Micro Units Development and Refinance Agency (MUDRA) is a loan scheme initiated under the Pradhan Mantri Mudra Yojana (PMMY) was launched by Government of India in 2015. Mudra Yojana is an effort to assist Micro, Small and Medium Enterprises (MSMEs) by providing funding support for them to grow and expand. The maximum loan amount offered under Mudra Yojana is Rs. 10 lakh with the repayment tenure of up to 5 years. Mudra Yojana is classified into 3 loan schemes or categories, named as Sihshu, Kishor and Tarun.
MUDRA loan under PMMY can be availed online or offline by contacting the eligible lenders, such as Private Sectors banks, NBFCs, Commercial and Co-operative banks, Small finance banks, Regional Rural Banks (RRBs) and Micro Finance Institutions (MFIs).
How to apply for MUDRA loan Online?
Interested applicants can apply for mudra loan online by visiting the official website of any of the below mentioned banks, as only these banks are eligible to offer MUDRA loan, as directed by RBI. Below mentioned are simple steps to apply for Mudra loan registration, directly with the specific bank offering Mudra loan:
Step 1: Download the loan application form from bank’s official website
Step 2: Fill in the application form with required details
Step 3: Submit the application form along with all the required documents
Step 4: Wait for bank’s representative to call and further proceed with loan formalities from the desired bank
Step 5: Once the loan application form and attached documents are processed and verified, loan shall be approved and further disbursed by the bank
Comoare here – Current Mudra loan interest rate from all banks
Borrowers can also now file online application for MUDRA loans on Udyamimitra portal (www.udyamimitra.in).
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If applicants want to file the Mudra loan application form offline, they can follow the below mentioned steps
Steps to Apply for MUDRA Loan Offline
- Applicants are required to visit their desired and nearest commercial or private sector bank
- Put forth the self-written business plan
- Submit the downloaded and duly filled loan application form
- Along with the application form, also submit the passport-sized photographs and all the required documents, such as Identity proof, address proof, company’s address and identity proof, caste certificate, if applicable, balance sheets, IT returns, sales tax returns, and other machinery details
- Complete all further bank’s formalities and procedures
- Once all the documents are verified, loan shall get approved
- After loan is approved, desired amount shall get disbursed to the mentioned bank account within specified working days
Must Read: Is there any subsidy on Mudra loan?

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Mudra Loan Categories
There are only 3 types of Pradhan Mantri Mudra Loan Yojana offered through this scheme named as Shishu, Kishor and Tarun. Below mentioned is the loan amount offered under each loan scheme, wherein the maximum loan amount is up to Rs. 10 lakh:
- SHISHU Loan: Loans up to Rs. 50,000 (For start-ups and new businesses)
- KISHOR Loan: Loans from Rs. 50,001 to Rs. 5,00,000 (For buying equipment/machinery, raw materials, business expansion for existing enterprises)
- TARUN Loan: Loans from Rs. 500,001 to Rs. 10,00,000 (For established businesses and enterprises)
Documents Required for Mudra Loan Application
- Self-written Business Plan
- Duly Filled Application form
- Recent 2 passport-sized photographs
- Proof of Identity: Passport, Voter’s ID card, Driving License, Aadhar Card
- Age Proof
- Address proof
- Proof of business address and identity
- Last 6 moths’ bank statement
- Documents in case applicant belongs to SC/ ST/ or any other special category

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List of Banks offering Mudra Loans

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FAQs
Q. What is the interest rate offered by Pradhan Mantri Loan Yojana?
Ans: As per the guidelines of RBI, Mudra loan is offered at reasonable interest rate depending on the applicant’s requirements and profile.
Q. How can I check my Mudra loan status?
Ans. You can visit the official website of PMMY to check the status of your loan application. You can click on this link https://www.mudra.org.in/.
Q. What should you do, if a bank manager rejects your Mudra loan application?
Ans. If a bank’s manager rejects your loan application, then you must try to improve your eligibility and reapply when you are confident with the chances of approval.
Q. Is any collateral or security required to be deposited by the applicant?
Ans: No, there is no need to provide any security or collateral to banks.
Q. What is the processing time under the Shishu loan scheme?
Ans: The processing time for Shishu loan scheme is 7-10 working days.
Q. Is Mudra loan applicable to all the banks in India?
Ans: Mudra loan can be offered by specific financial institutions that are given permission by the RBI.
Q. What is the repayment tenure of loan categories under Mudra loan?
Ans: The repayment period offered under Mudra loan is maximum up to 5 years.
Q. What is the loan amount offered under PM Mudra Yojana?
Ans: The minimum loan amount offered under this scheme has no limit, whereas the maximum loan amount is up to Rs. 10 lakh.
Check- What is the process and eligibility criteria to avail Mudra loan?
Q. Is there any kind of subsidy under the Pradhan Mantri MUDRA Yojana (PMMY)?
Ans: There is no subsidy given under this scheme. However, if the loan is linked to any government scheme wherein the government is providing the subsidy, it will be eligible under the Pradhan Mantri Mudra Yojana (PMMY).
Q. Is there any specific format of application to avail MUDRA loans?
Ans: Yes. For the Shishu loan, a one-page format application has been designated. Whereas, for the Kishor and Tarun loan schemes, a three-page specific application format has been designed. Both of which have been posted on the MUDRA website.
Q. Are MUDRA loans available for buying a tempo, taxi or an auto?
Ans: Yes, only if the applicant is going to use these vehicles for the purpose of public transportation.
Q. Does Paisabazaar.com offer Mudra loan to its customers?
Ans: No, Paisabazaar.com do not provide Mudra loan, however assists its customer in redirecting them to the respective or desired bank so that they can apply loan online or by visiting the nearest bank’s branch.