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How to Apply for Mudra Loan Through Aadhaar Card?

Micro Units Development and Refinance Agency or MUDRA, is an institution that aims to provide loans up to ₹10 Lakhs to micro, small, and medium enterprises as a part of the Pradhan Mantri Mudra Yojana. The loans are sanctioned with the objective of assisting small business owners with their working capital needs and operating costs through easy finance schemes.

A business owner and a prospective borrower can avail a Mudra loan through rural banks, small banks, commercial banks, or non-banking finance institutions. The money can be used to start individual ventures, expand a business, or purchase inventory/resources. A borrower can apply for a Mudra loan through various avenues. One such way is to apply for Mudra loan via Aadhaar. This article will essentially take you through the process of applying for a Mudra loan with the help of an Aadhaar card.  

Mudra Loans: What are its Categories?

Mudra loans are divided into three categories. Shishu, Kishore, and Tarun, they signify the stage of growth or development of the business to which the money is being lent. The three Mudra loan categories can be found below.

  • Shishu: Up to ₹50,000

  • Kishor: From ₹50,000 up to ₹5 lakh

  • Tarun: From ₹5 lakh up to ₹10 lakh

What is the Eligibility Criteria for a Mudra Loan?

To apply for a Mudra loan, you must meet the basic eligibility criteria. The table below consists of the various parameters that a representative of a lending institution keeps in mind while proceeding with your Mudra loan application. 


Eligibility Criteria

Minimum age

18 years

Maximum age

65 years

Who all can avail loan?

New and existing units


No collateral or third-party security is required

Lending Institutions Eligible

Public Sector Banks, Private Sector Banks, Regional Rural Banks, Micro-Finance Institutions

Documents required for MUDRA loan

If you meet the Mudra loan eligibility criteria, you must also ensure that the basic documents are at your disposal. These will pertain to your identity and your commercial establishment. These are:


  • 2 passport-size photographs.

  • Photocopy of any one of the following documents to be used as an identity card: Aadhaar card, PAN card, Voter’s ID, passport, bank passbook, or driving license. These documents must be self-attested.

  • Any government-issued certificate that can count as an address certificate, namely Aadhaar card, Residence Certificate, electricity bill, water bill, etc. This document has to be self-attested as well.

  • Bank statement for last 3 months old.

  • Copy of caste certificate. This particular document will especially be of use if the applicant is from a reserved caste.

  • Business Address Certificate that will count as business identity and address proof. It must be submitted with your license, registration certificate, or any other business-related document. The documents will prove that you are indeed the owner of that venture.

  • Copy of Inventory Purchase Bill if you are taking a Mudra loan for the purpose of expanding your business.

How to Apply for Mudra Loan With Aadhaar Card 

With the self-attested photocopies of the aforementioned documents, you can proceed with the Aadhaar card Mudra loan application process. Here are the steps that must be followed for the offline Mudra loan application with Aadhaar card.


  1. Find the nearest bank/financial institution that dispenses Mudra loans: Only a select group of banks and financial institutions are authorised to give Mudra loans. Find an authorised banks/financial institution that will grant you the same.

  2. Fill the Mudra loan application form: Ask for the Mudra loan application form and make sure that you fill the form properly and in the prescribed manner. After filling the form, all the necessary paper documents, especially the Aadhaar card, will have to be attached and submitted to the bank/financial company.

  3. Keep track of your Mudra loan application status: Post the submission of the Aadhaar card Mudra loan form, you can stay in touch with the lender to check the status of your Mudra loan. You will be assigned identification credentials that you can use to check the status of your Mudra loan.

You can always learn more about Mudra loans and how you can use the benefits of the same for your business on Bajaj Markets.

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