PM Mudra Loan Apply 2026 – Shishu, Kishore & Tarun Loan

Mudra loan interest rates are not fixed by government — each bank sets its own rate based on RBI guidelines. Typically 8% to 12% per year. SBI Mudra loans start at around 8.55%. Women entrepreneurs and SC/ST applicants may get slightly lower rates. Always compare rates at multiple banks before applying. No processing fee for Shishu category loans.

If Mudra loan is rejected, get the rejection reason in writing. Common reasons: poor CIBIL score, insufficient business documents, no business experience. Improve CIBIL score by repaying existing loans. Try applying at another bank — each bank has different assessment criteria. You can also apply through NBFC or MFI (Microfinance Institution) which have less stringent criteria for small loans.

Yes, Shishu loans (up to ₹50,000) are specifically designed for new businesses/startups. For Kishore and Tarun, some business experience or 6-month bank statement is preferred. New business applicants should prepare a detailed business plan showing projected revenue, expenses and repayment capacity. Udyam registration also helps in loan approval.

MUDRA Card is a RuPay debit card issued along with Mudra loan. It works like a credit card for working capital — you can withdraw money as needed (up to sanctioned limit) and repay when cash flow allows. This is especially useful for businesses with seasonal or irregular cash flows. Interest is charged only on the amount utilized, not the entire sanctioned amount.

Yes. Women entrepreneurs get preferential interest rates (0.25% lower in many banks), priority processing, and easier documentation requirements. Many state governments provide additional subsidies on Mudra loans for women. AP's Stree Nidhi and TS's Mahila Shakti schemes provide additional support alongside Mudra. Women should mention their gender in application for potential benefits.