Business loan

Mudra Loan

Pradhan Mantri MUDRA Yojana (PMMY)

Collateral-free loans up to ₹20 Lakh for small businesses in manufacturing, trading and services.

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Loan amount
Up to ₹20 Lakh
Collateral
Not required
Categories
Shishu to Tarun Plus
Lenders
Banks, NBFCs & MFIs
Overview

About Mudra Loan

MUDRA loans support non-corporate, non-farm small and micro enterprises with collateral-free credit for setting up or expanding a business. Loans are offered by banks, NBFCs and microfinance institutions.

Loans are grouped by stage of business: Shishu (up to ₹50,000), Kishore (₹50,000 to ₹5 Lakh), Tarun (₹5 Lakh to ₹10 Lakh) and Tarun Plus (₹10 Lakh to ₹20 Lakh) for borrowers who have successfully repaid a Tarun loan.

Key benefits

  • No collateral or processing-heavy security requirements
  • Term loan and working capital, including overdraft
  • Loans for manufacturing, trading, services and allied agri activities
  • Graduate to higher categories as the business grows
  • Competitive interest rates set by lenders

Who is eligible

  • Indian citizen with a viable business plan
  • Non-farm income-generating micro or small enterprise
  • Proprietorship, partnership or other non-corporate entity
  • No default with any bank or financial institution
  • Tarun Plus: successful repayment of an earlier Tarun loan

Documents required

  • KYC (PAN, Aadhaar) of the applicant
  • Business address proof and registration (Udyam, GST, Shop Act)
  • Quotations for machinery or items to be purchased
  • 6 to 12 months' bank statements
  • Project report and ITR for Kishore and Tarun loans

How Vertex helps with Mudra Loan

  1. 1Eligibility checkWe review your business profile against the scheme rules and related state incentives.
  2. 2Documents & project reportWe prepare the DPR, financials and registrations such as Udyam, GST and FSSAI.
  3. 3Application & lender liaisonWe file the application and coordinate with banks, NBFCs and agencies.
  4. 4Sanction & follow-upWe follow up until sanction, disbursement and any subsidy release.

Frequently asked questions

MUDRA itself is a loan scheme, not a subsidy. However, it can be combined with subsidy schemes such as PMEGP or state incentives where eligible.

With a complete file, Shishu and Kishore loans are often processed within a few weeks. Tarun loans take longer due to appraisal of the project report.

Scheme limits, subsidy rates and timelines are indicative and subject to the latest government guidelines and lender policies. Vertex Certification is a private consultancy and is not affiliated with any government body.

Related schemes

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CGTMSE

Collateral-free business loans for micro and small enterprises, backed by a government credit guarantee.

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PMEGP

Credit-linked subsidy of 15% to 35% for setting up new micro enterprises in manufacturing and services.

View scheme

Stand-Up India

Bank loans from ₹10 Lakh to ₹1 Crore for SC/ST and women entrepreneurs starting a greenfield enterprise.

View scheme