MUDRA Loan Scheme Online Apply, Documents Required, Interest Rates & Benefits

MUDRA Loan Scheme is a transformative loan scheme designed to enhance financing access for small businesses in India. The full form of MUDRA is Micro Units Development and Refinance Agency. The core aim of this scheme is to promote small business growth and job creation. Read on to know how to apply, benefits, interest rates, eligibility criteria and other details.

The Pradhan Mantri Mudra Yojana provides MUDRA Loans. MUDRA Yojana is available in three loan schemes: Shishu, Kishor, and Tarun. Under the PMMY Yojana, you can apply for business loans of ₹20 lakh without providing security or collateral.

Mudra Loan: Features

Scheme Name	Pradhan Mantri Mudra Yojana (PMMY)
Benefits	Loans at low interest-rate to MSMEs
Loan amount	Rs.50,000 to Rs.20 lakh
Processing fee	Shishu loan – NIL Kishore and Tarun – Depends on the lender
Repayment period	Varies between 1 to 7 years depending on the lender
Collateral	NIL
Official website	https://www.mudra.org.in/

What is Mudra Loan Scheme?

Mudra loan is an unsecured small business loan given by banks, NBFCs (non-banking financial companies), MFIs (microfinance institutions), etc. The loans are available in three categories – Shishu, Kishore, and Tarun. The maximum loan amount has been increased from Rs. 10 lakh to Rs. 20 lakh.

Mudra Yojana Benefits

• The minimum age requirement is 18 years old, and the maximum age limit is 65 years old.
• Interest rates differ from one bank to the next.
• Rs. 30,000 is the minimum loan amount.
• The maximum loan amount is Rs.10 lakh.
• No collateral or security is required.
• There is no processing fee.
• The tenure of repayment is up to 5 years.
• Applicants who have never had a loan default in the past will be considered.

Eligibility Criteria for Mudra Loans

A wide range of businesses can qualify for Mudra Loans, including:

• Small manufacturers
• Retail merchants
• Fresh fruit and vegetable vendors
• Artisans
• Transport service providers
• Catering services
• Repair service providers
• Startups
• Craftsmen and craft producers

Documents Required for MUDRA Loan Application

Before starting your application process, ensure you prepare these documents:

• Aadhaar Card
• Ration Card
• Registered Mobile Number
• Electricity Bill
• Proof of Address
• PAN Card
• Business Registration Document (if applicable)

Mudra Loan Interest Rate and Charges

Bank	Interest Rate (p.a.)	Loan Amount	Tenure
State Bank of India	12.15%	Maximum Rs.10 lakh	5 to 7 years
HDFC Bank	As per bank guidelines	Maximum Rs.10 lakh	At the discretion of the bank
IDBI Bank	As per bank guidelines	Maximum Rs.10 lakh	1 to 5 years
ICICI Bank	16.85%	Maximum Rs.10 lakh	1 to 5 years
UCO Bank	9.60%	Maximum Rs.10 lakh	At the discretion of the bank
Bank of Baroda	As per bank guidelines	Maximum Rs.20 lakh	1 to 7 years
Indian Overseas Bank	As per bank guidelines	Maximum Rs.20 lakh	1 to 5 years
Union Bank of India	As per bank guidelines	Maximum Rs.10 lakh	1 to 7 years
Canara Bank	As per bank guidelines	Maximum Rs.10 lakh	1 to 7 years

Banks/NBFCs offering MUDRA Loan

Under the directive of the RBI, the following banks offer MUDRA loans: 

• Axis Bank
• Bank of India
• Bajaj Finserv
• Bank of Baroda
• Bank of Maharashtra
• Central Bank of India
• Canara Bank
• HDFC Bank
• IDBI Bank
• ICICI Bank
• Indian Bank
• IDFC first bank
• Lendingkart Finance
• Karnataka Bank
• Kotak Mahindra Bank
• Punjab National Bank
• State Bank of India (SBI)
• Syndicate bank
• Saraswat Bank
• Tata Capital
• Yes Bank
• Union Bank of India

MUDRA Loan Interest Rates

The latest Mudra loan (PMMY) interest rates offered by top Indian banks in 2025 generally range from around 8.40% to 12% per annum. Here’s an overview of MUDRA loan interest rates from leading banks:

State Bank of India	Linked to EBLR; usually 3.25% above EBLR (e.g. ~12.15%)
Punjab National Bank	Around 9% – 11%
HDFC Bank	~10% – 12%
ICICI Bank	~10% – 12% (estimated)
Canara Bank	Starts from 8.85%
Bank of Maharashtra	11.8%
Union Bank of India	10.30% (Shishu), 11–12% (others)
Bank of Baroda	BRLLR+SP to BRLLR+SP+2.35% (Complete Rate List)
Central Bank of India	10.05% p.a.
Axis Bank	~10% – 12% (estimated)

How to Apply for Mudra Loan Scheme

Various financial institutions, including public and private sector banks, Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs). The application form is available at mudra.org.in, where you can download it and fill in all of the required information.

Mudra Loan Online Application

Step 1: Visit the PSB Loans website.

Step 2: Click on ‘Login’ and click on ‘Register’ option.

Step 3: Enter the required details and register on the portal.

Step 4: Select ‘Mudra Loan’ option and click on ‘Apply Now’.

Step 5: Fill out the application, upload the documents and submit it.

Step 6: Once the application is approved, submit it to the bank to disburse the loan amount.

Mudra Loan Offline Application

STEP 1: Visit the official website and complete the online loan application form.

STEP 2: Navigate to the Udaymimitra portal link provided on the homepage of Mudra website

STEP 3: Click on Apply Now under the MUDRA Yojana on the homepage under schemes section.

STEP 4: Enter your name, email, and mobile number, then select Generate OTP.

STEP 5: Enter the received OTP and click Submit.

STEP 6: Finalize your registration by providing all required documents.

STEP 7: Review all entered information and click Submit to complete your loan application.

The MUDRA loan scheme aims to help support and refinance MSMEs. Mudra Loans can be availed by individuals, proprietorships, partnerships, and private limited companies. These scheme provide financial support to grow business.