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MUDRA Loan Eligibility

A MUDRA loan, offered under the Pradhan Mantri MUDRA Yojana (PMMY), is designed to support small, non-corporate, and non-farm enterprisesacross India. It provides funding of up to Rs. 20 lakh to promote income-generating ventures in sectors such as manufacturing, trading, and services, as well as allied agricultural activities like poultry and beekeeping....

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HDFC Bank
Max Loan Amt.Upto ₹75L
Rate of Interest10.75% - 28%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
Axis Bank
Max Loan Amt.Upto ₹75L
Rate of Interest15% - 19.25%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
Kotak Mahindra Bank
Max Loan Amt.Upto ₹1Cr
Rate of Interest9.50% - 30.50%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%

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How Can I Apply for a Business Loan Online?

Get up to ₹1 Crore in 5 Simple Steps

Step 1: Enter your mobile number in the application form.

Step 2: Enter OTP to verify your mobile number.

Step 3: Provide your personal details.

Step 4: Select a bank account for account aggregator consent.

Step 5: Compare offers and apply for the best-suited loan.

Key Highlights of MUDRA Loan

Loan Facility Cash Credit, Overdraft & Term Loan
Interest Rates Depends on the internal policies of banks and NBFCs
Loan Amount
  • For the Shishu category - Up to Rs. 50,000
  • For the Kishor category - Above Rs. 50,000 to Rs. 5 lakh
  • For the Tarun category - Above Rs. 5 lakh to Rs. 10 lakh
  • For the Tarun Plus category - Above Rs. 10 lakh to Rs. 20 lakh
Tenure Up to 3 years (up to 5 years for Shishu loans), depending on the internal policies of banks/NBFCs
Processing Fees For the Shishu category (loans up to Rs. 50,000) - No processing fee
For Kishor, Tarun and Tarun Plus categories – depending on the internal policies of banks/NBFCs

Eligibility Criteria of PM MUDRA Loan

Eligible borrowers of PMMY

  • Individuals
  • Proprietary concern
  • Partnership Firm
  • Private Ltd. Company
  • Public Company
  • Any other legal firms

Eligible Activities covered under MUDRA Loan

  • Transport Vehicle
    Financing for the purchase of vehicles used to transport goods and passengers — including auto-rickshaws, taxis, e-rickshaws, small goods carriers, three-wheelers, tractors, power tillers, tractor trolleys, and two-wheelers (for commercial use only).
  • Community, Social & Personal Services
    Loans for small service-based businesses such as salons, gyms, boutiques, photocopy and DTP centers, tailoring units, dry cleaning shops, pharmacies, beauty parlours, cycle/motorcycle repair shops, courier services, and similar enterprises.
  • Food Products Sector
    Support for micro units involved in papad, bread, biscuit, jam, jelly, ice cream, achaar (pickle) making, rural-level food preservation, sweet shops, small catering units, canteens, cold storage, cold chain transport, and ice-making facilities.
  • Textile and Handicraft Sector
    Assistance for textile-based enterprises like handloom, chikan and zari work, embroidery (traditional and computerized), dyeing, printing, khadi production, knitting, apparel design, cotton ginning, and non-garment textile products such as bags, furnishings, or vehicle accessories.
  • Business Loans for Traders and Shopkeepers
    Credit for individuals engaged in trading, retail, or service-based enterprises, including non-farm income-generating activities, with a maximum loan limit of Rs. 10 lakh per borrower.
  • Equipment Finance for Micro Units
    Funding for entrepreneurs to establish micro-enterprises by purchasing machinery or equipment, with a loan limit of up to Rs. 20 lakh per beneficiary.
  • Activities Allied to Agriculture
    Loans for income-generating and livelihood-promoting ventures such as poultry, dairy, fishery, beekeeping, livestock rearing, agro-processing, grading, sorting, and agri-business centers. Note: Crop loans and land development activities (e.g., irrigation, canal or well construction) are excluded.

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How Can I Apply for a Business Loan Online?

Get up to ₹1 Crore in 5 Simple Steps

Step 1: Enter your mobile number in the application form.

Step 2: Enter OTP to verify your mobile number.

Step 3: Provide your personal details.

Step 4: Select a bank account for account aggregator consent.

Step 5: Compare offers and apply for the best-suited loan.

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FAQs

MUDRA Loan eligibility can be improved by enhancing your source of income, maintaining a good repayment history, having no past loan defaults, and improving your creditworthiness.

You can check MUDRA loan eligibility by visiting the official website of the desired bank and filling in the required details to clear the eligibility criteria.

Generally, banks do not check credit scores before sanctioning a MUDRA loan. However, it is recommended to maintain a good credit score to secure your financial future. Borrowers can also visit Paisabazaar and explore business loan offers based on their eligibility.

No, it is not mandatory to apply for a MUDRA loan from a bank where you hold an account. However, having a bank account in the same bank might improve your chances of getting a Mudra loan approval.

No, the credit score is not checked by Banks/NBFCs if an applicant is applying for a MUDRA loan.

Yes, only if the applicant is going to use these vehicles, such as tempos, taxis and auto-rickshaws for commercial purposes.

The age eligibility for a MUDRA loan ranges from 18 to 65 years. Applicants must be at least 18 years old at the time of application and not exceed 65 years at loan maturity. The scheme is open to individuals and various business entities meeting this age criterion

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