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How to Get up to ₹20 Lakh with Mudra Loan!

What is the Mudra Loan Scheme?

Launched under Pradhan Mantri Mudra Yojana (PMMY) in 2015. Provides ₹10,000 to ₹20 lakh for startups, MSMEs, and shopkeepers. Available at all banks, NBFCs, and microfinance institutions.

Why Choose Mudra Loan? 

Collateral-free loan. Simple paperwork and fast approvals. Low-interest rates compared to private loans. Special schemes for women entrepreneurs (reduced interest). Build your business credit score.

Who is Eligible?

Indian citizens aged 18 to 65 years. Startups, small business owners, service providers, shop owners. Need a business idea or existing business with growth plans. No major loan defaults in the past.

Types of Mudra Loan

Shishu – Loan up to ₹50,000,  Kishore – Loan between ₹50,001 to ₹5 lakh, Tarun – Loan between ₹5 lakh to ₹20 lakh

What Can You Use Mudra Loan For?

Start a retail store, salon, coaching center, mobile repair shop. Buy equipment, inventory, or business vehicles. Set up food stalls, small factories, service businesses. Expand an existing small business.

Documents Checklist

Aadhaar & PAN Card, Passport-size photographs, Business plan / proposal Quotation for assets/machinery (if applicable), Proof of business address, Bank account details and financial statements (if any)

How to Prepare a Winning Business Plan

Clear description of your business idea, Cost breakdown: setup + working capital, Market potential & customer demand. Expected sales, revenue, and profit. Repayment plan for the loan.

Where to Apply for Mudra Loan?

Any commercial bank (SBI, HDFC, ICICI, etc.)

Regional rural banks

Small finance banks, NBFCs, MFIs

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