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The inauguration of the Pradhan Mantri MUDRA Yojana (PMMY) was done on April 8, 2015. One of the primary objectives of this particular scheme is to provide loans that provide a boost to micro, small, and medium enterprises (MSME) via formalised banking channels. The applicant should meet Mudra loan eligibility criteria to get a loan amount that can be high as ₹10 Lakh. The Mudra scheme offer three products, namely:

  • Shishu: Offer loans upto ₹50,000 to individuals in the early stage of business

  • Kishore: Loans between ₹50,000 and ₹5 Lakh

  • Tarun: Loans between ₹5 Lakh and ₹10 Lakh

Mudra Loan Eligibility Criteria

The Mudra scheme extends a loan to non-corporate, non-farming micro, small, and medium enterprises in rural and urban India. You are eligible for the PMMY scheme if you are: 

  • A small manufacturer

  • An artisan

  • A fruit and vegetable dealer

  • A shopkeeper

  • An individual occupied in Agriculture (poultry, fisheries, livestock units, etc.)

 Below we have provided the Mudra Yojana eligibility criteria in detail:

Minimum age

18 years

Maximum age

65 years

Who all can avail loan?

Loans can be availed by new and existing MSME units


No collateral or third-party security is required

Eligible Lending Institutions 

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


Identity proof, residence proof, application form, and passport-size photos


Lending Institutions Eligible to Provide Mudra Loan

Anyone who runs a business enterprise is eligible to apply for a MUDRA (Micro Units Development and Refinance Agency) loan. The purpose of the Mudra loan is to support small and medium businesses that do not have access to a formal channel of borrowing funds. All public, private, and regional rural banks are eligible to provide Mudra Loan. Given below are the lending institutions that offer Mudra loans:

  • Non-Banking Financial Companies (NBFC)

  • Public and Private Sector Banks

  • Micro Finance Institutions (MFI)

  • Regional Rural Banks (RRB)

  • Small Finance Banks (SFB)

The lending institution also needs to make sure it fits the eligibility criteria to be eligible for MUDRA Loan. They are as follows:

  • The bank must have generated profits during the last two years to be eligible

  • For public, private, and regional rural banks, the net performing assets should not exceed more than 15%, 10%, and 6%

  • The net worth of the lending institution should be above ₹250 crore for private and public sector banks and above ₹50 crore for rural banks.

Altogether, 27 public sector banks, 31 regional rural banks, 17 private sector banks, 36 micro-finance Institutions, 25 non-banking financial institutions, and 4 cooperative banks are selected for Mudra loans.

Be it start-ups looking for new-age infrastructure, or a small and medium enterprise looking to upgrade its machinery, you can find a business loan tailored to your needs on Bajaj Markets. The convenient online business loan application process, zero collateral, flexible repayment options, high loan amount of up to ₹30 Lakh, loan disbursal in less than 3 minutes, along with exclusive offers make the Bajaj Finance Business Loans on Bajaj Markets all the more attractive.

FAQs on Mudra Loan Eligibility

✔️What is the eligibility criteria for Mudra loan?

The applicant should be of 18 years of age at the least or 65 at the most to avail a Mudra loan. Mudra loans can be availed by non-farm-related income-generating businesses in trading, services, and manufacturing. Additionally, the credit requirement must be that of ₹10 Lakh or lower.

✔️Who is eligible for a Mudra bank loan?

All small businesses can benefit from the MUDRA loan scheme. Traders, manufacturers, service providers, self-help groups, artisans, and even those working at lower levels are eligible beneficiaries of the MUDRA loan.

✔️What is Mudra loan age limit?

As far as the age criteria for a Mudra loan is concerned, the applicant must be of 18 years of age at the very least to avail of a Mudra loan. On the upper end of the age limit, the applicant cannot be more than 65 years old.

✔️How to check Mudra loan eligibility?

You can check your Mudra loan eligibility by verifying your details to see if they are in line with the eligibility criteria laid out under the scheme. Prior to that, you must make sure that you have a business plan for a non-farm-related activity at hand. Check your Mudra Loan Eligibility on Bajaj Markets today!