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About the product

About MUDRA Loans

MUDRA Loans are offered under the Pradhan Mantri MUDRA Yojana (PMMY) scheme for providing loans up to Rs 20 lakh to non-corporate small business segments

Purpose of a MUDRA Loan

  • Business loan for manufacturers, vendors, traders, shopkeepers and other service sector activities

  • Equipment Finance for Small Business Segments

  • Transport Vehicle Loans – for commercial use only

  • Loans for agri-allied non-farm income-generating activities, e.g. pisciculture (fish farming), beekeeping, poultry farming, etc.

  • Tractors, tillers and two-wheelers used for commercial purposes only

Categories under MUDRA

  • Shishu: Covering loans up to Rs 50,000, in the form of a Dropline Overdraft (DLOD)

  • Kishor: Covering loans above Rs 50,000 and up to Rs 5 lakh, in the form of an Overdraft (OD) and Dropline Overdraft (DLOD)

  • Tarun: Covering loans above Rs 5 lakh and up to Rs 10 lakh, in the form of an Overdraft (OD) and Dropline Overdraft (DLOD)

  • Tarun Plus: Covering loans above Rs 10 lakh and up to Rs 20 lakh, in the form of an Overdraft (OD) and Dropline Overdraft (DLOD), exclusively for entrepreneurs who have previously availed and successfully repaid a Tarun Loan(renewal and enhancement).

FAQs

 

Who is eligible for MUDRA Loans? What kind of borrowers are covered under the MUDRA scheme?

This scheme primarily focuses on the Non-Corporate Small Business Segment (NCSBS) comprising largely of Proprietorship and Partnership firms, running as Micro & Small manufacturing units, service sector units, shopkeepers, fruits and vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas.

Which entities are eligible for a MUDRA Loan?

Individuals, Sole Proprietorship firm, Partnership firm & Private Limited Companies

What are MUDRA’s offerings?

The offerings are 'Shishu', 'Kishore' and 'Tarun' to signify the stage of growth/development, the funding needs of the beneficiary micro unit/entrepreneur, and to provide a reference point for the next phase of graduation/growth.

  • Shishu: Covering loans up to Rs 50,000/- 
  • Kishor: Covering loans above Rs 50,000/- and up to Rs 5 lakh
  •  Tarun: Covering loans above Rs 5 lakh up to Rs 10 lakh 
  • Tarun Plus: Covering loans above Rs 10 lakh up to Rs 20 lakh, exclusively for entrepreneurs who have previously availed and successfully repaid a Tarun Loan(renewal and enhancement).

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