Shishu project report
Up to Rs 50,000
The Shishu category under Pradhan Mantri Mudra Yojana (PMMY) is designed for micro-entrepreneurs who need small capital to start or grow a business. With loans up to Rs 50,000, Shishu is ideal for street vendors, home-based businesses, and small service providers who require working capital or minimal equipment.
Most Shishu applicants qualify on day one
Tick the criteria below — chances are you already meet them. Use the eligibility calculator for a personalised score.
Indicative Shishu approval-likelihood for a typical applicant.
Calculate yoursIndian citizen aged 18–65 years
Non-corporate, non-farm small or micro enterprise
No existing default or overdue loan with any bank
Valid identity proof (Aadhaar, PAN, Voter ID)
Business should be in manufacturing, trading, services, or allied agriculture
What to keep at hand
Most banks ask for the same essentials. We've illustrated each so you know exactly what to look for.
Aadhaar Card and PAN Card of the applicant
Passport-size photographs (2 copies)
Proof of business address (utility bill, rent agreement)
Business registration certificate (if available)
Quotation for machinery or equipment (if applicable)
Bank statement of last 6 months (if existing account)
Pick a template, get a tailored report
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Shishu-specific questions
What is the maximum loan amount under Shishu Mudra?
The maximum loan amount under the Shishu category is Rs 50,000. This is the entry-level tier of PMMY designed for micro-entrepreneurs.
Is collateral required for a Shishu Mudra loan?
No. Shishu Mudra loans are completely collateral-free. Banks cannot ask for any security or guarantor for loans under this category.
What is the interest rate for Shishu Mudra loans?
Interest rates vary between 1% and 12% per annum depending on the lending bank. Many public sector banks offer subsidised rates as low as 1% for Shishu loans. The government does not fix a uniform rate — each bank sets its own.
Can I get a Shishu loan for a new business?
Yes. Shishu loans are available for both new and existing businesses. Many first-time entrepreneurs use Shishu loans to start street vending, tailoring, food stalls, and similar micro-businesses.
How long does it take to get a Shishu Mudra loan approved?
Typical processing time is 7–14 working days from the date of application. Some banks with digital processing can approve within 3–5 days.
Do I need a project report for a Shishu loan?
While not always mandatory for very small amounts, most banks prefer a basic project report even for Shishu loans. A project report significantly improves your approval chances by showing the bank that your business plan is viable.
Can women entrepreneurs get special benefits under Shishu?
Yes. Several banks offer reduced interest rates (0.25%–0.50% lower) for women borrowers under Mudra Yojana. The government actively encourages women entrepreneurship through PMMY.
What happens if I repay my Shishu loan on time?
Timely repayment builds your credit history and makes you eligible for higher loan amounts under Kishore (up to Rs 5 lakh) or Tarun (up to Rs 10 lakh) categories in the future.
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