How to Apply for Mudra Shishu Loan up to ₹50,000 2026

About This Guide

Pradhan Mantri Mudra Yojana (PMMY) Shishu category for smallest borrowers - up to ₹50,000. New micro enterprises, hawkers, vendors, artisans. No collateral. Interest 7-12% (varies by lender). Tenure 3-5 years. Apply at any participating bank.

Eligibility Criteria

• Indian citizen 18+
• Non-corporate small business
• Manufacturing/Trading/Services
• New or existing micro enterprise
• PAN preferred (mandatory > ₹50K)
• Aadhaar mandatory

Documents Required

Keep these documents ready before starting application. Missing documents = delayed approval.

• Aadhaar, PAN
• Address proof
• Business plan (simple)
• Quotations for equipment/stock
• Photo
• Caste certificate (priority)
• Bank statements 6 months

Step-by-Step Application Process

Follow these steps in order. Each step is critical - skip none.

Key Benefits

• Up to ₹50,000 loan
• No collateral required
• Interest 7-12%
• Tenure 3-5 years
• Quick approval (15-30 days)
• For new micro enterprises
• Mudra Card option
• PMEGP/PMVY linkage

What Happens After Application?

15-30 days approval. EMI auto-debit. Build credit history. After successful repayment, eligible for Mudra Kishore (₹50K-5L).

Frequently Asked Questions

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