PM MUDRA Yojana — Business Loan up to ₹10 Lakh, Apply Online

What is PM MUDRA Yojana?

PM MUDRA Yojana (Pradhan Mantri Micro Units Development and Refinance Agency Yojana) is a central government scheme that provides loans to small and micro businesses without collateral. Launched in 2015, the scheme helps small entrepreneurs, shopkeepers, artisans, vendors, and self-employed individuals get affordable loans to start or grow their business.

MUDRA loans are provided by banks, NBFCs (Non-Banking Financial Companies), MFIs (Micro Finance Institutions), and Small Finance Banks. MUDRA itself does not give loans directly — it provides refinance support to lenders who give loans under this scheme.

Three Categories of MUDRA Loans

Key Benefits

• No collateral required — no need to pledge property or assets
• Low interest rates — typically 8%–12% per year (varies by lender)
• No processing fee for Shishu category loans
• MUDRA card (like a debit card) given with the loan — withdraw money as needed
• Flexible repayment — 1 to 5 years depending on loan amount
• Covers all sectors — manufacturing, trading, services, agriculture-allied activities

Who is Eligible?

• Individual entrepreneurs — men and women starting or running small businesses
• Self-employed persons — vendors, shopkeepers, artisans, craftspeople
• Small enterprises — proprietorships, partnerships, LLPs, companies in non-farm sectors
• Age: 18 years and above
• No minimum income required — lender assesses business potential
• Women entrepreneurs may get preference and lower interest rates

Businesses that can apply: grocery shops, tea stalls, garment shops, beauty parlors, plumbing, electrical work, tailoring, vegetable/fruit vendors, food processing, handloom, handicrafts, transport (auto/taxi), etc.

Documents Required

For Shishu (up to ₹50,000):

1. Aadhaar card + PAN card (or Form 60)
2. Passport size photograph
3. Bank account details
4. Proof of business address (if any)
5. Quotation for equipment to be purchased (if applicable)

For Kishore and Tarun (above ₹50,000):

1. Aadhaar card + PAN card
2. Last 6 months' bank statements
3. Proof of business existence (registration, GST, trade license)
4. Business premises proof (rent agreement or ownership doc)
5. 2 years ITR / income proof (for Tarun loans)
6. Photographs
7. Quotations for machinery/equipment to be purchased

How to Apply Online — Step by Step

Via Udyamimitra Portal (recommended for quick processing):

1. Go to udyamimitra.in (official MUDRA loan portal)
2. Click "Apply Now"
3. Register with your mobile number and email
4. Fill in business details: type of business, how long running, annual turnover
5. Select loan amount and category (Shishu/Kishore/Tarun)
6. Upload required documents
7. Submit — your application is sent to multiple lenders
8. Lenders will contact you for further processing

Via Bank Branch:

1. Visit any public sector bank (SBI, PNB, Bank of Baroda, Canara Bank, etc.) or private bank
2. Ask for MUDRA loan application form
3. Fill the form with business and personal details
4. Submit with documents listed above
5. Bank verifies and processes the loan

Via PSB Loans in 59 Minutes (for faster approval):

1. Go to psbloansin59minutes.com
2. Select MUDRA loan
3. Upload GST returns, bank statements, and ITR
4. Get in-principle approval within 59 minutes
5. Complete KYC at the bank branch for final disbursement

How to Check MUDRA Loan Status

After applying:

• Via Udyamimitra portal: Log in at udyamimitra.in → "My Applications" → see current status
• Via bank: Contact your loan officer or visit the branch with application number
• Via bank's net banking: MUDRA loans appear in the loan account section after disbursement

Interest Rates and Repayment

Interest rates are set by individual lenders and vary:

• Public sector banks: 8%–10.5% per annum
• Private banks and NBFCs: 10%–12% per annum
• MFIs: up to 12%–14% (regulated by RBI)

Repayment period:

• Shishu: 3–5 years
• Kishore: 3–5 years
• Tarun: 5 years

No prepayment penalty — you can repay early without extra charges.

Frequently Asked Questions

Is MUDRA loan really without collateral?

Yes — MUDRA loans up to ₹10 lakh do not require any collateral or third-party guarantee. The lender does assess your business repayment capacity.

Can a woman get a MUDRA loan?

Yes — women entrepreneurs are actively encouraged. Many banks offer slightly lower interest rates for women borrowers under MUDRA. Women's Self Help Groups (SHGs) can also apply.

What businesses are NOT eligible?

Agricultural crop production (covered under Kisan Credit Card), salaried employees, and businesses that are already covered under other government credit schemes may not be eligible. Businesses with default history (NPA) may face rejection.

How long does it take to get the loan?

Shishu loans: 1–2 weeks. Kishore and Tarun: 3–6 weeks, depending on the bank's processing time. Udyamimitra portal and PSB 59 Minutes can speed up initial approval.

Can I apply at multiple banks at the same time?

No — applying at multiple banks simultaneously affects your CIBIL score and is viewed negatively. Apply at one bank at a time. If rejected, wait for the rejection letter and then apply elsewhere.

What is the MUDRA card?

MUDRA loan comes with a MUDRA RuPay card (like a debit card) linked to your loan account. You can withdraw money in parts as per your business need — you only pay interest on the amount withdrawn, not the full sanctioned amount.

What if I default on the MUDRA loan?

Defaulting affects your CIBIL score, making future loans difficult. The lender can take legal action. For genuine difficulties, contact the bank early — restructuring or moratorium options may be available.

Official Links

• MUDRA portal: mudra.org.in
• Apply online: udyamimitra.in
• Fast-track approval: psbloansin59minutes.com
• Scheme details: myscheme.gov.in
• Helpline: 1800-180-1111 (MUDRA toll-free)