Pradhan Mantri Mudra Loan Yojana was started for small businessmen, shopkeepers, and individuals starting a small-scale business in the country. The aim is to help them grow their work without facing financial difficulties. In this article, we will share all the details about the Pradhan Mantri Mudra Loan Scheme – Benefits, Eligibility, and how to apply.

About Pradhan Mantri Mudra Loan Yojana

Pradhan Mantri Mudra Loan Yojana (PM Mudra Loan Yojana) was introduced for small businessmen, shopkeepers, and individuals starting small-scale businesses so that they do not face financial problems while moving forward with their work. This scheme was launched by the Central Government in April 2015 and is operated by the Ministry of Micro, Small, and Medium Enterprises. Through this scheme, small traders can avail loans of up to Rs 10 lakh without any collateral, with a repayment period of up to 5 years. Let’s explore all the details related to this scheme.

How to Apply for the Pradhan Mantri Mudra Loan Scheme

Applying for a Mudra Loan is a simple process. Follow the steps below to apply:

Step 1: Choose the Loan Category

Mudra Loans are available in three categories based on the loan amount:

  1. Shishu Loan – Up to ₹50,000 (For new businesses or startups)
  2. Kishore Loan – ₹50,000 to ₹5 lakh (For expanding small businesses)
  3. Tarun Loan – ₹5 lakh to ₹10 lakh (For business growth and expansion)

Step 2: Select a Bank or Financial Institution

You can apply for a Mudra Loan from:

  • Public sector banks (SBI, PNB, Bank of Baroda, etc.)
  • Private banks (HDFC, ICICI, Axis Bank, etc.)
  • Regional Rural Banks (RRBs)
  • Microfinance Institutions (MFIs)
  • Non-Banking Financial Companies (NBFCs)

Step 3: Collect the Required Documents

  • Loan application form (Available at banks or online)
  • Aadhaar Card, PAN Card, Voter ID (For identity proof)
  • Address proof (Electricity bill, ration card, etc.)
  • Business proof (Business plan, GST registration, etc.)
  • Bank statements (Last 6 months)
  • Income tax returns (if applicable)

Step 4: Submit the Application

  • Visit the nearest bank or apply online via the official bank website.
  • Fill out the Mudra Loan application form and attach the required documents.
  • Submit the form and wait for verification.

Step 5: Loan Approval & Disbursement

  • The bank will review your application and documents.
  • If approved, the loan amount will be credited to your bank account within 7 to 10 days.

Questions and Answers Related to the Mudra Loan Scheme

1. Is there a subsidy in the Mudra Loan Scheme?

No, the Mudra Loan Scheme does not offer any subsidy.

2. How many days does it take to get the benefit of the Mudra Loan Scheme?

The loan can be approved within 7 to 10 days of applying.

3. Is submitting an Income Tax Return Form necessary to get a Mudra Loan?

Yes, you must submit the Income Tax Return Form, even if it’s a zero tax return.

4. Can a Mudra Loan be used to start or expand a boutique or bakery business?

Yes, the Pradhan Mantri Mudra Loan Yojana can be used to start or expand any type of small business, including boutiques or bakeries.

Note: If you have any issues or questions related to this scheme, you can call the helpline number for assistance.

Helpline Number: 18001801111, 1800110001