Mudra Loans are designed to empower small businesses and entrepreneurs in India with easy access to finance. This guide will help you understand how to apply for a Mudra Loan online, eligibility requirements, documents needed, and tips to increase your chances of approval.
What is a Mudra Loan?
The Mudra Loan scheme, launched under the Pradhan Mantri Mudra Yojana (PMMY), provides loans up to ₹10 lakh to micro and small businesses. These loans are collateral-free and aim to support non-farm enterprises, startups, and self-employed individuals.
Eligibility Criteria for a Mudra Loan
- Indian residents operating a micro or small business.
- Applicants must have a valid business plan.
- Engaged in non-farm activities such as retail, services, or manufacturing.
- Businesses can be new startups or existing enterprises looking for expansion.
Step-by-Step Guide to Apply for a Mudra Loan Online
- Choose the Right Loan Category: Mudra loans are categorized as Shishu (up to ₹50,000), Kishore (₹50,001–₹5 lakh), and Tarun (₹5 lakh–₹10 lakh). Select the category based on your funding need.
- Visit the Official Portal: You can apply through the MUDRA portal or directly through banks and NBFCs offering Mudra loans.
- Fill Out the Application Form: Provide personal details, business information, and desired loan amount. Ensure all information is accurate to avoid delays.
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Upload Required Documents: Commonly required documents include:
- Aadhar Card
- PAN Card
- Business registration certificate (if available)
- Bank account statement
- Business plan or proposal
- Submit for Approval: Review all details and submit your application. You will receive an acknowledgment and application reference number.
- Track Application Status: Use your reference number to track progress online. Some banks may also call for verification or additional documents.
Tips to Get Your Mudra Loan Approved Quickly
- Ensure all documents are valid and up-to-date.
- Provide a clear and detailed business plan.
- Choose a loan category that matches your funding requirement.
- Respond promptly if the bank requests additional information.
- Check eligibility and avoid applying through multiple banks simultaneously.
Need Help Applying for a Mudra Loan?
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Get Free ConsultationFAQ: Mudra Loan Online
1. What is the maximum amount under Mudra Loan?
The maximum loan amount is ₹10 lakh under the Tarun category for established small businesses.
2. Can a startup apply for Mudra Loan?
Yes, both new and existing micro or small businesses can apply for a Mudra Loan as long as they meet eligibility criteria.
3. Is collateral required for a Mudra Loan?
No, Mudra Loans are collateral-free, which makes it easier for small businesses to get funded.
4. How long does approval take?
Approval typically takes 7–15 working days, depending on the bank and completeness of documents.
5. Can I apply for Mudra Loan via mobile?
Yes, many banks and NBFCs allow online application through their websites or mobile apps.