Mudra Loan Eligibility

Documents Required

Documents required to be submitted to apply for Mudra Loans are:

1. Completed application form accompanied by recent passport-size photographs
2. KYC documents of the applicant, including Passport, Aadhar card, PAN card, Voter ID card, Driving License, Birth Certificate, and Utility Bills (Water & Electricity)
3. Evidence of belonging to special categories, such as SC/ST/OBC/Minority, etc.
4. Business incorporation certificate, if applicable
5. Proof of business address
6. Bank statements for the last 6 months
7. Any additional documents requested by the Bank/NBFC

FREE Credit Score - Check Now

Amount of Loan Provided under the Mudra Yojana

The Mudra loan scheme is divided into three categories: Shishu, Kishor, and Tarun, with varying loan amounts:

1. Shishu: Offers loans up to Rs.50,000, primarily aimed at startups and business owners.
   

1. Kishor: Provides loans ranging from Rs.50,000 to Rs.5 lakh, catering to working capital needs and business expansion for both new and existing enterprises. 

1. Tarun: Extends loans from Rs.5 lakh to Rs.10 lakh, designed to support established enterprises in managing their business cash flow. 

Know Your Credit Score for FREE

Nature of Assistance

1. Working Capital Loan
2. Term Loan
3. Overdraft Limit
4. Composite Loans for the purchasing of capital assets

FREE Credit Score - Check Now

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score

FAQs on MUDRA Loan Eligibility

• How can I increase my Mudra loan eligibility?

  You can increase your eligibility for a Mudra Loan by increasing your revenue stream, keeping up a solid repayment record, not defaulting on any previous loans, and building your creditworthiness.

• Will my poor credit score prevent me from being approved for a Mudra loan?

  Banks typically do not run credit checks prior to authorising Mudra loans. But to safeguard your financial future, keep your credit score high.

• How can I find out if I qualify for a Mudra loan?

  By going to the chosen bank's official website and providing the necessary information to meet the requirements, you can verify your eligibility for a Mudra loan.

• Does obtaining a Mudra loan require me to have an account at the same bank?

  No, applying for a Mudra loan from a bank where you have an account is not required. On the other hand, opening an account with the same bank may increase your chances of being approved for a Mudra loan.

• Do banks and NBFCs need a credit score to grant a Mudra loan?

  No, if an applicant is seeking for a Mudra loan, Banks or NBFCs do not verify the applicant's credit score.

• Are MUDRA loans available to purchase a car, tempo, or taxi?

  Yes, but only in the event that the applicant intends to use these cars—such as tempos, taxis, and autorickshaws—for business travel.

• Do Mudra loans charge interest?

  Depending on the category (Shishu, Kishor, or Tarun), different interest rates apply to Pradhan Mantri Mudra Loans. They often fall between 8% and 12%.