Pradhan Mantri Mudra Yojana (PMMY) is a central government scheme that gives collateral-free loans to small business owners, shopkeepers, artisans, and self-employed individuals across India. If you run a small manufacturing unit, trading business, or service shop and need funds to start or expand it, a Mudra loan can help — without pledging any property or asset as security. This guide explains who can apply, how much loan you can get, the documents needed, and the exact steps to apply online in 2026.
What is PM Mudra Yojana?
Launched in April 2015, PMMY is implemented through Micro Units Development and Refinance Agency (MUDRA), a subsidiary of SIDBI. Loans under this scheme are given by public sector banks, private banks, regional rural banks (RRBs), small finance banks, cooperative banks, Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs). The scheme does not lend money directly — it refinances the lending institution, which then disburses the loan to you.
Types of Mudra Loans and Loan Limits
| Shishu | Loans up to ₹50,000 — for new or very small businesses |
| Kishor | Loans from ₹50,001 to ₹5,00,000 — for businesses that are partially established |
| Tarun | Loans from ₹5,00,001 to ₹10,00,000 — for established businesses needing funds to expand |
| Tarun Plus | Loans from ₹10,00,001 to ₹20,00,000 — for entrepreneurs who have already availed and successfully repaid a loan under the Tarun category |
Mudra loans are collateral-free — the lending bank cannot ask you to mortgage property, gold, or any other asset as security for the loan.
Who Can Apply — Eligibility Criteria
- ●Indian citizen aged 18 years or above
- ●Must run or plan to start a non-farm income-generating small business — manufacturing, trading, or services
- ●Business activity should not be agriculture-related crop production (allied activities like dairy, poultry, and fisheries are eligible)
- ●No history of loan default with any bank or financial institution
- ●Business plan or existing business must fall within the loan amount limit of ₹20 lakh
Documents Required
- ●Duly filled Mudra loan application form
- ●Aadhaar Card and PAN Card
- ●Proof of business address (electricity bill, rent agreement, or shop registration)
- ●Passport-size photographs (2 copies)
- ●Proof of category if applicable (SC/ST/OBC/Minority certificate)
- ●Quotation of machinery or equipment to be purchased, if applicable
- ●Last 6 months' bank statement (for existing businesses)
- ●Business proof — Udyam Registration Certificate, GST registration, or trade license, if available
How to Apply for PM Mudra Loan Online
- 1Go to the Udyamimitra portal at https://www.udyamimitra.in — this is the official online platform for Mudra loan applications
- 2Click the "Apply Now" button on the homepage and select "New Entrepreneur" or "Existing Entrepreneur" based on your situation
- 3Register using your mobile number and verify with the OTP sent to your phone
- 4On the dashboard, click "Loan Application" and select "PMMY (Mudra)" as the scheme, then choose the loan category — Shishu, Kishor, Tarun, or Tarun Plus
- 5Fill in your personal details, business details, and the loan amount required in the application form
- 6Upload scanned copies of Aadhaar, PAN, address proof, and business documents in the "Upload Documents" section
- 7Click "Submit Application" and note down the Application Reference Number shown on screen for future tracking
- 8Your application is forwarded to a nearby bank branch of your choice for processing; the bank may call you for verification and an in-person interview before sanctioning the loan
You can also apply offline by visiting the nearest branch of any public sector bank, private bank, regional rural bank, cooperative bank, or NBFC-MFI and asking for a Mudra loan application form directly.
Interest Rates on Mudra Loans
| Public sector banks | Approximately 8.40% to 12% per annum, linked to the bank's repo-linked lending rate (RLLR) |
| Private banks and small finance banks | Approximately 11% to 18% per annum depending on credit profile |
| NBFC-MFIs | Approximately 18% to 26% per annum, generally higher than banks |
There is no fixed application fee for a Mudra loan and no agent is authorised to charge you money for "guaranteed approval." If anyone asks for an upfront payment to process your Mudra loan, it is a scam — apply only through the official Udyamimitra portal or directly at a bank branch.
Processing Fee and Margin Money
Most banks charge zero processing fee on Shishu loans (up to ₹50,000). For Kishor and Tarun category loans, banks may charge a nominal processing fee of 0.5% to 1% of the loan amount. Depending on the bank's policy, you may also need to contribute margin money — typically 10% of the project cost — for loans above ₹50,000.
How to Check Your Application Status
- 1Visit https://www.udyamimitra.in and log in with your registered mobile number
- 2Click "Track Application" from the dashboard menu
- 3Enter your Application Reference Number received at the time of submission
- 4Your current status — Under Process, Sanctioned, Disbursed, or Rejected — will be displayed on screen
Repayment Tenure
Mudra loans typically have a repayment tenure of 3 to 5 years, though the exact period depends on the loan amount and the lending bank's terms. Working capital loans in the form of a Mudra Card (similar to a credit card for business expenses) can be renewed annually.
Since its launch, PMMY has disbursed loans to crores of small entrepreneurs across India, with a large share going to women entrepreneurs and first-time business owners — helping them start or grow their business without needing collateral.
Helpline and Support
For queries related to your Mudra loan application, you can call the PMMY helpline at 1800-180-1111 (toll-free) or contact the Department of Financial Services helpline at 1800-11-0001. You can also visit your nearest bank branch or the Lead District Manager (LDM) office in your district for assistance.