Loans up to ₹50,000 for starting or running very small non-corporate, non-farm micro enterprises, including agri-allied activities.
Ministry of Finance (Department of Financial Services)
💰 Benefit: Collateral-free loan up to ₹50,000.
Always verify eligibility on the official website before applying. Scheme rules may change. Facts last checked against the official source on 15 October 2026.
Shishu covers loans up to ₹50,000 for very small or new businesses.
Any Indian citizen with a business plan for a non-farm income-generating activity, including agri-allied work like dairy or poultry, can apply. Entrepreneurs with no credit history or collateral can access Shishu loans.
PMMY sets no age or income limit. You must be eligible to borrow under the lender's norms.
You need the one-page application form, identity proof, address proof, a bank statement and anything else the lender asks for. PAN is not compulsory.
Once complete information is received, Shishu loans are normally processed in 7 to 10 days.
No. The 2% interest subvention was a one-time relief for 12 months during FY 2020-21. Interest rates are now set by lenders within RBI guidelines.