If you have a dream of starting a small business but do not have sufficient funds, Shishu Mudra Loan under the Pradhan Mantri Mudra Yojana (PMMY) may serve as your golden chance. The scheme provides a government-sponsored startup loan with funding for amounts as small as Rs 50,000 with hardly any documentation or collateral required. You can also avail of a Mudra loan by going through a simple online procedure.
In this guide, we shall take you through everything concerning the Shishu Mudra Loan, Eligibility, advantages, documents required, Interest Rate and the Online Appy.
What is Shishu Mudra Loan Rs 50000? Overview
| Key Details | Description |
|---|---|
| Scheme Name | Shishu Mudra Loan |
| Loan Amount | Up to Rs 50,000 |
| Purpose | Starting or expanding a small business |
| Application Process | Online or via bank visit |
| Required Documents | Aadhaar Card, PAN Card, Business Plan |
| Collateral Required? | No |
| Interest Rate | Low (8% – 12% p.a., varies by bank) |
Shishu Mudra Loans aim to help new entrepreneurs, owners of small shops, and startups through funding support. Whether it is about opening a kirana store, a beauty salon, or a tailoring shop, this loan makes the necessary funds available for anyone wishing to start a small business without being burdened with lots of paperwork or high interest rates.
Advantages of the Shishu Mudra Loan
- Minimal Documentation-No lengthy paperwork.
- Government-Backed Scheme-Safe and reliable.
- No Collateral Needed-Nothing like guarantee of property or asset.
- Low-Interest Rates-Affordable repayment options.
- Quick Approval-Funds disbursed between 2 to 3 days (sometime even faster).
Who Can Apply for Shishu Mudra Loan?
This loan is best suited for:
- A hopeful entrepreneur who has a solid plan for business.
- Anyone running small-scale business looking to expand.
- Women and young entrepreneurs (considered priority under the scheme).
- Anyone whose annual income stands lower than 1.5 lakh (with variation of eligibility).
Eligibility Criteria
Before applying, make sure you fulfill these conditions:
- Must be an Indian citizen.
- Age limit of 18 to 65 years.
- Must have a feasible business plan.
- No record of any bank default.
Documents Required for Shishu Mudra Loan
Keep these documents ready before applying:
- Aadhaar Card (Identity & Address Proof)
- PAN Card
- Passport-Sized Photograph
- Bank Statements (Last 6 Months)
- Business Plan (For new businesses)
Interest Rates & Charges
- Interest Rate: 8% – 12% per annum (varies by bank).
- Processing Fee: Minimal or zero charges.
- GST: 18% applicable on processing fees (if any).
How to Apply for Shishu Mudra Loan Online – Step-by-Step Guide
Follow these simple steps to secure your loan:
- Choose a Bank – Select a participating bank (SBI, PNB, HDFC, etc.) or an NBFC.
- Visit the Official Website – Go to the bank’s portal or visit the nearest branch.
- Fill the Application Form – Provide personal and business details.
- Upload Documents – Submit scanned copies of Aadhaar, PAN, and business plan.
- Verification & Approval – The bank will review your application.
- Loan Disbursement – Once approved, the amount will be credited to your account within 2-3 days.
Pro Tip: If you need instant approval, ensure all documents are correctly submitted. Some banks disburse funds within hours if the application is error-free.
Mudra Loan Bank List PDF 2025
According to the Pradhan Mantri Mudra Yojana (PMMY), several banks support and contribute to the Mudra loans taken for micro and small businesses. These include banks that are public sector, private sector, regional rural banks (RRBs), small finance banks, microfinance institutions (MFIs), and non-banking financial companies (NBFCs).
Download Mudra Loan Bank List PDF – Click Here