PM Mudra Loan 2026: Shishu, Kishor, Tarun, Tarun Plus

प्रधानमंत्री मुद्रा लोन योजना 2026: आवेदन, ब्याज दर और दस्तावेज़

Quick facts: For non-corporate, non-farm micro and small enterprises · Shishu up to ₹50K, Kishor ₹50K-₹5L, Tarun ₹5L-₹10L, Tarun Plus up to ₹20L (2024 expansion) · collateral-free, no processing fee for Shishu · apply at any bank, NBFC, MFI, or udyamimitra.in.

Launched on 8 April 2015, the Pradhan Mantri MUDRA Yojana (PMMY) is the country’s flagship scheme for small-business finance. Since inception, banks have disbursed over 51 crore loans worth more than ₹32 lakh crore under MUDRA. In the 2024 Union Budget, the government introduced Tarun Plus, raising the maximum loan limit from ₹10 lakh to ₹20 lakh for eligible repeat borrowers — a meaningful step up for small businesses that graduated out of Tarun.

MUDRA क्या है — What the Scheme Covers

MUDRA stands for Micro Units Development and Refinance Agency Ltd. — it’s a refinance facility the government runs through banks, NBFCs, MFIs, and Small Finance Banks. The actual loan comes from your chosen lender; MUDRA refinances the lender.

Eligible businesses: – Non-corporate, non-farm micro/small enterprises — manufacturing, services, trading – Sole proprietorships, partnerships, LLPs, private limited (if eligible size) – Examples: small shops, auto-repair, food vending, tailoring, beauty parlour, truck/taxi owner-operator, IT services, small manufacturing units

Not eligible: – Agricultural production activities (covered under KCC) – Corporate-size businesses – Services expressly excluded (e.g., speculation)

तीन कैटेगरी — Four Categories (post-2024)

Category	Loan amount	Typical use	Processing fee
Shishu	Up to ₹50,000	Very early stage / starter capital	Nil
Kishor	₹50,001 – ₹5,00,000	Growth of existing business	0.5% + GST (capped)
Tarun	₹5,00,001 – ₹10,00,000	Expansion, equipment purchase	0.5% + GST
Tarun Plus (2024)	₹10,00,001 – ₹20,00,000	Repeat borrowers who successfully repaid a Tarun loan	0.5% + GST

Tarun Plus eligibility requires: – Successful track record of at least one previously-repaid Tarun loan – Regular account with no default history

पात्रता — Who Qualifies

Indian citizen aged 18 or above
Owner/operator of (or starting) a non-corporate, non-farm, micro/small enterprise
No prior default with any scheduled commercial bank (CIBIL check applies)
For existing businesses: reasonable financial record (ITR if filed, bank statements)
For new businesses: a credible business plan is required

No specific income or asset ceiling beyond the loan category limits.

आवश्यक दस्तावेज़ — Documents Required

Identity / address

Aadhaar card
PAN card (mandatory for Kishor and above)
Voter ID / passport / driving license as alternate proof

Business

Business registration proof (shop license, Udyam certificate, GST registration — whichever applies)
Business plan — 1-2 pages for Shishu; more detailed for Kishor/Tarun
Bank statement of existing business account (6-12 months)
ITR (last 1-2 years, if available)

Collateral

None required for Shishu, Kishor, and Tarun
Tarun Plus may require some collateral depending on lender risk appetite

कहां से आवेदन करें — Where to Apply

MUDRA is lender-agnostic — you apply to whichever lender you prefer:

Banks

PSU banks — SBI, PNB, BoB, Canara, Union, BoI, Indian Bank, IOB, Central Bank
Private banks — HDFC, ICICI, Axis, Kotak, IndusInd, Yes Bank, IDFC First
Small Finance Banks — Equitas, Ujjivan, Suryoday, AU, ESAF (often most responsive for Shishu/Kishor)
Regional Rural Banks and Cooperative Banks

NBFCs & MFIs

Dedicated small-business NBFCs (Bajaj Finserv, Aditya Birla, Shriram, etc.)
Microfinance Institutions serving rural/semi-urban areas
Higher interest than banks, but often faster approval

Online

https://udyamimitra.in — the official MUDRA matchmaking portal; you fill one application, it routes to 3 eligible lenders
JanSamarth portal — aggregates multiple govt credit schemes including MUDRA

आवेदन प्रक्रिया — Application Process

In-branch (most common)

Visit your preferred bank / NBFC branch
Collect the MUDRA application form (one-page for Shishu, longer for higher categories)
Attach KYC + business documents + bank statements + plan
Submit — get your application number
Bank does credit check + verification (usually 7-15 working days)
Approval → loan disbursal to your bank account
For existing account holders, pre-approved Mudra loan offers appear in net banking — instant approval

Online via udyamimitra.in

Register with email + mobile
Fill application with Aadhaar e-KYC
Upload documents
Select preferred lender OR let the portal recommend 3
Lender(s) reach out within 2-7 days
Complete formalities → disbursal

Typical timelines

Shishu at existing bank: same day to 7 days
Kishor/Tarun at new lender: 15-45 days
Tarun Plus: 30-60 days (more due diligence)

Interest Rate

MUDRA itself does not subsidise interest — the rate is set by your lender and depends on: – Loan category (Shishu gets lower rates) – Lender type (PSU banks cheaper than NBFCs) – Your credit score and business track record – Tenure

Typical rate range: – PSU banks: 8.5% – 12% p.a. – Private banks: 10% – 14% p.a. – NBFCs: 12% – 24% p.a. – MFIs (for rural Shishu): 18% – 26% p.a. (higher due to operational cost)

MUDRA Card

After loan sanction for working-capital needs (Kishor, Tarun), you can request a MUDRA Card — a debit/RuPay card linked to your working-capital limit. Use it to pay suppliers, withdraw at ATMs, or swipe at POS. Every transaction is recorded and the revolving limit replenishes as you repay. Great for traders and small shopkeepers.

What If You’re Rejected

Reasons are usually: low CIBIL (< 650), weak business plan, insufficient income proof, existing loan default
Ask the lender for written reason (RBI rule)
Fix CIBIL (pay overdue credit cards, settle old loans)
Re-apply after 3-6 months with improved score
Try a different lender — approval decisions are lender-specific

FAQ — Common Questions

Is PM Mudra loan actually collateral-free? Yes, for Shishu, Kishor, and Tarun. The government-backed Credit Guarantee Fund for Micro Units (CGFMU) covers the lender’s default risk, so lenders don’t need your personal collateral. Tarun Plus may require partial collateral based on lender risk.

Can I apply for a MUDRA loan to start a new business? Yes — Shishu is specifically designed for start-up capital. You need a 1-2 page business plan showing what you intend to do and how the loan will be repaid.

What’s the difference between Stand-up India loan and Mudra? Stand-up India is specifically for SC/ST/women entrepreneurs, with a loan range of ₹10 lakh to ₹1 crore — larger than Mudra. Mudra has no caste or gender restriction. You can have both, used for different purposes.

Is there a processing fee for Shishu? No — Shishu loans have zero processing fee under scheme rules. Kishor and Tarun have up to 0.5% plus GST.

Can I prepay my Mudra loan without penalty? For term loans, prepayment policy depends on your lender’s standard terms. Most PSU banks allow partial prepayment without penalty; some private banks charge 2-4% on the prepaid amount within the first year. Ask the lender at sanction.

How is my Mudra loan reported on CIBIL? Same as any regular term / working-capital loan from that lender. Timely repayment improves your CIBIL. Defaults damage it. Your Mudra Card limit is reported as a revolving credit line.

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Last verified: 20 April 2026. Official source: https://www.mudra.org.in · https://udyamimitra.in