PM Mudra Loan Yojana: If you are a businessperson unable to expand your business due to a severe lack of funds and are struggling to secure a loan, the PM Mudra Scheme can assist you. The PM Mudra Scheme is a special initiative by the Government of India designed to provide loans to small business owners. Mudra operates as a type of NBFC (Non-Banking Financial Company) that extends credit to small traders and entrepreneurs in need. A key feature of this scheme is that it does not require the submission of any guarantee or collateral.

If you are considering expanding your business, you can avail of a loan through the PM Mudra Scheme. If you are unfamiliar with the process, we will provide you with the details today, including the loan amounts available under this scheme.

Find out the loan amounts available

Under this government scheme, loans are categorised into four tiers based on the loan amount: Shishu Mudra Loan, Kishore Mudra Loan, Tarun Mudra Loan, and Tarun Plus Mudra Loan.

Under the Shishu Mudra Loan, a maximum of ₹50,000 can be obtained.
The Kishore Mudra Loan offers loans from ₹50,000 to ₹5 lakh.
Under the Tarun Mudra Loan, loans ranging from ₹5 lakh to ₹10 lakh are available.
The Tarun Plus Mudra Loan offers loans from ₹10 lakh to ₹20 lakh.

Who is eligible for a loan under the Mudra Scheme?

Loans under the PM Mudra Scheme are available to small traders, shopkeepers, home-based business owners, farmers, small artisans, startups, women entrepreneurs, street vendors, small manufacturers, MSMEs, and animal husbandry practitioners, among others.

How to apply for the loan?

If you wish to obtain a loan under the Mudra Scheme, you can apply through either offline or online methods. If you wish to apply for the loan offline, you must visit a nearby bank branch or the office of an NBFC (Non-Banking Financial Company) that offers such loans. You will then need to fill out the application form for the Mudra loan and attach the required documents before submitting it.
If you prefer to apply online, you must visit the official portal.

First, you need to register on the site, then apply for the loan and upload the necessary documents. Next, select the bank or NBFC from which you wish to obtain the loan and click ‘Submit’. Following this process, the lender (bank or NBFC) will contact you directly to take the application forward. Please note that the application form for the ‘Shishu’ Mudra loan is different, whereas the forms for ‘Kishor’ and ‘Tarun’ Mudra loans are identical.

Documents Required for Mudra Loan
Specific documents are mandatory to obtain a loan under the Mudra scheme; without them, your loan application will not be approved. Let us look at the required documents. For the application and KYC (Know Your Customer) purposes, you need documents such as a passport, voter ID card, driving licence, or PAN card. Among these, the PAN card and Aadhaar card are essential.

If you belong to a specific category—such as SC, ST, or OBC—providing the relevant caste certificate is mandatory. Additionally, the applicant must submit a bank account statement for the last six months. Proof regarding the age and operational history of the business may also be required; however, this depends on the nature of the business and does not apply to every applicant.

How ​​Long Does It Take to Get the Loan?

After applying for a loan under the PM Mudra scheme, the processing time typically ranges from 7 to 15 days, though it may sometimes take longer.

Interest Rates

It is worth noting that the scheme itself does not fix the interest rates for loans provided under the PM Mudra scheme. The bank or lending institution determines the interest rate for loans granted under this scheme.