How To Apply For A PM MUDRA Loan Online In 2026: Eligibility And Step-By-Step Process

Last month marked 11 years of the Pradhan Mantri MUDRA Yojana, which was launched in April 2015 to support micro and small entrepreneurs through better financial inclusion and easier access to credit. Built on the vision of "Funding the Unfunded," the scheme provides collateral-free loans of up to Rs 20 lakh to non-corporate, non-farm micro and small enterprises engaged in manufacturing, trading, services, and allied agricultural activities.

As of March 27, 2026, loans worth Rs 40.07 lakh crore have been disbursed under the scheme across more than 57 crore accounts. The initiative has played a key role in promoting grassroots entrepreneurship and supporting the growth of local economies across India.

If you are planning to apply for a MUDRA loan, here are some important details you should know.

MUDRA Loan Categories: Shishu, Kishore And Tarun

Under PMMY, MUDRA loans are divided into three categories to support businesses at different stages of growth:
•Shishu: Loans up to Rs 50,000 for businesses in the early stages.
•Kishore: Loans from Rs 50,001 to Rs 5 lakh for businesses looking to expand.
•Tarun: Loans between Rs 5 lakh and Rs 10 lakh for established businesses seeking further growth.

Eligibility For MUDRA Loans

Any Indian citizen with a viable business plan for a non-farm income-generating activity can apply for a MUDRA loan. This includes businesses involved in manufacturing, processing, trading, or services. The applicant's credit requirement should not exceed Rs 10 lakh.
The scheme is available to individuals, proprietorship firms, partnership firms, private limited companies, and other eligible business entities.

Member Lending Institutions (MLIs)

MUDRA loans are offered through Member Lending Institutions (MLIs), including:
•Commercial Banks
•Regional Rural Banks (RRBs)
•Small Finance Banks
•Non-Banking Financial Companies (NBFCs)
•Micro Finance Institutions (MFIs)
•Other financial intermediaries
These institutions help ensure that the benefits of the scheme reach small business owners across the country.

How To Apply For A MUDRA Loan Online?

Applicants can apply for a MUDRA loan online through the Jan Samarth Portal by following these steps:

1.Visit the Jan Samarth portal and select 'Business Activity Loan' under the schemes section.
2.Click on 'Check Eligibility' and choose 'Other Business Loan' unless you fall under categories such as handloom weavers or street vendors.
3.Enter your business details, including business type, location, social category, and estimated project cost.
4.The portal will calculate your eligible loan amount and show the estimated EMI and repayment tenure.
5.Log in using your registered mobile number and review the details.
6.Verify your PAN, Aadhaar, and Udyam registration details.
7.Provide additional business information, including GSTIN and bank account details.
8.Review the application form and submit it.
9.The portal will then display loan offers from different banks.
10.Select the preferred loan offer based on interest rates and tenure, and continue with the application process.

Once the loan is approved, the selected bank may carry out additional verification, including branch visits, before the final sanction and disbursal of the loan.