Mudra loan is a Government of India undertaking, which was started to provide financial support to small businesses in the country.
Under Mudra Loan Yojana, three different types of loans are provided:
- SHISHU Loan - This loan is designed for startups and provides financial support of up to Rs. 50,000.
- KISHOR Loan - This loan is designed for businesses who have already started up and require financial help for establishing themselves. Financial support ranging between Rs. 50,000 and Rs. 500,000 is provided to applicants under this category
- TARUN Loan - This loan is offered to businesses which are already established but require financial help for expansion. Financial support ranging between Rs. 500,000 and Rs. 10,00,000 is provided to applicants under this category.
If you don't have an existing business and are planning to start a new business, you can get a loan amount upto Rs. 50,000 under the Shishu category. To get approved for this loan, you will have to present your business idea while applying for this loan.
Additional Reading: How to apply for a MUDRA loan?