Mudra Loan - Pradhan Mantri Mudra Yojana (PMMY) Online

1. Loans are provided by Regional Rural Banks (RRBs), Commercial Banks, Small Finance Banks, MFIs, and NBFCs. 

1. Applicants can approach participating lenders directly or apply online via the Udyamimitra portal. 

Pradhan Mantri Mudra Yojana (PMMY) Categories

The PMMY categories and the respective loan amount are mentioned in the table below: 

Mudra Loan Interest Rates 2026

The Mudra loan interest rate depends on the profile of the applicant. There are several banks in the public sector as well as the private sector offering MUDRA loans. All the lenders have certain set guidelines, are the final rate of interest at which the loan is provided to an applicant is decided by the lender itself. This is done after scrutinizing the business requirements of the applicant as well.

Key Objectives of Mudra Loans

The key of Mudra loans is given in the table below: 

MLIs that meet the eligibility requirements can provide loans under the Pradhan Mantri Mudra Yojana. These MLIs include:

1. Banks in the Public Sector

1. Banks in the Private Sector

1. Government-run Cooperative Banks

1. Banks in Rural Regions

1. Institutions of Microfinance (MFIs)

1. Finance Companies That Are Not Banks (NBFCs)

1. Banks with Small Finance (SFBs)

1. More financial intermediaries that Mudra Ltd. has authorised to operate as member financial institutions.

Benefits of Mudra Loan 

The key benefits of Mudra loan are mentioned below: 

1. No Collateral Required: No assets need to be pledged as security, as MUDRA loans are unsecured. 

1. Easy Access to Finance: Minimal documentation and simplified processes make funding more accessible. 

1. Lower Interest Rates: Compared to traditional business loans, interest rates are generally more affordable. 

1. Multiple Loan Categories: Based on business stage and funding needs, options include Shishu, Kishore, Tarun, and TarunPlus. 

1. Flexible Loan Options: Offers working capital loans, term loans, overdraft facilities, and other financing solutions. 

Mudra Loan Eligibility

The eligibility criteria to apply for Mudra loans are mentioned below: 

1. Proprietorship concerns 

1. Partnership firms 

1. Public Limited Companies 

1. Private Limited Companies 

1. Individuals 

1. Any other recognised legal entity 

Note: 

1. The applicant must not be a defaulter with any bank or financial institution. 

1. They should also have a satisfactory credit history. 

1. Individual applicants may need relevant skills, experience, or knowledge related to the proposed business activity. 

1. Educational qualifications, if required, are evaluated based on the nature and needs of the proposed activity. 

Documents Required to Apply for MUDRA Loan

The documents required for MUDRA Loan can be listed as follows: 

For Shishu Loan 

For Kishore, Tarun and Tarun Plus Loan

Step-by-Step Guide to Applying for a Mudra Loan

The details steps to apply for MUDRA loan starting from enrolment, registration and application are mentioned below: 

Pre-Requisites for Enrolment 

Before starting the MUDRA loan application process, applicants must keep the following documents ready: 

1. ID proof 

1. Address proof 

1. Passport-size photograph 

1. Applicant’s signature 

1. Proof of identity or address of the business enterprise 

Registration Process 

Follow the below steps to register on the official PM MUDRA portal: 

1. Visit the official website of PM MUDRA. 

1. Select the Udyamimitra portal. 

1. Under Mudra Loan, click on “Apply Now”. 

1. Choose applicant types, such as New Entrepreneur, Existing Entrepreneur, or Self-Employed Professional. 

1. Enter applicant name, email ID, and mobile number. 

1. Generate OTP to complete registration. 

Loan Application Process (After Successful Registration) 

Once registered, complete the loan application by following these steps: 

1. Fill in personal and professional details. 

1. Select a hand-holding agency if assistance is required or proceed to the Loan Application Center. 

1. Choose the loan category, such as Shishu, Kishore, or Tarun. 

1. Enter business details such as name, activity, and industry type (Manufacturing, Service, Trading, or Allied Agriculture). 

1. Provide additional details, such as owner information, existing banking facilities, proposed credit requirements, future projections, and preferred lenders. 

1. Upload all required documents. 

Submit the application and note the generated Application Number for future reference. 

Benefits of Availing a MUDRA Loan

Here are the key features and benefits of Mudra loan:

1. Financial Inclusion: They give individuals who were previously left out of the formal banking system a chance to get credit.

2. No Collateral Requirement: Mudra Loans are collateral-free, eliminating the need for borrowers to pledge assets to secure the loan.

3. Interest Rate Subsidy: The government provides interest rate subsidies to keep the cost of borrowing affordable.

4. Entrepreneurship Promotion: By providing support to small businesses, Mudra Loans promote entrepreneurship and help individuals realize their business goals.

PMMY Achievements in FY 2024-25: Loans Disbursed & Impact

Activities Covered under Mudra Loan

The list of activities covered under MUDRA loan are listed below: 

Transport Vehicles 

MUDRA Loans support the purchase of commercial transport vehicles and related equipment. 

1. Vehicles for transporting goods and passengers 

1. Tractors, tillers, or trolleys 

1. Two-wheelers for commercial use 

Community, Social and Personal Services 

Small service-based businesses can access funding under MUDRA. 

1. Pharmacies and photocopy centres 

1. Tailoring and dry-cleaning units 

1. Cycle and motorcycle repair shops 

1. Gyms, salons, and courier services 

Food Processing and Production 

Micro food businesses are eligible for financial assistance. 

1. Rural-level food preservation 

1. Pickle, papad, and home-based baking units 

1. Sweet shops, catering, food stalls, and canteen services 

1. Ice-making, cold storage, ice-cream and bakery units 

Textile and Handicraft Activities 

MUDRA Loans help promote traditional and small-scale textile businesses. 

1. Handloom and power loom units 

1. Knitting, cotton ginning, and furnishing accessories 

1. Chikan, zari, khadi, and zardozi work 

1. Embroidery, dyeing, printing, and garment designing 

Traders and Shopkeepers 

Financial assistance is available for small non-farm business owners. 

1. Shop owners and traders 

1. Small enterprise operators 

1. Loan amounts up to Rs.10 lakh 

Equipment Finance for Micro Units 

Funding is provided for machinery purchases and business setups. 

1. Loans up to Rs.10 lakh 

1. For acquiring essential equipment for micro-enterprises 

Agriculture-Allied Activities 

Certain allied farming activities qualify under MUDRA. 

1. Poultry, dairy, and livestock farming 

1. Fish farming (pisciculture) 

1. Beekeeping (apiculture) 

How to Obtain a Mudra Loan

Getting a Mudra Loan is a straightforward process. Here are the general steps:

1. Business Plan: Start by creating a comprehensive business plan that outlines your business model, funding requirements, and expected outcomes.

2. Eligibility: Ensure you meet the eligibility criteria for Mudra Loans, which typically require your business to fall under the micro and small enterprise category.

3. Loan Application: Approach participating financial institutions such as banks, NBFCs, or microfinance institutions, and fill out the Mudra Loan application form. Be prepared to provide details about your business, the loan amount needed, and your repayment plan.

4. Loan Approval: The financial institution will evaluate your application and creditworthiness. Mudra Loans are usually collateral-free, making it accessible to a wide range of entrepreneurs.

5. Loan Disbursement: Once your application is approved, the loan amount is disbursed to your account, and you can start using it to grow or kickstart your business.  

Purpose of Assistance of MUDRA Loan 

MUDRA Loans offer term loans, overdraft (OD) limits, or composite loans based on the borrower's business needs. 

1. Eligible Uses: Funds can be used to acquire capital assets, working capital, or for marketing-related expenses. 

1. Purpose: Specifically meant for small income-generating businesses in manufacturing, processing, services, or trade, and not for personal or consumption needs. 

1. Loan Amount: Determined by the business plan and proposed investment. 

1. MUDRA Card: A RuPay debit card designed for working capital needs, allowing easy and flexible access to credit. 

What is a MUDRA Card?

The MUDRA Card is a flexible credit facility that provides working capital in the form of an overdraft. This card is issued as a RuPay debit card; and it can be used to withdraw cash from ATMs or make purchases at POS terminals. Borrowers can repay anytime when surplus funds are available, helping reduce interest costs.

Mudra Loan Customer Care Numbers   

1. Toll-Free Numbers: 1800 180 1111 / 1800 11 0001

1. Email: missionmudra-dfs@nic.in

1. Website: www.mudra.org.in

1. Postal Complaints: Swavalamban Bhawan, C-11, G-Block, BKC (E), Mumbai–400051,  022 6722 1465

1. In-Person Complaints: Visit the Customer Service Cell at MUDRA’s corporate office during business hours

1. Public Grievances Portal: www.pgportal.gov.in

1. Nodal Officers: Contact via SIDBI offices (details on Mudra website)

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