PM Mudra Loan Overview
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
| Loan Category | Loan Amount | Suitable For |
|---|---|---|
| Shishu Loan | Up to ₹50,000 | New startups and first-time entrepreneurs |
| Kishore Loan | ₹50,001 to ₹5 lakh | Growing businesses |
| Tarun Loan | ₹5 lakh to ₹10 lakh | Established businesses expanding operations |
PM Mudra Loan Eligibility Criteria (2026)
Basic Eligibility
- Must be an Indian citizen
- Age between 18 and 65 years
- Non-corporate, non-farm small/micro enterprise
- Business plan required for higher loan amounts
Eligible Business Types
- Manufacturing units
- Trading businesses
- Service enterprises
- Food processing units
- Repair shops
- Beauty salons
- Transport operators
- Tailoring units
- 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
- Aadhar Card
- PAN Card
- Voter ID or Driving License
Address Proof
- Utility bill
- Rent agreement
- Aadhar card
Business Documents
- Business registration (if available)
- Machinery quotation (if required)
- Business plan (for Kishore & Tarun)
- Bank statements (last 6 months)
Other Documents
- Passport-size photographs
- Caste certificate (if applicable)
How To Apply For PM Mudra Loan In 2026
Offline Process
- Visit nearest bank branch
- Collect Mudra loan application form
- Fill in required details
- Attach documents
- Submit application
- Verification and approval
- Loan disbursement
Online Process
- Visit your bank’s official website
- Go to Mudra Loan section
- Fill application form
- Upload documents
- 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
