Are you planning to start a new business or want funds to meet your day-to-day business requirements? If yes, then the Mudra loan is the best available credit option to meet most of your urgent business requirements. Most importantly, the financial institutions do not require a CIBIL score, if you plan to apply for Mudra loans. Moreover, Mudra loans are collateral-free loans wherein you are not required to submit any asset or security with the lending bank or NBFC.
Know more about Mudra Loans
Micro Units Development and Refinance Agency (MUDRA) Loan is a funding scheme initiated by the Govt. of India in 2015 under Pradhan Mantri Mudra Yojana (PMMY) to offer affordable credit of up to Rs. 10 lakh to individuals across the nation. Mudra loans can be availed by non-farm micro and small enterprises serving the trading, manufacturing and service sectors and are engaged only in income-generating activities.
The loans under Mudra Yojana are offered by private and public sector banks, Non-Banking Financial Companies (NBFCs), commercial banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs) and Micro Finance Institutions (MFIs). You can avail mudra loan without having a CIBIL score by approaching the mentioned financial institutions or by visiting its official website at ‘www.udyamimitra.in’.
Features of Mudra Loan
Mudra loans under PMMY are offered in the form of term loans, overdrafts and cash credit. Find below the features of Mudra loan along with fees & charges:
CIBIL Score: Not required
- Purpose: To start a new business, meet day-to-day business requirements or for business expansion purposes
- Interest Rate: As per the applicant’s profile and business requirements
- Loan Amount: No minimum loan amount to borrow and a maximum up to Rs. 10 lakh
- Collateral/Security: Not required
- Repayment Tenure: Term/Demand – Maximum up to 84 months with suitable moratorium subject to annual review
- Repayment Tenure: Working Capital – For 12 months subject to annual review
- Processing Fee: Nil for Shishu and Kishore schemes, 0.50% of the loan amount for Tarun scheme
- Pre-closure Charges: Nil
- Insurance/Guarantee: Coverage under CGTMSE Scheme
- Margin: As per the bank’s guidelines
Mudra Loan Categories
Mudra loans under PMMY are categorised under three loan schemes, named Shishu, Kishore and Tarun to indicate the funding requirements of an applicant:
| Category | Loan Amount | Purpose |
| Shishu | Up to Rs. 50,000 | To start a new business or to meet daily business requirements |
| Kishore | Rs. 50,001 to Rs. 5 lakh | For business expansion purposes or to fund existing business |
| Tarun | Rs. 5 lakh to Rs. 10 lakh | To infuse funds and promote businesses in various sectors, such as food products, textiles, agriculture-allied services, etc. |
Mudra Loan Eligibility Criteria
- Age: Minimum 18 years and maximum up to 60 years
- Indian Citizen with no criminal background
- No previous loan default with any financial institutions
Eligible Entities
- Individuals
- Business owners, entrepreneurs, self-employed professionals
- Sole proprietorships, partnership firms
- Private and public sector companies, etc.
Documents Required
- Duly filled application form
- Valid identity and address proofs
- Proof of income – Latest ITR or salary slips
- Last 6 months bank statement
- Ownership proof of residence/office
- Business address proof
- Proof of continuity of business
Note: There are no agents or middlemen engaged by MUDRA for availing of Mudra Loans. You are recommended to keep away from persons posing as Agents/ facilitators of MUDRA/PMMY.
Achievements under PMMY for the Financial Year: 2023-2024
- Number of PMMY Loans Sanctioned: 4,71,58,601*
- Amount Sanctioned: Rs. 3,66,335.38 crores*
- Amount Disbursed: Rs. 3,59,173.47 crores*
Source: https://www.mudra.org.in/ (Last Updated on Jan 2024) *Provisional Data
Toll Free Numbers
- 1800-180-1111
- 1800-11-0001
Registered and Corporate Address
Swavalamban Bhavan, C-11, G-Block, Bandra Kurla Complex,
Bandra East, Mumbai – 400051
Key Takeaways:
Availing Mudra loans under PMMY is the most convenient way to get funds of up to Rs. 10 lakh with longer repayment tenure. Women entrepreneurs can avail Mudra loans at concessional interest rates from various lending institutions with added benefits. The loan scheme can also be availed by people falling in OBCs, SCs, STs and minorities. Mudra loans can be availed without submitting any asset in the form of collateral or security with the lender.
Even if you have a bad or poor CIBIL score, you can still apply for a mudra loan, as banks do not check your CIBIL score before loan sanctioning. Moreover, if you are New to Credit or have no credit history, you can still apply for Mudra loan and avail credit to meet your business requirements. Mudra loans can be availed by all aspiring individuals who are Indian citizens with no criminal background and no past loan default with any financial institution.
