Business Loan: If you want to start your own business but are facing financial constraints, there’s no need to worry anymore. The central government’s Pradhan Mantri Mudra Yojana can help you realise your dream. Under this scheme, you can get a business loan without much hassle, with the maximum limit now reaching ₹20 lakh. Importantly, this loan is designed keeping in mind small business owners and new entrepreneurs.
Now Get Up to ₹20 Lakh Mudra Loan
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The government announced an increase in the loan limit under the Mudra Yojana in the budget. Earlier, the maximum loan under this scheme was ₹10 lakh, but now, by adding a new category, it has been increased to ₹20 lakh. This new category is called Tarun Plus. It aims to give opportunities for growth to those business owners who are already running a business and have repaid their previous loans on time.
Millions of People Have Benefited Since 2015
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The Pradhan Mantri Mudra Yojana was launched in 2015. This scheme is specifically designed for small shopkeepers, self-employed individuals, and people with new business ideas. Under this scheme, loans are provided to non-corporate and non-agricultural businesses. According to government data, by April 2025, loans worth crores of rupees have been disbursed to millions of beneficiaries under this scheme.
Four Categories of Mudra Loans
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Loans under the Mudra Yojana are divided into four categories. Shishu loans provide assistance up to ₹50,000 for starting a business on a small scale. Kishore loans provide loans ranging from ₹50,000 to ₹5 lakh. Tarun loans offer facilities from ₹5 lakh to ₹10 lakh. The Tarun Plus category offers loans from ₹10 lakh to ₹20 lakh. However, Tarun Plus loans are given only to those who have previously taken a Tarun category loan and repaid it on time.
Important Points Regarding Guarantees and Interest Rates
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A major feature of the Mudra Yojana is that no guarantee or guarantor is required for Shishu loans. No processing fee is charged on this loan. Regarding interest rates, they are usually slightly higher than the bank’s EBLR rate and typically range between 9 and 12 percent.
Eligibility Criteria and Required Documents
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The applicant for a Mudra loan must be at least 18 years old. They should also not have any default record with any bank. At the time of application, it is necessary to provide an Aadhaar card, PAN card, proof of residence, passport-size photograph, KYC documents, income proof, and a simple business plan.
Where and How to Apply
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You can apply for a loan under the Mudra Yojana at your nearest public or private bank, regional rural bank, or microfinance institution. Online application facilities are also available. You can also visit the official website for complete information about the scheme and the application process. Thus, if you want to start a business, the Mudra Yojana can be a strong support for you.