Pradhan Mantri Mudra Yojana (PMMY) 2026: The Pradhan Mantri Mudra Yojana is a flagship initiative of the Government of India that provides collateral-free institutional loans to eligible micro and small business entrepreneurs. The scheme supports individuals who want to establish a new business, purchase equipment, meet working capital requirements, or expand an existing enterprise.
Under PMMY, eligible applicants can seek business loans of up to ₹20 lakh through participating banks, Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs). The scheme covers income-generating activities in manufacturing, trading and services, along with specified activities allied to agriculture, such as dairy, poultry and beekeeping.
Important: PMMY is a business loan scheme, not a government job or a grant. The approved loan must be repaid according to the terms set by the lending institution.
| Particulars | Details |
|---|---|
| Scheme Name | Pradhan Mantri Mudra Yojana (PMMY) |
| Implementing Authority | Government of India |
| Launch Date | 8 April 2015 |
| Main Objective | Financial assistance for micro and small businesses |
| Maximum Loan Amount | Up to ₹20 lakh |
| Loan Type | Collateral-free institutional credit under the scheme |
| Eligible Activities | Manufacturing, trading, services and specified agriculture-allied activities |
| Loan Categories | Shishu, Kishor, Tarun and Tarun Plus |
| Eligible Applicants | Individuals and eligible micro-enterprise entrepreneurs |
| Lending Institutions | Banks, NBFCs and MFIs, among other eligible institutions |
| Application Mode | Through participating lending institutions |
| Official Website | https://www.mudra.org.in/ |
| Government Information | https://financialservices.gov.in/pradhan-mantri-mudra-yojana-pmmy |
What Is Pradhan Mantri Mudra Yojana?
Pradhan Mantri Mudra Yojana was launched to improve access to formal credit for small businesses that may otherwise face difficulties obtaining business finance.
The scheme is intended to help entrepreneurs establish, operate and expand income-generating enterprises. Both term loans and working capital facilities may be considered according to the business requirement and the lender’s assessment.
Eligible businesses may use the finance for purposes such as:
Establishing a new small business.
Expanding an existing shop or enterprise.
Purchasing machinery, tools or business equipment.
Arranging working capital for business operations.
Starting a manufacturing or processing unit.
Developing a service-based enterprise.
Purchasing eligible commercial equipment or vehicles for business use.
Supporting specified activities allied to agriculture, including dairy, poultry and beekeeping.
PM Mudra Loan Categories 2026
The scheme has four loan categories based on the amount of finance required and the entrepreneur’s business stage.
| Loan Category | Loan Amount | Main Purpose |
|---|---|---|
| Shishu | Up to ₹50,000 | Starting a small business or meeting initial business needs |
| Kishor | Above ₹50,000 and up to ₹5 lakh | Developing or expanding a small enterprise |
| Tarun | Above ₹5 lakh and up to ₹10 lakh | Financing a growing business |
| Tarun Plus | Above ₹10 lakh and up to ₹20 lakh | Supporting eligible entrepreneurs who have successfully repaid a previous Tarun-category loan |
Who Can Apply for PM Mudra Yojana?
Individuals who are otherwise eligible for business credit and have a viable business proposal may apply through a participating lending institution.
Potential applicants include:
Individuals planning to start a small enterprise.
Proprietors of existing micro businesses.
Small shopkeepers and retailers.
Traders and service providers.
Artisans and handicraft entrepreneurs.
Small-scale manufacturers.
Food processing and food-service business owners.
Repair and maintenance service operators.
Eligible entrepreneurs involved in dairy, poultry, beekeeping and similar allied activities.
Eligible Business Activities Under PMMY
| Business Sector | Examples |
|---|---|
| Retail and Trading | Grocery shops, general stores, small retail outlets and eligible trading businesses |
| Manufacturing | Small production units, workshops and manufacturing enterprises |
| Food Business | Restaurants, food stalls, bakeries, catering and food processing |
| Services | Salons, repair shops, tailoring services and other eligible service enterprises |
| Transport | Eligible commercial transport activities and business-use vehicles |
| Handicrafts | Artisans, craft workers and small handicraft businesses |
| Dairy and Poultry | Eligible dairy units, poultry enterprises and related activities |
| Beekeeping | Honey production and other eligible beekeeping activities |
| Repair and Maintenance | Electrical, mechanical, mobile and equipment repair businesses |
| Other Micro Enterprises | Other eligible income-generating small businesses accepted by the lender |
Main Benefits of Pradhan Mantri Mudra Yojana
The scheme can provide several advantages to eligible small-business owners.
Collateral-free credit: Loans are offered without requiring collateral under the scheme, subject to applicable rules and lender requirements.
Loan options for different business stages: Four categories allow applicants to seek finance suited to their business needs.
Support for new entrepreneurs: Eligible individuals can seek finance to establish income-generating enterprises.
Business expansion: Existing enterprises may apply for funds to support expansion or operational requirements.
Working capital assistance: Eligible working capital needs may be financed.
Support for women entrepreneurs: Women running or planning eligible businesses can apply under the same scheme conditions.
Multiple lending channels: Applications can be made through participating banks, NBFCs and MFIs.
Agriculture-allied enterprise support: Specified activities such as dairy, poultry and beekeeping may qualify.
Documents Required for PM Mudra Loan
Applicants may commonly be asked to provide the following documents:
Aadhaar Card or another accepted identity document.
PAN Card, where required.
Proof of residential address.
Recent passport-size photographs.
Bank account details and bank statements.
Business address proof, where applicable.
Business registration or relevant enterprise documents, if applicable.
Business plan or project report.
Estimated business expenditure and funding requirements.
Quotations for machinery, equipment or other proposed purchases.
Financial statements, sales records or income details for an existing business, where applicable.
Applicable category-specific or activity-specific documents.
Any additional forms or declarations requested by the lender.
Applicants should obtain the current checklist from their selected bank, NBFC or MFI before applying. Not every document listed above will be mandatory for every applicant.
How to Apply Online for Pradhan Mantri Mudra Yojana 2026
Follow these simple steps to apply for a PM Mudra Loan:
Visit the official JanSamarth Portal: https://www.jansamarth.in/
Register using your mobile number and complete OTP verification.
Log in to your account.
Open the Schemes section and select the relevant business loan scheme.
Check your eligibility by answering the questions asked on the portal.
Select the appropriate Mudra Loan category: Shishu, Kishor, Tarun or Tarun Plus.
Click on Apply Now, where available.
Fill in your personal details, business information and required loan amount.
Upload the necessary documents, such as identity proof, address proof, photographs and business-related documents, as requested.
Select an available lending institution and review the application carefully.
Submit the application and save your application or reference number.
Track your application status through the portal or contact the selected bank for updates.