✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now! Apply Now

MUDRA loan is an ambitious credit scheme issued by the Central Government of India. With this program, the government has aimed to provide financial assistance to small business units so that they can scale up their commercial prospects. 


If you are running a non-corporate micro or small business, you can apply for this loan through the Central Bank of India. Central Bank of India MUDRA Loan extends a credit for up to Rs. 10 Lakhs at a flexible tenure between 3 and 5 years.

Central Bank of India MUDRA Loan Highlights

Here is a quick overview of the basic details of Central Bank of India MUDRA Loan:

Credit Nature


  • Meeting the credit requirements for running commercial activities

  • Buying necessary equipment, machinery, or other necessary items 

  • Expanding your new or existing venture

Eligible Borrowers

Owners of small non-corporate businesses

Loan Amount

Starting from Rs. 50,000 to Rs. 10 Lakhs; varies according to different MUDRA interventions:

  • Shishu: Up to Rs. 50,000

  • Kishor: Between Rs. 50,000 and Rs. 5 Lakhs

  • Tarun: Between Rs. 5 Lakhs and Rs. 10 Lakhs

Repayment Period

3 to 5 years

Processing Fees

  • No processing fee under Shishu and Kishor

  • 0.5% under Tarun

Interest Rate

MCLR-based interest rate 10.00% onwards

Disclaimer: The MUDRA loan is a financial product of the Central Bank of India, wherein, Bajaj Markets intends to help customers know about it in detail. Details like the interest rate, processing fees, credit limit, etc., are subject to change. Visit the website of the Central Bank of India for more details.

Central Bank of India MUDRA Loan Features

Central Bank of India is one of the major intermediary financial institutions that help the government provide financial assistance to small business setups. Following are the different features of the Central Bank of India MUDRA loan:

  • You can apply for a MUDRA loan under three categories. These are Shishu, Kishor and Tarun. 

  • It aims to respond to the credit shortages of small businesses, such as shopkeepers, small manufacturing units, repair shops, etc.

  • This MUDRA loan has no obligation to collateralise properties, thereby reducing hassles and time for loan applications.

  • You can choose your tenure within the range of 1 to 5 years according to your repayment potential.

  • The Central Bank of India MUDRA Loan comes with zero processing fees and foreclosure charges.

  • The credit availed through this MUDRA loan has no end-usage restriction. You can use the amount as per your necessity.

  • You will also get a MUDRA debit card to withdraw the required capital when necessary. 

  • Beneficiaries of the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme will get the overdraft facility.

Read More

Central Bank of India MUDRA Loan Interest Rates

MUDRA Loan Interventions

Base Interest Rate







Central Bank of India MUDRA Loan Eligibility Criteria

You can get this MUDRA loan from Central Bank of India by meeting the easy eligibility standards as mentioned below:

  • Should be the owner of small businesses like fruit and vegetable shops, food-service units, machine operators, repair shops, food processing units, etc.

  • Retailers, traders, artisans, manufacturers, and small vendors can also get the credit facility.

  • Must have a sound business plan with the potential to generate profit.

Documents Required for Central Bank of India MUDRA Loan

You need to stay prepared with photocopies of the following documents for the Central Bank of India MUDRA Loan:

  • Identification Proofs: Passport, driving licence, Aadhar card, voter id, etc.

  • Residential Proof: Gas bill, power bill, water bill, driving licence, Aadhar card, voter ID, etc.

  • Business Documents: GST registration certificate, income tax returns, balance sheet, profit and loss account, rental agreement, etc.

  • Bank account statements for the last 6 months

  • Photocopies of the loan applicant 

Steps on How to Apply for Central Bank of India MUDRA Loan

You can easily apply for this loan by following the steps mentioned below:

  • Step 1: Visit the Udyamimitra portal and create your user account on the platform.

  • Step 2: Log in to the portal and fill in the MUDRA loan application form.

  • Step 3: Choose the nearest branch of the Central Bank of India as your lending institution.

  • Step 4: Visit the selected branch for the manual submission of your MUDRA loan application form and the necessary documents.


After completing these steps, you will have to wait for the approval of your loan requests. Then, you will receive the sanction letter for your loan. 

Types of MUDRA Loan

Following are all you need to know about the three categories of MUDRA loan:

  • Shishu Loan: 

You will have to apply for this section of the MUDRA loan if you want to borrow for up to Rs. 50,000. This can significantly help you to equip your micro business unit with the necessary machinery. You can get a loan under this section at an interest rate within the range of 10%-12%.

  • Kishor Loan:

The Kishor loan lets you get a credit between Rs. 50,000 and Rs. 5 Lakhs. In case, you need to buy more equipment or meet working capital requirements for your business, you can definitely go for this loan. The interest rate under this intervention is between 14% and 17%.

  • Tarun Loan: 

For a credit amount, within the range of Rs. 5 Lakhs and Rs. 10 Lakhs, you will have to apply for a Tarun Loan. This can significantly help you meet the capital required for expanding your business. You may get a loan under this Tarun intervention at a rate starting from 16%.


In this regard, as mentioned earlier, the credit comes with zero restriction of end-usage, so, you can leverage the capital whatever way you want.

Central Bank of India Customer Care

For any of your assistance regarding the Central Bank of India MUDRA Loan, you can contact the lending institutions via: 

  • Toll-Free Contact Number: 1800 202 1911/1800 203 1911


The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

Read More

FAQs for Central Bank of India MUDRA Loan

The interest rate on the Central Bank of India MUDRA loan starts from 10% per annum. This rate varies across the different interventions like Shishu, Kishor and Tarun. 

Subsidy is not applicable for the Central Bank of India MUDRA loan. However, if your loan is linked with any government scheme allowing subsidy, you may be able to leverage that to decrease your cost of borrowing.

The Central Bank of India MUDRA loan is a collateral-free credit facility. You do not need to mortgage any of your assets as a security against the loan. 

Guarantor is not necessary for this MUDRA loan. You can be eligible for the credit facility as long as you meet the required criteria.

The MUDRA loan is available for both rural and urban business owners. Beneficiaries just need to ensure that they meet the eligibility criteria for this credit facility properly.

If you meet the eligibility criteria for the MUDRA loan and you fill in the application form correctly, the chances of getting a rejection on your credit request are negligible. Further, since you give no collateral, you need to provide the necessary documents substantiating the growth aspect of your business.

Loan Offer
Download App
Credit Score