How to Apply for a MUDRA Loan Online on JanSamarth: Step-by-Step Guide

Pradhan Mantri MUDRA Yojana (PMMY) gives small businesses access to loans of up to Rs 20 lakh from banks, NBFCs and microfinance institutions. MUDRA doesn't lend to you directly. It refinances the lenders who do. You can apply at a branch or online through the government's JanSamarth portal. This guide covers the four loan categories, who can apply, the documents you need, the online steps and what to expect from the bank.

This guide is based on the official guidelines as of October 2026; always check the portal for the latest rules.

You can see the scheme summary on our MUDRA listing.

What a MUDRA loan is (and isn't)

According to MUDRA's official website, PMMY was launched on 8 April 2015. It covers loans to non-corporate, non-farm small and micro enterprises. Commercial banks, regional rural banks, small finance banks, MFIs and NBFCs give these loans. MUDRA refinances them.

Know these points before you apply:

• It's a loan, not a grant. The MUDRA FAQ says plainly that there is no subsidy under PMMY. If your loan is linked to another government scheme that gives a capital subsidy, that subsidy can still apply.
• Interest rates aren't fixed by the scheme. They're deregulated. Banks are told to charge reasonable rates within RBI guidelines.
• There are no agents. MUDRA states it has not appointed any agents or middlemen. Be wary of anyone who charges you to "get" a MUDRA loan.

The four MUDRA loan categories

Source: MUDRA Offerings page and the Gazette notification of 24 October 2024.

Tarun Plus is only for repeat borrowers. The Gazette notification, effective from 24 October 2024, says Tarun Plus is for entrepreneurs who have taken and successfully repaid a previous loan under the Tarun category. If this is your first MUDRA loan, the most you can ask for is Rs 10 lakh.

MUDRA says it gives more focus to Shishu loans, then Kishor, Tarun and Tarun Plus.

Who can apply

According to the MUDRA FAQ and the PMMY page on JanSamarth:

1. Any Indian citizen with a business plan for a non-farm, income-generating activity in manufacturing, processing, trading or services, who needs up to Rs 20 lakh.
2. Eligible borrower types: the MUDRA FAQ (Q38) and JanSamarth list individuals, proprietary concerns, partnership firms, private limited companies, public companies and entities of other legal forms. But both also describe PMMY as a scheme for non-corporate, non-farm small and micro enterprises, so if you're a company or LLP, confirm with your lender that it will lend to you under PMMY.
3. New or existing businesses can apply. The loan can be for setting up a new micro business or upgrading an existing one.
4. No defaults. You shouldn't be a defaulter at any bank or financial institution, and you should have a satisfactory credit record.
5. Skills. You may need the skills, experience or knowledge for the activity. Any education requirement depends on the activity.

What it can fund: working capital, equipment, commercial vehicles (including two-wheelers, tractors and tillers used only for business), and shop or trading activity. It can also fund agri-allied activities such as poultry, dairy, fisheries and beekeeping. Crop loans and land improvement such as canals, irrigation and wells are excluded (MUDRA Offerings page).

Types of credit: term loan, overdraft limit, working capital loan, or a composite loan for buying capital assets. For working capital, the bank may give you a MUDRA Card, a RuPay debit card linked to your loan account.

Documents checklist

MUDRA's FAQ says the lender decides the exact documents. MUDRA's official checklists give the usual set.

For Shishu loans (Shishu checklist):

• Proof of identity: self-attested copy of Voter ID, driving licence, PAN, Aadhaar, passport or another government photo ID
• Proof of residence: recent telephone or electricity bill or property tax receipt (not older than 2 months), Voter ID, Aadhaar, passport, or a bank passbook or statement attested by the bank
• 2 recent photographs (not older than 6 months)
• Quotation for machinery or other items you'll buy, with the supplier's name, item details and price
• Proof of identity and address of the business: relevant licences, registrations or ownership documents, if any
• Proof of category (SC, ST, OBC or minority), if applicable

For Kishor, Tarun and Tarun Plus loans (common loan application form), you'll usually also need:

• Last 6 months' bank statement from your existing bank, if any
• Last two years' balance sheets with income tax or sales tax returns (for loans of Rs 2 lakh and above)
• Projected balance sheet: for one year for working capital, or for the loan period for a term loan (for loans of Rs 2 lakh and above)
• Sales in the current financial year up to the date of application
• Project report showing technical and economic viability
• Memorandum and Articles of Association or partnership deed, if applicable
• Asset and liability statement, if the bank asks for it
• 2 photographs of the proprietor, partners or directors

The form says this list is indicative, and branches may ask for more.

For the JanSamarth online form, JanSamarth lists Aadhaar number, Voter ID, PAN and bank statements as the basic documents. PAN isn't compulsory for a MUDRA loan under the MUDRA FAQ, but you still have to meet your lender's KYC rules.

How to apply online on JanSamarth: step by step

JanSamarth is the government's portal for credit-linked schemes, and PMMY is listed on it as a business loan scheme. The steps below come from JanSamarth's own description of its process. MUDRA's site also mentions online applications through the Udyamimitra portal.

1. Open the PMMY page on JanSamarth and read the eligibility and features.
2. Click "Check Eligibility". You answer a few simple questions, and the portal matches you to the schemes you fit.
3. Register and log in. The registration screen asks for your email address and a 10-digit mobile number, and verifies them with an OTP. After that, you log in as an applicant with your email or mobile number.
4. Apply online. Enter your basic details and upload documents. JanSamarth links to government databases such as UIDAI and CBDT, so it fetches and auto-fills some details after verification.
5. Get digital approval. You see offers from lenders on the platform, choose a bank, and receive a "Digital Approval" from the bank you selected.
6. Track your application. Sign in and open the "My Applications" tab on your dashboard to see the status.

A digital approval isn't the final loan. The bank still completes its own checks and documentation before it sanctions and pays out the loan.

Applying at a bank branch instead

You can also walk into any bank, RRB, small finance bank, NBFC or MFI that offers MUDRA loans:

1. Ask for the lender's MUDRA application form. MUDRA publishes a one-page format for Shishu and an indicative three-page common form for Kishor, Tarun and Tarun Plus, and the MUDRA FAQ says you can also apply in the format your lender provides.
2. Attach the documents from the checklist above.
3. Ask for an acknowledgement slip with your application number. Both MUDRA forms include one.

What to expect from the bank

• Appraisal on merit. The bank decides the loan amount based on what your activity needs, and sets the repayment terms based on your expected cash flow (MUDRA FAQ).
• Collateral. The RBI bars banks from taking collateral for loans up to Rs 20 lakh to micro and small enterprise units, for loans sanctioned or renewed from 1 April 2026 (RBI, 9 February 2026). That covers every MUDRA category. The rule applies to banks, so ask NBFCs and MFIs about their own policy. MUDRA loans are defined as collateral-free and third-party-guarantee-free, and can be covered by the Credit Guarantee Fund for Micro Units (Gazette notification, 24 October 2024).
• If a bank asks for collateral anyway, the MUDRA FAQ says you can complain to the bank's Regional, Zonal or Head Office. Each bank's grievance process is available at its branches.
• Your share (margin). This follows the bank's policy. JanSamarth notes that banks may not insist on a margin for Shishu loans.
• Security. The bank takes a first charge on assets created with the loan and on assets directly linked to the business.
• Shishu specifics. MUDRA's Shishu checklist says there's no processing fee and no collateral, and repayment can be extended up to 5 years. The MUDRA FAQ says Shishu loans are normally processed in 7 to 10 days once the bank has complete information.
• Insurance. Life insurance isn't mandatory under PMMY, though lender policies apply.

FAQ

Is there a subsidy on a MUDRA loan?

No. PMMY has no subsidy. If your project also qualifies for a scheme like PMEGP, that scheme's subsidy can apply. Browse subsidies to check.

Can I get Rs 20 lakh on my first MUDRA loan?

No. The Rs 10 lakh to Rs 20 lakh band (Tarun Plus) is only for borrowers who took and repaid a Tarun loan. A first-time borrower can ask for up to Rs 10 lakh.

Does a startup company qualify?

Possibly, but check with your lender first. The MUDRA FAQ lists private limited companies among eligible applicants, while MUDRA's home page describes PMMY as a scheme for non-corporate, non-farm small and micro enterprises. The loan must also be for an income-generating, non-farm activity and no more than Rs 20 lakh. For bigger amounts, look at other business loans.

What interest rate will I pay?

It depends on the lender. Rates are deregulated, and banks are advised to keep them reasonable within RBI guidelines.

What if the bank refuses or delays my loan?

The MUDRA FAQ says you can raise a complaint with the bank's Regional or Zonal Manager, or apply to another bank, NBFC or MFI in your area.

Can someone help me prepare my application?

You can apply yourself, and MUDRA doesn't use agents. If you want help with a project report or choosing the right scheme, see our services.

Sources

• MUDRA: Home page (PMMY overview)
• MUDRA: Offerings
• MUDRA: FAQ
• MUDRA: Gazette notification on Tarun Plus, 24 October 2024
• MUDRA: Checklist for Shishu application
• MUDRA: Common loan application form (Kishor, Tarun)
• JanSamarth: Pradhan Mantri MUDRA Yojana
• JanSamarth portal
• RBI: Lending to MSME Sector (Amendment) Directions, 2026 (collateral-free limit)
• Udyamimitra portal

Cover photo: Simonetta Pugnaghi on Unsplash