Launched in 2015 the Pradhan Mantri MUDRA Yojana was introduced to support the growth of micro and small enterprises across India. Value the importance of small businesses in the economy the government initiated this scheme to provide easy access to funding for entrepreneurs self employed individuals and MSME.
Whether you are launching a new chance or scaling an existing one applying for a Mudra loan through the proper channel can be a major stepping. Subsidy Mantra brings you a simplified guide to the Mudra loan application process eligibility criteria necessary documents and key benefit.
Let’s know what is the Pradhan Mantri MUDRA Yojana ?
The MUDRA Yojana provides unsecured business loans to non farm, non corporate micro and small company. These loans are offered by various financial institutions including public and private banks, NBFCs, and regional rural banks.
Loans under PMMY are classified into three categories:
Shishu: Loans up to ₹50,000 – Ideal for new or budding businesses
Kishor: ₹50,001 to ₹5 lakhs – Suitable for businesses seeking growth
Tarun: ₹5 lakhs to ₹10 lakhs – For well-established businesses planning expansion
This structure ensures support across different stages of a business’s journey.
Key Benefits of MUDRA Loans
Mudra loans provide a host of advantages for small business owners:
No collateral required – these are fully unsecured loans
Competitive interest rates
Convenient repayment terms
Focus on financial inclusion
Encouragement for women entrepreneurs
Subsidy Mantra helps you understand how to access these benefits efficiently through a proper Mudra loan application process.
MUDRA Loan Eligibility Criteria
To qualify for a MUDRA loan, the following eligibility conditions must be met:
Must be an Indian citizen
Should own a micro or small enterprise (non farm)
Applicable sectors: manufacturing trading or services
Must show proof of operational stability (for existing businesses)
Open to rural and urban entrepreneurs including vendors, artisans, small shopkeepers, and service providers
Documents Required for MUDRA Loan
When you initiate your loan application, prepare the following documents:
Identity proof (Aadhaar, Voter ID, PAN)
Address proof
Business registration documents (if applicable)
Bank statements or income proof
Business plan or project report
Passport sized photo
Requirements may differ slightly based on your lender and loan amount. Subsidy Mantra can assist you in compiling a complete accurate document.
How to Apply for a MUDRA Loan
You can apply for a Mudra loan either online or by visiting your preferred lending institution. Here’s how to move forward:
Select a Lender
Choose from recognised banks NBFCs or microfinance institutions.
Complete the Application
Fill out the Mudra loan application form—available both online and offline.
Attach Required Documents
Submit your identity, income, and business documents.
Verification Process
The lender will verify your credentials and assess the business plan.
Loan Disbursement
After approva, the funds is credited directly to your account.
Subsidy Mantra offers end-to-end support throughout this process, improving your chances of approval.
Use a Business Loan EMI Calculator
To plan your repayments smartly, use an online EMI calculator. It helps you monthly disbursements based on credit amount, tenure, and interest rate. This step is crucial before submitting your Mudra loan.
Alternative Financing with Kissht
Although Kissht does not disburse MUDRA loans, it offers alternative digital financing for small businesses. For those who may not qualify under PMMY installment can still be a helpful option with fast approvals and minimal paperwork.
Conclusion
Pradhan Mantri MUDRA Yojana has transformed access to finance for micro and small businesses in India. By offering friendly secured loans it has empowered a new generation of entrepreneurs. With support from platforms like Subsidy Mantra, the Mudra loan application process becomes simpler and more transparent.