An e-Mudra loan is a kind of unsecured business loan that entrepreneurs with capital needs of under ₹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.

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 ₹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 ₹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 Crores)

State Bank of India (SBI)

SBI e-Mudra Loan


Canara Bank

Online MSME Loan


Punjab National Bank (PNB)

PNB e-Mudra Scheme


Documents Required to Apply for an e-Mudra Loan

Before applying for an e-Mudra loan, the applicant must ensure that the following documents are at their disposal:

  • Identity proof (PAN card/passport/Aadhaar card/driving licence/Voter’s ID)

  • Address proof (Aadhaar card/bank account statements/Ration card/rent agreement /phone bill/power bill)

Other Financial Documents Required to Apply for an e-Mudra Loan

In addition to the above, the applicant will also need to furnish documents to prove the existence and the finances of their business such as:

  • Income proof (Latest salary slips , Income Tax Returns or Form 16)

  • Address proof of the business

  • Registration certificate of the business

  • Proof of business continuity

  • Director Identity Number (DIN) of all the directors of the firm, if applicable

  • Photographs of the applicant(s)/director(s) or all of the partners

  • Total business experience

  • Sales figures of the past two years

  • Expected sales figures, revenue details, as well as information concerning debtors and creditors

  • Income tax returns of the past 2 years

  • Bank statements of the past 12 months

  • Sales records of the current financial year

  • Unaudited balance sheet of the previous year (in case the borrowed amount is greater than ₹2 Lakhs)

  • Assets and liabilities statement of the firm

  • Memorandum of Association (MOA)/Articles of Association or the deed of partnership

  • The relevant registrations and permits in the name of the business with the relevant authorities

How to Apply for an e-Mudra Loan?

An established as well as an aspiring business owner can apply for an e-Mudra loan online on the official website of registered Indian banks that offer the service. One must note that the application process may differ slightly from bank to bank. Additionally, one can also put in an application for an e-Mudra loan online through the Udyami Mitra portal. However, before initiating the application process, the applicant must ensure that they have all the required documents in hand.

The steps to apply for an e-Mudra loan through the Udyami Mitra portal is as follows:

  • Step 1: Visit the Udyami Mitra website at

  • Step 2: Click on the “Apply Now” option on the homepage.

  • Step 3: On the page that follows, select the ‘Category of Borrower’. You must select if you are an existing entrepreneur, a new entrepreneur, or a self-employed professional.

  • Step 4: Enter the name, email address, and mobile number at the bottom of the page.

  • Step 5: Click on the ‘Generate OTP’ button to proceed.

  • Step 6: Enter the OTP received on the registered number on the following page. Complete the process by clicking on the ‘Verify OTP’ button. Doing so will register you on the Udyami Mudra portal successfully.

  • Step 7: Fill all personal and professional details on the following page to proceed.

  • Step 8: You will be greeted with a welcome message. Click on the ‘Apply Now’ button under the ‘Loan Application Centre’ option to proceed.

  • Step 9: Select a scheme under which you want the loan to be processed. If you need a loan of up to ₹50,000, select ‘Shishu’. If you need an amount between ₹50,000 and ₹5 Lakhs, select ‘Kishor’. For an e-Mudra loan amount between ₹5 Lakhs and ₹10 Lakhs, select the ‘Tarun’.

  • Step 10: Once you select the scheme, fill in your basic business details.

  • Step 11: Next, enter the following information:

    • Basic information related to the business

    • Background Information pertaining to the proprietors and directors of the firm

    • Names of the associate concerns as well as the nature of association in addition to details regarding existing banking or credit facilities

    • Future working capital estimates if the loan is to fulfil working capital needs. If the credit is going to be used for starting a business or expanding it, information concerning the machinery must be entered.

    • Statutory obligations status (such as the credit report of the company)

    • Lender of preference (the user must choose one if they want their e-Mudra loan to be processed by a specific bank/financial institution

    • Document attachments. The documents need to be in a .jpg, .bmp, .png, or .pdf format and not exceeding 5mb in size. You must also upload copies of identity proofs as well; in that case, each file should be under 250kb in size.

  • Step 12: Once the above information has been filled in, click on the ‘Submit’ button.

  • Step 13: Finally, you will be taken to a declaration page. Tick the appropriate checkbox to continue and complete the application process.

Once you complete the e-Mudra loan application process, a success message with a loan application number will be displayed on the screen. Note the reference number for future correspondence.

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


Up to ₹50,000

Between 6-12 months

8.40% onwards




Between ₹50,001-₹5,00,000

Between 12-36 months

8.40% onwards


10% of the principal amount


Between ₹5,00,001-₹10,00,000

Between 12-60 months

8.40% onwards

0.50% of the loan amount + GST

10% of the principal amount

FAQs on e-Mudra Loans

  • ✔️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.

  • ✔️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.

  • ✔️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.

  • ✔️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.

  • ✔️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.