✅ What is PM MUDRA Yojana?
✅ Types of MUDRA Loans (Shishu, Kishor, Tarun).
✅ Eligibility Criteria & Documents Required.
✅ How to Apply for a MUDRA Loan?
✅ Interest Rates & Repayment Terms.
✅ List of Banks & NBFCs Offering MUDRA Loans.
What is PM MUDRA Yojana ?
PM MUDRA (Micro units development and refinance agency ) yojana was launched in April 2015 under the Pradhan Mantri Jan Dhan Yojana . This scheme aims to provide collateral free loans up to ₹10 lakhs .Key objectives of MUDRA Loan:
- Support micro and small businesses (MSMEs).
- Encourage self-employment & entrepreneurship.
- Provide affordable loans without collateral.
- Boost economic growth at the grassroots level.
MUDRA loan amount is disbursed(provided) through :
- Private Banks (HDFC, ICICI, Axis Bank, etc.)
- Regional Rural Banks (RRBs)
- Non-Banking Financial Companies (NBFCs)
- Microfinance Institutions (MFIs)
Types of MUDRA Loans (Shishu, Kishor, Tarun)
MUDRA loans are categorized into three types based on business stage and funding needs:| Loan Category | Loan Amount | Who Can Avail? |
|---|---|---|
| Shishu | Up to *₹50,000 | New & small businesses (vendors, artisans, shopkeepers) |
| Kishor | ₹50,001 – ₹5 lakh | Growing businesses needing expansion |
| Tarun | ₹5 lakh – ₹10 lakh | Established businesses scaling up |
Which Category Should You Choose?
- Shishu – Best for small vendors, street sellers, home-based businesses.- Kishor – Ideal for small shops, service providers, workshops.
- Tarun – Suitable for manufacturers, retailers, and larger service providers.
Eligibility Criteria for MUDRA Loan
Who Can Apply?
✔ Small business owners (shopkeepers, traders, vendors)✔ Manufacturers & artisans (handicrafts, textiles, etc.)
✔ Service providers (transport, repair shops, salons)
✔ Startups & MSMEs
✔ Farmers & agri-businesses (for non-farming activities)
Documents Required
- Identity Proof (Aadhaar, PAN, Voter ID)
- Address Proof (Aadhaar, Utility Bill)
- Business Proof (GST Registration, Shop Act License)
- Bank Statement (last 6 months)
- Passport-size photo
How to Apply for a MUDRA Loan? (Online & Offline Process)
Method 1: Online Application
1. Visit the official MUDRA website ([https://www.mudra.org.in](https://www.mudra.org.in)) or a bank’s portal.2. Fill out the MUDRA loan application form.
3. Upload required documents.
4. Submit & track application status.
Method 2: Offline Application
1. Visit any participating bank/NBFC branch.2. Collect & fill the loan application form.
3. Submit documents & await approval.
"Loan Approval Time: It Usually takes 7-15 working days."
MUDRA Loan Interest Rates & Repayment
Interest Rates
- Public Sector Banks:8% – 12% p.a.- Private Banks:10% – 15% p.a.
- NBFCs/MFIs:12% – 20% p.a.
"Rates vary based on loan amount, credit score, and lender policies."
Repayment Tenure
- Shishu Loan: Up to 5 years- Kishor & Tarun Loans: Up to 7 years
(Moratorium period available in some cases.)
Moratorium period means you will get some period of time after which you have to start repaying the amount in emi. Example : suppose you get MUDRA loan then if you get moratorium period 6 months then you are eligible for repaying the amount after 6 months .
List of Banks & NBFCs Offering MUDRA Loans
| Bank/NBFC Name | Loan Type | Contact |
|---|---|---|
| State Bank of India (SBI) | Shishu, Kishor, Tarun | [www.sbi.co.in](https://www.sbi.co.in) |
| Punjab National Bank (PNB) | All 3 categories | [www.pnbindia.in](https://www.pnbindia.in) |
| HDFC Bank | Kishor & Tarun | [www.hdfcbank.com](https://www.hdfcbank.com) |
| ICICI Bank | All categories | [www.icicibank.com](https://www.icicibank.com) |
| Bajaj Finserv | MUDRA via NBFC | [www.bajajfinserv.in](https://www.bajajfinserv.in) |
There are many other banks which gives the mudra loan .
(Check with your nearest branch for exact terms.)
How to Check if Your Bank Offers MUDRA Loans?
1.Visit the official MUDRA portal: https://www.mudra.org.in2.Contact your nearest bank branch and ask:
"Do you provide loans under PM MUDRA Yojana?"
"Do you provide loans under PM MUDRA Yojana?"
Conclusion
The PM MUDRA Yojana is a great financial support system for small businesses and startups with low-interest rates, no collateral, and easy processing, it’s an excellent way to fund your entrepreneurial dreams.But before going to mudra loan there is a pro Tip: Compare interest rates from multiple banks before applying.FAQs
Is collateral required for a MUDRA loan?
No, MUDRA loans are collateral-free up to ₹10 lakh.
Can I get a MUDRA loan with a low CIBIL score?
Yes, but banks may charge higher interest or ask for a guarantor.
How long does it take to get a MUDRA loan?
Typically 7-15 days after document submission.
Can women entrepreneurs apply?
Yes! Special schemes like MUDRA for Women offer lower interest rates.
What if I default on repayment?
Late payments attract penalties, and future loans may get affected.
Can I get a MUDRA loan if I already have an existing business loan?
Yes, but the total outstanding loans (including MUDRA) should not exceed ₹10 lakh. Banks may check repayment history
Is there any processing fee for MUDRA loans?
Usually 0.5% to 1% of the loan amount (varies by bank). Some PSU banks waive fees for Shishu loans.
Can I prepay a MUDRA loan without penalties?
Most banks allow prepayment, but confirm with your lender—some NBFCs charge a small penalty.
What if I don’t have a business proof (GST/Shop Act License)?
alternative documents like: Affidavit of self-declaration (for new businesses). Trade association membership (if applicable).
Can I use a MUDRA loan to buy a vehicle for business?
Yes! Many borrowers use it for: E-rickshaws, taxis, or delivery vehicles (under "transport services" category). Equipment like sewing machines, food carts, etc.
Can I get a loan under MUDRA for online businesses?
Yes! E-commerce sellers, freelancers, and home-based businesses are eligible.
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