PM Mudra Loan Scheme 2026 is now open for new applications - over 57.79 crore loans worth ₹40.07 lakh crore have been given out since the scheme started in 2015.
Starting a small business in India has become a lot easier because of schemes like Pradhan Mantri Mudra Yojana (PMMY). Whether you want to open a small shop, run a dairy farm, start a tailoring unit, or expand your existing business, you can get a loan of up to ₹20 lakh without any collateral. The central government launched this scheme on 8 April 2015 to make sure that small entrepreneurs, especially women and first-time business owners, do not have to depend on moneylenders. With over 12.15 crore loans disbursed to first-time entrepreneurs alone, PM Mudra Loan Scheme has proved to be a successful flagship scheme of Indian government.
PM Mudra Loan Scheme 2026 - Apply Online
You can apply for a Mudra loan both online and offline. The easiest online method is through the official government portal Udyami Mitra. It matches you with banks offering the best rates and gives you a digital approval in principle, after which you visit the bank branch for final disbursement. Here is the step-by-step process:
STEP 1 - Visit the official Udyami Mitra portal at udyamimitra.in. This is the main government portal for PM Mudra Loan online applications.
STEP 2 - Click on "Apply for Mudra Loan" on the homepage and register using your mobile number. Enter your number and verify the OTP received on your phone.
STEP 3 - After logging in, select your loan category based on your requirement - Shishu (up to ₹50,000), Kishor (up to ₹5 lakh), Tarun (up to ₹10 lakh), or Tarun Plus (up to ₹20 lakh). Fill in your personal and business details in the application form.
STEP 4 - Upload the required documents such as your Aadhaar card, PAN card, address proof, business proof, and bank statements. For Kishore, Tarun, and Tarun Plus categories, you will also need to upload a business plan or project report.
STEP 5 - After uploading all documents, the portal will show you a list of banks with their interest rate offers. Select the lender that suits you best and submit the application. An application number will be generated - keep it for future reference.
STEP 6 - After digital approval in principle, visit the selected bank branch with original documents for final verification and loan disbursement.
You can also apply offline by walking into any nearby bank branch, NBFC, or MFI. Ask for the PMMY application form for the relevant loan category, fill it in, attach the required documents, and submit. Shishu loans typically get approved within 7 to 10 working days, while Kishor loans take around 2 to 3 weeks and Tarun loans may take 3 to 4 weeks.
Download PM Mudra Loan Application Form PDF
For offline applications, you can download the loan forms directly from the official MUDRA website. It has separate forms for Shishu loans and a common form for Kishor and Tarun loans. You can also get these forms from your nearest bank branch or just download the below common form.
Scheme Highlights
| Detail | Information |
|---|---|
| Scheme Name | Pradhan Mantri Mudra Yojana (PMMY) |
| Launched By | Government of India |
| Launch Date | 8 April 2015 |
| Implementing Body | MUDRA (Micro Units Development & Refinance Agency), a subsidiary of SIDBI |
| Loan Amount | Up to ₹20 lakh (Tarun Plus category) |
| Collateral Required | No |
| Loan Categories | Shishu, Kishor, Tarun, Tarun Plus |
| Age Limit | 18 to 65 years |
| Interest Rate | Starts from ~8.5% p.a. (varies by bank) |
| Repayment Period | 3 months to 7 years |
| Application Mode | Online (udyamimitra.in) and Offline (bank branches) |
| Official Website | mudra.org.in / udyamimitra.in |
| Total Loans Disbursed (since 2015) | 57.79 crore loans worth ₹40.07 lakh crore |
Four Loan Categories Under PM Mudra Loan Scheme
PM Mudra Loan Scheme divides loans into four categories based on how much your business needs and what stage it is at. This way, even a first-time street vendor and a well-established small factory owner can both find a suitable option.
Shishu - Loans up to ₹50,000. Made for first-time entrepreneurs and new micro businesses that are just getting off the ground. You don't need a detailed project report for this category, and the documentation is minimal. Shishu loans can be approved in as little as 7 to 10 working days.
Kishor - Loans above ₹50,000 and up to ₹5 lakh. This is for businesses that have already started and need funds for expansion or to stabilize their operations. A basic business plan may be needed at this stage.
Tarun - Loans above ₹5 lakh and up to ₹10 lakh. This category is for well-established micro and small enterprises looking to scale up, buy equipment, or increase working capital. An ITR and project report are usually required.
Tarun Plus - Loans above ₹10 lakh and up to ₹20 lakh. This category was introduced in Union Budget 2024-25 and is only for entrepreneurs who have already repaid a Tarun loan successfully. It rewards good repayment discipline and lets growing businesses access higher credit.
Eligibility Criteria for PM Mudra Loan 2026
Most Indian citizens running or planning to run a small non-farm business can apply. Here is what you need to check before applying:
- Citizenship and Age: You must be an Indian citizen aged between 18 and 65 years.
- Business Type: Your business should be in manufacturing, trading, or services. Agriculture-allied activities like poultry, dairy, beekeeping, fishery, and food processing are also covered, but direct crop loans are not eligible.
- Business Structure: Individuals, proprietors, partnerships, private limited companies, and self-employed professionals can all apply.
- No Loan Default: You should not be a defaulter with any bank or financial institution.
- Tarun Plus condition: Only previous Tarun borrowers with a clean repayment record are eligible for loans above ₹10 lakh under the Tarun Plus category.
Documents Required for PM Mudra Loan
The documents needed differ slightly based on the loan category. However, the basic set of documents required for a PM Mudra Loan is as follows:
- Identity Proof: Aadhaar card, PAN card, Voter ID card, Passport, or Driving License (any one).
- Address Proof: Aadhaar card, recent electricity or telephone bill (not older than 2 months), or Passport.
- Business Proof: GST registration certificate, Udyam Registration certificate, Trade License, or copies of relevant licenses.
- Bank Statements: Last 6 months' bank account statement from your existing bank.
- Photographs: 2 recent passport-size photographs of the applicant.
- SC/ST/OBC certificate (if applicable, as it may get you preferential treatment).
For Kishor, Tarun, and Tarun Plus loans, banks also ask for a project report or business plan showing how you plan to use the funds and how you will repay, Income Tax Returns for the last 1 to 2 years, and balance sheets of the business (for loans above ₹2 lakh). A machine or equipment quotation may also be needed if you are buying equipment. For Shishu loans of up to ₹50,000, you just need the Aadhaar card, PAN card, business address proof, and a machine or equipment quote if applicable.
What Businesses Can Get a Mudra Loan
PM Mudra Loan Scheme covers a very wide range of small business activities. Some of the common businesses that can get a loan include transport vehicles like auto rickshaws, e-rickshaws, taxis, and small goods vehicles. Personal service businesses like saloons, beauty parlours, gyms, tailoring shops, dry cleaning, cycle and motorcycle repair shops, and medical shops are also covered. Food businesses such as papad making, achaar making, sweet shops, canteens, and food stalls are eligible. Textile businesses including handlooms, khadi units, and garment shops can also apply. Even existing micro and small enterprises looking to expand are eligible under this scheme.
Interest Rate and Repayment Details
The interest rate on PM Mudra Loan is not fixed by the government. Each bank or lending institution sets its own rate based on your credit profile, loan category, and market conditions. In 2026, Shishu loans generally have interest rates ranging from 10 to 12% per annum, Kishor loans from 11 to 15%, and Tarun loans from 12 to 16%. Rates are linked to the bank's MCLR or the RBI repo rate. Women entrepreneurs may get a small concession on interest rates from certain lenders. There is no direct government subsidy on the interest rate, but the credit guarantee backing from the government makes these loans much easier to access than regular bank loans.
Repayment tenure ranges from 3 months to 7 years depending on the lender and loan type. Processing fees are nil for Shishu loans, and around 0.5% for Kishor and Tarun loans. There are no foreclosure charges. You also get a MUDRA Card - a RuPay debit card linked to a working capital loan account - which lets you draw funds as needed rather than taking the whole loan at once.
PM Mudra Loan: Impact So Far
Since its launch in 2015, PM Mudra Yojana has had a massive impact on small business owners in India. The government has officially shared that 57.79 crore loans have been given out so far, with a total loan value of ₹40.07 lakh crore. Among these, 12.15 crore loans worth around ₹12 lakh crore went to first-time entrepreneurs who had never borrowed from a bank before. Women have benefited the most from this scheme - they make up 67% of all loan recipients, with 38.71 crore loans going to women borrowers. Additionally, 51% of all loans have been given to OBC category borrowers.
Banks Where You Can Get a Mudra Loan
You do not have to go to one specific bank for a Mudra loan. The scheme is offered through a large network of lending institutions across India. These include public sector banks like SBI, Bank of Baroda, and Punjab National Bank, as well as private banks, Regional Rural Banks (RRBs), Small Finance Banks, Micro Finance Institutions (MFIs), and Non-Banking Financial Companies (NBFCs). You can check the full Mudra Loan Bank List to find the lending institution nearest to you. Always compare interest rates from at least 2 to 3 lenders before finalizing your application.
FAQ's
What is the maximum loan amount under PM Mudra Yojana in 2026?
The maximum loan amount is ₹20 lakh under the Tarun Plus category, which was introduced in Union Budget 2024-25. This is available only to those who have already successfully repaid a Tarun loan. For first-time borrowers, the maximum is ₹10 lakh under the Tarun category.
Is any collateral needed for a Mudra loan?
No, PM Mudra Loan is fully collateral-free. You do not need to pledge any property, fixed deposit, or provide a third-party guarantee. The government provides credit guarantee backing through CGTMSE, which covers the lender's risk.
Can farmers apply for a Mudra loan?
Crop loans and direct agricultural activities like irrigation or land improvement are not covered. However, agriculture-allied activities like poultry, dairy farming, fishery, beekeeping, and food processing are eligible under PM Mudra Yojana.
Is CIBIL score required for a Mudra loan?
A good CIBIL score is not mandatory for Shishu loans up to ₹50,000. But for Kishor and Tarun loans, banks may check your credit history to assess repayment ability. A clean credit record improves your chances of getting a higher loan amount.
What is the repayment period for a Mudra loan?
Repayment tenure ranges from 3 months to 7 years depending on the lender and loan category. Some lenders also offer a moratorium period of up to 12 months on repayment.
Are women entrepreneurs given any special benefit?
Yes, many banks offer a small concession on interest rates for women borrowers under PM Mudra Yojana. Women account for 67% of all Mudra loan beneficiaries - 38.71 crore loans have gone to women across the country, making this one of the most women-friendly loan schemes in India.
What is a MUDRA Card?
A MUDRA Card is a RuPay debit card issued to Mudra loan borrowers. It is linked to a working capital loan account and lets you withdraw funds as and when needed for business expenses, rather than taking the full loan amount at one go.