Who can apply for Mudra loan?

Any Indian citizen who is not a defaulter to any bank or financial institution. The loan is for non-farm income-generating activities in manufacturing, trading, or services sectors. Individuals, proprietorships, partnerships, and small companies are all eligible.

What documents are needed for Mudra loan?

Aadhaar card, PAN card, passport-sized photos, proof of business (registration, license, or a simple declaration for startups), bank statements for last 6 months (if available), and a brief business plan or quotation for equipment/inventory purchase.

Can women entrepreneurs get priority in Mudra loans?

Yes. Women entrepreneurs are given priority under PMMY. Over 70% of Mudra loan accounts belong to women borrowers. Some banks offer slightly lower interest rates for women-owned businesses. Women can also apply through the Stand-Up India scheme for loans from Rs 10 lakh to Rs 1 crore.

SARKARI YOJANA2026-04-24• By Ashutosh Khulbe

PM Mudra Yojana Completes 11 Years — How to Get Collateral-Free Loans up to Rs 20 Lakh

Pradhan Mantri Mudra Yojana (PMMY) completed 11 years on April 8, 2026. Since its launch in 2015, the scheme has disbursed over Rs 27 lakh crore in collateral-free loans to micro and small entrepreneurs, making it one of India's most impactful financial inclusion initiatives.

Mudra loans come in three categories based on business stage. Shishu covers loans up to Rs 50,000 for startup businesses. Kishore covers Rs 50,000 to Rs 5 lakh for growing businesses. Tarun covers Rs 5 lakh to Rs 20 lakh for established businesses looking to expand. No collateral or guarantee is required for any category.

Any Indian citizen with a business plan can apply through any bank, NBFC, or MFI. The process is simple — visit your nearest bank branch with Aadhaar, PAN, business proof, and a brief plan of what you'll use the loan for. Interest rates are determined by the lending bank and typically range from 7-12% depending on the loan category and borrower profile.

💡Three loan categories

Shishu (up to Rs 50,000): For new businesses just starting out. Kishore (Rs 50,000 to Rs 5 lakh): For established businesses needing working capital. Tarun (Rs 5 lakh to Rs 20 lakh): For business expansion, equipment purchase, or scaling operations. All three are collateral-free.

PM Mudra Yojana Completes 11 Years — How to Get Collateral-Free Loans up to Rs 20 Lakh

❓Frequently asked questions