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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 offers three products, namely:


  • Shishu: Offer loans up to ₹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

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

What are the eligibility criteria for Mudra Loan?

  • The applicant must be between the age group of 18-65 years.

  • Each eligible individual is qualified for a loan amount of up to ₹10 Lakhs.

  • Some of the eligible entities for Mudra loans are as follows


  1. Small Manufacturers and vendors

  2. Artisans

  3. Fruits and vegetables Dealer

  4. Individuals engaged in agricultural activities like livestock, poultry, and more

  5. Shopkeepers

  6. Retailers

  7. MSMEs

  • The applicant must be an Indian citizen with no record of any criminal activity.

  • The applicant must essentially have zero defaults with any bank.

  • The applicant also needs to produce business statements and reports that project their revenue.

  • Mudra loans can be availed by all non-farm enterprises engaged in trading, services, and manufacturing sectors.

  • Eligible lending institutions include Public and Private sector banks, regional rural banks, and micro-finance institutions.

  • Some of the documents required include proof of identity, proof of residence, an application form, and passport-sized photographs.


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

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, along with exclusive offers make the Bajaj Finance Business Loans on Bajaj Markets all the more attractive.

FAQs on Mudra Loan Eligibility

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.

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.

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

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!

Typically, it is possible to avail of a Mudra loan even with a low credit score, as banks do not check the credit score before approving Mudra loans. However, it is advisable to always have a good credit score to have a secure financial present and future.

No, it is not obligatory to apply for a Mudra loan from a bank where you hold an account. However, having a bank account in the same bank might improve your chances of getting a Mudra loan.

Unfortunately, a Mudra loan can be rejected if you don't fit the eligibility criteria as required by the lender. Hence, it is always advisable to check your eligibility criteria with as many lenders as possible and then select a lender that best fits your criteria to avoid facing any rejection.

Yes, it is easy to avail of a Mudra loan as long as you qualify and fall under the eligibility criteria mentioned by the banks and various other lenders.

Even though all banks and NBFCs offer a Mudra loan, the loan processing time at each bank might be different. A MUDRA loan is treated just like any other business loan and hence the processing time is the same as other loans. The disbursement is expected to occur within two days after the acknowledgment of the application. 


Overall, the loan process may take up to a week or 10 days, depending on how well the individual fits the eligibility criteria and based on the verification of the documents submitted.

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