MUDRA Loan

A MUDRA Loan is a business loan supported under the Pradhan Mantri MUDRA Yojana (PMMY), which facilitates funding through eligible banks, NBFCs, and other lending institutions for income-generating micro and small business activities. It supports businesses in the manufacturing, trading, and service sectors, as well as eligible allied agricultural activities.

MUDRA Loans are categorized according to the funding requirement and business stage: Shishu: Loans up to ₹50,000 Kishore: Loans above ₹50,000 and up to ₹5 lakh Tarun: Loans above ₹5 lakh and up to ₹10 lakh Tarun Plus: Loans above ₹10 lakh and up to ₹20 lakh for entrepreneurs who have successfully repaid a previous Tarun loan, subject to scheme conditions.

Individuals, proprietors, and eligible business entities engaged in non-corporate micro or small business activities may apply. Applicants must meet the lender's requirements for business viability, repayment capacity, documentation, and credit history.

Under the standard Shishu, Kishore, and Tarun categories, the maximum loan amount is ₹10 lakh. The Tarun Plus category allows eligible entrepreneurs who have successfully repaid a previous Tarun loan to apply for funding above ₹10 lakh and up to ₹20 lakh, subject to applicable scheme guidelines and lender approval.

Interest rates are determined by the lending institution according to its applicable policies and the applicant's business and credit profile. Repayment tenure and any applicable moratorium depend on the lender, loan purpose, and scheme conditions.

Interest rates are determined by the lending institution according to its applicable policies and the applicant's business and credit profile. Repayment tenure and any applicable moratorium depend on the lender, loan purpose, and scheme conditions.

MUDRA Loans are generally designed to be collateral-free, subject to applicable scheme guidelines and lender requirements. The lender may require primary security over assets financed or other documentation associated with the loan.