Documents Required for Applying MUDRA Loan
- Duly filled Mudra application form (PDF format) with passport-sized photographs
- Applicant’s KYC documents: Passport, Voter’s ID card, Driving License, PAN card, Adhaar Card, Utility Bills (Water/Electricity Bills), Birth certificate, Class X certificate
- Income Proof: Last 12 months’ bank statement
- Last years’ ITR, if applicable
- Proof of belonging to SC/ST/OBC Category, if applicable
- Any other document required by the bank or lender
Therefore, based on the type of business, required documentation is required to be furnished along with the standard set of MUDRA loan documents for a specific loan scheme, named Shishu, Kishor, or Tarun.

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Micro Units Development and Refinance Agency (MUDRA) loans are offered to individuals and MSMEs by permitted and eligible financial institutions directed as per RBI, such as public and private sector banks, Non-banking Financial Companies (NBFCs), Small Finance Banks (SFBs), etc.
MUDRA scheme was initiated by the Government of India under Pradhan Mantri MUDRA Yojana (PMMY) to provide funding support to Individuals, Startups, new and existing businesses, and MSMEs and to promote the MSME sector in India. Further discussed are the features, eligibility, and loan types of the Mudra loan scheme:
Features & Eligibility Criteria of Mudra Yojana
- Age Criteria: Minimum 18 years & Maximum 65 years
- Interest rate: Varies from Bank to Bank
- No Minimum Loan amount limit to borrow
- Maximum loan amount: Up to Rs. 10 lakh
- Collateral/Security: Not required
- Processing Fee: Nil
- Repayment Tenure: Up to 5 years
- Foreclosure Charges: Nil
- Applicants with no past loan defaults shall be considered
Eligible Entities
Mudra Loan can be availed by the following entities:
- Individuals & Startups
- Micro, Small, and Medium Enterprises (MSMEs)
- Business owners, entrepreneurs, and self-employed professionals
- Artisans, Vendors, Shopkeepers, Traders, Retailers, and Manufacturers
- Sole Proprietorships, Partnership Firms, Limited Liability Partnerships (LLPs), and other business entities that are engaged only in the trading, manufacturing, and services sectors
Mudra Loan Categories
Based on the growth phase and development stage of the business as well as the funding requirement, MUDRA loans are available in three categories named Shishu, Kishor, and Tarun. Further mentioned is the sanctioned loan amount offered under each category:
- Shishu Category: Loans up to Rs. 50,000
- Kishor Category: Loans from Rs. 50,001 to Rs. 500,000
- Tarun Category: Loans from Rs. 500,001 to Rs. 10,00,000

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Achievements under PMMY (FY 2021-2022)
Financial Year | 2021-2022 |
No. of PMMY Loans Sanctioned | 53795526* |
Amount Sanctioned | Rs. 321759.25 crore* |
Amount Disbursed | Rs. 311754.47 crore* |
Note: Source is https://www.mudra.org.in/ and * numbers depicted is provisional data (Last updated on June 2022)
The emphasis of this scheme is on the starting of business or entrepreneurship by women, tribal communities, Dalits, and all the backward sections of the society. The MUDRA loan is directed to these particular segments and shall enable faster growth of small businesses and assist people who are in the lower-income bracket to achieve financial support and reach for better livelihood and thus contributing positively to the overall economy’s growth of the country.
Also Know: What are the Documents Required for New Business Loan?