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Pradhan Mantri MUDRA Yojana - Micro Loans

Complete 2026 guide to MUDRA: ₹20 lakh crore loans to 50 crore small businesses under Shishu Kishore Tarun categories collateral-free.

Last updated: 8 March 2026
Pradhan Mantri MUDRA Yojana - Micro Loans

Overview

Why launched: 5.8 crore MSEs need formal credit. MUDRA (2015) provides loans up to ₹20 lakh via banks/NBFCs/MFIs without collateral. Core Benefits: Shishu (₹50K), Kishore (₹5L), Tarun (₹10L). Credit guarantee fund. Digital MUDRA card. Women entrepreneurs 70% beneficiaries. By 2026, 52 crore loans disbursed. Success Stats: 35% women, 50% SC/ST/OBC, MSME contribution 30% GDP.

Who is Eligible?

  • Non-corporate non-farm enterprises
  • Manufacturing/trading/services
  • No existing NPA
  • Turnover criteria category wise
  • Group societies eligible

Documents Required

  • KYC documents
  • Business vintage proof
  • Bank statement 6 months
  • Project viability
  • Collateral documents optional

Process & Guidelines

Step 1: Choose category Shishu/Kishore/Tarun

Step 2: Apply bank/NBFC/MFI branch

Step 3: Udyam registration (mandatory)

Step 4: Loan sanction within 15 days

Step 5: MUDRA card issuance

Step 6: Repayment 84 months

Frequently Asked Questions