How to apply for a MUDRA loan

The Pradhan Mantri Mudra Yojana (PMMY), launched on 8 April 2015, provides loans to small business owners up to Rs. 10 lakh. Here are the steps to follow to apply for a MUDRA loan at a financial institution:

Step 1. Keep the necessary documents ready:

• ID proof (Aadhaar, voter ID, PAN card, driving licence, etc.)
• Address proof (electricity bill, telephone bill, gas bill, water bill, etc.)
• Proof of business (business registration certificate, etc.)

Step 2. Approach a financial institution:

Individuals can apply for a MUDRA loan with almost all leading financial institutions in India.

Step 3. Fill in the loan application form:

Applicants have to fill out the MUDRA loan application form and furnish their personal and business documentation.

PMMY loans have a maximum sanction of Rs. 10 lakh, however, you may require a higher amount to fund your needs. In such cases, Bajaj Finance offers similar business loans for micro, small, and medium enterprises (MSME). Here you can get approved for up to Rs. 80 lakh without collateral. These loans are easy to avail, offer quick funding, and can address multiple financial requirements with ease.

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.

Yes, you can apply for a MUDRA loan if you own an eligible non-farm micro or small business engaged in manufacturing, trading, or service activities and satisfy the lender's eligibility criteria. MUDRA loans are available under the Shishu, Kishor, and Tarun categories, depending on your funding requirement and business stage. Small businesses, sole proprietorships, partnership firms, and other eligible enterprises can apply, subject to documentation, credit assessment, and the lender's approval process.

Can freelancers apply for a MUDRA loan?

Yes, eligible freelancers engaged in service-based activities, such as consulting, design, IT, or professional services, may apply for a MUDRA loan if they meet the prescribed eligibility criteria. Applicants should be able to demonstrate their business activity, provide the required documents, and satisfy the lender's assessment requirements.

Women business owners should apply for a MUDRA loan because it provides collateral-free funding, supports new and existing enterprises, and offers access to government-backed financing for business growth. Eligible first-time women entrepreneurs can apply under the Shishu category for loans of up to Rs. 50,000, while some participating lenders may also offer women-focused schemes, such as Mahila Udyami Scheme, with concessional terms where applicable.

• Collateral-free funding for eligible micro and small businesses.
• Loans available under Shishu, Kishor, and Tarun categories based on business stage.
• Women-focused lending initiatives may offer preferential interest rates or other benefits through participating lenders.
• Funding can be used for working capital, equipment purchase, or business expansion.

For more information, see the Mudra Loan for Women page. If you require a higher loan amount and meet the eligibility criteria, you can also consider a Bajaj Finance Business Loan.