Mudra Loan 2026 – Eligibility, Amount, Documents & How to Apply

🏭 What is Mudra Loan?

Pradhan Mantri Mudra Yojana (PMMY) provides collateral-free loans to small businesses, micro-enterprises, traders, artisans, and self-employed individuals. No guarantor needed. Available through all banks, NBFCs, and MFIs.

💰

Up to ₹20 Lakh

Maximum Loan Amount (Tarun+)

🔓

Zero Collateral

No Security Required

📊

No Minimum

CIBIL Score Cutoff

⚡

7–10 Days

Typical Disbursement

Three Mudra Loan Categories

Shishu

Up to ₹50,000

For new or early-stage businesses. Street vendors, small shops, artisans starting out.

Interest: ~10–12% p.a.

Kishor

₹50,001 – ₹5 Lakh

For established businesses looking to expand. Small manufacturers, service providers, traders.

Interest: ~12–16% p.a.

Tarun / Tarun+

₹5 Lakh – ₹20 Lakh

For growing businesses. Manufacturing units, trading companies, service sector MSMEs.

Interest: ~14–18% p.a.

Who Can Apply — Eligibility

Indian citizens running a non-farm income generating activity
Small manufacturers, shopkeepers, fruit/vegetable vendors
Artisans, weavers, food processing units
Repair shops, machine operators, transport operators
Self-help groups and joint liability groups
No minimum turnover requirement for Shishu loans
Business vintage of 2+ years preferred for Kishor and Tarun

Documents Required

Aadhaar card + PAN card (mandatory)
Business proof — GST registration / shop establishment certificate / Udyam registration
Bank statements — 6 to 12 months
Last 2 years ITR or financials (for Kishor and Tarun)
Passport-size photographs
Quotation for machinery / equipment if buying assets
Proof of SC/ST/OBC/Minority status (if applicable — for priority processing)

How to Apply — Step by Step

Decide loan category

Based on your business stage and how much you need — Shishu (₹50K), Kishor (₹5L), or Tarun (₹20L).

Call Guhan Capitals

We identify the right bank or NBFC for your profile — some banks are faster for Mudra, others have lower rates. We match you.

Prepare documents

We give you a precise checklist based on your category. Shishu loans often need just Aadhaar + business proof.

Submit application

We submit on your behalf to the bank. For Shishu/Kishor, most banks process in 7–14 days.

Receive Mudra Card

Along with loan disbursement, you receive a Mudra Debit Card (RuPay) to withdraw working capital as needed.

💡 Important: Mudra loans are covered under the Credit Guarantee Fund for Micro Units (CGFMU), meaning the bank takes no collateral from you. You cannot be asked for property as security for loans up to ₹20 lakh under Mudra.

Apply Through Guhan Capitals — It's Free

We handle your application end-to-end. No running around. Best rates from 12+ banks.

Apply now → 💬 WhatsApp us

Frequently Asked Questions

Is Mudra loan available for new businesses with no ITR?▼

Yes, especially for Shishu category (up to ₹50,000). Banks assess intent and basic business viability. Kishor and Tarun loans typically require 1–2 years of bank statements or basic financials.

What is the interest rate on Mudra loan in 2026?▼

There is no fixed interest rate set by the government. Banks and NBFCs set their own rates. Typically 10–12% for Shishu, 12–16% for Kishor, and 14–18% for Tarun. Guhan Capitals compares rates across lenders to get you the best deal.

Can I get Mudra loan for agriculture?▼

Mudra loans are specifically for non-farm activities. However, allied activities like dairy, poultry, fisheries, and food processing are eligible.

How long does Mudra loan take to approve?▼

Shishu loans: 7–14 working days. Kishor loans: 14–21 days. Tarun loans: 3–6 weeks depending on the bank and documentation completeness.

Can I apply for Mudra loan online?▼

You can apply via the Udyamimitra portal (udyamimitra.in) or directly through bank branches. Guhan Capitals assists with both routes and ensures faster processing.