How to apply for PM Mudra Yojana loan online in 2025. Eligibility, documents, which bank to approach, and how long it takes.
About this scheme
PM Mudra Yojana 2026 — Collateral-Free Business Loan ₹50K to ₹20 Lakh
✅ Collateral-free loan ₹50,000 to ₹20 lakh at low interest — 4 categories including new Tarun Plus (2024)
Full Scheme Details →📢 Latest Update — June 2026:
PM Mudra Yojana continues to offer collateral-free business loans from ₹50,000 (Shishu) up to ₹20 lakh (Tarun). Applications are accepted year-round through the official udyamimitra.in portal and at bank branches. Before applying, confirm the latest loan slabs, interest rates and document list on the official portal, as bank-level terms can change.
⚡ Key Facts at a Glance
What Is the PM Mudra Loan and Who Is It For?
The PM Mudra Yojana (PMMY) is a Government of India scheme launched in 2015 to give small and micro businesses access to formal credit without pledging any collateral. Since then it has supported over 57 crore small business accounts. In 2025–26 you can apply for loans ranging from ₹50,000 to ₹20 lakh, depending on the stage and needs of your business. You can read more about central government welfare and finance schemes on our central schemes hub.
Loans are designed for income-generating activities in manufacturing, trading and services — for example, a small kirana shop, a tailoring unit, a tea stall, or a two-wheeler repair garage. To understand the scheme structure in detail, see our dedicated PM Mudra Yojana scheme page.
Example (hypothetical): Suppose Anita runs a home-based pickle-making business and wants ₹3 lakh to buy packaging machinery and raw material. She would fall under the Kishore category, apply through udyamimitra.in or her bank, submit her documents, and a lending bank would assess and process her file. This is only an illustration — actual approval, amount and terms are decided by the bank.
Which Mudra Loan Category Is Right for You?
Mudra loans are split into three categories based on the loan amount:
- ✅ Shishu — up to ₹50,000, for new businesses that are just starting out.
- ✅ Kishore — ₹50,001 to ₹5 lakh, for businesses that have started but need funds to grow.
- ✅ Tarun — ₹5 lakh to ₹20 lakh, for established businesses that need larger capital.
Who Is Eligible — Complete Criteria 2026
- ✅ Owners of small or micro non-farm businesses (manufacturing, trading or services).
- ✅ New entrepreneurs starting a business as well as existing businesses needing growth capital.
- ✅ Applicants with valid identity and address proof such as Aadhaar and PAN.
- ✅ Businesses requiring up to ₹20 lakh in funding.
- ❌ Loans are generally not intended for agricultural crop activities (other government schemes cover farm credit).
- ❌ Large corporate funding requirements above the Mudra limit are not covered.
How to Apply — Step-by-Step 2026
- Visit the portal: Go to udyamimitra.in, the official Mudra loan portal.
- Choose the category: Click "Apply Now" under the relevant loan category (Shishu, Kishore or Tarun).
- Register: Sign up using your Aadhaar-linked mobile number.
- Fill business details: Enter your business information and the loan amount you need.
- Upload documents: Attach Aadhaar, PAN, bank statement and business proof.
- Submit and wait: Submit the application — a bank will typically contact you within 7 days.
Alternatively, you can walk into any public sector bank branch (such as SBI, PNB or Bank of Baroda) or a private bank and ask for a Mudra loan application form.
Documents Required
| Document | Why It Is Needed |
|---|---|
| Aadhaar Card & PAN Card | Identity and KYC verification |
| Last 6 months bank statement | Shows cash flow and repayment capacity |
| Business registration / GST certificate (if applicable) | Proof of business existence |
| Passport-size photographs | Required on application form |
| Quotation of machinery/equipment | Needed for equipment-purchase loans |
Myth vs Reality
| Myth | Reality |
|---|---|
| "Mudra loan approval is guaranteed for everyone." | No loan is guaranteed. The bank assesses your eligibility, documents and repayment capacity before sanctioning. |
| "You must pay an agent to get a Mudra loan." | You can apply directly online at udyamimitra.in or at a bank for free. Be cautious of anyone demanding money to "approve" a loan. |
| "Mudra loans need property as collateral." | Mudra loans are collateral-free up to the scheme limit. |
| "It only works for big established firms." | The Shishu category is specifically meant for brand-new small businesses. |
Important Dates & Deadlines 2026
- ✅ Application window: Year-round — there is no fixed last date to apply.
- ✅ Typical approval time: Usually 7 to 14 working days after complete document submission; PSU banks generally take longer than private banks.
- ✅ Bank contact: A lending bank typically reaches out within 7 days of online submission.
Frequently Asked Questions
Q: How long does Mudra loan approval take?
Typically 7 to 14 working days after you submit all documents correctly. Public sector banks usually take longer than private banks. Incomplete files take longer, so submit everything in one go.
Q: How do I check my application status?
Log in to udyamimitra.in with the mobile number you registered with to track your application. You can also follow up directly with the branch where your file is being processed.
Q: My application was rejected — what now?
Ask the bank for the specific reason. Common causes are an incomplete file, weak bank-statement cash flow or an unclear business purpose. You can correct the issue and reapply, or approach another participating bank.
Q: The sanctioned amount seems lower than what I asked for.
Banks decide the final amount based on your repayment capacity, business turnover and documents, so it may be lower than requested. Ask the bank what supporting documents could help justify a higher amount.
Q: Why is Aadhaar and eKYC needed?
Aadhaar-based eKYC verifies your identity and links your application to your records. Make sure your mobile number is linked to your Aadhaar so OTP-based verification works smoothly. Keep your Aadhaar and bank account details consistent.
Q: I am a brand-new applicant with no business yet — can I apply?
Yes. The Shishu category (up to ₹50,000) is meant for new businesses just starting out. You will need to show your business idea or plan, identity and address proof, and a bank account.
Q: Does the process change from state to state?
PM Mudra Yojana is a central scheme, so the broad rules are the same across India. However, individual banks may have their own internal processing norms and document preferences, so confirm with your chosen branch.
Q: How do I file a complaint if my application is stuck?
First raise it with the bank branch and ask for a reference number. If unresolved, you can lodge a grievance on the central public grievance portal at pgportal.gov.in. Read our scheme guides for more help.
Helpline Numbers & Grievance Portal
- ✅ Official portal: udyamimitra.in — apply and track your loan application.
- ✅ Bank branch: Approach your nearest participating bank for help with the application form and status.
- ✅ Grievance portal: File complaints at pgportal.gov.in if your issue is not resolved at the bank level.
- ✅ Helpline: Check the official portal for the current toll-free number.
📋 संक्षिप्त जानकारी (हिंदी में)
पीएम मुद्रा योजना (PMMY) के तहत छोटे और सूक्ष्म व्यवसायों को बिना किसी गारंटी (collateral) के ₹50,000 से ₹20 लाख तक का लोन मिलता है। यह योजना 2015 में शुरू हुई थी और अब तक 57 करोड़ से अधिक खातों को लाभ मिल चुका है। लोन तीन श्रेणियों में बंटा है — शिशु (₹50,000 तक), किशोर (₹50,001 से ₹5 लाख) और तरुण (₹5 लाख से ₹20 लाख)। आवेदन udyamimitra.in पोर्टल पर ऑनलाइन या किसी भी बैंक शाखा में जाकर किया जा सकता है। ज़रूरी दस्तावेज़ हैं — आधार, पैन, 6 महीने का बैंक स्टेटमेंट और व्यवसाय का प्रमाण। आमतौर पर पूरे दस्तावेज़ जमा करने के बाद 7 से 14 कार्यदिवस में लोन स्वीकृत होता है। आवेदन साल भर खुला रहता है, कोई अंतिम तिथि नहीं है। नवीनतम ब्याज दर और शर्तें आधिकारिक पोर्टल पर ज़रूर जांचें। शिकायत के लिए pgportal.gov.in का उपयोग करें।
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