Government Schemes
PM Mudra Loan: Complete Application Guide
A
Amit Verma
MSME Finance Expert
Dec 22, 2026
7 min read
Share:
PM Mudra Loan (Pradhan Mantri Micro Units Development and Refinance Agency) is a flagship scheme by the Government of India to provide financial support to micro and small enterprises. This comprehensive guide will help you understand and apply for this beneficial scheme.
What is PM Mudra Loan?
PM Mudra Loan is a collateral-free loan scheme for small businesses and entrepreneurs. It provides funding up to ₹10 lakhs to help start or expand small businesses, making entrepreneurship accessible to all.
Three Categories of Mudra Loans
Shishu (Baby)
Loans up to ₹50,000 for businesses in their initial stage
Kishore (Adolescent)
Loans from ₹50,001 to ₹5 lakhs for established businesses
Tarun (Youth)
Loans from ₹5,00,001 to ₹10 lakhs for business expansion
Eligibility Criteria
Indian citizen aged 18 years or above
Small business owner, entrepreneur, or self-employed individual
Business should be in manufacturing, trading, or service sector
No income limit for applicants
Required Documents
Identity proof (Aadhar, PAN, Voter ID)
Address proof
Business plan and quotations
Bank statements (last 6 months)
Business registration documents (if applicable)
Application Process
Step 1
Visit nearest bank or NBFC offering Mudra loans
Step 2
Fill application form with business details
Step 3
Submit required documents
Step 4
Bank verifies documents and business viability
Step 5
Loan approval and disbursement
Conclusion
PM Mudra Loan is an excellent opportunity for small entrepreneurs to access affordable credit without collateral. With proper planning and documentation, you can successfully obtain this loan to grow your business.