AI SummaryMudra Loan Scheme 2.0 is a central government scheme for small businesses in India. It was introduced in April 2025 with a higher loan ceiling of Rs. 20 lakh for eligible micro-enterprises. With this increased loan limit, small entrepreneurs can get the money they need to grow their business and take on bigger work orders.
Supporting small businesses is very important for the Indian economy. The Union Budget of 2025 gave Mudra Loan Scheme 2.0 a budget allocation of Rs. 5.4 lakh crore, which shows the government's push to improve credit access for small shop owners, vendors, artisans and new startups across the country.
What is Mudra Loan Scheme 2.0
Mudra Loan Scheme 2.0 is the upgraded version of Pradhan Mantri Mudra Yojana (PMMY). The Finance Ministry announced the key change during the 2025 Budget: the maximum loan amount went up from Rs. 10 lakh to Rs. 20 lakh, so small businesses can now plan bigger investments with government support. The new loan slab is known as TarunPlus, which covers loans between Rs. 10 lakh and Rs. 20 lakh.
MUDRA works as a refinancing body. It gives funds to banks and other financial institutions, not directly to small business owners. To get a Mudra loan under PMMY, people can visit their nearby bank, NBFC or Micro Finance Institution (MFI) branch, or they can apply online through the Udyamimitra portal.
MUDRA has no agents or middlemen for loan applications. People should stay alert and avoid anyone claiming to be an agent or helper of MUDRA or PMMY.
Highlights of Mudra Loan Scheme 2.0
| Detail | Information |
|---|---|
| Scheme Name | Mudra Loan Scheme 2.0 (PMMY) |
| Launched By | Government of India (Finance Ministry) |
| Beneficiaries | Small and micro enterprises, vendors, artisans, startups |
| Loan Amount | Up to Rs. 20 lakh (TarunPlus) |
| Budget Allocation | Rs. 5.4 lakh crore |
| Application Mode | Online through Udyamimitra portal and offline at banks |
| Official Website | Udyamimitra portal |
Eligibility Criteria for Mudra Loans
Mudra loans are open to a wide range of small businesses. Any Indian citizen above 18 years of age who runs a small income-generating activity can apply. These are some of the common eligible profiles:
- Small manufacturers who make products locally and want working capital support.
- Retail merchants, including kirana shops, garment stores and general trade shops.
- Fresh fruit and vegetable vendors who need money to buy stock and carts.
- Artisans, craftsmen and craft producers working in traditional trades.
- Transport service providers, catering services and repair service providers.
- Startups and new small businesses at the beginning stage.
Categories of Loans Under Mudra Scheme 2.0
The scheme groups loans into four categories based on how much money the applicant needs. Here is the full list of Mudra loan slabs in 2026:
- Shishu: Loans up to Rs. 50,000 for people starting a small activity for the first time.
- Kishor: Loans between Rs. 50,000 to Rs. 5 lakh for businesses that need a little more capital.
- Tarun: Loans from Rs. 5 lakh to Rs. 10 lakh for growing businesses.
- TarunPlus: Loans from Rs. 10 lakh to Rs. 20 lakh, added under Mudra 2.0 in 2025.
Documents Required for MUDRA Loan Application
Before starting the application process, keep these documents ready:
- Aadhaar Card
- PAN Card
- Registered mobile number
- Proof of address
- Electricity bill
- Ration Card
- Business registration document, if applicable
Benefits of Mudra Loan Scheme 2.0
The scheme gives small businesses a simple way to get bank credit without asking for heavy collateral. Key benefits are:
- Access to funds for business growth at normal bank interest rates.
- Support for job creation in local communities.
- Higher loan ceiling of Rs. 20 lakh for bigger investments under TarunPlus.
- Quick processing because banks and MFIs follow the same PMMY guidelines.
How to Apply for Mudra Loan Scheme 2.0
Steps for Online Application
STEP 1 - Go to the official Udyamimitra portal, which is the common online gateway for Mudra loan applications.
STEP 2 - Look for the Mudra Yojana or Pradhan Mantri Mudra Yojana option under the government schemes section on the homepage.
STEP 3 - Click on the Apply option for Mudra Yojana, then choose your loan category: Shishu, Kishor, Tarun or TarunPlus.
STEP 4 - Enter your name, email, and mobile number, then select Generate OTP.
STEP 5 - Enter the received OTP and complete the registration form with the required business details.
STEP 6 - Upload the required documents like Aadhaar, PAN and proof of address, then review the information.
STEP 7 - Submit the application. The portal will guide you to the lender or bank where your loan can be approved.
How to Apply Offline
People who cannot apply online can visit any bank branch that handles Mudra loans. Commercial banks, regional rural banks, small finance banks, micro finance institutions and NBFCs all accept PMMY applications.
STEP 1 - Visit your nearest bank, regional rural bank, small finance bank, MFI or NBFC branch.
STEP 2 - Take the loan application form based on your loan type. The forms are also available on the official websites of the banks.
STEP 3 - Choose the form for Shishu, Kishor, or Tarun loans.
STEP 4 - Fill in the application form carefully and attach all the required documents.
STEP 5 - Submit the application at the branch and keep the acknowledgement slip for tracking.
MUDRA Loan Interest Rates
The Mudra loan (PMMY) interest rates offered by top Indian banks in 2026 generally range from around 8.40% to 12% per annum, but rates vary by bank and loan type. Here is an overview of MUDRA loan interest rates from leading banks:
| Bank | Mudra Loan Interest Rate (p.a.) |
|---|---|
| State Bank of India | Linked to EBLR; usually 3.25% above EBLR (around 12.15%) |
| Punjab National Bank | Around 9% - 11% |
| HDFC Bank | Around 10% - 12% |
| ICICI Bank | Around 10% - 12% (estimated) |
| Canara Bank | Starts from 8.85% |
| Bank of Maharashtra | 11.8% |
| Union Bank of India | 10.30% (Shishu), 11% - 12% (others) |
| Bank of Baroda | BRLLR+SP to BRLLR+SP+2.35% |
| Central Bank of India | 10.05% p.a. |
| Axis Bank | Around 10% - 12% (estimated) |
Contact / Helpline Information
For any inquiries, reach out via email at help@mudra.org.in or call the PMMY national toll free numbers at 1800 180 1111 and 1800 11 0001.
State Wise Toll Free Numbers of MUDRA Yojana
You can also contact the dedicated helpline number of Mudra Yojana for your state. Below is the state-wise list.
| Name of the State / U.T | Toll Free No |
|---|---|
| ANDAMAN & NICOBAR ISLANDS | 18003454545 |
| ANDHRA PRADESH | 18004251525 |
| ARUNACHAL PRADESH | 18003453988 |
| ASSAM | 18003453988 |
| BIHAR | 18003456195 |
| CHANDIGARH | 18001804383 |
| CHHATTISGARH | 18002334358 |
| DADRA & NAGAR HAVELI | 18002338944 |
| DAMAN & DIU | 18002338944 |
| GOA | 18002333202 |
| GUJARAT | 18002338944 |
| HARYANA | 18001802222 |
| HIMACHAL PRADESH | 18001802222 |
| JAMMU & KASHMIR | 18001807087 |
| JHARKHAND | 18003456576 |
| KARNATAKA | 180042597777 |
| KERALA | 180042511222 |
| LAKSHADWEEP | 0484-2369090 |
| MADHYA PRADESH | 18002334035 |
| MAHARASHTRA | 18001022636 |
| MANIPUR | 18003453988 |
| MEGHALAYA | 18003453988 |
| MIZORAM | 18003453988 |
| NAGALAND | 18003453988 |
| NCT OF DELHI | 18001800124 |
| ORISSA | 18003456551 |
| PUDUCHERRY | 18004250016 |
| PUNJAB | 18001802222 |
| RAJASTHAN | 18001806546 |
| SIKKIM | 18003453988 |
| TAMIL NADU | 18004251646 |
| TELANGANA | 18004258933 |
| TRIPURA | 18003453344 |
| UTTAR PRADESH | 18001027788 |
| UTTARAKHAND | 18001804167 |
| WEST BENGAL | 18003453344 |