How do I get a Mudra loan for my small business in India?
Mudra Loan Categories
Shishu: Up to Rs 50,000 — for very early stage/startup micro businesses
Kishore: Rs 50,000 to Rs 5 Lakhs — established micro businesses seeking growth
Tarun: Rs 5 Lakhs to Rs 10 Lakhs — developed micro businesses
Tarun Plus: Rs 10 Lakhs to Rs 20 Lakhs — for Tarun borrowers with good repayment
Eligibility
Any Indian citizen with a non-farm micro/small business or income-generating activity. No minimum credit score for Shishu. For Kishore/Tarun, banks look at CIBIL score (650+ preferred) and 2+ years of business operation.
Documents Required
Aadhaar card + PAN card (mandatory), Voter ID or passport, 6-month bank statements, business address proof (shop rent agreement, utility bill), business registration (MSME Udyam certificate preferred), 2 recent passport photographs, and business plan for new ventures.
Where to Apply
Any scheduled commercial bank, microfinance institution (MFI), or NBFC. SBI, Bank of Baroda, Punjab National Bank are most active Mudra lenders. You can also apply online at mudra.org.in or PSBloansin59minutes.com for digital processing.
Interest Rate
8.15% to 12.50% per annum depending on lender and category. No processing fee for Shishu loans. Check eligibility with our MSME Loan Eligibility Calculator.