What is PMEGP and who is eligible?

PMEGP (Prime Minister's Employment Generation Programme) provides subsidies of 15%–35% for new manufacturing and service units. Any Indian citizen above 18 years with a business plan can apply. NaavBharat provides end-to-end PMEGP application support.

What is the CGTMSE collateral requirement?

CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provides collateral-free credit guarantees up to ₹5 Crore for MSMEs with Udyam registration. No collateral or third-party guarantee is required.

What are the Mudra loan limits?

Mudra loans are offered in four tiers: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 Lakh), Tarun (₹5 Lakh to ₹10 Lakh), and Tarun Plus (₹10 Lakh to ₹20 Lakh). All tiers are collateral-free.

How does NaavBharat charge for its services?

NaavBharat operates on a success-linked advisory model with zero upfront fees. We charge only upon successful scheme disbursement. The initial eligibility consultation is completely free.

How long does PMEGP application processing take?

With complete documentation, PMEGP applications typically take 45–90 days from submission to sanction. NaavBharat's 98.6% approval rate is achieved through thorough pre-submission document review and bank coordination.

What documents are needed for CGTMSE?

CGTMSE requires Udyam Registration Certificate, business plan or project report, last 2 years ITR (if applicable), bank statements, KYC documents, and the loan application from a member lending institution (MLI).

Does NaavBharat help with GST registration and Udyam certification?

Yes. NaavBharat provides complete Certification services including GST registration, Udyam/MSME certification, FSSAI license, IEC (Import Export Code), trademark registration, and company incorporation for Pvt Ltd and LLP structures.

What is the difference between Mudra Shishu, Kishore, and Tarun?

Shishu covers up to ₹50,000 for startup-stage businesses. Kishore covers ₹50,001 to ₹5 Lakh for growing micro enterprises. Tarun covers ₹5 Lakh to ₹10 Lakh for established MSMEs. Tarun Plus (up to ₹20 Lakh) requires a strong Tarun repayment track record.

Is a Mudra loan only for new businesses?

No. Both new and existing businesses are eligible for Mudra loans. Existing businesses with a good track record can access higher Tarun or Tarun Plus tiers.

Does Mudra loan have a government subsidy?

No. Mudra loans are pure credit — they do not carry a government subsidy component. If you want a subsidy, PMEGP (for new units) or PMFME (for food processing) are the right schemes.

How long does Mudra loan approval take?

With complete documentation, Mudra loans through public sector banks take 7–15 days. NBFCs and MFIs can disburse within 3–7 days. NaavBharat helps prepare a complete file to minimise back-and-forth.

Can agriculture or farm businesses get Mudra loans?

No. PMMY specifically excludes farm-sector activities. However, allied activities — food processing, dairy, poultry, fisheries, agri-allied services — are eligible.

No CollateralFastest ApprovalAll Business Types

Government Scheme Guide

What is Mudra Loan?Pradhan Mantri Mudra Yojana (PMMY)

Collateral-Free Business Loans from ₹50,000 to ₹20 Lakh

₹20 Lakh

Max Loan (Tarun Plus)

Collateral Required

7–30 Days

Processing Time

New + Existing

Business Eligibility

Overview

Mudra Loan — Explained

Pradhan Mantri Mudra Yojana (PMMY) was launched in 2015 to provide affordable credit to non-corporate, non-farm small and micro enterprises. The scheme is channelled through banks, NBFCs, MFIs and other intermediaries.

Mudra loans are divided into four tiers based on business stage: Shishu (up to ₹50,000 for startups), Kishore (₹50,001–₹5 Lakh for growing businesses), Tarun (₹5 Lakh–₹10 Lakh for established MSMEs), and Tarun Plus (₹10 Lakh–₹20 Lakh for businesses with strong track records).

Unlike PMEGP, Mudra loans carry no government subsidy but are much faster to process — typically 7–30 days — with lighter documentation requirements. Both new and existing businesses are eligible.

Eligibility

Who Can Apply?

Any Indian citizen running or planning a non-farm income-generating business
Manufacturing, trading, and service sector all eligible
Both new enterprises and existing businesses eligible
Proprietary firms, partnerships, companies, SHGs all eligible
No minimum turnover or income requirement for Shishu/Kishore
Tarun Plus requires minimum 3 years of satisfactory Tarun loan track record

Documents

Documents Required

Aadhaar Card & PAN Card

Mandatory for all applicants

Business Proof

Trade license, GST certificate, or registration

Bank Statement (6–12 months)

Existing businesses; new units need KYC only

Proof of Business Address

Utility bill, rent agreement, or ownership

Photographs (Passport Size)

2–4 recent photographs

Quotations for Asset Purchase

If loan is for equipment or machinery

SC/ST/OBC Certificate

If applicable, for priority processing

Frequently Asked Questions

Mudra Loan — FAQs

Free Consultation

Want Help Applying for Mudra Loan?

NaavBharat offers a free eligibility check — our advisors match your business profile to the highest-value applicable schemes at no upfront cost.

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