What is MUDRA Loan?
Pradhan Mantri MUDRA Yojana (PMMY) was launched in 2015 to provide affordable credit to micro and small enterprises that are non-corporate and non-farm in nature. The scheme is implemented through all scheduled commercial banks, RRBs, small finance banks, MFIs, and NBFCs.
MUDRA loans are categorized into three tiers — Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹20 lakh) — catering to businesses at different stages of growth.
There is no collateral, no processing fee, and no application fee for MUDRA loans under the Shishu category. PrimeWealth Advisory provides assistance to prepare your loan documents and connect you with the right lending institution.
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Overview Image
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Key Benefits
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No Collateral Required: Loans disbursed purely on business merit — no property mortgage needed
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No Application Fee: Zero processing charges for Shishu category loans
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Available Everywhere: Through 100+ banks, NBFCs, MFIs, and RRBs across all states
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MUDRA Card: Eligible borrowers receive a MUDRA debit card for easy working capital access
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Supports All Businesses: Vegetable vendors, shopkeepers, artisans, small manufacturers, service providers
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Women Entrepreneur Focus: Special priority and faster processing for women-led businesses
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Low Interest Rates: Competitive interest rates linked to the bank's MCLR
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Flexible Repayment: Repayment tenure up to 5 years based on the nature of activity
Eligibility Criteria
- Any Indian citizen who has a business plan for a non-farm income-generating activity
- Micro and small enterprises in manufacturing, trading, or service sectors
- Sole proprietors, partnership firms, private limited companies, and public companies are all eligible
- Good credit history — no default with any financial institution
- Existing businesses seeking expansion and new businesses seeking to start
Documents Required
Identity Proof (Aadhaar / PAN / Passport / Voter ID)
Address Proof of applicant and business
Proof of business activity / business registration
Last 2 years bank statements
Quotations for machinery or equipment (if applicable)
Business plan (for new ventures)
Caste certificate (if SC/ST/OBC — for priority processing)
Photographs of applicant
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Process / Team Image
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Step-by-Step Process
01
Identify Loan Category
Determine if you need Shishu, Kishor, or Tarun based on your loan requirement.
02
Document Preparation
We prepare a complete loan file including business plan, financial projections, and all documents.
03
Bank/MFI Selection
We connect you with the most suitable lending institution based on your profile and location.
04
Application Filing
Loan application submitted to the chosen lender.
05
Bank Appraisal
Lender evaluates your application, visits business premises (for higher amounts).
06
Sanction & MUDRA Card
Loan sanctioned — MUDRA card issued for working capital access.
07
Disbursement
Loan amount disbursed to your business account.
MUDRA Loan Categories — Choose the Right One
MUDRA loans are divided into 3 categories based on the stage of development and funding requirement:
Shishu — Up to ₹50,000For businesses in the very early stage or those needing small working capital. Interest rate: ~10-12%. Fastest processing with minimal documentation.
Kishor — ₹50,001 to ₹5 LakhFor established businesses seeking to expand or upgrade. Requires basic financial documents and a simple business plan.
Tarun — ₹5 Lakh to ₹20 LakhFor well-established businesses with good track record seeking significant expansion capital. Requires ITR and detailed financials.
Frequently Asked Questions
Is MUDRA loan only for specific industries?
No — MUDRA loans are available for any non-farm, non-corporate micro business including shopkeepers, traders, manufacturers, service providers, artisans, food vendors, and more.
Is there any subsidy in MUDRA loans?
No direct subsidy in MUDRA loans (unlike PMEGP). The benefit is collateral-free lending at competitive market rates.
Can I get a MUDRA loan if I already have a business loan?
Depends on your repayment history and overall loan exposure. Banks evaluate each application on merit. We help prepare the strongest possible application.
What is a MUDRA card?
The MUDRA card is a debit card linked to a special MUDRA loan account that allows the borrower to withdraw working capital in tranches as needed, rather than as a lump sum.
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Free consultation — no obligations, no hidden charges.
