Business & Growth 10 June 2026
Mudra Loans 2026: Shishu, Kishor, Tarun Limits and Eligibility
Mudra loans up to Rs. 10 lakh in three categories - Shishu, Kishor and Tarun - for micro enterprises. Eligibility, documents, interest rates and the Pradhan Mantri Mudra Yojana rules.
Udyam Registration
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The three product slabs
- Shishu: up to Rs. 50,000 - first-time micro units, street vendors, small service providers
- Kishor: Rs. 50,001 to Rs. 5 lakh - grew units needing working capital or asset purchase
- Tarun: Rs. 5,00,001 to Rs. 10 lakh - established micro enterprises scaling up
- All loans are collateral-free under CGTMSE-type guarantees for eligible units (scheme-dependent)
Eligibility and process
- Indian citizen enterprise: proprietorship, partnership, company, LLP forming a micro unit
- Approach a scheduled commercial bank, RRB, cooperative bank, SFB or MFI
- Sanction is activity-based, not collateral-based
- Fintech/MFI routes exist for sub-Rs. 1 lakh loans
- Loans are tracked under the PMMY portal with bank-wise reporting
Things to check before applying
- Seeder APIs: verify the current rate with your bank - quoted rates vary
- Processing fees are modest; some banks waive them under scheme promotions
- Repayment usually monthly EMIs; tenure spans 1-7 years by scheme
- A healthy GST/turnover history speeds up sanction - keep records ready
Common rejections and fixes
- Weak repayment capacity - show bank statement inflows for 6 months
- Wrong activity code on Udyam causing scheme mismatch
- Multiple overlapping loans in the same band
- Cibil score below the bank's cut-off - repay small borrowings first, correct errors in the report
What you should do
- Register Udyam before applying - it smooths every loan step
- Prepare a one-page business plan and 6-month bank statement
- Compare 2-3 banks on rate and processing fee
- Ask about interest subvention schemes applicable to your category
- Use the first tranche wisely - Mudra history builds your banking record for larger credit later
Need help filing this? Our advisors handle it end-to-end
Udyam Registration
Get Udyam Registration online. Professional fees ₹799. Government benefits, subsidies, loans. Expert assistance by GSTC INDIA GROUP.
Startup India Registration
Get Startup India Registration with DPIIT recognition. Tax holiday, funding, self-certification. Professional fees ₹5,460.
Sources
Verification required. Details in this article could not be fully confirmed against an official source at publication time. Confirm with the authority or a professional before relying on it.