MUDRA Loan Eligibility

Following are the detailed Mudra loan eligibility criteria:

• Non–Corporate Small Business Segment (NCSB) comprising millions of proprietorship/ partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits/ vegetable vendors, truck operators, food service units, repair shops, machine operators, artisans, small industries, food processors and others, in rural and urban areas.
• Any Indian Citizen with a business plan for a non-farm income-generating activity like manufacturing, processing, trading or service sector, with a credit need of up to Rs. 10 Lakhs. 
• The borrower can approach either a Bank, Microfinance Institution (MFI) or Non-Banking Financial Company (NBFC) to avail of MUDRA loans under PMMY. 
• The usual terms and conditions of the lending agency must be followed for availing of loans under PMMY. 
• The lending interest rates will be as per the Reserve Bank of India’s (RBI) guidelines issued in this regard from time to time.
• The applicant must be a minimum of 18 years old and a maximum of 65 years.
• There should not be any past loan defaults with any financial institution and the borrower must have a good repayment history.
• Based on the stage of growth/development and funding needs of the micro unit/entrepreneur, the beneficiary can avail of the following loan types:
  • Shishu Loans up to Rs. 50,000
  • Kishor Loans between Rs. 50,000 and Rs. 5 Lakhs
  • Tarun Loans between Rs. 5 Lakhs and Rs. 10 Lakhs

Before applying for a Mudra Loan, you must check your eligibility to increase your chances of loan approval. Mudra loan eligibility check can be done by visiting the official website of the desired lender and filling in the required details to clear the eligibility criteria. You can also visit the official website of MUDRA loan to get the eligibility check done.

Under Pradhan Mantri Mudra Yojana (PMMY), MUDRA has created three types of products/ schemes named 'Shishu', 'Kishore' and 'Tarun' to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur and also provide a reference point for the next phase of graduation/growth to look forward to:

• Shishu: Covering loans up to Rs. 50,000
• Kishore: Covering loans above Rs. 50,000 and up to Rs. 5 Lakhs
• Tarun: Covering loans above Rs. 5 Lakhs and up to Rs. 10 Lakhs

PM Mudra loan eligibility for all three schemes is given below:

• Age: 18 to 65 years.
• Citizenship: Indian citizen with no criminal records.
• Loan amount: Maximum up to Rs. 10 Lakhs.
• CIBIL Score: There is no Mudra loan eligibility CIBIL score requirement to be fulfilled as the government has launched this scheme to help people commence a new/ grow an existing business. However, these should be no previous defaults.
• Eligible enterprises: Private and Public Limited Companies, Sole Proprietorships, Partnerships, LLPs, NGOs, Trusts and Co-operative Societies.
• Availed by: All non-farm enterprises that are engaged in trading, services and manufacturing sectors.

You will be required to submit the Mudra loan eligibility documents to apply for a loan under the Mudra scheme:

• Duly filled and signed loan application form with recent passport-size photographs
• KYC documents of the applicant, like Passport, PAN Card, Aadhar Card, Driving License, Voter ID Card, Birth Certificate, and Utility Bills (Water & Electricity).
• Proof of belonging to special categories like SC/ ST/ OBC/ Minority, etc.
• Business address proof
• Business incorporation certificate (if applicable)
• Bank statements of the loan 6 months 
• Any other document required by the lender

The applicant must meet the Mudra loan eligibility age limit requirement to avail of a loan under the Mudra scheme. Mudra Loan can be availed by applicants with a minimum age of 18 years and a maximum of 65 years with no past loan defaults with any financial institution and a good repayment history.