Mudra Loan

PM Mudra Loan Overview

Types of Mudra Loans (PMMY)

Mudra loans are offered in four categories, namely, 'Shishu', 'Kishor', 'Tarun' and 'Tarun Plus', signifying the stage of growth or development and funding needs of borrowers: 

Shishu - Offer loans up to Rs. 50,000/-

Kishor - Offer loans above Rs. 50,000/- and up to Rs. 5 lakh

Tarun - Offer loans above Rs. 5 lakh and up to Rs. 10 lakh

Tarun Plus - Rs. 10 lakh and up to Rs. 20 lakh

Did you know?: The "Tarun Plus" category of Mudra loans was added in the Union Budget 2024-25, with the limit increasing to Rs. 20 lakh from earlier Rs. 10 lakh.

Mudra Loan Eligibility Criteria

1. Mudra Loan Eligible Applicants

• Applicants should not be a defaulter in any bank or any financial institution and should have a good credit track record.
• The educational qualification (if any) of an applicant can also be assessed depending on the nature of the proposed activity and its requirements. 
• Applicants may be required to have the necessary experience, skills, or knowledge to carry out the proposed activity.

2. Types of Eligible Applicants:

• Individuals
• Proprietary Concern
• Partnership Firm
• Private Limited Company
• Public Company
• Entities of any other legal form

3. Eligible Activities covered under Mudra Loan

• Transport Vehicle
• Community, Social & Personal Service Activities
• Food Products Sector
• Textile Products Sector/Activity
• Business Loans for Traders and Shopkeepers
• Equipment Finance Scheme for Micro Units
• Activities Allied to Agriculture

How to Apply for a Mudra Loan?

To apply for a Mudra loan online:

• Register on the Udyamimitra portal
• Enter your personal & business details
• Select the MUDRA category and upload the required documents
• Once the form is submitted, an application number is generated for tracking