₹ 2 lakh – ₹ 80 lakh
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In summary
Knowing how to apply for a MUDRA loan can help eligible small businesses access collateral-free funding of up to Rs. 10 lakh under the Pradhan Mantri MUDRA Yojana (PMMY), with Tarun Plus extending the limit to Rs. 20 lakh for eligible borrowers.
- Scheme details: PMMY, or Pradhan Mantri MUDRA Yojana, is a government-backed scheme offering collateral-free loans to eligible micro-enterprises.
- Application modes: The mudra loan application process can be completed online through the JanSamarth portal or participating bank websites, or offline at participating bank and MFI branches.
- Loan categories: Shishu covers up to Rs. 50,000; Kishor covers Rs. 50,001–Rs. 5 lakh; Tarun covers Rs. 5 lakh–Rs. 10 lakh; and Tarun Plus covers Rs. 10 lakh–Rs. 20 lakh for eligible borrowers who have successfully repaid a Tarun loan.
- Documents required: Applicants generally need at least three documents: identity proof, address proof and proof of business.
- Alternative funding: Bajaj Finance no longer directly offers MUDRA loans.
For higher funding needs, explore a Bajaj Finance Business Loan of up to Rs. 80 lakh without collateral.
How to apply for a MUDRA loan?
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The mudra loan application process under PMMY offers two main routes: apply online through the JanSamarth portal or a participating bank’s website, or apply offline by visiting a bank branch. Eligible applicants can seek up to Rs. 10 lakh under the standard MUDRA Loan categories, subject to eligibility and lender approval.
Mudra loan online apply: Steps to apply online
- Visit the JanSamarth portal or a participating bank’s official website.
- Select the MUDRA loan option under the relevant business loan category.
- Check the eligibility criteria and select the appropriate loan category.
- Enter your personal, business and loan requirement details.
- Upload the required documents, including identity proof, address proof and business proof.
- Review the application details and submit the form.
- Track your application and respond to any additional requests from the lender.
How to apply for a MUDRA loan offline: 7 steps
- Visit a participating bank or MFI branch.
- Request a MUDRA loan application form.
- Complete the form with accurate personal and business details.
- Attach identity proof, address proof and business proof.
- Submit the application and supporting documents.
- Wait for the lender to verify your details and assess eligibility.
- After approval, receive the sanctioned amount in your bank account.
Example: Applying for a MUDRA loan for a home salon
Priya, a 28-year-old freelance beautician in Jaipur, needs Rs. 2 lakh for equipment. She visits her nearest SBI branch, submits her Aadhaar, PAN and business address proof, and applies under the Kishor category. Approval timelines depend on the lender and application verification.
For funding beyond MUDRA loan limits, explore a Bajaj Finance Business Loan of up to Rs. 80 lakh without collateral.
Disclaimer:
We have discontinued this product (MUDRA Loan) at this time. Please reach out to us on +91-8698010101 to know more about the current financial services provided by us.
Can a small business owner apply for a MUDRA loan?
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Yes, small business owners can apply for a MUDRA loan if they meet the mudra loan eligibility criteria and operate a non-farm micro or small business engaged in income-generating activities under PMMY.
Eligible applicants include individuals, sole proprietorships, partnership firms, private limited companies and other legal entities involved in manufacturing, trading or service activities. The loan amount and category depend on the business requirements, eligibility and lender assessment. The Shishu, Kishor and Tarun categories cater to different funding needs.
Can freelancers apply for a MUDRA loan?
Yes, freelancers running eligible non-farm businesses may apply for a MUDRA loan. For example, a freelance beautician, graphic designer or tailoring professional may qualify if their work generates business income and meets the lender’s requirements. Applicants generally need identity proof, address proof and business-related documents to support their application.
Why women business owners should consider a MUDRA loan
Women entrepreneurs can access collateral-free funding through PMMY, with women-focused initiatives such as the Mahila Udyami Scheme offering support subject to participating lenders’ terms and eligibility requirements.
| Benefit | Detail | Amount or condition |
| Collateral-free funding | No security required for eligible MUDRA loans | For eligible micro and small businesses |
| Shishu category access | Supports women starting small businesses | Up to Rs. 50,000 |
| Mahila Udyami Scheme | May offer concessional terms through participating lenders | Subject to lender criteria |
| Flexible use | Funds can support working capital, equipment purchases or business expansion | Based on business requirements |
Women entrepreneurs can also explore the Shishu Loan, Kishor Loan and Tarun Loan categories to understand available funding options. For higher funding needs, consider the Bajaj Finance Women Business Loan, which offers up to Rs. 80 lakh, subject to eligibility.
How to get a MUDRA loan approved faster
The fastest way to improve your chances of quicker MUDRA loan approval is to choose the correct loan category and submit complete, accurate documents. When learning how to apply for a MUDRA loan, prepare these four things to streamline the Mudra loan application process.
- Choose the right category: Apply under Shishu, Kishor or Tarun based on your funding requirement to avoid delays caused by incorrect categorisation.
- Prepare all 3 core documents: Keep your identity proof, address proof and business proof ready before visiting a branch. Incomplete applications can delay processing.
- Apply through JanSamarth: The portal supports digital eligibility checks and lets you explore participating lenders before selecting a bank.
- Maintain healthy bank records: Regular transactions and stable cash flow can help lenders assess your repayment capacity.
Complete documentation and a well-prepared application can help reduce avoidable delays, although approval timelines depend on the lender.
Need more than Rs. 10 lakh? Consider a Bajaj Finance Business Loan
If your business needs exceed the MUDRA loan limit, Bajaj Finance offers a collateral-free Business Loan of up to Rs. 80 lakh, subject to eligibility.
| Parameter | MUDRA Loan | Bajaj Finance Business Loan |
| Maximum loan amount | Up to Rs. 20 lakh under Tarun Plus, subject to eligibility | Up to Rs. 80 lakh |
| Collateral required | Not required | Not required |
| Application mode | JanSamarth portal or participating bank branch | Online or through the mobile app |
| Interest rate | Set by individual lenders | Starting at 14% p.a., subject to terms |
| Who can apply | Eligible micro-enterprises under PMMY | Eligible self-employed professionals and business owners |
Explore the Business Loan, check the Business Loan Interest Rate, and estimate repayments using the Business Loan EMI Calculator before applying.
Important notice: Bajaj Finance Limited has discontinued its MUDRA Loan product at this time. For enquiries, call +91-8698010101. For business funding of up to Rs. 80 lakh without collateral, explore the Bajaj Finance Business Loan.
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Frequently Asked Questions
Overview
Can freelancers apply for Mudra Loan Yojana?
Yes, freelancers can apply for a MUDRA loan if they operate an eligible micro-business engaged in non-farm income-generating activities. The mudra loan eligibility criteria depend on the business activity, applicant details and lender requirements. Eligible applicants may include freelance graphic designers, beauticians, tailoring professionals and other self-employed individuals running small businesses. Applicants generally need identity proof, address proof and business-related documents to support their applications.
How to apply mudra loan for starting a home appliance business?
You can apply online through the JanSamarth portal or a participating bank’s website, or visit a bank branch directly. The mudra loan application process involves selecting the appropriate category, completing the application and submitting the required documents. For funding between Rs. 50,001 and Rs. 5 lakh, the Kishor category may be suitable. Approval depends on eligibility and lender assessment.
Can I apply for a MUDRA loan without a business plan?
Yes, you may apply without a formal business plan, particularly under the Shishu category for loans of up to Rs. 50,000, although requirements vary by lender. To answer “can I apply for mudra loan without business plan,” explain your business purpose, expected expenses and how you plan to use the funds. Lenders assess your business activity, loan purpose and repayment ability before making a decision.
How long does MUDRA loan disbursement take after approval?
MUDRA loan disbursement typically takes around 7–10 working days after final approval, although timelines vary by lender and document verification requirements. If you are wondering how long does mudra loan disbursement take, ensure all requested documents are complete and accurate. Applying through the JanSamarth portal may help streamline eligibility checks through digital approval, but it does not guarantee faster disbursement.
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Disclaimer
Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.