Site icon Invest Gloo

Mudra Loan (India) – Apply, Interest Rate, and Eligibility Criteria

Mudra Loan 2025

Mudra Loan 2025

If you’re an entrepreneur, small business owner or planning to start your own business venture in India, the Mudra Loan 2025 under the Pradhan Mantri Mudra Yojana (PMMY) can be a game changer.

This government scheme provides easy access to the collateral-free business loans for Micro and small enterprises, aiming to boost entrepreneurship, employment and financial inclusion.

In this article we will cover every aspect of the Mudra Yojna like: What is Mudra Loan?, types of mudra loan, eligibility criteria, interest rates in 2025, Documents required, how to apply online and offline, benefits and important tips.

What is a Mudra loan?

Mudra loan is a government initiative launched under the Pradhan Mantri Mudra Yojana (PMMY) in 2015 to support non-corporate, non-farm small/micro enterprises. To provide them financial help to grow their business.

Key highlights:

This loan scheme is available through the banks, NBFCs, microfinance institutions and cooperative banks

Types of Mudra loan:

Mudra loan are categorized into three types based on the stage of the business or the level of the business is presently at. The 3 types of Mudra loans are:

Loan Type Loan Amount Suitable For
Shishu Up to ₹50,000 New/startup businesses
Kishor ₹50,001 – ₹5 lakh Growing businesses needing equipment/funds
Tarun ₹5 lakh – ₹10 lakh Established businesses with expansion needs

These categories of the mudra loan helps tailor financing to the specific needs of the business.

Mudra Loan Eligibility Criteria:

To qualify for a Mudra Loan in India, You must meet the following criteria:

  1. Artisans, food processing units, and transport services

Tip: Businesses registered under the MSME or Udyam portal are more likely to get quicker approvals.

Documents Required for the Mudra Loan:

This is the list of the documents required for the Mudra loan. Ensure having these documents ready while applying for the Mudra Loans:

For Individual:

For Businesses:

Pro Tip: Submit a clear and concise business plan to increase your chance of loan approval.

Mudra Loan 2025 Interest Rates:

Mudra loan interest rates are generally not fixed and vary depending on the following:

Approximate Interest Rate Range:

Major banks like SBI, HDFC, and The bank of Baroda Offer the competitive rates under the PMMY.

How to apply for the Mudra Loan (Online and Offline):

Online process to apply for the Mudra Loan:

Offline process:

Tip: Follow up with your bank regularly to speed up the approval process

Benefits of Mudra Loan:

Some states also offer interest subsidy for the women, SC/ST and minority borrowers under PMMY.

Things to Remember Before Applying for the loan

Frequently asked Questions:

Q1 Can I get a Mudra loan without income proof?

Yes, for Shishu loans, banks may consider your business idea and projected income.

Q2 How long does it take for Mudra loan for approval ?

Typically between 7-15 days depending on the lender and the documentation.

Q3 Is there any subsidy under Mudra loan?

No, there is no direct subsidy under the mudra loan but interest rebate scheme is available for the women and SC/ST applicants in some states.

Q4 Can I apply for the Mudra Loan more than once?

Yes, you can reapply for the Mudra loan for the higher amount after the repayment of your previous loan.

Exit mobile version