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Loan Finance

PMMY MUDRA Kishore

Working capital loan ₹50,000 – ₹5 lakh

Maximum benefit
₹5 L
Typical processing
15–30 working days for new borrowers; 7–10 days for existing customers of the lender
Apply on official portal

About this scheme

PMMY Kishore is the mid-tier of the Mudra loan scheme, covering credit requirements between Rs. 50,000 and Rs. 5,00,000. Aimed at micro-enterprises that have crossed the initial setup phase and need expansion capital, working capital, or asset purchase financing. Lending is through scheduled commercial banks, RRBs, NBFCs, and MFIs.

What you get

  • Loan amount: Rs. 50,000 – Rs. 5,00,000
  • No collateral required up to Rs. 10 lakh (covered by CGTMSE/CGFMU)
  • Interest rate: 8.5%–13.0% per annum (varies by lender, business profile, CIBIL)
  • Repayment tenure: up to 5 years with 3–6 month moratorium possible
  • Working capital + term loan combination available
  • MUDRA card for the working-capital component
  • No prepayment penalty on floating-rate loans

Who qualifies

Existing or new non-farm micro-enterprises with a credit need between Rs. 50,000 and Rs. 5,00,000. Eligible activities include manufacturing, trading, services, and allied agriculture (poultry, dairy, fisheries — non-crop). The borrower can be an individual, proprietorship, partnership, or LLP. Existing businesses should have at least 6 months of operation history; new businesses need a clear business plan with revenue projections.

All industries qualify (no NIC restriction).

All business types qualify.

Available across India (central scheme).

How to apply

  1. 1Prepare a business plan with revenue projections, working-capital needs, and asset requirements
  2. 2Approach a participating lender — comparison of rates is recommended (use Jan Samarth portal)
  3. 3Submit application with Aadhaar, PAN, GST registration, last 12 months bank statement, and project report
  4. 4Lender conducts credit appraisal — visits business premises for verification
  5. 5Sanction letter issued; borrower signs loan agreement and provides hypothecation of assets created
  6. 6Disbursement typically within 15–30 days of complete application

Key terms and conditions

  • Hypothecation of assets purchased with loan funds is standard
  • Interest is typically floating, linked to lender's repo-linked lending rate
  • EMI starts after moratorium period (if granted)
  • Annual review by lender if working-capital component is included
  • Personal guarantee of proprietor/partners may be required for loans above Rs. 2 lakh

What disqualifies you

  • Crop loans excluded — use Kisan Credit Card for agricultural inputs
  • Pure trading without value addition is eligible but may attract higher rates
  • Existing loan with another lender for the same purpose may disqualify
  • Insurance of hypothecated assets is mandatory throughout loan tenure

Documents typically required

  • Aadhaar + PAN
  • Business proof (GST/Udyam)
  • Last 12 months bank statement
  • Business plan with projections

Frequently asked questions

Q. What is the difference between Shishu and Kishore?
Shishu loans are up to Rs. 50,000 with minimal documentation. Kishore loans are between Rs. 50,000 and Rs. 5,00,000 and require a more detailed business plan and project report.
Q. Can I get both a term loan and working capital under Kishore?
Yes. Many lenders structure Kishore loans as a combination of a term loan (for assets) and a cash credit facility (for working capital).
Q. Do I need collateral?
No — Mudra loans up to Rs. 10 lakh are covered under CGTMSE/CGFMU. The borrower however needs to hypothecate assets purchased with loan funds.
Q. What if my CIBIL score is below 650?
Many lenders will reject; some NBFCs may consider with a higher interest rate. First-time borrowers without history are evaluated on business merit.

The content above is compiled from public information published by the scheme authority. Eligibility, benefits, and procedures are subject to change. Confirm details directly with the official portal before applying. BharatSeal does not process scheme applications.