MUDRA is a special scheme by the central government of India called Pradhan Mantri Mudra Yojana (PMMY). MUDRA assists the institution in issuing loans to non-corporate non-farm income generating activities of the micro and small enterprises. It is open to those businesses a credit requirement less than Rs. 20 lakhs. Pradhan Mantri Mudra Yojana has the official site on both udyamitra.in and mudra.org.in.
PM Mudra Loan Yojana 2026 shall also aid in establishing growth ecosystem in the sector of micro enterprises. These have been referred to as Shishu, Kishor and Tarun and Tarun Plus to represent the stage of growth/development and funding requirements of the beneficiary micro unit/entrepreneur. In essence, MUDRA Yojana is a program aimed at financing the small enterprise in India.
PM Mudra Loan Yojana 2026 New Limit
Under the Pradhan Mantri Mudra Yojana (PMMY), the central government has increase the loan limit of 10 lakh to 20 lakh, and added a new category of Tarun Plus. This move, according to the Ministry of Finance, will help in ensuring that the growth of the so called unfunded entrepreneurs is achieved by offering them financial aid.
PM Mudra Loan Yojana 2026
Micro small and medium enterprises- MSMEs have a bright future in India as the government has been focusing on building local businesses and startups since 2015. Pradhan Mantri Mudra loan was also launched in 2015 and is still provided by many participating banks and financial companies. The loan is divided into 4 categories including Shishu Mudra loan, Kishore Mudra loan, Tarun Mudra Loan and Tarun Plus Mudra Loan, where Shishu Mudra loan is designed for small enterprises which can start their business up to 50,000 rupees and the maximum loan of 20 lakh is provided under the Tarun Plus Mudra loan to the beneficiaries.
Benefits of PM Mudra Loan Yojana 2026
Individuals are getting flexible repayment facilities for Mudra loans where banks are preparing EMI from 12 months to 84 months according to the loan amount and according to the category of the business. Small Enterprises and medium enterprises are appreciated by the government of India and are getting loans instantly after launching the scheme. Women entrepreneurs and reserve categories are getting extra benefits to get instant approval for Mudra loans in the banks.
Banks have digitized the application procedure for Mudra loans so applicants can apply online mode without visiting the branch. Middle-class and lower-class citizens who have a good business mind and Ideas have a good opportunity to invest in their dreams with the help of Mudra loan. Interest rates for mudra loans are charged by the bank according to the eligibility and the condition of the customer
PM Mudra Loan Yojana 2026 Objectives
The government’s primary objective in launching the PM Mudra Loan Scheme is to provide financial assistance in the form of loans to individuals seeking to start their own businesses. Citizens who are struggling to find a job and want to start their own small businesses but are struggling financially because they haven’t established one can also start their own businesses by receiving easy loans under this scheme.
This loan amount will be provided to beneficiaries at a low interest rate. Many young people in the country, facing unemployment, will receive incentives to establish their own businesses, thereby creating employment opportunities for themselves and other citizens, and reducing the unemployment rate in the country.
PM Mudra Loan Yojana 2026 Amounts
- Shishu Loan Scheme: Loans up to ₹50,000.
- Kishore Loan Scheme: Loans from ₹50,000 to ₹5 lakh.
- Tarun Loan Scheme: Loans from ₹5 lakh to ₹10 lakh.
- Tarun Plus Loan Scheme from ₹10 lakh to ₹20 lakh.
Factors Affecting Mudra Loan Interest Rate
Mudra Loan interest rate is affecting by different factors like as the: business type, credit risk, market conditions, borrower’s profile, collateral value, loan amount and the lander bank policies.
Eligibility Criteria for PM Mudra Loan Yojana 2026
Any individual whose age is more than 21 years old is eligible to apply for a Mudra loan. Micro small and medium enterprises are the targeted businesses in the Mudra loan. so if you are a vegetable vendor, General Store operator, tractor operator, Taxi Driver, small manufacturing unit, etc then you will get instant loan approval
The business of the applicant should be registered with udyam portal of Government of India. Registration procedure is free of cost on udyam portal You should have a business plan to execute the loan amount to develop your business which will help and the time of getting approval of your loan application.
Documents Required for PM Mudra Loan Yojana 2026
- Aadhar card.
- Pan card.
- GST number.
- Business registration details/ udyam portal details.
- The cost of the Machines or infrastructure will be restored by the amount of the Mudra loan.
- Bank account details.
- At least 1-year balance sheet of the business.
- GST return information.
PM Mudra Loan Yojana 2026 Application Process
You can follow the following procedure which has been briefly explained in the Bullet points to help you get a Mudra loan from your mobile phone only:
- Visit the official website of the Mudra loan yojana you can directly visit by clicking on this link https://udyamimitra.in/.
- Now you will reach the official website where you have to scroll for searching Mudra loan yojana and click on the link.
- After this, you will be redirected to the PM Mudra Loan Scheme Yojana portal. Select your information and provide your email address and mobile number to receive OTP for verification
- Once you receive the OTP the application form will appear on your experience where you have to enter your details including name, business details, Contact information, Aadhar Card details, and other business-related information.
- After, that click at the “Submit” button for complete the PM Mudra Yojana online apply process.
Banks and Financial Institutions Providing Mudra Loans
The PM Mudra Loans (PMMY) are provided in the vast system of 190+ Member Lending Institutions (MLIs) in India. They are the banks in the public sector, the banks in the private sector, regional rural banks (RRBs), the small finance banks, the NBFCs, and microfinance institutions (MFIs). Major banks such as SBI, PNB, bank of baroda, HDFC bank, ICICI bank and axis bank are active in issuing Mudra loans. The applicants may apply to any of the branches available in their specific areas or online on platforms provided by the participating lenders.
How to Get Mudra Loan at Affordable Interest Rate?
To take out a MUDRA loan with a low interest rate, consider the following recommendations, Compare offers and deals of different banks and NBFCs. The interest rates are dependent on the nature and type of your business. Lower rates are charged on businesses that are less risky. A good turnover and volume of business on a yearly basis may lead to the decrease in interest rates. Interest rates also depend on your income, the value of the loan and the period in which the loan is repaid. The clean record of loan repayment is an advantage. To find the precise interest rates, either call the qualified bank or the NBFC or go to their respective websites.
Thus, all those consumers who want to start their own business by taking advantage of the Pradhan Mantri Mudra Loan Scheme can apply for the yojana today through the official website of their bank or through the official website of the Prime Minister Mudra Loan Yojana and get a loan of Rs. 50000 to 20 lakh.
Who is eligible for PM Mudra loan?
MUDRA loan can be availed to any Indian citizen, eligible to avail of loan, and has a business plan of income generating activity. The loan proposal ought to be to establish a new/ upgrade an existing Micro business enterprises within the manufacturing, processing, trading and service industry.
What is the interest rate for 1 lakh MUDRA loan?
The scheme provides a sanction between 50, 000 and 5 lakh. The rate of interest is 8.60 to 8.60 percent and depends on the provisions of the scheme and your credit record.
Is Mudra Loan Good or Bad?
Mudra Loan is an effective program to the potential and current entrepreneurs wishing to establish or expand their small or micro enterprises.
Is CIBIL required for a mudra loan?
A CIBIL score is not a mandatory thing to get a MUDRA loan as the scheme is meant to serve micro-enterprises including those with no credit history, though a good score will help to pass the approval process, but you cannot be a defaulter to any bank and should have a good credit track record to get a MUDRA loan, the score is not the only indicator of creditworthiness used by the banks.
FAQ’s About PM Mudra Loan Yojana 2026
Can I apply if I am already in another scheme like PMEGP?
No, you cannot apply.
What is the interest rate exactly?
Varies by lender, but starts at 7.30% for women, up to 12% generally. Fixed for the term.
How do I track my application?
Use the Mudra portal with your reference number or call 1800-180-1111.
Is there an app for this?
Yes, the Mudra app on Google Play, for status and tips.