.jpg)
Bank of Baroda PM Mudra Loan Yojana 2026 offers collateral-free business loans under Shishu, Kishor, Tarun and Tarun Plus categories. Check eligibility, documents, benefits and how to apply.
Bank of Baroda PM Mudra Loan Yojana 2026 can help eligible small entrepreneurs obtain finance for starting, operating or expanding income-generating businesses. Under the Pradhan Mantri Mudra Yojana (PMMY), Bank of Baroda provides collateral-free credit for eligible micro and small business activities.
Depending on the applicant's business requirements and eligibility, Mudra loans are divided into Shishu, Kishor, Tarun and Tarun Plus categories. The maximum limit under PMMY is now ₹20 lakh, although the ₹20 lakh limit is available under Tarun Plus only to eligible borrowers who have successfully repaid an earlier Tarun-category loan.
| Highlights | Details |
|---|---|
| Scheme | Pradhan Mantri Mudra Yojana |
| Bank | Bank of Baroda |
| Loan Type | Business/MSME Loan |
| Maximum Limit | Up to ₹20 Lakh |
| Collateral | Not Required |
| Processing Fee | Nil |
| Categories | Shishu, Kishor, Tarun & Tarun Plus |
| Purpose | Income-Generating Business Activities |
What is Bank of Baroda PM Mudra Loan Yojana?
Pradhan Mantri Mudra Yojana, commonly known as PM Mudra Yojana or PMMY, is a Government of India initiative launched in 2015 to improve access to institutional credit for small businesses.
Bank of Baroda is one of the lending institutions offering Mudra loans. These loans can support eligible micro and small enterprises engaged in income-generating activities.
The financing can be used for business requirements connected with manufacturing, trading and service activities. Eligible allied agricultural activities can also be covered under PMMY.
One of the major features is that borrowers are not required to provide collateral for eligible Mudra loans.
Bank of Baroda Mudra Loan Amount
The amount available depends on the stage and funding requirements of the business.
PM Mudra loans are divided into four categories:
Shishu: Loans up to ₹50,000.
Kishor: Loans above ₹50,000 and up to ₹5 lakh.
Tarun: Loans above ₹5 lakh and up to ₹10 lakh.
Tarun Plus: Loans above ₹10 lakh and up to ₹20 lakh.
There is an important condition for Tarun Plus. It is meant for entrepreneurs who have already taken a loan under the Tarun category and successfully repaid it.
Therefore, a new applicant should not assume that everyone applying for a Mudra loan can directly receive ₹20 lakh.
The amount finally sanctioned depends on the applicant's business requirement, eligibility, credit assessment and Bank of Baroda's applicable lending guidelines.
Who Can Apply for Bank of Baroda Mudra Loan?
PM Mudra Yojana is designed for eligible micro and small enterprises requiring finance for income-generating activities.
Businesses involved in manufacturing, trading and services may be considered. Eligible activities allied to agriculture can also fall within the scope of PMMY.
The bank evaluates the applicant and business before sanctioning the loan. Credit history, business requirements, repayment ability and other applicable lending conditions can therefore affect approval.
For Bank of Baroda's Digital Mudra facility, the bank specifies eligible existing businesses under individual or sole-proprietorship constitutions, subject to the conditions of that particular digital product.
Applicants should check the exact eligibility applicable to the Mudra product and loan amount they require.
Is Mudra Loan Really Collateral-Free?
Yes. One of the important features of PMMY is collateral-free credit for eligible borrowers.
Bank of Baroda states that no collateral is required under its PM Mudra loan. Assets created from bank finance may, however, be hypothecated according to the applicable loan conditions.
The bank also currently lists nil processing fee for all Mudra categories.
This can make PMMY useful for small entrepreneurs who need formal business finance but may not have substantial assets available to offer as collateral.
What Business Can You Start With Mudra Loan?
Mudra finance is intended for income-generating business activities rather than unrestricted personal spending.
Eligible businesses can operate in manufacturing, trading or services. PMMY also covers eligible activities allied to agriculture, including areas such as dairy, poultry and beekeeping.
Depending on the approved proposal, finance may be used for business requirements such as machinery, equipment, working capital or other eligible expenditure.
Applicants should prepare a clear business plan and realistic estimate of how much finance they actually require.
The bank may ask for quotations, vendor information or other proof supporting the requested loan amount.
Documents Required for Bank of Baroda Mudra Loan
Documentation depends on the applicant, business constitution, loan category and sanction requirements.
Bank of Baroda lists documents such as business identity and address proof, which may include applicable registration certificates, licences or business-related documents.
Applicants may also need recent photographs and documents supporting the loan requirement, such as equipment quotations or vendor details.
Where applicable, proof relating to SC, ST, OBC or minority status may also be requested.
Standard KYC and any additional documents required under the bank's sanction terms may also have to be submitted.
Keeping business and KYC documents ready can help make the application process smoother.
Bank of Baroda PM Mudra Loan Apply Online
Bank of Baroda provides online options for Mudra loan applications, including its Digital Mudra facility and access through applicable digital lending channels.
Follow these steps to begin the application:
Visit the official Bank of Baroda website.
Open the Loans or MSME Banking section.
Select Pradhan Mantri Mudra Yojana / Mudra Loan.
Read the latest eligibility and loan conditions carefully.
Choose the available Apply Online option.
Enter the required personal and business information.
Select the appropriate Mudra category according to your requirement.
Provide the requested KYC and business documents.
Submit details of the proposed loan requirement.
Complete verification and any additional process requested by Bank of Baroda.
The bank will assess the application before deciding whether to sanction the loan.
Loan approval is not automatic merely because an online application has been submitted.
Bank of Baroda Digital Mudra Loan
Bank of Baroda also offers a Digital Mudra Loan facility for eligible entrepreneurs.
Its digital process is designed to make the loan journey more convenient and includes online application options. Bank of Baroda currently states that direct digital disbursement of up to ₹50,000 is available to eligible entrepreneurs under its digital offering.
The bank's digital Mudra information covers business requirements such as working capital and business expenditure, subject to product-specific eligibility.
Applicants should use only Bank of Baroda's official website, bobWorld channels or other officially listed platforms when applying online.
Mudra Loan Repayment Period
Repayment conditions depend on the type of facility sanctioned.
Bank of Baroda currently states that term/demand Mudra loans can have a repayment period of up to 84 months, including a suitable moratorium where applicable and subject to annual review.
Working-capital facilities are generally provided for 12 months subject to annual review.
The actual repayment schedule applicable to a borrower will be stated in the loan sanction terms.
Before accepting the loan, applicants should understand the interest rate, EMI, repayment tenure and all applicable conditions.
Bank of Baroda Mudra Loan Interest Rate
Applicants should not rely on social-media posts claiming one fixed interest rate for every Bank of Baroda Mudra borrower.
The applicable interest rate depends on the bank's prevailing lending rules and the specific loan proposal. The government also states that interest rates under PMMY are governed by applicable RBI guidelines.
Therefore, borrowers should check the latest applicable rate directly with Bank of Baroda when applying.
It is also advisable to calculate the expected monthly repayment before taking a business loan so that the business can comfortably service the debt.
Important Update for Mudra Loan 2026
The maximum PMMY limit is now ₹20 lakh after the introduction of the Tarun Plus category.
However, this does not mean every new borrower can obtain ₹20 lakh.
Tarun Plus covers loans above ₹10 lakh and up to ₹20 lakh specifically for entrepreneurs who have successfully repaid their previous Tarun-category Mudra loans.
New and smaller businesses can apply under the category appropriate to their financing requirement and eligibility.
Applicants should also remember that Mudra is a loan, not free government money. The sanctioned amount must be repaid according to the agreed loan terms.
લોન ની અરજી કરવા અહીં ક્લિક કરો
Conclusion
Bank of Baroda PM Mudra Loan Yojana 2026 provides eligible entrepreneurs with access to collateral-free business finance under Pradhan Mantri Mudra Yojana.
The scheme includes Shishu up to ₹50,000, Kishor above ₹50,000 to ₹5 lakh, Tarun above ₹5 lakh to ₹10 lakh and Tarun Plus above ₹10 lakh to ₹20 lakh. Tarun Plus is specifically available to qualifying entrepreneurs who successfully repaid their earlier Tarun loans.
If you are planning to start, operate or expand an eligible micro or small business, check the latest Bank of Baroda Mudra loan requirements, prepare your business documents and apply through an official Bank of Baroda channel.