PM Mudra Yojana 2026 can help eligible small business owners seek a loan to start or grow an income-generating business. The scheme is meant for micro and small businesses, not personal expenses. Before applying, check which loan category fits your need, whether you meet the lender’s requirements, and how to submit an application. Loan approval is not automatic, and the available process may differ between banks and other lenders.
What is PM Mudra Yojana?
Pradhan Mantri Mudra Yojana, often called PMMY or the Mudra scheme, supports eligible small businesses through loans offered by participating banks, non-banking financial companies and microfinance institutions. The scheme covers businesses in areas such as manufacturing, trading and services, as well as certain income-generating activities connected to agriculture.
A Mudra loan is a loan, not a grant or cash benefit. The borrower must repay it under the terms agreed with the lender. The lender reviews the applicant, business plan and ability to repay before deciding whether to approve the request. The scheme is generally designed for lending without collateral, but the lender can set conditions and may take security over assets purchased with the loan.
PM Mudra Yojana loan amount and categories
The loan amount depends on the category and the purpose of the business. The categories below describe the scheme’s established structure. Since rules and lender processes can change, confirm the current terms with an authorised lender before applying.
| Category | Loan amount | Typical use |
|---|---|---|
| Shishu | Up to ₹50,000 | Starting a small business or meeting early expenses |
| Kishor | Above ₹50,000 and up to ₹5 lakh | Growing or strengthening an existing small business |
| Tarun | Above ₹5 lakh and up to ₹10 lakh | Supporting a larger expansion or business investment |
| Tarun Plus | Above ₹10 lakh and up to ₹20 lakh | For eligible borrowers who have repaid a previous Tarun loan |
Tarun Plus has an additional condition: it is intended for borrowers who successfully repaid a previous Tarun loan. Applicants should ask the lender to confirm whether they qualify and what evidence is needed. A category limit is not a promise that the lender will approve that amount. The approved sum may be lower, based on the business need and repayment assessment.
Who can apply for a Mudra loan?
PMMY is intended for eligible non-corporate, non-farm micro or small businesses that carry out income-generating activities. A new business may be considered, as may an existing business seeking funds for a suitable purpose. The lender will decide whether the proposed activity and applicant meet its rules.
Applicants may include individuals, sole proprietors, partnership businesses and other eligible small business entities. Requirements can vary by lender and business type. A lender may review the applicant’s identity, business experience, existing debts, expected income and plan for using the money. Having a business idea alone does not guarantee approval.
Before applying, work out how much funding is needed and how the business is expected to repay it. A clear, realistic estimate can help the lender understand the request. Ask whether the activity you plan to finance is eligible, especially if it is linked to agriculture or involves a less common type of business.
Documents to prepare
The required documents depend on the lender, loan category and applicant. Common requests may include identity and address proof, business details, bank account information, and records that support the expected cost and income of the business. An existing business may be asked for financial or sales records. A lender may also request a business plan, quotations for equipment or other supporting papers.
Do not assume that one document list applies everywhere. Ask your chosen lender for its current checklist before submitting an application. Provide accurate information, and make sure the documents match the applicant and business named in the form.
How to apply online for PM Mudra Yojana
There may not be one identical online process for every lender. Some banks and financial institutions provide online application or enquiry facilities, while others may ask applicants to visit
