Mudra loan categories
PMMY loans are classified by ticket size rather than by activity. The category determines documentation depth — Shishu files are light, Kishore and Tarun files need a proper project report.
- Loans are collateral-free — the project's viability is the security, which is precisely why the report matters.
- Available to manufacturing, trading, services and allied agricultural activities.
- Tarun Plus is at lender discretion and depends on prior repayment history.
| Category | Loan amount | Typical use |
|---|---|---|
| Shishu | Up to ₹50,000 | Very small startups, tools, initial stock |
| Kishore | ₹50,001 – ₹5 lakh | Expanding an established micro-unit |
| Tarun | ₹5,00,001 – ₹10 lakh | Equipment, premises fit-out, larger working capital |
| Tarun Plus | ₹10 lakh – ₹20 lakh | Repeat borrowers with a clean Tarun repayment record |
What a Mudra project report must contain
For Kishore and Tarun the bank expects the same core schedules as any term-loan file, sized to the smaller ticket:
- Promoter and business profile with KYC
- Activity description and the business model in plain terms
- Means of finance — own contribution against the Mudra loan
- Fixed assets with supporting quotations
- Working capital computation
- Projected P&L, balance sheet and cash flow
- Repayment schedule matched to the loan tenure
- DSCR working
- Break-even analysis
Documents to keep ready
- Aadhaar and PAN of the applicant
- Proof of business address and, where applicable, Udyam registration
- Category certificate where a concession is claimed
- Quotations for every asset in the fixed-asset schedule
- Bank statements for the last six to twelve months for existing units
- Photographs of the business premises
Why Mudra files get returned
- Projected turnover far above what the stated capacity or floor area can support.
- No working capital line, so the unit shows profit on paper but has no cash to trade with.
- Own contribution missing or unexplained.
- Repayment schedule that does not match the tenure actually sanctioned.