MUDRA Loan (Pradhan Mantri Mudra Yojana – PMMY) is a government-backed business loan scheme for MSMEs, small businesses, traders, and startups, offering loans up to ?10 lakh without any collateral or guarantee.
Objective:
Micro & Small businesses ko easily finance provide karna
| Feature | Details |
|---|---|
| Loan Amount | 50,000 to ?10,00,000 |
| Guarantee | No collateral / No guarantee |
| Interest Rate | Bank/NBFC based (generally 8%–12%) |
| Repayment Tenure | Up to 5 years |
| Processing Fee | Very low / Nil |
| Government Scheme | Yes (PMMY) |
| Eligible Businesses | Manufacturing, Trading, Service |
| Subsidy | No direct subsidy |
| Coverage | PAN India |
| Category | Loan Amount |
|---|---|
| Shishu | Up to 50,000 |
| Kishore | 50,001 – 5,00,000 |
| Tarun | 5,00,001 – 10,00,000 |
You are eligible if you are:
Indian citizen
Age: 18–65 years
Running or planning a small business
Proprietor / Partnership / LLP / Pvt Ltd
Good banking & repayment track
Non-defaulter in any bank
Shopkeepers & Traders
Manufacturing units
Service providers
Startups & Self-employed
Women entrepreneurs
Street vendors & small retailers
Aadhaar Card
PAN Card
Business proof (GST / Udyam / Shop Act)
Bank statement (6–12 months)
Business plan / basic details
Address proof
Passport size photo
1 Visit bank / NBFC website
2 Choose MUDRA Loan – PMMY
3 Fill application form
4 Upload documents
5 Bank verification & approval
1 Visit bank branch
2 Ask for MUDRA Loan form
3 Submit documents
4 Credit assessment
5 Loan disbursement
FinanceSeva helps in:
Proper application
Document structuring
Faster approval
| Benefits | Explanation |
|---|---|
| No Collateral | Property or guarantee not required |
| Govt-backed | High trust & safety |
| Low Interest | Affordable for small businesses |
| Easy Eligibility | Suitable for startups |
| Employment Boost | Supports self-employment |
| Limitations | Explanation |
|---|---|
| Limited Amount | Max ?10 lakh only |
| No Subsidy | Unlike PMEGP |
| Bank Discretion | Approval depends on bank |
| Documentation | Basic financial proof needed |
| Time Taken | Not instant approval |
New entrepreneurs
Small shop owners
Traders & manufacturers
Women entrepreneurs
MSMEs needing working capital
| Feature | MUDRA Loan | Regular Business Loan |
|---|---|---|
| Guarantee | Not required | Required |
| Interest | Lower | Higher |
| Govt Support | Yes | No |
| Approval | Moderate | Fast (but costly) |
Yes, no collateral or third-party guarantee required.
Yes, under Tarun category, subject to eligibility.
? No subsidy. (PMEGP offers subsidy)
Not compulsory, but recommended for higher amount.
Yes, startups & new businesses are eligible.
Usually 7–30 working days.
Yes, banks prefer women entrepreneurs.
Yes, 650+ score improves chances.
Yes, after correcting issues.
Yes, complete guidance from application to disbursement.
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