Shishu Mudra Loan is one of the offerings as part of the PMMY Mudra Yojana. Under this scheme, borrowers can get loans up to Rs.50,000 to meet their business requirements. 

Shishu scheme financing is primarily provided by Micro Finance Institutions (MFIs), which provide loans for various micro-enterprises and small business activities. 

What can I use the Shishu Mudra Loan for?

MUDRA Shishu loans are primarily issued to take care of the working capital needs of small and micro-businesses. To name a few, the loan can be used for, modernization, extension, equipment acquisitions, or renovation. It can be accessed through either new or established businesses such as:

  • Entrepreneurs who work for themselves
  • Companies in the service sector
  • Microbusinesses and industries
  • Auto repair shops
  • Drivers of trucks
  • Vendors of fruits and vegetables
  • Micro-manufacturing businesses

What are the important benefits of Mudra Shishu Loans?

  • Loan up to Rs.50,000, without any collateral
  • Zero processing fees
  • Repayment period of 3-5 years
  • Applications can be submitted either online or offline

How and where to apply for Mudra Shishu Loan?

There are two ways to apply for a MUDRA Loan: 

  • Offline through the Bank or Financial Institution where you want to avail the loan from. You fill in the details on a paper form and submit the documents physically at your nearest branch. 
  • Online on the Udyami Mitra Portal / Mudra Mitra Portal or the official websites of banks and NBFCs offering this scheme. You fill in the details and upload the documents online.