Apply for a MUDRA loan of up to ₹10 lakh for your non-corporate small business.
Jurisdiction
All of India
Who applies
Non-corporate micro and small enterprises, sole proprietors, self-employed individuals, artisans, traders, and women entrepreneurs seeking collateral-free business loans under the MUDRA scheme
Typical time
7–30 working days from application to disbursement (varies by lender; Shishu loans may be faster through MFIs)
Fee
No application fee; lenders may charge processing fees of 0%–0.5% of loan amount as per RBI guidelines
| # | Document | Type needed | Purpose |
|---|---|---|---|
| 1 | Aadhaar Card | Self-attested Copy | Primary KYC identity proof; mandatory for Aadhaar-based e-KYC with lender |
| 2 | PAN Card | Self-attested Copy | Income tax KYC and CIBIL credit score check; mandatory for loans above ₹50,000 |
| 3 | Passport-size photographs (2–3) | Original | Required by lender for account opening and loan file |
| 4 | Proof of Residence | Self-attested Copy | Voter ID, utility bill, ration card, or Aadhaar as address proof at place of business or residence |
| 5 | Proof of Business / Enterprise Identity | Self-attested Copy | Udyam Registration Certificate, trade license, GST registration, or Shop & Establishment certificate proving the business is operational |
| 6 | Bank Account Statement (last 6–12 months) | Original | Demonstrates cash flow and repayment capacity; required for Kishor and Tarun categories |
| 7 | Business Plan or Project Report(optional)Mandatory for Tarun (above ₹5 lakh); encouraged for Kishor | Original | Outlines purpose of loan, projected revenue, and repayment plan; especially required for Tarun loans |
| 8 | Caste Certificate (SC/ST/OBC/Minority)(optional)Only if applying under a category-specific sub-scheme | Self-attested Copy | Required to access category-specific MUDRA products like Mahila Uddyami Yojana or concessional interest schemes |
| 9 | Quotation or estimate for machinery / equipment(optional)Required when loan is for equipment purchase | Original | Proof of intended capital expenditure for which loan is sought |
Original documents: Carry originals only for in-person visits — do not hand them over permanently unless explicitly required.
MUDRA loans are disbursed through scheduled commercial banks (PSU and private), Regional Rural Banks (RRBs), Small Finance Banks, MFIs, and NBFCs. Visit a branch of your preferred lender or check mudra.org.in for the list of partner institutions. Choose Shishu (up to ₹50,000), Kishor (₹50,001–₹5 lakh), or Tarun (₹5–₹10 lakh) based on loan requirement.
Download the prescribed MUDRA application form from mudra.org.in or collect it from the bank branch. Fill in enterprise details, loan amount required, purpose, and projected income. For Shishu loans at MFIs, forms are often collected during a group meeting. For Tarun loans, prepare a business plan or project report separately.
Submit the completed application form along with all KYC and business documents at the bank branch or MFI office. For participating banks, online applications can also be submitted via the bank's internet banking portal or the Udyami Mitra portal. Obtain acknowledgement with reference number.
The lender's credit team conducts KYC verification, CIBIL or credit bureau check, and field visit to business premises (for Kishor and Tarun). For Shishu loans through MFIs, group guarantees replace individual credit assessments. Respond promptly to any additional document requests.
On approval, the bank issues a sanction letter specifying loan amount, interest rate, tenure, and EMI schedule. Sign the loan agreement and execute any required instruments. The loan amount is disbursed to the linked business or savings account. A MUDRA card (RuPay debit card) is issued for working capital loans, allowing drawdown as needed.
Scheduled Commercial Bank / RRB / Small Finance Bank
Steps 3–5 — application intake, credit appraisal, and disbursement
Processes the MUDRA loan application, conducts credit assessment, and sanctions the loan as per lender's credit policy
Lending Bank or MFI
Steps 4–5 — final sanction and agreement
Authorises loan sanction and oversees agreement execution and disbursement
Scheme information, application form download, list of partner lenders, and MUDRA loan application status
Online MUDRA and MSME loan applications; connect with multiple lenders from one portal
Register your enterprise as MSME to obtain Udyam Registration Certificate, which lenders may require
MUDRA does not fix interest rates. Each lender determines their own rate (typically 8.5%–15% p.a. for Shishu; higher for Kishor/Tarun). Compare rates across lenders before choosing.
For Kishor and Tarun categories, most banks check CIBIL. A score below 650 or a prior default can lead to rejection. Check and resolve your credit report before applying.
MUDRA does not directly lend money to borrowers. It provides refinancing to banks and MFIs. You cannot apply on mudra.org.in directly — you must approach a partner lender.
Some lenders charge processing fees and require loan protection insurance. Confirm all charges upfront in the sanction letter. The CGTMSE guarantee fee is typically borne by the lender, not the borrower.
MUDRA explicitly excludes crop loans and purely agricultural activities. If you need a loan for pure agricultural operations, approach Kisan Credit Card (KCC) or PM-Kisan schemes instead.