Want to start a small shop, buy a sewing machine, open a beauty parlour, or grow your dairy or tea stall business, but do not have a guarantee for a bank loan? Pradhan Mantri Mudra Yojana (PMMY), also called the Mudra Loan Yojana, gives business loans of up to ₹20 lakh without any collateral to small businesses.
In this guide, you will learn in very simple words Pradhan Mantri Mudra Yojana kya hai, the four loan types, the interest rate, how to do Mudra loan online apply (including SBI), the application form, required documents, and whether you can use it as a personal loan.
Written by: Prabhash, content creator and web developer, sahiyojana.com
Last updated: 6 October 2026
Fact-checked with: PIB report “11 Years of Pradhan Mantri MUDRA Yojana” (April 2026), MUDRA official information, and SBI e-Mudra details
Quick Summary: Pradhan Mantri Mudra Yojana
| Point | Details |
|---|---|
| Scheme name | Pradhan Mantri MUDRA Yojana (PMMY) |
| MUDRA means | Micro Units Development and Refinance Agency |
| Launched on | 8 April 2015 |
| Run by | Department of Financial Services, Ministry of Finance (through banks, NBFCs and MFIs) |
| Loan types | Shishu, Kishor, Tarun and Tarun Plus |
| Maximum loan | ₹20 lakh (Tarun Plus) |
| Collateral | Not needed |
| Interest rate | Set by each bank or lender (no fixed rate) |
| Who can apply | Non-farm small businesses and allied farm activities (dairy, poultry, fishery and so on) |
| Apply online | JanSamarth portal, Udyamimitra, or bank websites like SBI |
| Total loans so far | More than 57 crore loans worth ₹40.07 lakh crore (as on 27 March 2026) |
| Official site | Click Here |
Pradhan Mantri Mudra Yojana Kya Hai?
Pradhan Mantri Mudra Yojana is a central government scheme that helps small business owners get loans from banks without giving any guarantee or property. It was launched on 8 April 2015 with the idea of “Funding the Unfunded”, which means giving loans to people who could not get them earlier.
- MUDRA itself does not give loans directly to people.
- The loan is given by banks, regional rural banks, small finance banks, NBFCs and microfinance institutions (MFIs).
- MUDRA supports these lenders with refinance, and the loans are covered by a credit guarantee (CGFMU), so banks can lend without collateral.
प्रधान मंत्री मुद्रा योजना क्या है? (In Hindi)
प्रधान मंत्री मुद्रा योजना में छोटे व्यापारियों और नए उद्यमियों को बिना गारंटी के ₹20 लाख तक का बिजनेस लोन मिलता है। लोन चार प्रकार के हैं: शिशु (₹50,000 तक), किशोर (₹50,000 से ₹5 लाख), तरुण (₹5 लाख से ₹10 लाख) और तरुण प्लस (₹10 लाख से ₹20 लाख)। आवेदन बैंक शाखा में या JanSamarth पोर्टल पर ऑनलाइन किया जा सकता है। प्रधान मंत्री मुद्रा योजना ऑनलाइन अप्लाई करने के लिए मोबाइल नंबर, आधार, पैन और अपने बिजनेस की जानकारी तैयार रखें।
Types of Mudra Loan
| Loan type | Loan amount | Best for |
|---|---|---|
| Shishu | Up to ₹50,000 | New or very small businesses (for example, a tea stall or a sewing machine) |
| Kishor | ₹50,000 to ₹5 lakh | Growing businesses that need more stock or tools |
| Tarun | ₹5 lakh to ₹10 lakh | Established businesses that want to expand |
| Tarun Plus | ₹10 lakh to ₹20 lakh | Borrowers who have taken and fully repaid a Tarun loan |
%%{init: {"themeVariables": {"xyChart": {"plotColorPalette": "#43a047"}}}}%%
xychart-beta
title "Maximum loan under each Mudra category (Rs lakh)"
x-axis ["Shishu", "Kishor", "Tarun", "Tarun Plus"]
y-axis "Rs lakh" 0 --> 22
bar [0.5, 5, 10, 20]
What does this chart show? You can start small with a Shishu loan and move up to bigger loans as your business grows. Tarun Plus (up to ₹20 lakh) is only for people who have successfully repaid a Tarun loan.
Mudra Yojana Progress (as per PIB, April 2026)
| Item | Number |
|---|---|
| Total loan accounts | More than 57 crore |
| Total amount disbursed | ₹40.07 lakh crore |
| Loans to new entrepreneurs | More than 12 crore accounts |
| Women borrowers (2024-25) | About 60% of accounts |
| SC / ST / OBC borrowers (2024-25) | About 45.5% of accounts |
Benefits of Mudra Loan Yojana
| Benefit | Details |
|---|---|
| No collateral | No property papers or guarantor needed |
| Loans up to ₹20 lakh | Four categories as your business grows |
| Many lenders | Banks, RRBs, small finance banks, NBFCs and MFIs |
| Working capital and term loans | For buying stock, machines, tools or a vehicle for business |
| Mudra card | Some banks give a Mudra (RuPay debit) card for working capital needs |
| Low or no processing fee | Many banks charge no fee for Shishu and Kishor loans |
| Support for women and new entrepreneurs | Most loans go to women and first-time business owners |
Pradhan Mantri Mudra Yojana Interest Rate
There is no fixed interest rate under Mudra Yojana. Each bank or lender decides its own rate, based on RBI rules, its lending benchmark and your profile.
| Point | Details |
|---|---|
| Who decides the rate | The bank, NBFC or MFI that gives the loan |
| Rate at public sector banks | Usually linked to the bank’s benchmark rate plus a margin |
| Rate at NBFCs and MFIs | Usually higher than banks |
| Processing fee | Many banks charge nil for Shishu and Kishor; a small fee may apply on Tarun (for example, 0.50% at SBI for Tarun loans) |
| Subsidy | There is no interest subsidy under PMMY itself |
Tip: Ask 2 or 3 banks for their Mudra loan interest rate and compare before you apply. Your CIBIL score, business plan and repayment history can help you get a better rate.
Mudra Loan Eligibility
Who Can Apply?
- Any Indian citizen aged 18 years or above with a business plan.
- The business must be non-farm and income-generating, in manufacturing, trading or services.
- Allied farm activities like dairy, poultry, fishery, beekeeping are also covered.
- The business should be a micro or small unit (not a big company).
- You should not be a defaulter of any bank or financial institution.
Examples of Businesses That Can Get Mudra Loan
| Sector | Examples |
|---|---|
| Shops and trading | Kirana store, vegetable and fruit vendor, cloth shop, stationery shop |
| Services | Beauty parlour, tailoring, repair shop, photocopy centre, gym, courier |
| Manufacturing | Pickles and papad, bakery, furniture, handloom, small food processing |
| Transport | Auto-rickshaw, e-rickshaw, small goods vehicle (for business) |
| Allied farm activities | Dairy, poultry, fishery, beekeeping |
Quick Eligibility Check
flowchart TD
A["Are you 18 years or older?"] -->|Yes| B["Is your business for income in manufacturing, trading, services or allied farming?"]
A -->|No| X["Not eligible"]
B -->|Yes| C["Do you have a bank loan default?"]
B -->|No| Y["Mudra loan is only for business, not personal use"]
C -->|No| D["Choose Shishu, Kishor, Tarun or Tarun Plus"]
C -->|Yes| X
D --> E["Apply at a bank or on JanSamarth"]
classDef ask fill:#fff9c4,stroke:#f9a825,color:#4e342e
classDef ok fill:#c8e6c9,stroke:#2e7d32,color:#1b5e20
classDef stop fill:#ffe082,stroke:#f57f17,color:#4e342e
class A,B,C ask
class D,E ok
class X,Y stop
Can I Take a Mudra Loan as a Personal Loan?
No. This is a common confusion.
| Question | Answer |
|---|---|
| Can I use Mudra loan for a wedding, medical bill or phone? | No. It is only for business purposes |
| Can I buy a vehicle under Mudra? | Only if the vehicle is used for business (like an auto-rickshaw or goods carrier) |
| What happens if I misuse the loan? | The bank can take action, and your credit score may be affected |
| What should I take for personal needs? | A regular personal loan from a bank (not under Mudra) |
Documents Required for Mudra Loan
| Document | Shishu | Kishor / Tarun / Tarun Plus |
|---|---|---|
| Identity proof (Aadhaar, PAN, voter ID) | Yes | Yes |
| Address proof | Yes | Yes |
| Passport-size photos | Yes | Yes |
| Proof of business (Udyam registration, shop licence or GST, if any) | If available | Yes |
| Quotation of machine or items to buy | Yes | Yes |
| Bank statement (last 6 months) | If available | Yes |
| Income tax return and balance sheet | Not usually | Yes (usually for the last 2 years, for bigger loans) |
| Projected income and business plan | Simple plan | Detailed project report |
| Caste certificate (SC / ST / OBC), if any | If applicable | If applicable |
Pradhan Mantri Mudra Yojana Online Apply: Step by Step
Method 1: Apply Online on the JanSamarth Portal
- Open the JanSamarth portal. To open it directly, Click Here.
- Choose “Business Activity Loan” and select the Mudra (PMMY) scheme.
- Check your eligibility by answering a few simple questions.
- Register with your mobile number and verify with OTP.
- Fill in your personal and business details and the loan amount.
- Give consent for Aadhaar, PAN and bank checks, and upload documents if asked.
- Choose a bank / lender and submit the application.
- Track your application on the portal. The bank will contact you for the next steps.
Method 2: Apply at a Bank Branch (Offline Application Form)
- Visit your nearest bank branch (public sector bank, RRB, small finance bank or private bank).
- Ask for the Mudra loan application form for the right category (Shishu, Kishor or Tarun).
- Fill in the form with your business details.
- Attach the documents listed above.
- Submit the form. The bank checks your business plan and documents.
- After approval, the loan is sanctioned and credited to your account.
You can also download the Mudra application forms from the official MUDRA website. To open it, Click Here.
Mudra Loan Process at a Glance
flowchart TD
S1["Choose loan type: Shishu, Kishor, Tarun or Tarun Plus"] --> S2["Prepare business plan and documents"]
S2 --> S3["Apply online on JanSamarth or at a bank branch"]
S3 --> S4["Bank checks documents, CIBIL and business plan"]
S4 --> S5["Loan sanctioned"]
S5 --> S6["Money credited to your account and business starts"]
classDef step fill:#fff9c4,stroke:#f9a825,color:#4e342e
classDef done fill:#c8e6c9,stroke:#2e7d32,color:#1b5e20
class S1,S2,S3,S4 step
class S5,S6 done
Pradhan Mantri Mudra Yojana Online Apply SBI
State Bank of India (SBI) gives Mudra loans under its e-Mudra facility.
| Point | Details |
|---|---|
| What is it | SBI’s online Mudra loan facility |
| Who can use online | Usually existing SBI savings or current account holders |
| Online limit | Small Shishu loans (commonly up to ₹50,000) can be applied online; bigger loans need a branch visit |
| Processing fee | Nil for Shishu and Kishor; 0.50% for Tarun (as reported) |
| Where | SBI website (Loans section) or nearest SBI branch |
Steps to Apply for SBI e-Mudra Loan
- Open the SBI website. To open it directly, Click Here.
- Go to Loans and look for e-Mudra / PMMY.
- Click on “Apply Online” and enter your mobile number and SBI account number.
- Fill in your business details and the loan amount.
- Upload the required documents.
- Give e-sign consent using Aadhaar OTP.
- Submit. For bigger loans (Kishor and Tarun), visit your SBI branch to complete the process.
Pradhan Mantri Mudra Yojana for UPSC: Key Facts
Many students search for Mudra Yojana for UPSC and other exams. Here are the key facts in one table.
| Fact | Detail |
|---|---|
| Launch date | 8 April 2015 |
| Full form of MUDRA | Micro Units Development and Refinance Agency Ltd. |
| Parent | Set up as a subsidiary of SIDBI |
| Motto | “Funding the Unfunded” |
| Categories | Shishu, Kishor, Tarun and Tarun Plus |
| Tarun Plus | Announced in Union Budget 2024-25; up to ₹20 lakh |
| Credit guarantee | Credit Guarantee Fund for Micro Units (CGFMU), managed by NCGTC |
| Lenders | Banks, RRBs, small finance banks, NBFCs, MFIs |
| Progress | More than 57 crore loans worth ₹40.07 lakh crore (as on 27 March 2026) |
Common Mistakes and How to Avoid Them
| Mistake | What happens | How to avoid it |
|---|---|---|
| Applying for a personal need | Loan is rejected | Apply only for a real business purpose |
| No business plan | Bank may reject | Write a simple plan: what you will sell, cost and expected income |
| Paying an agent for “Mudra approval” | Fraud risk | Apply directly at the bank or on official portals |
| Low CIBIL score or old default | Rejection or high interest | Clear old dues and repay on time |
| Wrong category chosen | Delay | Choose Shishu, Kishor or Tarun based on the amount you need |
| Not comparing banks | Higher interest | Ask 2 or 3 banks for their rate |
Warning about fake calls and websites: Fraudsters often promise “instant Mudra loan” for a fee. MUDRA and banks never ask for advance fees through phone calls or WhatsApp. Report such fraud at cybercrime.gov.in or call 1930.
Frequently Asked Questions (FAQ)
Pradhan Mantri Mudra Yojana kya hai?
It is a central government scheme that gives collateral-free business loans of up to ₹20 lakh to small businesses through banks, NBFCs and MFIs. It has four categories: Shishu, Kishor, Tarun and Tarun Plus.
How can I apply for Mudra loan online?
You can apply online on the JanSamarth portal by choosing a business loan under PMMY, checking eligibility, registering with your mobile number and submitting your details. You can also apply on bank websites like SBI or visit any bank branch.
What is the Mudra loan interest rate?
There is no fixed rate. Each bank or lender sets its own rate based on RBI rules and your profile. NBFCs and MFIs usually charge more than banks.
How can I apply for Mudra loan in SBI online?
Go to the SBI website, open the e-Mudra / PMMY loan section, click “Apply Online”, enter your mobile and SBI account number, fill details, upload documents and e-sign with Aadhaar OTP. Bigger loans need a branch visit.
Where can I get the Mudra loan application form?
You can get the form at any bank branch or download it from the official MUDRA website (mudra.org.in). Online applications can be made on the JanSamarth portal.
Can I take a Mudra loan as a personal loan?
No. Mudra loans are only for business purposes like buying stock, machines or a business vehicle. For personal needs, you should take a regular personal loan.
Is any guarantee needed for Mudra loan?
No. Mudra loans are collateral-free. The loans are covered by the Credit Guarantee Fund for Micro Units (CGFMU).
What is Tarun Plus under Mudra Yojana?
Tarun Plus is a new category for loans from ₹10 lakh to ₹20 lakh. It is only for borrowers who have taken and fully repaid a Tarun loan earlier.
How much time does it take to get a Mudra loan?
It depends on the bank and your documents. Small Shishu loans can be quick, while bigger loans may take longer because the bank checks your business plan and documents in detail.
Is there any subsidy in Mudra loan?
No. There is no subsidy under Mudra Yojana. You get a collateral-free loan, but you have to repay the full loan with interest.
Can women get Mudra loans?
Yes. In fact, about 60% of Mudra loan accounts in 2024-25 were of women borrowers.
Can I get a Mudra loan for dairy or poultry?
Yes. Allied farm activities like dairy, poultry, fishery and beekeeping are covered under Mudra Yojana.
What is the Mudra card?
Some banks give a Mudra card, which is a RuPay debit card linked to your Mudra loan account. You can use it to withdraw working capital as needed.
Sources We Used
- PIB: “11 Years of Pradhan Mantri MUDRA Yojana” (April 2026): categories, progress and beneficiary data
- Official MUDRA website (mudra.org.in)
- Business Standard: SBI Pradhan Mantri e-Mudra loan, how to apply, eligibility and processing fee
- JanSamarth portal: credit-linked government schemes including PMMY
Disclaimer
sahiyojana.com is not a government website and is not linked with MUDRA, any bank or lender. We share information from official sources in simple language to help readers. Interest rates, documents and processes depend on each lender and can change, so please confirm the latest details with your bank or the official portals before you apply. sahiyojana.com is completely free and never asks for any money.
Important Links
These important links are collected for you by sahiyojana.com. Click on any link to open the page.
| What You Need | Link |
|---|---|
| Application Form (Apply Online on JanSamarth) | Click Here |
| Official Site (MUDRA) | Click Here |
| Mudra Loan Online Apply SBI | Click Here |
| Udyam Registration (for business proof) | Click Here |
| Report Loan Fraud (Cyber Crime Portal) | Click Here |
| PM SVANidhi Yojana | Click Here |
| Other Yojana Info | Click Here |
| Home Page | Click Here |
