Mudra Loan Interest Rates 2025

Note: The above-listed interest rates are as on 10 May 2025 and are subject to change at the bank’s discretion.

Loan Quantum under MUDRA Yojana

MUDRA Loan is offered under 3 different schemes. The loan amount is dependent on these schemes. The schemes are as follows:

Features and Benefits of MUDRA Loan:

The listed below are some of the features and benefits of MUDRA Loan: 

1. No Collateral: To avail yourself of a MUDRA loan, you do not have to submit any collateral. 

1. Easy Access to Credit: Small businesses which often find it difficult to get a loan from the bank can easily access funds through MUDRA. 

1. Nominal Processing Fee: The processing fee charged for availing a MUDRA loan is either zero or nominal, which makes it affordable for the borrower. 

Eligibility Criteria to Apply for a MUDRA Loan: 

You need to fulfill the listed below eligibility criteria to apply for a MUDRA loan: 

1. Any individual, proprietorship firms, partnership firms, private limited companies, public companies, or any other legally recognised entity can apply for a MUDRA loan. 

1. You should not be a defaulter with any bank or financial institution and must have a good credit history. 

1. If you are an individual borrower, you may need to show that they have the skills, experience, or knowledge required for the business activity. 

1. You may be required to possess the related educational qualification depending on the type of business and its specific requirements. 

Documents Required to Apply for a MUDRA Loan:

Youn need to provide the listed below documents to avail yourself of a MUDRA Loan: 

1. Proof of Identity: Voter ID, Driving Licence, PAN Card, Aadhaar Card, Passport, or any Govt. issued photo ID 

1. Proof of Residence: Utility Bills, Voter ID, Aadhaar Card, Passport 

1. Proof of Business: License or Registration Certificates, Ownership documents. 

1. Proof of Income: Bank Statements, ITR, Form 16, etc. 

1. Photographs: Multiple copies of recently clicked passport-sized photographs. 

1. Business-related documents: Quotation of machinery/items to be purchased (with supplier details, price, etc.) 

Note: The documents listed above are in general and you may be requested to submit additional documents based on your loan application, quantum of loan, and internal policies of the lending institution. 

How to Apply for a MUDRA Loan Online? 

Follow the steps given below to apply for a MUDRA loan online: 

Step 1: Go to the PSB Loans website. Step 2: Click on ‘Login’ and then select ‘Register’. Step 3: Fill in your details and complete the registration. Step 4: Choose ‘Mudra Loan’ and click ‘Apply Now’. Step 5: Fill out the form, upload the required documents, and submit it. Step 6: Once approved, submit the application to the bank for loan disbursal. 

How to Apply for a MUDRA Loan Offline? 

Follow the steps given below to apply for a MUDRA loan offline: 

Step 1: Visit a bank or financial institution that offers Mudra loans.  Step 2: Ask for the Mudra loan application form.  Step 3: Fill in the form and attach the required documents.  Step 4: Submit the form. The bank will check it and release the loan amount if approved. 

Tips to Avail MUDRA Loan at Low Interest Rates

To secure a MUDRA loan with a low-interest rate, follow these suggestions:

• Compare Loan Deals: Check and compare offers from various banks and NBFCs.
• Business Nature and Type: The type and nature of your business influence the interest rates. Businesses with lower risk profiles receive lower rates.
• Annual Turnover & Volume: Higher annual turnover and business volume can result in lower interest rates.
• Creditworthiness: Applicants with good credit scores and repayment capabilities are preferred.
• Income & Loan Amount: Your income, the amount of the loan, and the repayment tenure also affect interest rates.
• No Previous Loan Defaults: A clean loan repayment history gives you an advantage.

For exact interest rates, contact the eligible bank or NBFC directly or visit their official websites.

Institutions Authorised to Offer MUDRA Loans

Loans under the Pradhan Mantri Mudra Yojana (PMMY) can be availed through eligible Member Lending Institutions (MLIs). These include:

1. Public Sector Banks

1. Private Sector Banks

1. State-operated Cooperative Banks

1. Regional Rural Banks

1. Micro Finance Institutions (MFIs)

1. Non-Banking Finance Companies (NBFCs)

1. Small Finance Banks (SFBs)

1. Other financial intermediaries approved by Mudra Ltd. as member financial institutions.

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