After coming to power in 2014, the Narendra Modi government at the center launched the Mudra loan scheme in 2015. Under this scheme, loans are given to start-up companies starting businesses in rural and urban areas. The important feature of this scheme is that loans are given without any collateral. Individuals with a viable business plan can get loans under this scheme. Banks and other lending institutions provide loans under the Mudra scheme. The government provides money to banks through the Mudra scheme.
There are three types of loans under the Mudra scheme. The lowest is Rs 50,000. Then it is from Rs 50,000 to Rs 5 lakh. The next step is above Rs 5 lakh up to Rs 10 lakh. If someone has a small business, there is a loan facility at reasonable interest to expand it.
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Those who have small factories, service providers, shopkeepers, vegetable or fruit sellers, restaurants, food processing units can get loans under the Mudra scheme. However, these businesses must be in villages or cities. This loan is especially significant for increasing income in the manufacturing, business, service and agricultural sectors.
The applicant for this loan must be an Indian citizen. There should be no previous complaint of loan default against the applicant. The business should be at least three years old. Entrepreneurs between the ages of 24 and 70 can apply for the loan.
#p48 Ms. Emlyn Susan from Trivandrum, #Kerala availed an education loan of ₹12 Lakhs from #NMDFC through #KSBCDC, enabling her to complete her post-graduation. She is now successfully working as a Senior Food Technologist in a reputed firm.#BhagidariSeBhagyoday @MOMAIndia pic.twitter.com/CkXYG0zau9
— NMDFC (@NMDFCIndia) January 22, 2026
To apply for this loan, the applicant should go to
www.udyamimitra.in. On the home screen, click on ‘Apply Now’. While applying, the applicant should indicate whether he is a new entrepreneur, currently doing business or self-employed.
Those who are new applicants should provide the applicant’s name, email and mobile number. Then, the registration process should be completed with the OTP.