to ₹50,000
Kishore: loans from ₹50,001 to ₹5 lakh
Tarun: loans from ₹5 lakh to ₹10 lakh
Tarun Plus: loans up to ₹20 lakh for eligible borrowers who have successfully repaid earlier Tarun loans
No collateral required; credit guarantee via CGFMU

Eligibility

Any Indian citizen running or planning a non-corporate, non-farm micro-enterprise
Manufacturing, trading, services, food processing, transport and allied activities
Farm activities linked to agriculture are also included

Benefits

Collateral-free credit up to ₹20 lakh
Wide network: loans available through nearly all banks and NBFCs
Credit guarantee coverage under CGFMU
Faster processing for Shishu loans — often within days

Required documents

✓KYC: Aadhaar, PAN, address proof
✓Business proof: registration, GST, Udyam where applicable
✓Bank statements (6–12 months)
✓ITR for Kishore and Tarun categories
✓Quotations and purpose statement

Application process

1
Choose category
Shishu, Kishore, Tarun or Tarun Plus based on the loan amount needed.
2
Choose a lender
Scheduled banks, RRBs, small finance banks, MFIs or NBFCs.
3
Apply
Submit application via Jan Samarth portal or directly at the branch.
4
Appraisal
Lender appraises the application; Shishu loans are typically faster.
5
Disbursement
Loan disbursed to your account, CGFMU cover activated.

Common pitfalls

!Applying under the wrong category for your loan size
!Weak purpose statement
!Overstating needs without clear cashflow justification

FAQs

Tarun Plus is an extended Tarun category announced to allow up to ₹20 lakh for borrowers who have successfully repaid earlier Tarun loans.

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Pradhan Mantri Mudra Yojana (PMMY)