The processing time for MUDRA loans depends on the category under which you’re applying. Shishu loans up to Rs. 50,000 are processed quicker than the other two categories. You can expect the loan amount to reach you within 7 - 10 days of submitting the application.
Additional Reading: How Can I Get A Mudra Loan
For the other two categories, Kishore (loans from Rs. 50,000 to Rs. 5 lakhs) and Tarun (loans from Rs. 5 lakhs to Rs. 10 lakhs), the processing time varies from lender to lender. MUDRA loans are treated like any other business loan. So, the processing time depends on several factors like your credit score, relationship with the lender, business plan, etc.
If you have a good rapport with the lender - hold a business account and have a good credit history and credit score, then you can expect the loan amount to be processed quickly. Having a high credit score not only reduces the loan processing time, but also increases your chances of loan approval. It also helps you enjoy better interest rates.