Mudra Loan (PMMY)
Pradhan Mantri Mudra Yojana offers collateral-free business loans up to ₹10 lakhs to non-corporate, non-farm micro and small enterprises. We prepare your file, match you with the right partner bank, and manage the entire application until disbursement.
Why choose Openedze
What you get when our experts handle this end-to-end
Collateral-free credit
Loans up to ₹10 lakhs disbursed without any collateral or third-party guarantee — backed by the government.
Working capital + term loan
Use the loan for working capital, equipment purchase, expansion, or any income-generating non-farm activity.
Wide eligibility
Individuals, proprietors, partnerships, LLPs, and small companies engaged in manufacturing, trading, or services can apply.
Available at most banks
Disbursed through public sector banks, private banks, regional rural banks, micro-finance institutions, and NBFCs.
Designed for first-time borrowers
Specifically targeted at micro-entrepreneurs who lack collateral or extensive credit history.
No prepayment penalty
Repay early without any prepayment charges — significant flexibility compared to traditional business loans.
What we help with
Loan category selection
Shishu (up to ₹50K) for new ventures, Kishore (₹50K–₹5L) for growing units, Tarun (₹5L–₹10L) for established businesses.
Project report preparation
Banks require a project report covering business model, cash flow, and use of funds. We prepare a bank-ready report.
Bank matching
Different banks have different Mudra approval rates. We match you with banks that are actively lending in your category and sector.
Documentation kit
KYC, business proof, ITR, bank statements, and other documents prepared and submitted in the bank's required format.
Application submission & follow-up
Application filed at the chosen bank branch. We follow up at every stage — appraisal, sanction, disbursement.
Post-disbursement support
Help with utilising the loan against the approved purpose and complying with end-use certification if requested.
Mudra explained
Pradhan Mantri Mudra Yojana (PMMY) was launched in 2015 to fund the unfunded — non-corporate, non-farm small and micro enterprises that had been excluded from formal credit. Loans are disbursed by member lending institutions (banks, NBFCs, MFIs, RRBs) and refinanced/guaranteed by MUDRA Ltd, a fully owned subsidiary of SIDBI.
There are three categories: Shishu (loans up to ₹50,000) for nascent businesses, Kishore (₹50,001–₹5,00,000) for growing units, and Tarun (₹5,00,001–₹10,00,000) for established businesses scaling up. The interest rate isn't fixed by the government — it's determined by the lender, typically pegged to the bank's MCLR + spread.
The hard part isn't the Mudra scheme itself — it's matching the borrower with a bank that's actively lending under Mudra in their category and sector. Approval rates vary widely across banks. Our team has placed hundreds of Mudra applications and knows which banks to approach for which profiles, dramatically improving sanction probability.
Eligibility & documents
Who's eligible
- Indian citizens engaged in non-farm, income-generating activities
- Manufacturing, trading, or services sector enterprises
- Proprietorships, partnerships, LLPs, and small companies
- Existing businesses seeking expansion or working capital
- New businesses with a viable business plan and project report
- Self-employed professionals (eligible for service-sector Mudra)
- Not eligible: corporate entities above MSME limits, agricultural primary production
Documents we'll need
- KYC of borrower: PAN, Aadhaar, address proof
- Business proof: Udyam Registration, GST, Shop Act, or partnership deed
- Bank statement of last 6–12 months (personal + business)
- ITR of last 2–3 years (for existing businesses)
- Project report (we prepare it)
- Proof of business premises (rent agreement / ownership)
- Quotations / proforma invoices for equipment or inventory being financed
- Photograph of the place of business
How Openedze helps
A clear, milestone-based path from kick-off to delivery
Eligibility & category check
We confirm you qualify and identify the right Mudra tier (Shishu / Kishore / Tarun).
Project report drafting
Our team prepares a bank-ready report covering business model, cash flow, and use of funds.
Bank matching & submission
We match you with the most likely-to-sanction bank in your area and submit the application.
Sanction & disbursement
We follow up through appraisal, sanction, and disbursement. Loan credited to your business account.
Support journey
Discovery & scoping
Day 0–2Eligibility confirmed, loan category selected, documents requested.
Project report & file prep
Day 2–5Project report drafted, KYC and financial documents organised.
Application submitted
Day 5–7Filed at the chosen bank branch with complete documentation.
Bank appraisal
Week 2–4Bank conducts due diligence — we coordinate any field visits and queries.
Sanction & disbursement
Week 4–8Sanction letter issued. Loan disbursed after final formalities (typically 2–4 weeks more).
Frequently asked questions
What's the interest rate?▾
There's no government-fixed rate. Banks set the rate — typically between 8.5% and 13% p.a. depending on category, lender, and applicant profile. Rates are pegged to MCLR + spread.
Is Mudra really collateral-free?▾
Yes — by scheme design. No collateral or third-party guarantee is required. However, banks may evaluate your CIBIL score, business viability, and bank statement quality before sanctioning.
How long is the repayment tenure?▾
Typically 3 to 5 years for working capital loans and up to 7 years for term loans. The bank decides based on the loan amount and purpose.
Can a new business with no history apply?▾
Yes. Shishu (up to ₹50,000) is specifically designed for new ventures. A good project report and a clear business plan are essential — and we prepare both.
What if my application is rejected?▾
We typically reapply with a different bank or in a different category after fixing the gaps. Mudra has wide bank coverage — so a rejection from one bank doesn't end the option.
Can I use Mudra for buying land or real estate?▾
No. Mudra cannot be used for buying land, real estate, or for personal use. It must be deployed in the business — working capital, equipment, inventory, expansion.
Get your Mudra loan sanctioned
Up to ₹10 lakhs, collateral-free, government-backed. Talk to our team and we'll prepare your application end-to-end.