What You'll Learn
- Detailed breakdown of Mudra loan categories, including the new ₹20 lakh Tarun Plus limit.
- Eligibility criteria for non-corporate, non-farm small enterprises and allied agricultural activities.
- Interest rate comparison between SBI, HDFC, and other major lenders for 2026.
- Step-by-step guide to the digital application process on the JanSamarth portal for artisans.
PM Mudra Yojana 2026: Funding the Unfunded in India
The PM Mudra Yojana (PMMY) has sanctioned over 52 crore loans since its launch in 2015, making it one of the world's largest collateral-free loan programs for micro-enterprises. As of January 2026, more than 56.31 crore Mudra loan accounts have been disbursed amounting to Rs 37.31 lakh crore. Under the scheme, loans up to Rs 20 lakh are provided without any collateral or third-party guarantee through four categories: Shishu (up to Rs 50,000), Kishor (Rs 50,001 to Rs 5 lakh), Tarun (Rs 5 lakh to Rs 10 lakh), and Tarun Plus (Rs 10 lakh to Rs 20 lakh). The scheme is administered by the Micro Units Development and Refinance Agency Ltd (MUDRA), a subsidiary of SIDBI, under the Ministry of Finance.
PM Mudra Yojana 2026: Complete Loan Category Breakdown
The PMMY has four loan categories designed to support businesses at different stages of growth. The Shishu category (up to Rs 50,000) is for startups and new entrepreneurs who need small seed capital. The Kishor category (Rs 50,001 to Rs 5 lakh) is for businesses ready to scale up their operations. The Tarun category (Rs 5 lakh to Rs 10 lakh) is for established enterprises seeking expansion. The Tarun Plus category (Rs 10 lakh to Rs 20 lakh) was introduced in Budget 2024 to support larger micro-enterprises.
| Category | Loan Range | Share in Total Loans | Share in Amount |
|---|---|---|---|
| Shishu | Up to Rs 50,000 | 74% | 32% |
| Kishor | Rs 50,001 to Rs 5 lakh | 24% | 43% |
| Tarun | Rs 5 lakh to Rs 10 lakh | 2% | 25% |
| Tarun Plus | Rs 10 lakh to Rs 20 lakh | 0.004% | 0.095% |
Mudra Loan Interest Rates 2026: Bank-Wise Comparison
Mudra loan interest rates vary across banks as they are linked to each bank's External Benchmark Lending Rate (EBLR). State Bank of India offers Mudra loans at 3.25 percent above EBLR, with an effective rate of approximately 12.15 percent per annum from February 2025. The repayment period for term loans can extend up to 5 years. For Shishu loans up to Rs 50,000, no processing fee is charged. For loans above Rs 50,001 up to Rs 20 lakh, a processing fee of 20 percent is applicable on SBI Mudra loans.
Eligibility Criteria for PM Mudra Loan 2026
Any Indian citizen who owns a small business or wants to start one can apply for a Mudra loan. The scheme covers non-corporate, non-farm small and micro enterprises engaged in manufacturing, trading, services, and allied agricultural activities including food processing, dairy, poultry, and fisheries. A CIBIL score of 650 or above is generally preferred for the Kishor and Tarun categories, though for the Shishu category (up to Rs 50,000), credit history requirements are more relaxed.
A significant 68 percent of Mudra loan beneficiaries are women entrepreneurs. The government has disbursed Rs 9.02 lakh crore to women borrowers under the scheme, making PMMY one of the most impactful programs for women's financial inclusion and economic empowerment.
How to Apply for Mudra Loan Online in 2026
Applications can be submitted online through the Udyamimitra portal at www.udyamimitra.in or through the JanSamarth portal at www.jansamarth.in. The process involves: selecting the loan category and bank branch, filling the online application form with personal and business details, uploading required documents (Aadhaar, PAN, address proof, business proof, passport-size photograph), and submitting. The bank verifies the application, checks credit history, and sanctions the loan typically within 7-14 working days. Offline applications can be submitted at any public sector bank, private bank, regional rural bank, or NBFC branch.
Mudra Loan Documents Required 2026
The documents required for a Mudra loan include: identity proof (Aadhaar card, PAN card, Voter ID, or Passport), address proof (Aadhaar, utility bill, or rental agreement), recent passport-size photograph, business proof (business registration certificate, shop and establishment certificate, or GST registration), and bank account statement for the last 6 months. For existing businesses, IT returns for the last 1-2 years may be required. For Shishu loans, the documentation is minimal, often only Aadhaar and a simple application form.
PM Mudra Yojana 2026: Key Statistics and Achievements
As of April 2026, India marked 11 years of PM Mudra Yojana with remarkable achievements. Over 52.37 crore loans have been sanctioned, totaling Rs 33.65 lakh crore. In FY 2025-26 alone, more than 4 crore Mudra loans were sanctioned, reflecting the scheme's growing momentum. Nearly 70 percent of Mudra loan beneficiaries are women, and the scheme has maintained a low Non-Performing Asset ratio of around 2 percent, demonstrating strong repayment discipline. The government is considering extending the scheme by another five years up to 2030-31, reinforcing its commitment to micro-enterprise development.
Last Updated: May 31, 2026 | Source: MUDRA (Micro Units Development and Refinance Agency Ltd.)