PM Mudra Loan Yojana 2026: The PM Mudra Loan Yojana 2026 is one of the most important government-backed financial schemes in India, designed to support small businesses, startups, and self-employed individuals. Launched under the Pradhan Mantri Mudra Yojana (PMMY), this scheme aims to provide collateral-free loans to micro and small enterprises, helping them grow and become financially independent.
With updated guidelines and continued government support, the Mudra Loan scheme in 2026 remains a powerful tool for entrepreneurs across India.
What is PM Mudra Loan Yojana?
PM Mudra Loan Yojana is a government initiative that provides financial assistance to non-corporate, non-farm small businesses. The loans are offered through banks, NBFCs, and microfinance institutions without requiring any collateral.
The scheme operates under the Micro Units Development and Refinance Agency (MUDRA), which ensures smooth credit flow to small entrepreneurs.
Types of Mudra Loans in 2026
Under PM Mudra Loan Yojana 2026, loans are categorized into three types based on funding needs:
1. Shishu Loan
- Loan amount: Up to ₹50,000
- Ideal for new businesses and startups
2. Kishor Loan
- Loan amount: ₹50,001 to ₹5 lakh
- For businesses in growth stage
3. Tarun Loan
- Loan amount: ₹5 lakh to ₹10 lakh
- For established businesses looking to expand
Eligibility Criteria for PM Mudra Loan Yojana 2026
To apply for a Mudra Loan in 2026, applicants must meet the following eligibility conditions:
- Applicant must be an Indian citizen
- Age should be between 18 and 65 years
- Business should be non-farm and non-corporate
- Eligible sectors include manufacturing, trading, services, and allied activities
- Small shop owners, vendors, artisans, professionals, and startups are eligible
No collateral or guarantor is required under this scheme.
Benefits of PM Mudra Loan Yojana
The PM Mudra Loan Yojana 2026 offers several advantages:
- Collateral-free loans up to ₹10 lakh
- Affordable interest rates compared to private loans
- Flexible repayment tenure
- Encourages self-employment and entrepreneurship
- Special focus on women entrepreneurs and MSMEs
- Widely available through public and private sector banks
Interest Rate and Repayment Period
The interest rate under PM Mudra Loan Yojana varies depending on the bank or financial institution. Generally, the rates are competitive and lower than unsecured personal loans.
- Interest Rate: As per bank norms
- Repayment Period: Up to 5 years (may vary by lender)
Borrowers are advised to check the exact terms with the lending institution before applying.
How To Apply for PM Mudra Loan Yojana 2026
Applicants can apply for a Mudra Loan both online and offline.
Online Application Process
- Visit the official Mudra portal or the bank’s website
- Select the appropriate loan category (Shishu, Kishor, or Tarun)
- Fill in the application form with personal and business details
- Upload required documents
- Submit the application and note the reference number
Offline Application Process
- Visit the nearest bank or NBFC branch
- Collect the Mudra Loan application form
- Fill in the required details
- Attach necessary documents
- Submit the form to the bank official
Documents Required for Mudra Loan
Commonly required documents include:
- Aadhaar Card and PAN Card
- Address proof
- Bank account statement
- Business proof or business plan
- Passport-size photographs
Document requirements may vary depending on the lender.
Who Should Apply for Mudra Loan?
The PM Mudra Loan Yojana 2026 is ideal for:
- Small business owners
- Street vendors and shopkeepers
- Women entrepreneurs
- Service providers and freelancers
- MSMEs and startups
Conclusion
The PM Mudra Loan Yojana 2026 continues to be a reliable financial support system for India’s small businesses and entrepreneurs. With easy eligibility, collateral-free loans, and flexible repayment options, the scheme plays a vital role in promoting economic growth and self-employment.
If you are planning to start or expand a small business, applying for a Mudra Loan in 2026 can be a smart and secure financial decision.