There are a few differences between a MUDRA loan and business loan that are provided to individuals. 


MUDRA loan

Business loan


MUDRA stands for Micro Units Development and Refinance Agency Ltd. Refinance support is provided to banks and MFIs for lending to micro units only.

A business loan can be applied for by any entrepreneur and a private or public business person to establish, expand or improve his/her business. It can be a small or large business


Loan amounts of up to Rs.10 lakhs are only provided.

Loan amounts of up to Rs.1 crore or more are provided.


This is offered by the Government under the Pradhan Mantri Mudra Yojana (PMMY) scheme.

Business loans are NOT provided under the government scheme


Mudra loans can be availed by traders, vendors shopkeepers and other service sector businesses.

Business loans can be availed by any business person or entrepreneur who requires capital for his/her business.


A Mudra Card is a debit card that is issued against the loan account for the working capital portion of the loan. This helps the individual withdraw credit and keeps the interest burden at minimum.

A business loan gets credited into the customer’s existing account and no separate debit card is issued for the same.

To apply for a business loan, click here