Mudra Loan Apply Online: How to Apply for PMMY Mudra Yojana Loan

The Pradhan Mantri Mudra Yojana (PMMY) provides loans up to ₹10 lakh to small and micro businesses across India. Whether you run a shop, a manufacturing unit, or a service business, you can apply for a Mudra loan through banks, NBFCs, and MFIs — both online and offline.

This guide covers the complete application process, eligibility criteria, and tips to improve your chances of approval.

What is Mudra Loan?

MUDRA stands for Micro Units Development and Refinance Agency Ltd. It was set up by the Government of India to fund and promote micro enterprises. Under PMMY, loans are provided in three categories:

👉 Learn more about each type in our Mudra Loan Types: Shishu, Kishore, Tarun guide.

Who Can Apply for Mudra Loan?

Eligibility Criteria

• Any Indian citizen running or planning to start a non-farm, non-corporate small/micro enterprise
• Individuals, proprietorships, partnerships, LLPs, and private limited companies
• Business should be in manufacturing, trading, services, or allied agriculture activities
• No minimum turnover or income requirement for Shishu loans
• Existing businesses and new entrepreneurs are both eligible

Who Cannot Apply?

• Corporate entities above MSME limits
• Businesses already defaulting on bank loans
• Agricultural farming activities (crop loans are excluded)

💡 Tip: If you're a startup, also check Startup India Registration for additional benefits and funding options.

How to Apply for Mudra Loan Online

Method 1: Apply via Udyami Mitra Portal

1. Visit udyamimitra.in
2. Click "Apply for Loan"
3. Register with your mobile number and verify OTP
4. Fill in business details — type, sector, turnover, loan amount needed
5. Upload required documents
6. Submit the application
7. You will receive offers from multiple lenders
8. Choose a lender and complete the process

Method 2: Apply via PSB Loans in 59 Minutes

1. Go to psbloansin59minutes.com
2. Register and link your PAN, Aadhaar, and bank account
3. Select "Mudra Loan" as product type
4. Fill the application and upload documents
5. Get in-principle approval within 59 minutes
6. Visit the assigned bank branch to complete formalities

Method 3: Apply via Jan Samarth Portal

1. Visit jansamarth.in
2. Select "PMMY - Mudra Loan"
3. Fill in the application form with personal and business details
4. Upload documents and submit
5. Track status through the portal dashboard

Method 4: Apply Directly at Bank Branch

1. Visit the nearest branch of any public sector bank, private bank, or eligible NBFC/MFI
2. Ask for Mudra Loan application form
3. Fill the form and attach required documents
4. Submit and collect the acknowledgement receipt
5. Bank will process within 7–14 working days

Documents Required for Mudra Loan

You will need identity proof, address proof, business proof, and financial documents. The exact list varies by loan category.

📋 See the complete checklist in our Mudra Loan Documents Required guide.

Key documents include:

• Aadhaar card and PAN card
• Business registration proof (Udyam, GST, Shop Act licence)
• Bank statements (last 6 months)
• Business plan (for Kishore and Tarun)
• Passport-size photographs

Processing Time and Loan Disbursement

• Shishu loans are typically processed faster (within a week)
• Kishore and Tarun loans may take 2–3 weeks
• Online applications through PSB 59 minutes get in-principle approval the same day

Tips to Get Your Mudra Loan Approved

1. Maintain a good CIBIL score — 650+ improves chances significantly
2. Prepare a clear business plan — especially for Kishore/Tarun category
3. Keep clean bank statements — regular transactions, no bounced cheques
4. Apply with complete documents — incomplete applications cause delays
5. Register on Udyam — having an MSME Udyam Registration strengthens your application
6. Start with Shishu — if you're a first-time borrower, start small and build a repayment track record

Interest Rates on Mudra Loans

Mudra loan interest rates are not fixed by the government — each bank sets its own rate. Generally:

• Shishu: 10%–12% per annum
• Kishore: 11%–14% per annum
• Tarun: 12%–16% per annum

No processing fee is charged for Shishu loans. Higher categories may have 0.5%–1% processing fee.

After Applying: Track Your Application

Once you submit your application, you can track the status online.

📊 Follow our Mudra Loan Status Check guide for step-by-step tracking instructions.

Frequently Asked Questions

Is there any collateral required for Mudra loan?

No. Mudra loans up to ₹10 lakh are collateral-free. Banks cannot ask for any security or guarantee for PMMY loans.

Can I apply for Mudra loan if I don't have a business yet?

Yes. New entrepreneurs can apply for Mudra loans. You need to submit a business plan detailing what you intend to do with the funds.

Which banks offer Mudra loans?

All public sector banks, most private banks, regional rural banks (RRBs), small finance banks, NBFCs, and MFIs offer Mudra loans. SBI, PNB, Bank of Baroda, Canara Bank, and HDFC are popular choices.

Can I get a Mudra loan if my CIBIL score is low?

For Shishu loans (up to ₹50,000), CIBIL score requirements are relaxed. For Kishore and Tarun, a score of 650+ is generally expected. If your loan was rejected due to low CIBIL, you can work on improving your score and reapply.

Is Mudra loan available for women entrepreneurs?

Yes. Women entrepreneurs are given priority under PMMY. Some banks offer reduced interest rates for women borrowers.

Can I take a second Mudra loan?

Yes, if you have repaid or are regularly repaying your first Mudra loan, you can apply for a second loan — even in a higher category (e.g., Shishu to Kishore).

Is there a subsidy on Mudra loan?

No direct subsidy is provided on Mudra loans. However, interest rates are kept affordable and no collateral is needed, making it effectively subsidised for small borrowers.