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MUDRA Loan Vs Business Loan - A Comparison

Here is the table that will help you to understand the key differences between MUDRA Loan vs Business Loan.



Business Loan


MUDRA is an acronym that stands for Micro Units Development & Refinance Agency Ltd. It was established to assist small company owners in growing their businesses by providing loans.

This loan can be obtained from any financial institution to expand an existing business, start a new one, purchase new tools and types of machinery or clear outstanding business dues.


This scheme was introduced by the Indian government.

Business Loans are provided by different banking institutions and NBFCs.

Maximum Loan Amount

You can get up to ₹10 Lakhs

The maximum amount varies across lenders.

Interest Rate

The starting interest rate is 8%.

The rate of interest for a Business Loan is different from lender to lender.

Mode of Applying

You can apply for this loan through online mode or by visiting any financial institution’s branch.

You may apply for this loan online or in person at any financial institution's branch.


No collateral is required

Collateral is required

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