Interested in financial products


Mudra is a refinancing scheme, offered to banks and microfinancing institutions. This scheme is an entirely-owned subsidiary of SIDBI and provides banks and microfinancing institutions with refinancing facilities against the loans they have provided to small businesses to promote the development of these micro-units. This scheme is primarily aimed at MSME units across the country. It was established with the sole purpose of funding and saving small entrepreneurs from abuse by money lenders and helping 1.5 crore new entrepreneurs in developing small businesses.

The Mudra scheme offers loans that do not need collateral. Under this arrangement, there is no fixed rate of interest on the loans availed. Interest is charged at the base rate plus 1–7%. This can also be higher, depending on the risk involved and the profile of the customer.

Loans of up to Rs.10 lakhs are available through Commercial Banks, RRBS, Cooperative Banks, NBFC, MFI, etc. to eligible companies. The borrowers can approach nearby branches of the lending institutions or apply online for loans under the MUDRA scheme.

The MUDRA scheme has been a boon to the MSME sector by giving collateral free financing to these budding enterprises.

  • Refinance support to banks and NBFCs to facilitate higher funds available for lending
  • Onward lending to business entities involved in manufacturing, trading, services, tractor financing, agriculture and allied activities, and two-wheeler loans
  • MUDRA also empowers MSME entities through financial literacy and other social support services in addition to financial assistance
  • MUDRA has three loan schemes under it – Sishu loan up to Rs. 50000, Kishore loan up to Rs. 5,00,000 and Tarun loan up to Rs. 10 lakh

How do I apply for a MUDRA Loan?

There are two ways to apply for a MUDRA Loan: 

Offline through the Bank or Financial Institution where you want to avail the loan from. You fill in the details on a paper form and submit the documents physically at your nearest branch.

Online on the Udyami Mitra Portal / Mudra Mitra Portal or the official websites of banks and NBFCs offering this scheme. You fill in the details and upload the documents online.

This article will talk about online application for MUDRA Loan.

Online application for MUDRA Loans

As stated earlier, there are 3 different schemes under the MUDRA Loan. You need to determine which scheme you will be applying under, before you start the application process. Based on the loan amount, you can choose the category under which the loan will be processed – Shishu, Kishor or Tarun. Keep all the necessary documents ready before starting the application process (For the list of necessary documents, refer to the “List of Required Documents” section below)

  • Once you have completed these preparations, logon to the ‘Udyami Mitra’ or ‘Mudra Mitra’ website.
  • Click the button for online application. On the Udyami Mitra portal, it is present as “Click Here To Apply” and on Mudra Mitra portal, it is present as “Continue For PMMY Loan”.
  • You need to first register on the portal to apply for the loan. Click on ‘New User’.
  • On this page, you select the required loan amount and the scheme under which you want the loan to be processed.
  • Once you select the scheme, you will be presented with the Personal Details and Address Details fields.
  • You will be required to fill in your name, email address, mobile number & business address details.
  • You have to then read the Terms & Conditions and click on the ‘I agree’ box. 
  • Once you fill in these details and hit submit. You will receive an email with your username and password to login to the portal and continue your application.
  • You will be required to fill in the following details: 

Step 1: Business Information

Step 2: Background Information of Proprietors / Directors

Step 3: Names of Associate Concerns and Nature of Association; Banking/Credit Facilities Existing; Credit Facilities Proposed

Step 4: Future Estimates; In case of working capital: Basis of cash credit limit applied; In case of term loan requirements: details of machinery/equipment

Step 5: Status regarding statutory obligations; Document attachments; Preferred Lender

Step 6: Declaration and the Submit button

  • You can attach the scanned copies of the documents on Step 5. The portal accepts png, jpg, jpeg, bmp and pdf formats that do not exceed 5 MB in size.
  • On Step 5, applicants are allowed to upload their credit rating from any one of the credit rating agencies.
  • On Step 5, applicants are given an option to choose their preferred lender. They can choose their preferred bank or NBFC where they want their loan to be processed.

Turnaround time for MUDRA loan processing

Upon submission of the documents, the bank will verify the documents. Shishu loans are usually disbursed within 7-10 days. Kishor and Tarun loan turnaround time varies based on the lender.

Once you are deemed eligible by the bank to secure a loan under the Mudra Scheme, the loan is disbursed in the form of a pre-loaded Mudra Card that comes personalized with your name on it. This is a RuPay debit card that is attached to the Pradhan Mantri Jan Dhan Yojana Savings Account and allows you to conveniently withdraw from any ATM when purchasing for your business. The cash withdrawal limit is set at Rs. 25,000 per day and includes cash credit and current deposit accounts as well.

Documents required to be attached along with your MUDRA application:

  • Business plan
  • Identity proof – Aaadhar Card, PAN Card, driving license, Passport, etc.
  • Residence proof – the electricity bill, property tax receipt, telephone bill, etc.
  • Recent photographs – not more than six months’ old
  • Quotation of the equipment/machinery to be purchased
  • Name of the supplier
  • Identity and address proof of the business, like a business license, tax registration, etc.
  • Category proof, such as SC/ST/OBC, etc.

Some pointers to help you fill in the MUDRA Loan application form

  • Always provide accurate and genuine information to avoid rejection of loan
  • Enter correct spellings of your names that match with the official documents you are submitting with the application
  • Make use of the hand holding assistance available to prevent sloppy application forms
  • Read all the guidelines carefully before filling the application form
  • Neatly scan all the supporting documents and upload them without fail
  • Save the filled in application form regularly to avoid losing the input data


1. Is Mudra loan available in all the banks in India?

Yes, they are offered by almost every private sector and public sector bank and a few NBFCs in India.

2. What is MUDRA Card?

MUDRA Card is a creative credit product that allows the borrower to make free and easy use of credit. Since MUDRA Card would be a RuPay debit card, it can be used to draw cash from ATMs or Business Correspondents or to make transactions using Point of Sale (POS) computer. There is also the facility to repay the sum, when and when excess cash is available, thereby reducing the interest costs.

3. Can MUDRA Cards be used in ATMs?

Yes, MUDRA beneficiaries are issued a Rupay card for their day to cash needs, within the limit allocated in their loans. It allows you to conveniently withdraw from any ATM when purchasing for your business. The cash withdrawal limit is set at Rs. 25,000 per day and includes cash credit and current deposit accounts as well.

4. What is the rate of interest charged by MUDRA?

Interest rates are deregulated, and banks have been told under the overall RBI guidelines to charge fair interest rates.

5. What are the activities covered under MUDRA?

All activities including Manufacturing, Trading & services along with Allied Agriculture activities (Non-Farming) are covered under MUDRA.

×Thank you! Your comment will be reviewed and posted shortly.

CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf. We do not sell any loans on our own and do not charge any fee from our customers/viewers for the purpose of loan application