MUDRA loan is a Government of India undertaking, which was started to provide financial support to small businesses in the country. Under this scheme, loans are provided by banks to non-corporate, non-farm sectors whose credit needs are upto Rs. 10,00,000.
Even though all banks and NBFCs have come together for this initiative, each of their loan processing time might be different. A MUDRA loan is treated just like any other business loan; hence the processing time is the same as other loans. Once the application is approved, the disbursal is expected to take place in 2 days after the acknowledgement. Overall, the loan process may take up to a week, depending on the person’s credit profile and documents submitted.