Mudra loan details - Eligibility, Documents required, Interest rates.

    Pradhan Mantri Mudra Yojana is a special scheme set up by the Government of India through MUDRA (Micro Units Development and Refinance Agency). MUDRA supports institutions to extend loans to the non-corporate non-farm sector income generating activities of micro and small entities. It provides loans at low rates to micro-finance institutions and non-banking financial institutions which then provide credit to MSMEs. It was launched by Prime Minister Narendra Modi on 8 April 2015.

    MUDRA is an NBFC supporting development of the micro-enterprise sector in the country. MUDRA provides refinance support to Banks / MFIs / NBFCs for lending to micro units having loan requirements up to 10 lakh. MUDRA provides refinance support to micro-business under the Scheme of Pradhan Mantri MUDRA Yojana. The other products are for development support to the sector.

    With an objective to promote entrepreneurship among the new generation aspiring youth, it is ensured that more focus is given to Shishu Category Units and then Kishore and Tarun categories.
pm Mudra loan eligibility, Documents required, Interest rates calculator, wiki

   Within the framework and overall objective of development and growth of micro-enterprises sector under Shishu, Kishore, and Tarun, the products being offered by MUDRA are so designed, to meet requirements of different sectors/business activities as well as business/ entrepreneur segments.


    This stage would cater to entrepreneurs who are either in their primitive stage or require lesser funds in order to get their businesses started. Max Loan of up to Rs. 50,000 under Shishu.

Documents Required Shishu
  • Proof of identity - Self-attested copy of  Voter's   ID  card/Driving  Licence/PAN  Card/Aadhaar Card/Passport/Photo IDs issued by Govt. authority etc.
  • Details of the machinery to be purchased. For Official website "Click here"
  • Proof of Residence - Recent telephone bill I electricity bill I property tax receipt (not older than 2 months) I Voter's ID card I Aadhaar Card I Passport of Individual I Proprietor/Partners/Bank passbook or latest account statement duly attested by Bank officials/Domicile certificate/certificate issued by Govt. authority/Local Panchayat/Municipality etc.
  • Machinery quotation and other items to be purchased.
  • Applicant's Recent Photograph (2 copies) not older than 6 months.
  • Quotation of Machinery/other items to be purchased
  • Name of supplier I detail of machinery I price of machinery and/or items to be purchased.
  • Proof  of  Identity/Address   of  the  Business  Enterprise  -Copies  of  relevant  licenses/registration certificates/other documents pertaining to the ownership, identity, and address of the business unit, if any
  • Proof of category like SC/ST/OBC/Minority etc.
  • Borrowers also have to provide details of the machinery supplier.
To download the Official Application Form of Shishu "Click here"

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   This section of entrepreneurs would belong to either those who have already started their business and want additional funds to mobilize their business. Max loan from Rs. 50,001 to Rs. 500,000.

Documents required for Kishor
     •   Last 6 months of account statements from an existing banker, if any.
     •   Balance sheet for the last 2 years.
     •   Income/sales tax returns.
     •   Estimated balance sheet for 1 year or for the duration of the loan.
     •   Memorandum and articles of association, if any.
     •   Sales made before filing the loan application and in the current FY.
Borrowers also have to provide a report containing the economic and technical viability of the business.

To download the Official Application Form of Shishu "Click here"


   If an entrepreneur meets the required eligibility conditions, he/she could apply a loan for up to Rs.10 lakhs. This would be the highest level of the amount that an entrepreneur could apply for a startup loan. A loan from Rs. 500,001 to Rs.10,00,000.

Documents required for Tarun
     •   Same as Kishor.
In addition to the above, borrows also have to provide:
     •   Certificate of SC, ST, OBC, etc.
     •   Address proof
     •   Identity proof

To download the Official Application Form of Shishu "Click here"

Mudra loan Eligibility

The business should be either one of the following and should fulfil the following criteria
  • Small manufacturing enterprise
  • Shopkeepers
  • Fruit and Vegetable vendors
  • Artisans
  • Business loan for Vendors, Traders, Shopkeepers and other Service Sector activities
  • A working capital loan through MUDRA Cards
  • Equipment Finance for Micro Units
  • Transport Vehicle loans – for commercial use only
  • Loans for agri-allied non-farm income-generating activities, e.g. pisciculture. bee keeping, poultry farming, etc.
  • Tractors, tillers as well as two-wheelers used for commercial purposes only.

Features of Mudra Loan

  • The loan amount is available up to 10 Lakhs.
  • The repayment period varies from 3 –5 years.
  • No processing fee for Shishu and Kishore loan, 0.5% of the loan amount for Tarun loan
  • Interest rates vary from banks.

Key points to know before taking Mudra loan

Since Mudra itself is not a bank, the loans under Mudra scheme can be availed only through banks and other lending institutions which include:

  • institutions offering microfinance
  • Banks in the public sector
  • financial companies other than banks
  • Banks in the private sector
  • State-operated cooperative banks
  • Rural banks from the regional sector

To download the Application Form from the government website of Shishu "Click here"

To download the Application Form the government website of Tarun "Click here"

To download the Application Form the government website of Kishor "Click here"