An e-Mudra loan is a kind of unsecured business loan that entrepreneurs with capital needs of under Rs. 10 Lakhs can avail through the internet. The funds from an e-Mudra loan can be used for establishing a business, expanding, or meeting its working capital requirements. The e-Mudra loan can be availed from a number of private and public sector banks.
The e-Mudra loan initiative is a part of the Pradhan Mantri MUDRA Yojana (PMMY) and the Digital India initiative. This scheme was launched by the Indian government in 2015 with the aim of providing financial aid to small business owners and entrepreneurs.
What is E-Mudra Loan?
As per this scheme, small-scale enterprises of India can opt for loans ranging between Rs. 50,000 up to Rs. 10 Lakhs online. Introduced in 2015, the E-Mudra loan is considered as a vital component of the PMMY (Pradhan Mantri Mudra Yojana).
It is an effective government initiative to support the MSMEs of India financially. The amount attained under the E-Mudra loan is used to meet the working capital needs of a business, start a venture, enlarge a business, and so on.
Now, if you run a small organisation and plan to opt for this scheme, check out its interest rates, benefits, and other essential details.
E-Mudra Loan Interest Rate
Many financial institutions provide Mudra loans at various interest rates in order to assist income-generating non-agricultural enterprises that need a credit of less than Rs. 10 Lakhs. The interest rate on Mudra loans depends on the applicant's eligibility and other reasons. Below there is table showing the interest rates charged by various Indian banks offering Mudra loans.
Bank Name |
Rate of Interest |
Tenure |
State Bank of India (SBI) |
Linked to MCLR |
1 to 5 years |
IDBI Bank |
Linked to Bank’s Base Rate and Rating |
1 to 5 years |
ICICI Bank |
Depends on the guidelines |
At discretion of the bank |
Bank of Baroda |
9.65% per annum |
At discretion of the bank |
UCO Bank |
From 8.85% per annum |
At discretion of the bank |
HDFC Bank |
Depends on the guidelines |
At discretion of the bank |
Indian Overseas Bank |
Depends on the guidelines |
At discretion of the bank |
Canara Bank |
Depends on the guidelines |
Up to 7 years |
Central Bank of India |
Depends on the guidelines |
At discretion of the bank |
Allahabad Bank |
Depends on the guidelines |
1 to 5 years |
Union Bank of India |
7.30% per annum |
At discretion of the bank |
Disclaimer: These details are subjected to changes. Please double check before taking a call.
How to Apply for an e-Mudra Loan
Any established and new business owner can opt for an e-Mudra loan online from the official website of registered Indian financial institutions that provides this service.
Furthermore, one can apply for an e-Mudra loan online via Udyami Mitra portal. However, you should keep the necessary documents handy before undergoing this application process.
The Steps to Apply for an e-Mudra Loan through the Udyami Mitra Portal is as Follows:
Step 1: Go to the Udyami Mitra official website
Step 2: Select on “Apply Now” option
Step 3: In the next page, click on ‘Category of Borrower’ and select whether you are a new entrepreneur, existing entrepreneur, or self-employed.
Step 4: Input your name, contact number, email ID. Select ‘Generate OTP’, and then proceed
Step 5: Insert the OTP that you received on your registered mobile number. By doing so you registration on the Udyami Mudra portal will be completed successfully.
Step 6: Fill out professional and personal details on the next page.
Step 7: Select on ‘Apply Now’ option under the ‘Loan Application Centre’ option.
Step 8: You will get three scheme options: ‘Tarun’, ‘Shishu’, and ‘Kishor’ from which you can choose the scheme that suits you the best.
Step 9: After choosing the scheme, fill out your basic business details.
Step 10: Next, provide information of proprietors and directors, basic information related to the business, existing credit facilities, estimated working capital, credit report, etc.
Step 11: Attach documents in .jpg, .bmp, png, or pdf format and make sure that its size is be in between 250 KB and 5 MB.
Step 12: After entering all information select ‘Submit’ .
- Step 13: Lastly, you will be redirected to the declaration page where you have to tick the necessary checkboxes in order to complete the application process.
After completing all these steps successfully, you will get a notification with a loan application ID that you have to keep for future requirement.
Now that you have gone through the steps to apply for an E-Mudra loan online, take a look at its eligibility criteria and documents required.
Eligibility Criteria and Documents Required
The eligibility criteria and documents required in order to apply for an E-Mudra loan are given below:
Eligibility Criteria |
Requirements |
Age Limit |
18 years to 65 years |
Who can Apply |
Both new and existing businesses |
Where to Apply |
Private Sector Banks, Public Sector Banks, , Small Finance Banks, Regional Rural Banks, and Micro Finance Institutions |
Collateral |
No need for collateral |
Documents Required |
ID Proof, address proof |
Benefits of Availing an e-Mudra Loan
The benefits of availing an e-Mudra loan are:
An entrepreneur does not have to furnish any guarantee to avail an e-Mudra loan.
An established or an aspiring business owner can avail up to Rs. 10 Lakhs as an e-Mudra loan.
As e-Mudra loans can be availed online, it saves time.
If the amount borrowed through an e-Mudra loan is under or equal to Rs. 5 Lakhs, many institutions do not charge a processing fee at all.
The borrower can repay the e-Mudra loan over the course of five years, subject to personal eligibility and the loan size.
Several banks and financial institutions offer e-Mudra loans to eligible applicants at affordable interest rates.
The amount availed as e-Mudra loan can be used for things such as starting a business, expanding a venture, giving the establishment an overhaul or meeting working capital requirements during months of low turnover.
The eligibility criteria that one needs to fulfil to qualify for an e-Mudra loan is simpler as compared to the conditions an entrepreneur must satisfy to get a regular business loan.
Top 3 Public Sector Banks Offering e-Mudra Loans
The top 3 public sector banks that offer e-Mudra loans on the basis of the loan amount disbursed in FY 2020-21 are:
Bank Name |
E-Mudra Loan Product Name |
Amount Disbursed in FY 2020-21 (In Rs. crores) |
State Bank of India (SBI) |
SBI e-Mudra Loan |
37,973.3 |
Canara Bank |
Online MSME Loan |
13,210 |
Punjab National Bank (PNB) |
PNB e-Mudra Scheme |
11,187 |
Who Can Apply for an E-Mudra Loan
Following are the persons who can apply for the E-Mudra Loan.
Both new and existing units can opt for the Pradhan Mantri Mudra Yojana loan.
Business sectors involved in producing goods can opt for this loan.
Individuals employed in trading and services sector may opt for this loan.
Products Offered Under the PMMY Scheme
The products offered under the Pradhan Mantri Mudra Yojana (PMMY) scheme are:
Product Name |
Loan Amount Range |
Repayment Tenure |
Interest Rate (per annum) |
Processing Fees |
Margin Money Requirement |
Shishu |
Up to Rs. 50,000 |
Between 6 months and 12 months |
From 8.40% |
Nil |
Nil |
Kishor |
Between Rs. 50,001 to Rs. 5,00,000 |
Between 12 months and 36 months |
From 8.40% |
Nil |
10% of the principal amount |
Tarun |
Between Rs. 5,00,00 to Rs. 10,00,000 |
Between 12 months and 60 months |
From 8.40% |
0.50% of the loan amount + GST |
10% of the principal amount |
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FAQs on e-Mudra Loans
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✔️What are the various ways to access e-Mudra?
One can gain access to an e-Mudra loan through the official websites of registered banks/NBFCs. Alternatively, one can also apply for an e-Mudra loan through the Udyami Mitra Portal.
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✔️Is any collateral required for an e-Mudra loan?
No. There is no need for any kind of collateral in order to avail an e-Mudra loan.
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✔️What is the repayment timeline for an e-Mudra loan?
Depending on the loan amount, the repayment timeline for an e-Mudra loan can be anywhere between 12 months to 60 months.
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✔️What is a MUDRA card?
A Mudra card is a debit card that is issued to a Mudra loan borrower against their loan account. This card is used to make withdrawals from the working capital portion of the sanctioned amount. A Mudra card also allows the borrower to make frequent credits into their loan account to reduce the interest burden by directly paying the principal component of the loan.
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✔️Which private sector bank has topped the table in FY 2020-21 in Mudra loan disbursal?
Bandhan Bank is the private sector bank that topped the charts in FY 20-21 in terms of Mudra loan disbursal. During that financial year, Bandhan bank disbursed ₹32,335 Crores by way of Mudra loans.
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✔️Does the e Mudra loan scheme offer any subsidies?
The e-mudra scheme introduced by the Pradhan Mantri Mudra Yojana (PMMY) doesn’t offer any subsidies for availing loans. However, it offers credit with flexible and easier terms to small businesses through banks as well as financial institutions.
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✔️How can I get download the e Mudra loan application form online?
To download the e-mudra loan application form, simply visit the PMMY official website. Now, download the form depending on whether you require loan under Shishu, Tarun, or Kishore scheme.
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✔️Who is eligible for e mudra loan?
The e-Mudra PMMY scheme provides a loan to micro, small, medium, non-farming and non-corporate business enterprises situated in rural as well as urban areas in India. To become eligible for the scheme, you should be:
An Indian citizen
A small-scale manufacturer
A vegetable and fruit vendor
An artisan
A retailer/ shopkeeper
An individual engaged in agriculture, including poultry, livestock units, fisheries.
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✔️Is it easy to get e mudra loan?
Yes, it is easy to avail an e-mudra loan, provided you fulfil the required criteria. Moreover, you do not need to submit any collateral for getting this loan. The loan is available for both new as well as existing MSMEs.
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✔️Can E-mudra loan be availed twice?
Once you avail a MUDRA loan, your credit report will include that information. So, if you apply for another loan from some other lender, they will come to know that you have already taken a MUDRA loan somewhere else. So, the lender is most likely to disapprove your application.
