Mudra Loan Scheme 2026 (PMMY) – Collateral-Free Business Loans up to ₹20 Lakh
Pradhan Mantri Mudra Yojana (PMMY)
Government-backed collateral-free credit scheme providing institutional finance to eligible micro enterprises for income-generating activities in manufacturing, trading, services and agriculture-allied sectors. PMMY offers loans across Shishu, Kishore, Tarun and Tarun Plus categories, with eligible funding up to ₹20 Lakh.
Who Can Apply?
Verified criteria and borrower eligibility guidelines set by the Government of India.
Eligible Micro Enterprises
Eligible individuals and micro business enterprises with viable income-generating activities in manufacturing, trading, services or permitted agriculture-allied activities can apply.
New & Existing Businesses
PMMY can support eligible new businesses as well as existing micro enterprises requiring funding for establishment, working capital, equipment or expansion.
Eligible Activities
Funding is available for non-agricultural income-generating activities and eligible allied agricultural activities such as poultry, dairy and beekeeping.
Shishu to Tarun
Shishu covers loans up to ₹50,000, Kishore covers above ₹50,000 up to ₹5 Lakh, and Tarun covers above ₹5 Lakh up to ₹10 Lakh.
Tarun Plus Eligibility
Loans above ₹10 Lakh and up to ₹20 Lakh are available under Tarun Plus only to entrepreneurs who have previously availed and successfully repaid a Tarun category loan.
Lender Assessment
Applicants must satisfy the KYC, business viability, repayment capacity and credit appraisal requirements of the concerned Member Lending Institution.
Key Features
Core benefits, guarantees, and subsidy structures under this flagship program.
Four Loan Categories
PMMY provides four funding categories based on business funding requirements: Shishu, Kishore, Tarun and Tarun Plus.
Loans up to ₹20 Lakh
The maximum PMMY limit has been enhanced to ₹20 Lakh through the Tarun Plus category for eligible borrowers who have successfully repaid an earlier Tarun loan.
Collateral-Free Credit
Collateral security is not required for eligible loans sanctioned under Pradhan Mantri Mudra Yojana, subject to PMMY and lender guidelines.
Term & Working Capital
PMMY can meet eligible term finance as well as working capital requirements for qualifying micro-enterprise activities.
Wide Lending Network
PMMY loans are offered through eligible Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, Small Finance Banks, NBFCs, MFIs and NBFC-MFIs.
Credit Guarantee Support
Eligible PMMY loans are supported through the Credit Guarantee Fund for Micro Units (CGFMU) managed by NCGTC, subject to applicable guarantee scheme provisions.
Scheme Benefits
Application Process
Check Loan Category
Determine whether your funding requirement falls under Shishu, Kishore, Tarun or Tarun Plus and verify your eligibility for the applicable category.
Prepare Business Documents
Prepare KYC, business information, financial records, quotations and project or business details required by the selected lending institution.
Submit Loan Application
Apply through an eligible Member Lending Institution or through the Jan Samarth portal where the PMMY application facility is available.
Credit Appraisal & Disbursement
The lender evaluates business viability, repayment capacity and credit eligibility. Upon approval and completion of formalities, the sanctioned credit facility is disbursed.
Documents Required
Keep the following paperwork ready for instant verification and fast processing.
Frequently Asked Questions
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