Pradhan Mantri Mudra Yojana Loan is a government-backed scheme that provides collateral-free business loans to small entrepreneurs in India.
“I have a dream of starting my own small business, but I can’t begin due to lack of money”—
This is still the reality for many people today.
Pradhan Mantri Mudra Yojana Loan is one of the most popular government loan schemes for small businesses. Through Pradhan Mantri Mudra Yojana Loan, entrepreneurs can start or expand their business without collateral. Many applicants prefer Pradhan Mantri Mudra Yojana Loan because of its easy approval process and low interest rates.
To solve exactly this problem, the government introduced the Mudra Yojana Loan. Through this loan, common people can easily get funds for business purposes, and in most cases, without providing any collateral.
In this blog post, we will explain in simple language:
- What is Mudra Yojana Loan
- Who can get this loan
- Which website to apply on
- And how to complete the entire process
Pradhan Mantri Mudra Yojana Loan is ideal for small shop owners, startups, and self-employed individuals.
Under Pradhan Mantri Mudra Yojana Loan, applicants can get loans up to ₹10 lakh.
One major benefit of Pradhan Mantri Mudra Yojana Loan is that no collateral is required.
Pradhan Mantri Mudra Yojana Loan can be applied online or through banks.
What is Mudra Yojana Loan?
Mudra Yojana Loan is an important initiative by the Central Government aimed at financially empowering small and medium entrepreneurs. Under this scheme, loans of up to ₹10 lakh can be obtained from banks and financial institutions.
This loan can be used to:
- Start a new business
- Expand an existing business
- Purchase machinery or equipment
- Open a shop or service center
- Increase business operations
The biggest advantage is that generally no collateral is required for this loan.
Types of Mudra Yojana Loan
1. Shishu Loan
- Loan up to ₹50,000
- Ideal for starting a new business
2. Kishor Loan
- Loan from ₹50,000 to ₹5 lakh
- For those who already have a business and want to expand it
3. Tarun Loan
- Loan from ₹5 lakh to ₹10 lakh
- For running businesses looking for further expansion
Who Can Get Mudra Yojana Loan?
Mudra Yojana Loan is mainly for small business owners, such as:
- Grocery stores, tea stalls, food stalls
- Salons, beauty parlors
- Tailoring shops, boutiques
- Mobile repair, electrical services
- Auto, toto, van drivers
- Online sellers or home-based businesses
- Artisans, masons, carpenters, potters
- Small workshops or manufacturing units
In short, anyone who wants to start or grow their own business is eligible for this loan.
Required Documents for Mudra Yojana Loan
Very few documents are required. Generally needed:
- Aadhaar Card
- PAN Card
- Voter ID or any other identity proof
- Passport-size photographs
- Address proof
- Brief business details
- Bank statement (if available)
For Shishu loans, often minimal documentation is sufficient.
Where to Apply for Mudra Yojana Loan?
There are two main ways:
- Apply online through the official government portal
- Apply directly by visiting a bank
Official Website for Mudra Yojana Loan
The government-approved portal is:
udyamimitra.in
You can apply for Mudra Yojana Loan directly from this website.
Step-by-Step Online Application Process
Step 1: Visit the Website
Open a browser on your mobile or computer and type:
udyamimitra.in
Click on “Apply for Mudra Loan”.
Step 2: Register
If you are visiting for the first time, register by providing:
- Name
- Mobile number
- Email ID
- State and district
Verify using the OTP sent to your mobile.
Step 3: Choose Loan Type
Select Shishu, Kishor, or Tarun as per your requirement.
Step 4: Enter Business Details
Provide:
- Type of business
- Business address
- Loan amount required
- Purpose of the loan
Ensure all information is accurate and clear.
Step 5: Upload Documents
Upload scanned copies of:
- Aadhaar Card
- PAN Card
- Address proof
- Photograph
- Bank statement (if available)
Step 6: Submit the Form
Click Submit.
You will receive an Application Number—save it carefully.
What Happens After Applying?
After submitting the online application:
- Your form is forwarded to the nearest bank
- The bank contacts you by phone
- You may be called to the branch if required
- Documents are verified
- Loan is approved if everything is in order
- Loan amount is credited directly to your bank account
For Those Who Cannot Apply Online
You can visit:
- Nearest CSC (Common Service Center)
- Or Public Service Center
Just tell them:
“I want to apply for Mudra Yojana Loan.”
They will complete the online application on your behalf.
Applying Directly Through Banks
You can also visit banks such as:
- State Bank of India
- Punjab National Bank
- Bank of Baroda
- Canara Bank
- Union Bank
- Regional Rural Banks
- Cooperative Banks
Tell the bank staff:
“I want to apply for Mudra Yojana Loan.”
They will guide you through the entire process.
Mudra Yojana Loan Interest Rate
Interest rates vary by bank. Generally:
- 8% to 12% per annum
Repayment tenure can be decided in discussion with the bank.
Major Benefits of Mudra Yojana Loan
- No collateral required
- Big opportunity for small businesses
- Minimal documentation
- Faster processing
- Available in both rural and urban areas
- Additional support for women entrepreneurs
Practical Tips
- Take only the amount you actually need
- Pay installments on time
- Do not use business funds for personal expenses
- Communicate with the bank if any issues arise
- Remember, no application fee is charged for Mudra loans
Final Thoughts
Mudra Yojana Loan is not just a government scheme—it is an opportunity to turn dreams into reality. For those who want to stand on their own feet instead of waiting for jobs, this loan can be a true ray of hope.
You may not have big capital today, but you have the desire to do something.
Mudra Yojana Loan can help transform that desire into reality.
Apply at the right place, stay patient, and build your future with your own hands—
because every big journey begins with a small decision.