PM Mudra Loan Yojana 2026 is a Government of India scheme that helps small business owners, startups, and self-employed people get financial support. Under this scheme, eligible applicants can get a business loan of up to ₹20 lakh without providing collateral in most cases.
The loan can be used to start a new business, expand an existing one, buy equipment, or meet working capital needs.
What is PM Mudra Loan Yojana 2026?
PM Mudra Loan Yojana provides business loans through banks, Regional Rural Banks (RRBs), Small Finance Banks, Micro Finance Institutions (MFIs), and NBFCs. It mainly supports non-corporate and non-farm small businesses.
Objectives
The scheme aims to:
- Encourage entrepreneurship
- Help small businesses grow
- Create employment opportunities
- Improve financial inclusion
- Support women and rural entrepreneurs
- Strengthen the MSME sector
PM Mudra Loan Categories
| Category | Loan Amount |
|---|---|
| Shishu | Up to ₹50,000 |
| Kishor | ₹50,001 to ₹5 Lakh |
| Tarun | ₹5 Lakh to ₹10 Lakh |
| Tarun Plus | ₹10 Lakh to ₹20 Lakh |
Key Features
- Business loan up to ₹20 lakh
- Collateral-free in most cases
- Flexible repayment options
- Interest rates vary by lender
- Mudra RuPay Card may be provided for working capital
Eligibility
Applicants should generally:
- Be an Indian citizen
- Have a small business or startup
- Be involved in a non-farm income-generating activity
- Have valid KYC documents
- Submit a suitable business plan
- Meet the lender’s eligibility criteria
Eligible Businesses
The scheme supports many businesses, including:
- Manufacturing
- Retail shops
- Service businesses
- Food processing
- Transport services
- Tailoring
- Beauty parlours
- Mobile repair shops
- Restaurants
- Grocery stores
- Computer centres
- Poultry, fisheries, and beekeeping
Documents Required
Applicants may need:
- Aadhaar Card
- PAN Card
- Address proof
- Passport-size photo
- Bank statement
- Business registration (if applicable)
- GST registration (if applicable)
- Business plan
- Income proof (if required)
Interest Rate
There is no fixed interest rate under the scheme. It depends on the bank, loan amount, business profile, and the applicant’s credit history. Applicants should check the latest rates with the lender before applying.
Benefits
- No collateral in most cases
- Helpful for startups and small businesses
- Government-backed scheme
- Supports business growth
- Helps create employment
- Encourages women entrepreneurs
How to Apply Online
- Visit the official Mudra or JanSamarth portal. https://www.mudra.org.in
- https://www.jansamarth.in
- Select the required loan category.
- Fill out the application form.
- Upload the required documents.
- Submit the application.
- The lender will verify your details and process the loan if approved.
How to Apply Offline
Applicants can also visit participating banks such as SBI, PNB, Bank of Baroda, Canara Bank, Union Bank, Regional Rural Banks, and other eligible financial institutions. Submit the application form along with the required documents at the nearest branch.
Common Reasons for Loan Rejection
- Incorrect information
- Incomplete documents
- Poor credit history
- Existing loan defaults
- Weak business plan
- Low repayment capacity
FAQs
What is the maximum loan amount under PM Mudra Loan Yojana 2026?
Eligible applicants can get a loan of up to ₹20 lakh under the Tarun Plus category.
Is collateral required?
Most Mudra loans are provided without collateral, subject to the lender’s guidelines.
Can startups apply?
Yes. Eligible startups and first-time entrepreneurs can apply.
Can women entrepreneurs apply?
Yes. Women entrepreneurs are encouraged to apply under the scheme.
Where can I apply?
You can apply through participating banks, eligible financial institutions, or the official JanSamarth and Mudra portals.