PM Mudra Loan 2026 – Eligibility & Application Guide

The PM Mudra Loan is a flagship scheme launched by the Government of India under the Pradhan Mantri Mudra Yojana (PMMY). It provides collateral-free loans to small and micro businesses across India.

What is PM Mudra Loan?

PM Mudra Loan supports:

• Small shopkeepers

• Service sector units

• Micro manufacturing firms

• Artisans and craftsmen

• Women entrepreneurs

• Startups and small business owners

Loans are offered through banks, NBFCs, and microfinance institutions.

Loan Categories Under PM Mudra Yojana

• Shishu Loan

1. Loan Amount: Up to ₹50,000

2. Suitable for: New startups and first-time entrepreneurs

• Kishore Loan

1. Loan Amount: ₹50,001 to ₹5 lakh

2. Suitable for: Growing businesses

• Tarun Loan

1. Loan Amount: ₹5 lakh to ₹10 lakh

2. Suitable for: Established businesses expanding operations

PM Mudra Loan Eligibility Criteria (2026)

• Basic Eligibility

1. Must be an Indian citizen

2. Age between 18 and 65 years

3. Non-corporate, non-farm small/micro enterprise

4. Business plan required for higher loan amounts

• Eligible Business Types

1. Manufacturing units

2. Trading businesses

3. Service enterprises

4. Food processing units

5. Repair shops

6. Beauty salons

7. Transport operators

8. Tailoring units

9. Retail stores

Interest Rate in 2026

There is no fixed interest rate under PM Mudra Yojana. It depends on:

• Lending institution

• Credit score

• Business profile

• Loan category

Generally, rates range between 8% to 12% per annum (subject to bank policy).

Documents Required

• Identity Proof

1. Aadhar Card

2. PAN Card

3. Voter ID or Driving License

• Address Proof

1. Utility bill

2. Rent agreement

3. Aadhar card

• Business Documents

1. Business registration (if available)

2. Machinery quotation (if required)

3. Business plan (for Kishore & Tarun)

4. Bank statements (last 6 months)

• Other Documents

1. Passport-size photographs

2. Caste certificate (if applicable)

How to Apply for PM Mudra Loan in 2026

• Offline Process

1. Visit nearest bank branch

2. Collect Mudra loan application form

3. Fill in required details

4. Attach documents

5. Submit application

6. Verification and approval

7. Loan disbursement

• Online Process

1. Visit your bank’s official website

2. Go to Mudra Loan section

3. Fill application form

4. Upload documents

5. Submit and wait for verification

Processing Time

• 7 to 15 working days

• Depends on documentation and bank verification

Benefits of PM Mudra Loan

• No collateral required

• Flexible repayment tenure (up to 5 years)

• Lower interest than personal loans

• Supports small entrepreneurs

• Special focus on women and SC/ST applicants

Disclaimer

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