PM Mudra Loan 2026 — Eligibility, Shishu/Kishor/Tarun & How to Apply
Collateral-free business loans up to ₹20 lakh under PM Mudra Yojana — full eligibility and application.
Answer 5–7 simple questions and get your eligibility score in 2 minutes.
Check eligibility now →What is it?
Pradhan Mantri MUDRA Yojana (PMMY) was launched in 2015 to provide collateral-free loans up to ₹10 lakh (now ₹20 lakh under Tarun Plus from Budget 2024) to non-corporate, non-farm small/micro enterprises. Loans are disbursed by banks, NBFCs, MFIs and Small Finance Banks under three primary categories — Shishu, Kishor, Tarun — plus the new Tarun Plus tier for upgraders.
Benefits
No collateral required, no processing fee for Shishu, repayment up to 5 years, Mudra debit card for working capital, women borrowers get interest concession in many banks, eligible for credit guarantee under CGFMU.
Eligibility criteria
- ✓Indian citizen aged 18+ with a viable non-farm business plan
- ✓Existing or new micro/small enterprise — manufacturing, trading, services, allied agri activities (dairy, poultry)
- ✓Shishu: loan up to ₹50,000 for new/very small enterprises
- ✓Kishor: ₹50,001 to ₹5 lakh for established small units
- ✓Tarun: ₹5 lakh to ₹10 lakh for expansion
- ✓Tarun Plus: ₹10 lakh to ₹20 lakh — only for those who have repaid earlier Tarun loan
- ✓Good CIBIL/credit history preferred; no default on previous loans
- ✓Not eligible: corporates, agricultural land loans, salaried employees seeking personal loans
Documents required
- ✓KYC: Aadhaar, PAN, Voter ID, passport-size photos
- ✓Address proof (electricity bill, rent agreement)
- ✓Business proof: GST, Udyam registration, shop license, partnership deed
- ✓Bank statement of last 6 months
- ✓Quotation for machinery/equipment (if purchase)
- ✓ITR of last 2 years (for Kishor/Tarun)
- ✓Caste certificate for SC/ST/OBC concessions
How to apply — step by step
- Identify nearest Mudra-empanelled bank or visit udyamimitra.in
- Choose category — Shishu, Kishor, or Tarun — based on need
- Fill the Mudra application form (one-page for Shishu)
- Attach KYC, business proof, project report, quotation
- Bank evaluates business viability and credit profile
- On sanction, sign loan agreement and receive Mudra debit card
- Disbursement to account; repay in EMIs up to 5 years
Important dates
Continuous scheme — apply anytime. Bank processing time: 7–15 working days for Shishu, 15–30 days for Kishor/Tarun.
Common mistakes to avoid
- ✓Applying without a clear business plan or projected revenue
- ✓Not disclosing existing loans — leads to rejection
- ✓Asking for ₹10 lakh under Shishu — category mismatch
- ✓Treating Mudra as a personal loan — strictly business use only
- ✓Missing EMI repayments — affects CIBIL and Tarun Plus eligibility
Frequently asked questions
What is the maximum Mudra loan amount in 2026?
Up to ₹10 lakh under Tarun and up to ₹20 lakh under Tarun Plus (for those who repaid earlier Tarun loans on time).
Is collateral needed for Mudra loan?
No. Mudra loans are collateral-free; banks cannot ask for property mortgage or guarantor for the base amount.
Can salaried employees take a Mudra loan?
Only if they are starting or running a side business. Mudra is for business funding, not personal expenses.
What is the Mudra loan interest rate?
There is no fixed rate. Banks decide based on RBI norms, typically 8.5%–14% per annum depending on category, bank and credit profile.
How to apply for Mudra loan online?
Visit udyamimitra.in or your bank's portal (SBI YONO, PNB One, etc.), fill the digital form, upload KYC and business documents, and track status online.
Answer 5–7 simple questions and get your eligibility score in 2 minutes.
Check eligibility now →