PM Mudra Yojana 2026: Eligibility, Benefits & How to Apply
Collateral-free business loans up to ₹20 lakh for small non-farm businesses, through banks and lenders.
Always confirm on the official portal before applying. We summarise the scheme in plain language and link to the government source; rules can change. Last verified October 21, 2026.
Official portal →
Benefit
Loans in four categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh), and Tarun Plus (₹10 lakh to ₹20 lakh, for borrowers who have repaid an earlier Tarun loan).
Who is eligible
- Individuals and small businesses in manufacturing, trading, services and allied activities that need credit up to ₹20 lakh.
- A viable business plan; no collateral is required.
Who is not eligible
- Tarun Plus loans are only for borrowers who have successfully repaid a Tarun loan.
Documents you need
- Aadhaar and PAN
- Business proof or plan
- Bank statements
- Quotations for machinery/stock (where applicable)
How to apply
- Apply at a bank, NBFC or microfinance institution, or online through the Jan Samarth / Udyamimitra portals.
- Submit your business plan and KYC; the lender assesses and sanctions the loan.
Official website: mudra.org.in. Interest rates are set by individual lenders.
Administered by the Ministry of Finance. You can also search all central and state schemes on the government's myScheme portal.
Frequently Asked Questions
How much loan can I get under Mudra?
Up to ₹20 lakh, across Shishu, Kishore, Tarun and Tarun Plus categories.
Do I need collateral for a Mudra loan?
No, Mudra loans are collateral-free.
Find other schemes you may qualify for
Answer a few questions in our government schemes eligibility finder.
- PM SVANidhi: Small working-capital loans for street vendors: ₹15,000, then ₹25,000, then ₹50,000, with an interest subsidy for timely repayment.
- PM Vishwakarma: Training, a toolkit grant and low-interest loans up to ₹3 lakh for artisans and craftspeople in 18 traditional trades.