MUDRA Loan India Overview
The MUDRA Loan scheme, launched under the Pradhan Mantri Mudra Yojana (PMMY), provides collateral-free financing to micro enterprises in India. LoanPao offers MUDRA Loans up to ₹10 lakh at competitive interest rates of 7%-12% p.a. with flexible tenures up to 5 years. These loans support working capital, equipment purchase, business expansion, or startup needs for small businesses in manufacturing, trading, and services sectors.
With LoanPao's network of 500+ RBI-compliant lenders (banks and NBFCs), enjoy a seamless digital application process with approvals in 2-5 days. For related financing options, check our MSME Loan or MSME Equipment Loan pages. Use our EMI Calculator to estimate repayments or call +91-999-163-4766 for expert guidance.
Key Benefits of MUDRA Loan with LoanPao
Up to ₹10 Lakh Funding
Collateral-free loans for micro business startup or growth needs.
No Collateral Required
100% unsecured financing under PMMY guidelines.
Low Interest Rates
Starting from 7% p.a. based on your profile and lender.
Flexible Repayment Tenure
Up to 5 years to suit your business cash flow.
Online Application Process
Digital e-KYC and quick disbursal with minimal paperwork.
500+ Trusted Lenders
RBI-approved banks and NBFCs for reliable financing.
MUDRA Loan Eligibility Criteria
| Eligibility Parameter | Requirements |
|---|---|
| Business Type | Micro enterprises in manufacturing, trading, or services (non-corporate small businesses) |
| Applicant Type | Individuals, proprietorships, partnerships with a viable business plan |
| Business Vintage | New startups or existing micro businesses |
| Loan Amount Range | ₹50,000 to ₹10 lakh (categorized as Shishu, Kishore, Tarun) |
| Collateral/Security | None required (unsecured loan) |
| CIBIL Score | Minimum 600 preferred; not mandatory for all cases |
Verify your eligibility instantly with LoanPao's CIBIL Score Checker or email us at info@loanpao.in for personalized assessment.
Documents Required for MUDRA Loan Application
- KYC Documents: Aadhaar Card, PAN Card, Voter ID of the applicant
- Business Proof: Udyam Registration Certificate (if applicable), Trade License, or GST Registration
- Financial Documents: Bank statements for the last 6-12 months
- Business Plan: Detailed project report on loan utilization
- Income Proof: ITR filings or sales/purchase records (if available)
- Address Proof: Utility bills, rent agreement, or property documents
- Additional (if applicable): Caste certificate for SC/ST/OBC applicants under reserved categories
MUDRA Loan Categories: Shishu, Kishore, Tarun
| Loan Category | Maximum Amount | Ideal For |
|---|---|---|
| Shishu Loan | Up to ₹50,000 | New startups or early-stage micro enterprises needing seed capital |
| Kishore Loan | ₹50,001 to ₹5 lakh | Growing businesses requiring working capital or minor expansions |
| Tarun Loan | ₹5,00,001 to ₹10 lakh | Established micro enterprises for significant growth or equipment purchase |
How to Apply for MUDRA Loan Online
Applying for a MUDRA Loan with LoanPao is simple and digital:
- Fill out the online application form with your business and personal details.
- Upload required documents via secure e-KYC verification.
- Receive approval in 2-5 days and get funds disbursed directly to your account.
Start your MUDRA Loan application today or contact us at +91-999-163-4766 for step-by-step assistance.
Compare Top MUDRA Loan Providers in India
| Lender | Interest Rate (p.a.) | Max Loan Amount | Tenure | Processing Fee |
|---|---|---|---|---|
| State Bank of India (SBI) | 7%-10% | ₹10 lakh | 1-5 years | Nil to 0.5% |
| Bank of Baroda | 8%-11% | ₹10 lakh | 1-5 years | Nil to 1% |
| Axis Bank | 9%-12% | ₹10 lakh | 1-5 years | 0.5%-1% |
Rates are indicative and may vary. Compare personalized offers through LoanPao for the best deals.
Common Uses of MUDRA Loan Funds
MUDRA Loans under PMMY can be utilized for various micro business purposes, including:
- Working capital to manage inventory, raw materials, or daily operations
- Purchasing small machinery, tools, or equipment
- Business expansion such as opening new outlets or hiring staff
- Meeting operational expenses like rent, utilities, or salaries
- Starting a new micro enterprise in eligible sectors
Why Choose LoanPao for Your MUDRA Loan?
Extensive Lender Network
Access 500+ RBI-approved lenders for competitive MUDRA Loan offers.
Free EMI Calculator
Plan your repayments with our easy-to-use EMI Calculator.
24/7 Expert Support
Reach us anytime at +91-999-163-4766 or info@loanpao.in.
Tips to Improve Your MUDRA Loan Approval Chances
- Develop a detailed business plan highlighting loan purpose and repayment strategy.
- Ensure all KYC and business documents are current and accurate.
- Maintain healthy bank transactions to demonstrate financial stability.
- Choose the right MUDRA category (Shishu, Kishore, Tarun) based on your needs.
- Use LoanPao's EMI Calculator to ensure EMIs fit your budget.