Get Kishor Mudra Loan under PMMY scheme. Low interest, no collateral. Check eligibility & apply online easily.

Explore the benefits and features of the Kishor Mudra Loan, a key financial tool supporting the expansion of small and medium enterprises in India.
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Kishor Mudra Loan
Check Eligibility
2 min read
18 August 2025

Small and micro businesses in India often struggle to secure timely funding for growth. That’s where the Kishor category under the Pradhan Mantri Mudra Yojana comes into play. It provides medium-sized financing support for entrepreneurs, helping them expand operations, purchase equipment, or upgrade infrastructure. By understanding the Mudra loan full form and its different categories, business owners can identify the right scheme for their specific needs.

What is Kishor Mudra Loan?

The Mudra Kishor loan is a financial product under the Mudra Loan scheme of the Government’s Pradhan Mantri Mudra Yojana. It caters to enterprises that need funding between ₹50,001 and ₹5,00,000. Positioned between the Shishu and Tarun categories, it is ideal for businesses that have moved past the initial stage and need funds for steady expansion. The Kishor Mudra loan amount helps small entrepreneurs invest in assets and scale their operations sustainably.

Business Loan
Business Loan

Features of Kishor Mudra Loan

Here are the main features that make this loan category unique:

  • Loan amount ranging from ₹50,001 to ₹5,00,000

  • No collateral required for approval

  • Repayment tenure of up to 5 years

  • Facility to apply offline or through E Mudra Loan

  • Suitable for manufacturing, trading, and service enterprises

Benefits of Kishor Mudra Loan

This loan comes with several benefits that support small business owners:

  • Provides financial assistance for business expansion

  • Promotes financial inclusion of micro-entrepreneurs

  • Helps create local employment opportunities

  • Ensures quick disbursal of funds

  • Offers an affordable Kishore loan interest rate for repayment

Eligibility criteria for Kishor Mudra Loan

To qualify for this scheme, applicants need to meet specific conditions:

  • Indian citizens aged between 18 and 65 years

  • Business in manufacturing, trading, or services

  • Stable business model with cash flow potential

  • Clean repayment record with no defaults

  • Compliance with the Mudra loan eligibility norms

Documents required for Kishor Mudra Loan

Submitting the right paperwork makes the approval process smooth. Here are some of the documents required for Mudra loan:

  • Identity proof such as Aadhaar, PAN, Passport, or Voter ID

  • Address proof like utility bills, Passport, or rent agreement

  • Business proof including trade licence, GST registration, or Udyog Aadhaar

  • Financial records such as ITRs, profit and loss statements, and bank statements

  • Passport-sized photographs

  • Filled and signed loan application form

Kishor Mudra Loan interest rates

The Kishor Mudra Loan offers financing of ₹50,001 to ₹5 lakh under the Pradhan Mantri Mudra Yojana, with interest rates that typically range between 8.60% and 11.05% per annum, depending on the lender and applicant’s credit profile. This Mudra loan interest rate is more affordable compared to standard unsecured business loans, making the scheme a cost-effective option for growing enterprises. However, final rates may vary based on factors such as creditworthiness, repayment capacity, and the lender’s internal policies.

How to apply for Kishor Mudra Loan online?

Applicants can complete the Kishore loan application process online in a few steps:

How to apply for Kishor Mudra Loan offline?

Those preferring offline applications can follow these steps:

  • Visit any recognised bank branch offering Mudra loans

  • Collect the paper-based application form

  • Fill out all fields carefully and attach the required documents

  • Submit the form to the bank representative

  • Wait for verification and approval before disbursal

Kishor vs Shishu vs Tarun Mudra Loans

Here is how Kishor compares with the other categories under the scheme:

Category

Loan Range

Ideal For

Shishu Mudra Loan

Up to ₹50,000

Early-stage entrepreneurs and very small units

Kishor Mudra Loan

₹50,001 - ₹5,00,000

Small businesses seeking growth capital

Tarun Mudra Loan

₹5,00,001 - ₹10,00,000

Established businesses aiming for expansion


Conclusion

The Kishore Loan Yojana under PMMY is well-suited for small enterprises that have surpassed the start-up phase and are ready to expand further. With no collateral requirement, quick approval, and accessible repayment terms, it provides just the right support. For businesses seeking funds beyond the Mudra Kishor loan limit, a business loan is another option worth considering.

Frequently asked questions

What is the maximum loan amount under Kishor Mudra Loan?

The maximum loan under Kishor is ₹5,00,000. It bridges the gap between Shishu and Tarun, making it suitable for small firms requiring medium-sized funding.

How long does it take to get Kishor Mudra Loan approval?

Approval timelines vary but generally take 3 to 7 working days. Providing complete and accurate documents helps speed up the process.

Can I apply for Kishor Mudra Loan if I already have an existing business loan?

Yes, you can apply even with another loan, as long as you maintain a good repayment history and meet the eligibility criteria.

Does Kishor Mudra Loan cover e-commerce businesses?

Yes, e-commerce ventures and small online businesses are eligible if they meet the activity and financial requirements.

How does Kishor Mudra Loan compare to MSME loans?

Kishor loans offer funding of up to ₹5,00,000 under PMMY, whereas an MSME Loan usually provides higher amounts with broader features. Entrepreneurs often choose Kishor for early growth and MSME loans for larger expansion.

Disclaimer

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