SIDBI (Direct Financing)Term Loan (Capex / Expansion)Micro Enterprise (Investment ≤ ₹1 Cr)Verified: 2026-09-29

Pradhan Mantri MUDRA Yojana - Kishore Tier Loan

Primary Lending Institution:Small Industries Development Bank of India (SIDBI)

Equipment and expansion loan from ₹50,001 to ₹5 Lakh under MUDRA with zero third-party collateral.

Connected Central Government Scheme: Pradhan Mantri MUDRA Yojana - Kishore Tier (Business Loans ₹50,001 to ₹5,00,000)View Government Scheme Guidelines →

Interest Rate8.75% – 11.25%Linked to EBLR / MCLR / Risk

Loan Amount Quantum₹50,001 to ₹5,00,000Based on turnover & project cost

Repayment TenureUp to 5 yearsWith moratorium where applicable

Collateral SecurityNil third-party collateral; primary hypothecation of assets purchased from loan proceeds

What's Missing: Crucial Fine-Print & Exclusion Gaps

Requires basic business existence and project report showing viable cash flows to service EMI. Margin money of 10% to 15% required from borrower.

Note: Eligo publishes these regulatory and commercial exclusions directly from bank product guidelines and CGTMSE rules to protect MSME applicants from unexpected fee debits or loan rejection surprises.

What is Pradhan Mantri MUDRA Yojana - Kishore Tier Loan?

Middle tier of PMMY providing equipment financing and working capital from ₹50,001 up to ₹5 Lakh to help established micro-enterprises purchase tools, machinery, and inventory.

Key Benefits & Features

Up to ₹5 Lakh collateral-free loan; purchase modern machinery; repayment tenure up to 5 years; available across 100+ nationalized, private, and regional banks.

Government Subsidy & Credit Guarantee Coverage

Credit Guarantee under CGFMU; Hypothecation of equipment/stocks only

Enterprise Eligibility Criteria

Existing micro-enterprises, small manufacturing units, and service establishments with minimum 1 year operations and clean banking track record.

Business Vintage1+ Years in Operation

Min. Annual Turnover₹1.0 Lakh

Processing Fee0.50% of loan amount + GST (Nil in select banks)

Prepayment TermsZero prepayment penalty on floating rate loans

How to Apply (3 Verified Paths)

💼Path 1: Current Account Portal

Apply at bank branch where current/savings account is maintained.

🌐Path 2: Official FinTech / Govt Portal

Apply online at psbloansin59minutes.com or udyamimitra.in.

🏢Path 3: SME Banking Center Walk-In

Submit project proposal and quotation of machinery to commercial bank loan manager.

Eligo does not collect business loan applications or financial data. Apply directly on the verified official domain:

Visit Official Portal↗

Documents Required Checklist

Udyam Registration Certificate, Last 6 months bank statement, Quotations for machinery, ITR/Sales tax returns for 1 year, KYC of promoters.

Frequently Asked Questions

What margin money is required for MUDRA Kishore loans?

Borrowers are typically required to contribute 10% to 15% of the total project cost as promoter margin money, while 85% to 90% is financed by the bank.

Can Kishore tier be used for buying commercial vehicles?

Yes, purchase of small commercial vehicles, e-rickshaws, goods carriers, and tractors used for commercial transport is eligible under Kishore tier.

Is Udyam registration required for Kishore loan?

Yes, holding a valid Udyam Registration Number (URN) is mandatory for availing MSME priority sector credit under Kishore tier.

How long does sanction take?

Sanctions through the psbloansin59minutes.com portal provide in-principle approval in 59 minutes, with final branch disbursement within 7 to 10 working days.