PM Mudra Yojana – Mudra Loan Scheme India 2026
Get collateral-free Mudra Loan under Pradhan Mantri Mudra Yojana (PMMY) for startups, small businesses, and micro enterprises. Apply online for Shishu, Kishor, Tarun, and Tarun Plus loans with ease.
Calculate Your Mudra EMIWhat is PM Mudra Loan?
PM Mudra Loan, offered under the Pradhan Mantri Mudra Yojana, is a government-backed scheme designed to support small businesses, shopkeepers, traders, self-employed professionals, and MSMEs. It provides collateral-free loans ranging from ₹50,000 to ₹20 lakh, helping entrepreneurs access working capital and grow their ventures.
The Mudra Loan Scheme India is divided into multiple categories:
Shishu Mudra Loan
Up to ₹50,000 for startups and first-time entrepreneurs.
Kishor Mudra Loan
Up to ₹5 lakh for business expansion and working capital.
Tarun Mudra Loan
Up to ₹10 lakh for established businesses.
Tarun Plus Mudra Loan
Up to ₹20 lakh for scaling operations and large investments.
This Mudra Loan Government Scheme ensures micro and small businesses have access to finance, promoting women entrepreneurship, financial inclusion, and employment generation across India.
Mudra Loan Categories – Shishu, Kishore, Tarun & Tarun Plus
The Pradhan Mantri Mudra Yojana (PMMY) offers four major categories of loans to cater to businesses at different stages.
Shishu Mudra Loan
Loan up to ₹50,000 for startups & micro-businesses.
- Target: Small businesses, street vendors, home-based enterprises
- Collateral: Not required
- Eligibility: Age 18–65, self-employed
Kishore Mudra Loan
Loan up to ₹5 lakh for business expansion.
- Target: Small business owners, shopkeepers, traders
- Collateral: Not required
- Eligibility: Existing business, creditworthy, 18–65 years
Tarun Mudra Loan
Loan up to ₹10 lakh for scaling established businesses.
- Target: MSMEs, retail stores, manufacturing units
- Collateral: Generally not required
- Eligibility: Proven business track record, age 18–65
Tarun Plus Mudra Loan
Loan up to ₹20 lakh for large-scale investments.
- Target: Established MSMEs and startups
- Collateral: Minimal or CGTMSE guarantee
- Eligibility: Business experience, proper documentation, 18–65 years
These categories ensure that all types of entrepreneurs – from women-led startups to self-employed shopkeepers – can access loans under the Mudra Loan Scheme India. Each category aligns with the business scale and financial requirement, providing flexible solutions to support growth.
Mudra Loan Eligibility Criteria & Target Audience
The PM Mudra Loan scheme empowers micro, small, and startup businesses across India. Understanding eligibility ensures a smooth Mudra Loan Online Apply process.
General Eligibility
- Applicant must be an Indian citizen aged 18–65 years (Mudra Loan Age Limit).
- Business should be non-farm, income-generating, and small-scale.
- First-time entrepreneurs, existing business owners, or startups can apply.
- No prior credit history required; lenders may assess repayment capacity (Mudra Loan Credit Score Requirement).
- Women entrepreneurs, SC/ST, and marginalized communities are encouraged (Mudra Loan for Women Entrepreneurs).
- Business should not have previously received a loan under the same Mudra category.
Target Audience & Business Types
- Small Business: Shops, retail stores, local service providers.
- Traders: Market vendors, distributors, wholesale traders.
- Self-Employed: Freelancers, home-based businesses, artisans.
- MSME: Micro and small manufacturing or service enterprises.
- Startups: First-time entrepreneurs launching innovative businesses.
- Women Entrepreneurs: Encouraging financial inclusion and empowerment.
Sector-Specific Eligibility
- Manufacturing: Small-scale production units, handicrafts, cottage industries.
- Services Sector: IT services, repair shops, consultancy, salons.
- Retail Business: Grocery stores, clothing shops, local retail chains.
- Agri Allied Activities: Dairy, poultry, fishery, horticulture support businesses.
- Food Business: Restaurants, tiffin services, street food vendors.
- Transport Vehicles: Small-scale logistics, taxi, auto, delivery vehicles.
- Equipment Finance: Machinery, computers, and business equipment.
Aligning with the right Mudra Loan Category – Shishu, Kishore, Tarun, or Tarun Plus – ensures higher approval chances and faster processing.
Mudra Loan Documents Required & Online Application
Mandatory Documents
- Identity Proof: Aadhaar, PAN, Voter ID, Passport.
- Address Proof: Aadhaar, utility bills, ration card, rent agreement.
- Business Proof: Business registration, GST, trade license, partnership deed.
- Bank Account: Active savings/current account in applicant's name.
- Photographs: Recent passport-size photos.
- Business Plan: Recommended for Kishore & Tarun loans.
- Additional documents as requested by the lender.
How to Apply Online
- Choose Lender: Banks, NBFCs, MFIs authorized under PMMY.
- Access Form: Fill the application on official bank website or Mudra portal.
- Complete Form: Enter personal/business details, select Mudra Loan category.
- Upload Documents: Attach scanned identity, address, and business documents.
- Submit: Bank/NBFC verifies documents and eligibility.
- Approval & Disbursement: Loan amount transferred to applicant’s account.
Offline Application & Banks
For offline applications, visit an authorized bank branch with all documents. Mudra loans are offered by:
- Public Sector Banks: SBI, PNB, Canara Bank, etc.
- Private Banks: HDFC, ICICI, Axis, etc.
- Regional Rural Banks & Cooperative Banks
- NBFCs & MFIs authorized under MUDRA
- Partner institutions supporting CGTMSE Guarantee
Explore Mudra Loan Options
The PM Mudra Scheme offers financial support to businesses at different stages. Choosing the right loan plan can accelerate growth and secure working capital efficiently.
Shishu Loan
Up to ₹50,000 for new entrepreneurs and micro-businesses.
- Perfect for first-time business ventures
- Fast processing, minimal paperwork
- Repayment options up to 36 months
- Low interest rates starting from 7%
Kishore Loan
From ₹50,001 to ₹5,00,000 for business growth.
- Expand your shop, service, or small enterprise
- Funds for stock, staff, or equipment
- Repayment period up to 5 years
- Eligibility depends on credit & business record
Tarun Loan
From ₹5,00,001 to ₹10,00,000 for established enterprises.
- Ideal for scaling production or entering new markets
- Funds for machinery, tech upgrades, or marketing
- Repayment can go up to 7 years
- Requires business track record & documentation
Tarun Plus Loan
Up to ₹20,00,000 for large-scale projects & growing businesses.
- Ambitious expansions and multi-branch setups
- Used for working capital, new outlets, or diversification
- Requires strong financial & business records
- Flexible repayment options based on bank policy
Key Advantages of Mudra Loans
- No Collateral: Borrow up to ₹20 lakh without pledging property
- Women Entrepreneurs Benefit: Special guidance and priority support
- Supports Multiple Sectors: Retail, manufacturing, services, transport, and more
- Promotes Small Business Growth: Credit access & financial inclusion
- Custom Repayment: EMI plans designed for business cash flows
Interest Rates & Tenure
- Shishu Loan: 7–12% p.a., max 3 years
- Kishore Loan: 8–13% p.a., max 5 years
- Tarun Loan: 9–14% p.a., max 7 years
- Tarun Plus Loan: 10–15% p.a., max 10 years
Selecting the right plan ensures maximum benefit while fueling your business expansion efficiently.
Mudra Loan: Eligibility & Ideal Applicants
The PM Mudra Loan under Pradhan Mantri Mudra Yojana (PMMY) supports startups, small businesses, and MSMEs across India. Check eligibility to ensure smooth approval and funding access.
Who Can Apply?
- Indian citizens only
- Businesses: MSME, startups, small-scale ventures
- Loans up to ₹20 lakh without collateral
- Credit history & repayment capacity considered
Age Requirements
- Minimum: 18 years
- Maximum: 65 years (may vary by lender)
- Business experience preferred
Credit Score
- Good credit history improves approval
- Score above 650 preferred
- First-time entrepreneurs get flexible terms under Shishu Loan
Ideal Borrowers
- Small business owners & shopkeepers
- Self-employed professionals & traders
- Women entrepreneurs seeking support
- Startup founders needing working capital
- MSMEs in retail, manufacturing, or services
Special Eligibility & Business Sectors for Mudra Loan
Special Eligibility for Women Entrepreneurs
PMMY encourages women entrepreneurs to apply for Mudra Loan for Women by offering:
- Priority loan processing and approval
- Flexible repayment tenure
- Support for small-scale businesses, shops, or home-based enterprises
Mudra Loan for Different Business Sectors
Eligible businesses under PMMY include:
- Manufacturing: Small factories, machinery units
- Services Sector: Beauty salons, repair shops, IT services
- Retail Business: Grocery stores, retail outlets, e-commerce sellers
- Agri Allied Activities: Dairy, poultry, fishery, organic farming
- Food Business: Catering, restaurants, food delivery
- Transport Vehicles: Auto-rickshaws, taxis, logistics vehicles
- Equipment Finance: Purchase of business tools, machinery, or tech equipment
By meeting eligibility criteria and targeting the right business sector, entrepreneurs can maximize the benefits of PM Mudra Loan and secure funds to grow their ventures efficiently.
Mudra Loan Application Process & Documents
The PM Mudra Loan under Pradhan Mantri Mudra Yojana (PMMY) helps small businesses, startups, and self-employed individuals secure financing. Follow these steps and prepare the necessary documents for a smooth application.
Step 1: Choose Loan Type
- Shishu: Up to ₹50,000 for startups
- Kishore: ₹50,001–₹5 lakh for growing businesses
- Tarun: ₹5,00,001–₹10 lakh for established businesses
- Tarun Plus: Up to ₹20 lakh for larger MSMEs
Step 2: Gather Documents
- Identity proof: Aadhaar, PAN, Voter ID
- Address proof: Utility bill, Passport, Ration Card
- Business registration: Shop Act, GST
- Bank statements (6–12 months)
- Business plan or financial projection
- Passport-size photos
Step 3: Apply Online
- Visit official PMMY portal
- Select loan type: Shishu, Kishore, Tarun
- Fill online application with business/personal info
- Upload required documents in PDF/JPG
- Submit for verification by banks/NBFCs
Step 4: Apply Offline
- Visit PMMY partner bank branch
- Fill physical application form
- Attach required documents
- Submit for bank verification and approval
- Receive loan sanction letter once approved
Mudra Loan Process Overview
Loan Application Steps
- Choose the right loan type (Shishu, Kishore, Tarun)
- Check eligibility based on age, credit score, and business type
- Collect all required documents
- Apply online via Mudra Portal or offline at bank branches
- Loan application verified and approved by partner banks/NBFCs
- Funds disbursed to the applicant's bank account
Online vs Offline Application
Online application: Faster, convenient, minimal paperwork, instant status updates.
Offline application: For applicants with limited internet access; requires visiting bank branches.
Additional Tips for Success
- Maintain a good credit score to increase approval chances
- Prepare a detailed business plan highlighting revenue projections
- Choose the loan type wisely based on business stage
- Ensure all documents are accurate and updated
- Consult PMMY partner banks for guidance on loan processing
Mudra Loan Interest Rates, Benefits & Partner Banks
The Pradhan Mantri Mudra Yojana (PMMY) supports small businesses, startups, and entrepreneurs. Knowing the interest rates, benefits, and partner banks helps applicants make informed financial decisions.
Interest Rates 2025–26
- Shishu Loan: 7%–8.5% p.a.
- Kishore Loan: 8%–9% p.a.
- Tarun & Tarun Plus: 9%–10% p.a.
- Rates vary by bank & credit score
Note: Special concessions for women entrepreneurs may apply.
Key Benefits
- No collateral for most loans
- Quick approval & disbursement
- Supports small businesses & startups
- Flexible repayment tenure (up to 5 years)
- Promotes entrepreneurship & self-employment
- CGTMSE-backed guarantees reduce bank risk
CGTMSE Guarantee
The Credit Guarantee Fund Trust for Micro & Small Enterprises protects lenders and encourages lending:
- No collateral requirement for PMMY loans
- Coverage: 85%–90% of loan amount
- Encourages banks to support small entrepreneurs
- Reduces default risk & ensures smooth funding
Partner Banks & NBFCs
PMMY works with leading banks & financial institutions:
- State Bank of India (SBI)
- Punjab National Bank (PNB)
- HDFC Bank, ICICI Bank, Axis Bank
- Bank of Baroda & regional banks
- Small Finance Banks & NBFCs
Compare interest rates across banks for optimal funding.
How to Maximize Mudra Loan Benefits
- Apply for the loan category that aligns with your business stage.
- Keep proper documentation ready to avoid processing delays.
- Select banks offering lower interest rates and faster approvals.
- Utilize the CGTMSE guarantee to get higher loan amounts without collateral.
- Women entrepreneurs can benefit from special schemes and priority processing.
By understanding Mudra Loan interest rates, benefits, and bank options, small business owners and startups can make informed financial decisions and grow their ventures successfully.
Mudra Loan FAQs, Tips & Common Mistakes
Tips to Secure Mudra Loan Quickly
- Choose the loan category (Shishu/Kishore/Tarun) matching your business stage.
- Ensure complete and accurate documentation to avoid delays.
- Maintain a good credit score for faster approval.
- Compare interest rates across multiple banks before applying.
- Women entrepreneurs can benefit from priority processing and special schemes.
- Leverage the CGTMSE guarantee to get loans without collateral.
- Apply online for faster disbursement and easy tracking.
Common Mistakes to Avoid in Mudra Loan Application
- Submitting incomplete or incorrect documents.
- Applying for a loan category not suitable for your business stage.
- Ignoring the importance of credit score and repayment capacity.
- Not comparing interest rates across banks.
- Delaying online application and verification process.
- Failing to check eligibility criteria for women, MSME, or startup benefits.