The Mudra Loan Scheme, officially known as the Pradhan Mantri Mudra Yojana (PMMY), is a flagship initiative by the Government of India aimed at empowering small businesses, entrepreneurs, and startups across the country.
Launched in 2015, the mudra loan yojana offers essential financial support to those exploring how to raise funds for a startup in India.
The scheme provides a without security business loan for non-corporate, non-farm micro and small enterprises (MSEs) in various sectors like trading, manufacturing, and services.
In this comprehensive blog, we will explore the mudra loan scheme details, including:
- What is the Mudra Loan Scheme?
- Mudra loan scheme eligibility criteria for applying
- Different loan categories under the mudra scheme
- Focus areas of the mudra loan yojana
- Benefits of mudra loans
- Documents required for mudra loan applications
- How to complete your mudra loan application
What is the Mudra Loan Scheme?
The Mudra Loan Scheme is designed to offer financial assistance to micro-enterprises and small businesses that need capital to start or expand their ventures. Under this scheme, businesses can avail of a mudra loan for new business or existing operations up to ₹20 Lakhs without the need for collateral security.
The scheme is implemented under the Pradhan Mantri Mudra Yojana (PMMY), which categorizes the loan into three main stages based on the business lifecycle. The mudra loan is extended by Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, and NBFCs.
Mudra Loan Categories:
Shishu
Loans up to ₹50,000 for new businesses in the initial stage.
Kishore
Loans between ₹50,001 and ₹5 Lakhs for businesses that have started but need more funds for growth.
Tarun
Loans between ₹5 Lakhs and ₹20 Lakhs for established businesses looking to scale up significantly.
Are you looking for collateral-free loans for your small business?
Apply for the Mudra Loan Scheme today and get up to ₹20 Lakhs to scale your venture!
Mudra Loan Scheme Eligibility
To ensure your mudra loan application is successful, you must meet the following mudra loan scheme eligibility requirements. This scheme is specifically for micro and small entities. This ensures the funds reach the right startup funding India candidates.
Citizenship
Applicant must be an Indian citizen with a valid business idea.
Business Age
Startups or businesses should ideally be less than 7 years old.
Annual Revenue
Annual turnover should generally not exceed ₹25 Lakhs.
Credit History
Must not be a defaulter to any bank or financial institution.
Business Activity
Non-farm activities in manufacturing, services, or trading.
If your small business is revenue-generating and you meet the eligibility criteria
apply for the Mudra Loan Scheme and get up to ₹20 Lakhs in funding to grow your business!
Focus Areas of the Mudra Loan Scheme
The mudra scheme supports a wide range of revenue-generating activities. If you are a woman entrepreneur, you may also benefit from the top 10 government schemes for women which often work in tandem with Mudra.
Manufacturing
Small-scale units like food processing, textiles, or handicraft production.
Services
Service-based businesses like consulting, IT services, logistics, and salons.
Trading
Retail and wholesale trading, including e-commerce and supply chain startups.
Agriculture-Allied
Activities such as poultry, dairying, and beekeeping (See our AHIDF Scheme guide for larger agri-projects).
Transport
Loans for purchasing vehicles for commercial use (tractors, e-rickshaws, etc.).
Is your small business in manufacturing, agriculture-allied, or services?
Apply now for the Mudra Loan Scheme and unlock up to ₹20 Lakhs in funding to scale your business!
Benefits of the Mudra Loan Scheme
The mudra loan scheme details highlight why this is a preferred choice for millions of small business owners in India:
No Collateral Required
It is a pure without security business loan, meaning no risk to your personal assets.
Affordable Capital
Offers competitive interest rates compared to private moneylenders.
No Processing Fees
Generally, there are no processing fees for the Shishu category.
Mudra Card
A RuPay debit card that allows you to withdraw a portion of the loan as working capital as needed.
Credit for New Business
One of the few schemes offering a mudra loan for new business without a long track record. You can also check New Venture Program.
Looking for affordable funding for your startup or small business?
Apply for the Mudra Loan Scheme and receive up to ₹20 Lakhs with no collateral!
Documents Required for the Mudra Loan
To ensure your mudra loan application is processed quickly, you must have the following Documents required for mudra loan ready:
Identity Proof
Aadhaar card, PAN card, or Voter ID.
Address Proof
Bank statement, electricity bill, or Aadhaar.
Business Profile
Detailed Project Report (DPR) explaining the product/service.
Financials
Latest ITR, balance sheet, and P&L statement (for Kishore and Tarun).
Quotations
Estimates for machinery or items to be purchased with the loan.
Gather your documents and apply for the Mudra Loan today
Receive up to ₹20 Lakhs for your business growth!
How to Apply for the Mudra Loan Scheme
Applying for the Mudra Loan Scheme is a simple process. Follow these steps:
Step 1: Prepare Your Documents
Step 2: Visit the Official Portal
Step 3: Submit Your Application
Step 4: Loan Review and Approval
Step 5: Receive the Loan
Need help with your Mudra Loan application?
Contact us for expert consultancy to get the funding you need for your business!
Is There a Deadline for Applying to the Mudra Loan Scheme?
The mudra scheme is an ongoing initiative and operates on a rolling basis. Startups and micro-enterprises can apply for a mudra loan at any time.
To stay updated on how government grants work and how they differ from PMMY loans, follow our blog regularly.
FAQs: Mudra Loan Scheme
What is the Mudra Loan Scheme?
The Mudra Loan Scheme offers collateral-free loans to small businesses and startups in India, with a focus on revenue-generating businesses.
How much funding is available under the Mudra Loan Scheme?
The scheme offers loans from ₹50,000 to ₹20 Lakhs, based on the business stage and category.
Who is eligible to apply for the Mudra Loan Scheme?
Eligible applicants include small businesses, entrepreneurs, startups, and micro enterprises operating in manufacturing, services, and trading.
What documents are required for the Mudra Loan application?
Required documents include identity proof, address proof, business plan, financial documents, and GST registration.
How do I apply for the Mudra Loan Scheme?
Applications can be submitted through the official Mudra Loan portal or through authorized banks, MFIs, and NBFCs.
Conclusion: Why Apply for the Mudra Loan Scheme?
The Mudra Loan Scheme is a vital tool for the startup funding India landscape. It bridges the gap for small entrepreneurs who have the skill but lack the capital and collateral. Whether you are starting a small manufacturing unit or a service-based agency, the mudra loan yojana provides the foundation you need.
For professional guidance on selecting the right funding instruments, read the truth about Enego services and let us help you grow.
Ready to apply for the Mudra Loan Scheme?
Get expert guidance from our consultants and secure up to ₹20 Lakhs for your business!