The Pradhan Mantri MUDRA Yojana (PMMY) is a govt. project launched to support small businesses, startups, and entrepreneurs across India by providing collateral-free loans through banks and financial institutions. Here is the complete process to get Mudra Loan:-
What is a MUDRA Loan?
MUDRA (Micro Units Development & Refinance Agency Ltd) loans are provided to micro/small businesses, entrepreneurs, and startups in India. The loan is classified under three schemes:
- Shishu – Up to ₹50,000
- Kishor – ₹50,001 to ₹5 lakh
- Tarun – ₹5 lakh to ₹10 lakh
Eligibility of MUDRA Loan?
Small manufacturing units, shopkeepers, artisans, vendors, etc.
Startups and entrepreneurs needing working capital or to buy machinery/equipment.
Individuals with a solid business idea or existing small business.
Where to Apply:
Public Sector Banks (e.g., SBI, PNB, Bank of Baroda)
Private Banks (e.g., ICICI, HDFC)
Regional Rural Banks (RRBs)
Small Finance Banks
Microfinance Institutions (MFIs)
NBFCs
You can also apply online through UdyamiMitra Portal.
Steps to Apply for a MUDRA Loan?
Document you need to apply for MUDRA Loan are:-
- Business Plan (especially for Kishor and Tarun category)
- ID Proof: Aadhaar Card, PAN Card, Voter ID
- Address Proof: Aadhaar Card, Electricity Bill, Rent Agreement, etc.
- Passport-sized photographs
- Bank statements (last 6 months)
- Income Tax returns (if applicable)
- Proof of business registration or ownership.
- Quotation of equipment/machinery to be purchased (if applicable).
Visit the Nearest Bank Branch or Apply Online
Offline
Visit your preferred bank branch that offers MUDRA loans.
Ask for the MUDRA loan application form.
Submit the form with your documents.
Online
Visit udyamimitra.in
Register with your mobile number.
Fill in the loan application details.
Upload necessary documents.
Choose a bank/lender from the list and submit.
Application Processing:
The bank will verify your application and documents and they may ask questions about your business plan or projections.
Approval and Disbursement
Once approved, the loan is sanctioned and disbursed. You will receive funds directly into your bank account. Interest rates may vary from bank to bank usually between 7% to 12%.
This is the complete process, How to apply for MUDRA Loan.