Get complete Mudra loan details including types, eligibility, documents, interest rates & benefits.
Mudra loan is a government financial assistance scheme under PMMY to small and micro enterprises. It provides collateral-free loans of up to 10 lakhs through banks, NBFCs and MFIs. It is divided into Shishu, Kishor, and Tarun based on business needs. Before applying, look at the Mudra loan details to know about eligibility, documents, and benefits.
Benefits and Features of Mudra Loan
- No Collateral: Borrowers are not supposed to offer any security or third party guarantee.
- Attractive Interest Rates: Interest rates are friendly, and they do not usually surpass 1 percent monthly.
- Ease of access: The money is easily accessible through a Mudra loan card without visiting a bank.
- Broad Reach: It is offered to a variety of business people such as vendors, traders, and service providers.
- Government-Backed: Provides the security of a government-backed program.
- Easy Repayment Options: Structured to fit the budget of small companies.
- Inclusive Financing: Seeks to bring in the underbanked and underserved sectors of the economy.
Mudra Loan Eligibility Criteria
- Age Range: The candidates must fall between 18-65 years.
- Loan Amounts: Between Shishu Yojana (up to Rs. 50,000) to Tarun Yojana (up to Rs. 10 lakhs).
- Type of Industry: It is open to individuals and businesses in manufacturing, trading and services.
- Status of the Company: It can be taken by new companies (Shishu) as well as by those companies which have already been established and are willing to expand (Kishor and Tarun).
- Area of Operation: The whole country, rural and urban businesses.
List of Document Required to Avail Mudra Loan
- Identity Proof: Aadhaar card, PAN card, Driver’s license, or voter’s ID.
- Address Proof: Passport, electricity/gas/water bills, bank statements, etc.
- Business Proof: License and address verification of the business, where necessary.
- Financial Documents: Bank statements, quote of machinery or equipment to be bought.
Mudra Loan Interest Rate and Charges
| Loan Amount Range | Enterprise Type | Interest Rate Calculation |
|---|---|---|
| Up to ₹50,000 | Micro Enterprises | MCLR + Service Provider (SP) Charge |
| Small Enterprises | MCLR + Service Provider (SP) Charge | |
| ₹50,001 to ₹2 lakhs | Micro Enterprises | MCLR + SP Charge + Bank Loan |
| Small Enterprises | MCLR + SP Charge + Bank Loan | |
| ₹2 lakhs to ₹10 lakhs | Micro Enterprises | MCLR + SP Charge + Bank Loan |
| Small Enterprises | MCLR + SP Charge + Bank Loan |
What are the Types of PM Mudra Loan
- Shishu Yojana: New or small businesses: up to Rs. 50,000.
- Kishor Yojana: Rs. 50,000 to Rs. 5 lakhs to those businesses which are willing to expand.
- Tarun Yojana: Existing small businesses that have the potential to expand further would get up to Rs. 10 lakhs.
Key Terms and Condition regarding Mudra Loan
- Purpose: Working capital requirements and business growth.
- Eligibility: New and existing companies are eligible to apply.
- Tenure: The normal tenure is 3 to 5 years as per agreement.
- Application Process: The process is done online through the Mudra site or application.
- Utilization: The funds may be utilized in equipment, machinery, and restructuring among others.
- Collateral: None, providing a more convenient borrowing product.
- Product Variability: Shishu, Kishor, and Tarun loans meet various levels of business maturity.
This introduction gives a wide understanding of PM MUDRA loans, which are aimed at powering the MSME sector of India with affordable and approachable financial products.
Apply Online Mudra Loan
The facility of business loan is provided by many banks and Mudra loan application can be applied by following the steps given below;
- To apply online for pm mudra loan, visit the official site – https://www.mudra.org.in/ and follow the link of application form there.
- Enter this form with the correct details like name, address, number, and KYC details.
- Along with the application form, the necessary Mudra loan documents must be attached.
- Other requirements of the bank, then have to be met. (This will vary a little bit bank to bank).
- The documents will then be verified by the selected bank.
- Then loan amount is credited to the account after verification
How Finline Simplifies Your Mudra Loan Application
Get Your Project Report in 3 Easy Steps
🔹 Step 1: Choose Your Business Type
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Forget complicated forms! Just respond to a few easy, jargon-free questions about your business idea, operations, and funding goals. Finline’s intelligent platform builds a structured project report based on your inputs.
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In minutes, you’ll get a fully formatted, professionally designed report in PDF or Word—ready to submit with your Mudra loan application. Easy to edit, approved by lenders, and available anytime.