Are you considering applying for a Mudra loan online and not sure where to start? No worries, I will guide you how to do it step by step. Whether you’re a small business owner, a startup founder, or simply exploring funding options, this guide will make the Mudra loan apply online process exceptionally straightforward for you.
What is the Mudra Loan Scheme?
The Pradhan Mantri Mudra Yojana (PMMY) is a government scheme that assists micro and small businesses in India grow without the fear of collateral. If you are operating a shop, opening a small manufacturing unit, or even a service provider, then you can apply.
The scheme is organised into three types:
- Shishu: Loan Amount up to Rs. 50,000 (For beginners and small startups)
- Kishore: Loans between Rs. 50,001 and Rs. 5,00,000 (for growing businesses)
- Tarun: Loans ranging from Rs 5,00,001 to Rs 10,00,000 (for scaling companies)
Therefore, whether your business is in its early stage or in a maturing phase, you can find a Mudra loan for your business.
What Are the Mudra Loan Eligibility Criteria?
Now, the big question, who can avail the Mudra loan? The major Mudra loan eligibility criteria described below;
Here’s the answer:
- any Indian citizen between 18 to 65 years of age,
- Small business, shopkeepers, vendors, traders and service providers
- Manufacturers and startups dealing in non-farm income-generating activities
- Individuals, partnership firms and small companies
If you fall into any of these categories you are good to go.
What Documents Are Required for a Mudra Loan?
Before you click on the apply button, let’s take a quick look at the Mudra loan documents required. This will save you time later.
You’ll need:
- Identity proof (Aadhaar, PAN, Voter ID).
- Address (utility bill, ration card, passport)
- Business proof (trading certificate, GST or shop license)
- Financial records (bank statements if available).
And most importantly, a project report in which you describe your business plan.
👉 If you’re worried about making a project report, don’t stress. Platforms like Finline help you create one in just 10 minutes—something banks love to see.
What is the Mudra Loan Apply Online Process?
This is the bit you’ve been waiting for, here is the step-by-step guide about Mudra loan apply online process:
- Select a Bank/NBFC: Visit the official website of your preferred bank or financial institution.
- Fill in the Online Application Form: Provide your personal details, such as name, type of business, loan amount, and purpose.
- Upload Documents: Scan and attach copies of ID, address, business proof and your project report.
- Submit the Form: When you submit the form, the bank will look at your information.
- Verification & Approval: The bank verifies and approves the loan, which is then deposited directly into your account.
Sounds simple, right? The better side of going online is that there is no endless paperwork or long queues at the branch.
How to Apply for Mudra Loan Online Without Hassle?
Here’s a quick tip: If you want the smoothest experience, make sure you:
- Prepare yourself for all your documents in advance.
- Create a good project report (again, Finline is a great help here. You can check the samples of professional project reports here!).
- Please check eligibility before placing your order.
This way, you can avoid delays and have a better chance of getting approved quickly.
What is the Mudra Loan Interest Rate in 2025?
One of the frequently asked questions is the Mudra loan interest rate 2025. While the rates vary from bank to bank, the range is typically between 8% to 12% per year.
Since the Mudra loans are collateral-free, the interest rates may vary according to your business profile and repayment ability. My suggestion? Compare a few banks before applying so you get the best deal.
Why Should You Apply for a Mudra Loan Online?
If you are still wondering why to go digital, here are some quick benefits:
- Improved processing and approval
- No need to visit the bank again and again.
- Improved transparency of the process
- Access to cheap startups and small business loans.
For new applicants, online application is certainly the better choice.
Final Thoughts
So, that’s everything you need to know about the Mudra loan online apply process. We covered the Mudra loan eligibility criteria, required documents, how to apply online, and interest rates in 2025.
If you’re serious about growing your business, this loan can be your first big step. And remember—having a strong project report makes all the difference. Tools like Finline can get this done in minutes and make your application stand out.
So, what’s stopping you? Get your documents ready, apply online today, and take your business to the next level! Create a bank-ready project report now!
