Mudra Loan Eligibility

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To get financial support under the Pradhan Mantri MUDRA Yojana (PMMY), you must qualify for a MUDRA Loan. You must meet specific eligibility criteria aimed at supporting small businesses and entrepreneurs. The loan is available to non-corporate, non-farm small or micro enterprises in sectors such as manufacturing, trading, and services.

Let’s see the detailed eligibility criteria to get a MUDRA loan:

MUDRA Loan Eligibility Criteria

Minimum age	18 years
Maximum age	65 years
Who all can avail loan?	Loans can be availed by new and existing MSME units
Collateral	No collateral or third-party security is required
Maximum Loan Amount	₹10 Lakhs
Eligible Lending Institutions	Public Sector Banks, Private Sector Banks, Regional Rural Banks, Micro-Finance Institutions
Documents	Identity proof, residence proof, Income proof, application form, and passport-size photos
Eligible Entities	Some of the eligible entities are as follows: Small Manufacturers and vendors Artisans Fruits and vegetables Dealer Individuals engaged in agricultural activities like livestock, poultry, and more Shopkeepers Retailers MSMEs

Lending Institutions Eligible to Provide MUDRA Loan

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 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% respectively
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, 18 private sector banks, 26 micro-finance Institutions, 31 non-banking financial institutions, and 14 cooperative banks are selected for MUDRA loans.

Important Links

Mudra Loans Related Pages

Other Mudra Loan Related Pages

Banks/NBFCs providing Mudra Loan

Would you be eligible for a MUDRA loan, even if you have a bad credit score?

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.

Do you need to have an account in the same bank to get a MUDRA loan?

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.

Can a MUDRA loan be rejected?

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.