Starting a small business or expanding an existing one often requires financial support. However, arranging funds without property security or a guarantor can be difficult for many small entrepreneurs. To address this challenge, the Government of India introduced the Pradhan Mantri Mudra Yojana (PMMY) to improve access to institutional credit for micro and small businesses.
Under this scheme, eligible applicants can get collateral-free business loans of up to ₹20 lakh through participating banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs).
In 2026, the scheme continues to offer four loan categories: Shishu, Kishor, Tarun and Tarun Plus. Here is a complete guide to PM Mudra Yojana, including its eligibility criteria, loan amounts, benefits, documents and online application process.
What Is Pradhan Mantri Mudra Yojana 2026?
The Pradhan Mantri Mudra Yojana was launched on 8 April 2015 to provide financial assistance to small business owners and entrepreneurs who need funds for income-generating activities.
The scheme supports businesses operating in manufacturing, trading and service sectors. It also covers certain allied agricultural activities, such as dairy, poultry and beekeeping.
Applicants can use the loan for business-related requirements, including purchasing machinery, buying equipment, managing working capital and expanding business operations.
Importantly, MUDRA does not directly provide loans to individuals. The loans are sanctioned and disbursed through participating financial institutions.
PM Mudra Yojana 2026: Loan Amount and Categories
The scheme offers financial assistance according to the business’s funding requirements and growth stage.
| Loan Category | Loan Amount |
| Shishu | Up to ₹50,000 |
| Kishor | Above ₹50,000 to ₹5 lakh |
| Tarun | Above ₹5 lakh to ₹10 lakh |
| Tarun Plus | Above ₹10 lakh to ₹20 lakh |
Important: Tarun Plus is available to entrepreneurs who have previously taken and successfully repaid a loan under the Tarun category. This provision became effective on 24 October 2024.
Eligibility Criteria for PM Mudra Loan 2026
Individuals who want to establish a new business or expand an existing eligible micro-enterprise can apply for a Mudra loan.
The general eligibility requirements include:
- The applicant should be an Indian citizen.
- The applicant must have a viable business plan or an existing income-generating business.
- The proposed activity should fall under eligible manufacturing, trading, service or allied agricultural activities.
- The applicant should meet the lending institution’s credit and repayment requirements.
- The applicant should not have an unresolved loan default that makes them ineligible under the lender’s rules.
- For Tarun Plus, successful repayment of an earlier Tarun-category loan is mandatory.
Small shopkeepers, service providers, artisans, repair businesses, food-processing units and eligible transport operators may explore this scheme.
Final eligibility and loan approval depend on the financial institution’s assessment.
Benefits of Pradhan Mantri Mudra Yojana
PMMY offers several benefits to people who need financial support for small business activities.
- Collateral-Free Loans: Eligible Mudra loans are provided without requiring collateral security.
- Loan Amount up to ₹20 Lakh: Eligible entrepreneurs can access funding under four categories according to their business requirements.
- Support for New Businesses: Individuals planning to establish eligible micro-enterprises can approach participating lenders.
- Working Capital Support: The loan can help manage day-to-day business expenses and working capital requirements.
- Business Expansion: Existing businesses can use the funds for machinery, equipment, commercial vehicles and other eligible business needs.
- Support for Women Entrepreneurs: The scheme also helps improve access to institutional credit for women-led businesses.
Documents Required for Mudra Loan Application
Applicants should keep the following documents ready before submitting their applications. The exact requirements may differ depending on the lender and loan amount.
| Document | Purpose |
| Aadhaar Card | Identity and address verification |
| PAN Card | Financial identification |
| Bank Account Details | Banking verification |
| Passport-Size Photograph | Applicant identification |
| Business Address Proof | Business verification |
| Business Plan or Project Report | Proposed business details |
| Income or Financial Records | Repayment assessment, if required |
Additional documents, business registration details or quotations for machinery may be requested by the lending institution.
How to Apply Online for PM Mudra Yojana 2026?
Eligible applicants can explore the online application facility through the JanSamarth portal or approach a participating bank directly.
Follow these steps:
- Visit the official JanSamarth portal at https://www.jansamarth.in/.
- Select the business loan or relevant credit-linked scheme option.
- Check the eligibility requirements using the available online facility.
- Enter the required personal, business and financial information.
- Upload the necessary documents.
- Select an appropriate participating lending institution, where available.
- Submit the application and note the application reference number.
- Complete any additional verification requested by the lender.
Applicants can also visit their nearest public sector bank, private sector bank, regional rural bank, small finance bank or eligible NBFC/MFI to enquire about Mudra loan applications.
Note: Submitting an online application does not guarantee loan approval. The final decision depends on the lender’s verification, business proposal and repayment assessment.
PM Mudra Yojana 2026: Important Details
| Particulars | Details |
| Scheme Name | Pradhan Mantri Mudra Yojana |
| Short Name | PMMY |
| Launch Date | 8 April 2015 |
| Implementing Ministry | Ministry of Finance |
| Maximum Loan Amount | ₹20 lakh |
| Loan Categories | Shishu, Kishor, Tarun, Tarun Plus |
| Loan Type | Collateral-free business loan |
| Beneficiaries | Eligible micro and small entrepreneurs |
| Application Mode | Online and Offline |
| Official Website | https://www.mudra.org.in/ |
| Online Application Portal | https://www.jansamarth.in/ |
Is There Any Interest Rate or Subsidy Under Mudra Yojana?
There is no single fixed interest rate applicable to every Mudra loan. Interest rates are determined by the lending institutions in accordance with applicable RBI guidelines and their lending policies.
Applicants should compare the interest rate, processing charges, repayment period and other applicable conditions before accepting a loan offer.
PMMY is a credit facility, not a direct cash grant or free-money scheme. Borrowers are required to repay the sanctioned loan according to the agreed repayment schedule.
Frequently Asked Questions (FAQs)
What is the maximum loan amount under PM Mudra Yojana 2026?
Eligible applicants can receive loans of up to ₹20 lakh. The Tarun Plus category is subject to successful repayment of a previous Tarun loan.
Can I apply for a Mudra loan online?
Yes. Applicants can explore the online application process through the official JanSamarth portal or apply through participating lending institutions.
Is a guarantor or collateral required for a Mudra loan?
PMMY provides collateral-free credit. However, the lender may require documentation and create a charge over assets financed through the loan, as applicable.
Can I get a Mudra loan to start a new business?
Yes. Individuals with a viable business proposal for an eligible income-generating activity can approach participating lenders.
Is Tarun Plus available to first-time borrowers?
No. Tarun Plus is intended for entrepreneurs who have successfully repaid an earlier loan under the Tarun category.
Does the government provide a subsidy under PMMY?
PMMY is a loan scheme, not a general direct subsidy programme. Borrowers must repay the loan with applicable interest.
Where can I check official Mudra loan information?
Visit the official MUDRA website at https://www.mudra.org.in/ or the JanSamarth portal at https://www.jansamarth.in/.
For entrepreneurs looking to establish or expand a small business, Pradhan Mantri Mudra Yojana 2026 provides an opportunity to access formal business credit without collateral. Applicants should select the appropriate loan category, prepare a realistic business plan and verify all loan conditions with the participating financial institution before applying.
