Mudra Loan 2026 is one of the best Government business loan schemes in India for people who want to start or grow a small business. Under the Pradhan Mantri Mudra Yojana (PMMY), you can get a collateral-free loan (without security/guarantee) for business needs.
This scheme is extremely helpful for small shop owners, self-employed persons, street vendors, service providers, small manufacturers, and micro entrepreneurs. If you are planning to start a new business in 2026 or expand an existing one, Mudra Loan can be the perfect funding option.
What is Mudra Loan (PMMY)?
MUDRA stands for Micro Units Development & Refinance Agency Ltd. It is a Government initiative started to support Micro and Small Enterprises financially.
The main purpose of Mudra Loan is:
- To support small business growth
- To help new entrepreneurs
- To promote self-employment
- To provide funding to non-corporate small businesses
- To encourage entrepreneurship in rural and urban India
📌 Mudra Loan was launched on 8 April 2015 and is still one of India’s most trusted business loan schemes.
Mudra Loan Amount Limit 2026 (Latest Update)
Mudra loan is divided into categories based on the stage of business.
✅ Mudra Loan Categories
| Category | Loan Amount | Best For |
|---|---|---|
| Shishu | Up to ₹50,000 | Small startup/business idea |
| Kishor | ₹50,001 – ₹5 Lakh | Growing business, inventory |
| Tarun | ₹5,00,001 – ₹10 Lakh | Expansion & equipment |
| Tarun Plus | ₹10 Lakh – ₹20 Lakh | Advanced expansion after repayment |
📌 Important Update: The Mudra loan limit has been increased up to ₹20 lakh under Tarun Plus (for eligible borrowers).
Mudra Loan Interest Rate 2026
Mudra Loan interest rate is not fixed, because it depends on:
- bank/NBFC policy
- your credit profile
- business type
- repayment capacity
- past loan history
✅ Indicative Interest Rate by Banks (Example)
| Bank | Interest Rate Type | Tenure |
|---|---|---|
| SBI | MCLR linked | 1–5 Years |
| IDBI | Base rate + rating | 1–5 Years |
| Bank of Baroda | Bank guidelines | as per bank |
| Union Bank | Bank discretion | 1–3 Years |
💡 Tip: If your CIBIL score is good and repayment record is clean, you can get a lower interest rate.
Mudra Loan Key Features (Why It’s Popular)
Mudra Loan is popular because it offers big benefits:
✅ No collateral required (no property/gold security)
✅ No third-party guarantee
✅ Term loan and/or working capital facility
✅ Overdraft / Cash credit option
✅ Easy EMI repayment options
✅ Supports small business expansion
Mudra Loan Eligibility 2026 (Who Can Apply?)
✅ Eligible Applicants
- Individuals
- Proprietorship firms
- Partnership firms
- Private Limited / Public Limited companies
- Other eligible legal business entities
✅ Age Limit
- 18 to 65 years
✅ Allowed Loan Purpose
Mudra loan is strictly for business purposes like:
- trading
- manufacturing
- service-based business
- shop setup
- self-employment
❌ Mudra Loan is not for personal use (travel, shopping, lifestyle expenses).
Mudra Loan Documents Required 2026 (Updated List)
When applying for Mudra Loan, you may need these documents:
✅ Required Documents List
- Mudra loan application form
- Aadhaar card / voter ID / PAN card
- Address proof (electricity bill, Aadhaar, etc.)
- Passport size photographs
- Bank statement (last 6 months usually)
- Business proof (GST / Shop Act / Udyam Registration, if any)
- Purchase quotations/invoices (machinery, tools, stock)
- Income proof (optional / bank decides)
📌 If you apply jointly, documents of all applicants may be required.
Mudra Loan Apply Online 2026 (Step-by-Step Process)
Mudra loan application is now very simple.
✅ Steps to Apply Online
- Visit official Mudra portal / UdyamMitra portal
- Click on Apply Now
- Select your borrower type
- Fill details like:
- personal info
- business details
- loan amount category (Shishu/Kishor/Tarun/Tarun Plus)
- Upload documents
- Submit the form
- Save your application number for tracking
Mudra Loan Apply Offline (Through Bank)
If you are not comfortable online, apply offline:
- Visit Mudra-approved bank/NBFC
- Collect Mudra loan form
- Fill form + attach documents
- Bank verification + eligibility check
- If approved → loan disbursement
Mudra Loan Uses (Where Can You Use the Loan?)
Mudra Loan can be used for:
✅ Fixed Assets
- machines
- tools
- furniture
- equipment
✅ Working Capital
- raw materials
- inventory/stock purchase
- supplier payments
✅ Business Marketing
- packaging
- branding
- local advertising
Mudra Loan Business Types Covered
Mudra Loan can be used for many micro business activities such as:
✅ Transport business (auto, taxi, e-rickshaw)
✅ Tailoring, boutique, beauty salon
✅ Food business (stall, catering, bakery)
✅ Handicrafts, printing, textiles
✅ Dairy, poultry, fisheries, beekeeping
Mudra Card (RuPay Debit Card) – Full Details
After loan approval, banks often issue a Mudra Card.
✅ Benefits of Mudra Card
- RuPay based debit card
- withdraw money anytime
- swipe/ATM usage allowed
- useful for working capital needs
- faster credit usage without branch visits
Tarun Plus Mudra Loan 2026 (₹10 Lakh to ₹20 Lakh)
The biggest highlight is Tarun Plus.
✅ Tarun Plus Features
- Loan limit: ₹10 lakh to ₹20 lakh
- For those who already repaid previous Mudra loans successfully
- Mostly collateral free
- Helps scaling business at a bigger level
PMMY Achievements (Latest Available Report)
Mudra scheme has helped lakhs of entrepreneurs in India.
As per FY 2024–25 reports:
- Loans sanctioned: 5,46,61,648 (as on 31 March 2025)
- Total sanctioned amount: ₹5,52,801.78 crore
- Total disbursed amount: ₹5,41,802.58 crore
Mudra Loan Customer Care / Helpline
📞 Toll Free: 1800 180 1111 / 1800 11 0001
📩 Email: help@mudra.org.in
🌐 Website: www.mudra.org.in
✅ Grievance Portal: www.pgportal.gov.in
FAQs – Mudra Loan 2026
Q1. Mudra loan eligibility kya hai?
You must be 18+, and the loan must be for a micro/small business.
Q2. Mudra loan 2 baar le sakte hain?
Yes, if you repay the first loan properly, you can apply again.
Q3. Mudra loan new limit kya hai 2026 me?
Mudra loan limit is up to ₹20 lakh under Tarun Plus.
Q4. Mudra loan repay karna hota hai?
Yes, it is a loan and must be repaid in EMIs.
Q5. Mudra loan me subsidy milti hai?
Usually no direct subsidy, but govt may announce benefits in special cases.
Q6. CIBIL score important hai?
Not always, but good score increases approval chances.
Conclusion: Mudra Loan Online 2026 is Best for Small Business Growth
If you want to start a business or grow your small business in 2026, Mudra Loan PMMY 2026 is one of the best options because:
✅ collateral-free
✅ easy to apply online
✅ supports all small business types
✅ flexible categories (Shishu to Tarun Plus)
✅ government-supported scheme