What is a MUDRA Loan?

3 minutes

The Pradhan Mantri Mudra Yojana (PMMY) provides loans to non-farming and non-corporate micro and small enterprises. These enterprises can avail loans up to Rs. 10 lakh under the Mudra scheme.

Disclaimer: We have discontinued this product (Mudra loan) at this time. Please contact us on +91-8698010101 to know more about the current financial services provided by us.

Features of the Pradhan Mantri Mudra Loan:

Loan amount

Loan of up to Rs. 50,000 under Shishu

Loan from Rs. 50,001 to Rs. 5 lakh under Kishore

Loan from Rs. 5,00,001 to Rs. 10 lakh under Tarun

Processing fee

Nil for Shishu and Kishore loan, 0.5% of the loan amount for Tarun loan

Eligibility criteria

New and existing units

Repayment period

3 – 5 years


1. Shishu

Under the Mudra loan scheme, Shishu provides up to Rs. 50,000 to entrepreneurs who are either in the nascent stages of business or looking to start one. Borrowers also have to provide details of the machinery supplier.

2. Kishor

Under the Mudra loan scheme, Kishor offers up to Rs. 5 lakh to those looking for additional funds to expand their operations. Borrowers also have to provide a report containing the economic and technical viability of the business.

3. Tarun

Under the Mudra loan scheme, Tarun sanctions up to Rs. 10 lakh if the business owner meets certain eligibility criteria.

While this scheme does offer financing, an unsecured business loan from Bajaj Finance may give you access to a higher sanction. On meeting the simple criteria and furnishing minimal documentation, you can get approved for up to Rs. 50 lakh (inclusive of insurance premium, VAS charges, documentation charges, Flexi fees, and processing fees) in under 48 hours.

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