All About Mudra Loans India 2026 — Complete Guide
MUDRA (Micro Units Development & Refinance Agency) loans are India’s most accessible small business financing scheme — offering collateral-free loans from ₹50,000 to ₹10 Lakhs for micro and small businesses. Since launch, MUDRA has disbursed over ₹25 lakh crore to 40+ crore beneficiaries. This guide covers everything you need to know about Mudra Loans in 2026.
Three Categories of Mudra Loans
| Category | Loan Amount | Best For |
|---|---|---|
| Shishu | Up to ₹50,000 | Very early stage, street vendors, home businesses |
| Kishore | ₹50,001 – ₹5 Lakhs | Growing micro businesses, small traders |
| Tarun | ₹5 Lakhs – ₹10 Lakhs | Established micro businesses expanding |
Key Features
- No collateral required for any category
- No processing fee (for Shishu)
- Interest rate: 8.5–12% p.a. (varies by bank and category)
- Repayment tenure: 3–5 years
- Available through: Banks, MFIs, NBFCs, RRBs
- Mudra Card: Working capital credit card issued with loan
Eligibility Criteria
- Indian citizen (resident or NRI with resident co-applicant)
- Non-farm income-generating activity
- No existing NPA with any bank
- Business plan or proof of existing business
- KYC documents (Aadhaar, PAN)
- No minimum turnover requirement for Shishu
Documents Required
- Aadhaar card + PAN card
- Passport-size photographs
- Business address proof
- Bank statements (last 6 months for Kishore/Tarun)
- Business registration documents (if existing)
- Quotation for machinery/equipment (if applicable)
- Project report (for Tarun category)
How to Apply for Mudra Loan
- Visit any bank branch, NBFC, or MFI
- Fill Mudra loan application form
- Submit KYC and business documents
- Bank assesses and sanctions (7–30 days)
- Loan disbursed + Mudra Card issued
- Online: Apply via Udyamimitra portal (udyamimitra.in)
Mudra Loan Banks in Kerala
- State Bank of India (SBI) — largest Mudra lender
- Federal Bank, South Indian Bank, Kerala Bank
- HDFC Bank, Axis Bank, ICICI Bank
- Canara Bank, Union Bank, Bank of Baroda
- Microfinance Institutions (MFIs): Muthoot Microfin, Asirvad
Mudra Loan for Specific Businesses
- Food processing: Shishu/Kishore for small units
- Textile/handloom: Kishore for Kannur handloom weavers
- Transport: Tarun for auto-rickshaw, taxi purchase
- Retail: Shishu/Kishore for small shops
- Agriculture allied: Poultry, fishery, beekeeping
📌 Apply for Business Finance
Related Finance Guides
- CGTMSE Scheme Guide
- MSME Loan Schemes India 2026
- MSME Loan Kerala Guide
- Startup Loans Guide
- Working Capital Loan Guide
- Financial Institutions in India
City-Specific Guides
Kochi | Trivandrum | Kozhikode | Thrissur | Malappuram | Kannur
📌 Ready to Apply for a Mudra Loan?
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⚠️ Disclaimer: Mudra loan terms and interest rates subject to change. Loan approval at bank’s discretion. Blueberry is a financial services facilitator. RBI · ASCI compliant.