The Pradhan Mantri MUDRA Yojana (PMMY) was launched in 2015 to finance the business needs of micro enterprises in India. Numbering more than 62 Lakhs as per the Economic Survey 2021-22, these small businesses foster entrepreneurship and provide employment to millions.
As part of an important sector contributing to national GDP, their credit needs deserve to be met. The Mudra Loan scheme helps extend credit to enterprises engaged in:
Manufacture and trade activities
Providing services like salons or tailoring
Poultry farming, pisciculture, apiculture and other activities allied to agriculture
Financing through this scheme is not directly extended to entrepreneurs in these sectors. Instead, these loans are available through a wide range of financial institutions. Together, these lenders form a part of the Mudra Loan banks list which contains:
Small Finance Banks
Regional Rural Banks (RRBs)
Public Sector Banks
Private Sector Banks
Non-banking Financial Companies (NBFCs)
Microfinance Institutions (MFIs)
Cooperative Banks
Business owners or enterprises can avail the Mudra Loan for their business units from any of these lenders by checking the Mudra Loan provider banks List.
As you find out which banks provide Mudra Loans, keep in mind that these loans have eligibility terms you need to meet. You can choose from term loans, working capital financing, overdraft limit or a composite loan for buying assets.
See the Pradhan Mantri Mudra Yojana banks list divided as per the types of lending institutions below. Do note that this eligible banks’ list for Mudra Loan is not exhaustive and may be revised periodically.
Here’s a list of popular government banks that offer Mudra Loans:
Public Sector Mudra Loan Banks List |
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Bank of India |
Corporation Bank |
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IDBI Bank Ltd. |
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Syndicate Bank |
UCO Bank |
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Union Bank of India |
Indian Bank |
Oriental Bank of Commerce |
Andhra Bank |
United Bank of India |
Allahabad Bank |
Indian Overseas Bank |
Central Bank of India |
Punjab & Sind Bank |
State Bank of Mysore |
State Bank of Hyderabad |
Bank of Maharashtra |
Dena Bank |
Vijaya Bank |
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Here’s a list of regional and rural banks that provide Mudra Loans:
List of RRBs where the Mudra Loan Is Available |
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Pragathi Krishna Gramin Bank |
Kerala Gramin Bank |
Kaveri Grameena Bank |
Saurashtra Gramin Bank |
Kaveri Grameena Bank |
Karnataka Vikas Grameena Bank |
Punjab Gramin Bank |
Puduvai Bharathiar Grama Bank |
Dena Gujarat Gramin Bank |
Meghalaya Rural Bank |
Sutlej Gramin Bank |
Andhra Pragathi Grameena Bank |
Bihar Gramin Bank |
Baroda Gujarat Gramin Bank |
Tripura Gramin Bank |
Pallavan Grama Bank |
Saptagiri Grameena Bank |
Sarva UP Gramin Bank |
Uttar Bihar Gramin Bank |
Deccan Grameena Bank |
Dena Gujarat Gramin Bank |
Chaitanya Godavari Grameena Bank |
Pandyan Grama Bank |
Madhya Bihar Gramin Bank |
Baroda Uttar Pradesh Gramin Bank |
Sarva Haryana Gramin Bank |
Malwa Gramin Bank |
Narmada Jhabua Gramin Bank |
Prathama Gramin Bank |
Maharashtra Gramin Bank |
Baroda Rajasthan Kshetriya Gramin Bank |
Pandyan Grama Bank |
Marudhara Gramin Bank |
Here’s a list of co-operative banks that offer micro businesses Mudra Loans:
Mudra Loan Provider Co-operative Banks List |
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Gujarat State Co-op Bank Ltd |
Ahmedabad Mercantile Co-op Bank ltd |
Surat People Co-op Bank ltd |
Kalupur Commercial Co-op Bank |
AP State Apex Co-op Bank Ltd. |
Tamil Nadu Apex State Co-op Bank Ltd |
Mehsana Urban Co-op Bank |
Bassein Catholic Co-op Bank |
Jalgaon Janata Sahakari Bank Ltd |
Rajkot Nagarik Sahakari Bank |
Citizen Credit Co-op Bank Ltd |
Dombivli Nagari Sahakari Bank Ltd |
Here’s a list of private banks in India that you can get a Mudra Loan from:
Private Sector Mudra Loan Banks List |
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The Ratnakar Bank Ltd |
Tamilnad Mercantile Bank Ltd |
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Kotak Mahindra Bank Ltd |
Jammu & Kashmir Bank Ltd |
City Union Bank Ltd |
Yes Bank Ltd |
South Indian Bank |
Karur Vysya Bank Ltd |
Catholic Syrian Bank Ltd |
Karnataka Bank Ltd |
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Federal Bank Ltd |
Nainital Bank Ltd |
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IndusInd Bank Ltd |
DCB Bank Ltd |
IDFC Bank Ltd |
The Mudra Loan is split into 3 categories, each of which is intended for a business that needs a certain level of financial assistance. Here are the three types of loans offered under the Pradhan Mantri Mudra Yojana.
This entry-level Shishu Mudra loan offers a maximum loan value of ₹50,000 to cover short-term financial needs of micro enterprises.
With a bigger lending cap of up to ₹5 Lakhs, Kishore Mudra loan can cover a range of infrastructural or working capital needs.
With an amount varying from ₹5 Lakhs to ₹50 Lakhs, Tarun Mudra loan is ideal for firms looking to expand, meet demand or capitalise on new opportunities.
Partner institutions that appear on the Mudra Loan banks list need to fulfil certain eligibility criteria. Some of the terms are as follows:
RRBs should have earned a net profit in the previous two years and have a net worth above ₹50 Crores.
Small Finance Banks need to have earned profits during the last two financial years and have a valid licence by the RBI.
Urban Cooperative Banks that are included in the Second Schedule of RBI Act 1934 are permitted if no monetary penalty has been imposed on them.
NBFCs should be in the current line of business for 5 years and should have been profitable for the last 3 years.
Micro finance institutions need to showcase a profitable track record for the past two years.
For public and private sector banks, the eligible limit that will be considered is the exposure limit approved on the basis of the exposure framework.
Several other parameters are considered before partners are selected to be a part of the list of institutions that can make Mudra bank loans available to entrepreneurs in need.
So far, a list of 200+ partner institutions or Mudra banks has been shortlisted. These include 15 cooperative banks, 25 microfinance institutions, 35 NBFCs, 47 NBFC-MFI, 18 private sector banks, 21 public sector banks, and 36 RRBs. You can access the whole list on the official Mudra website.
These institutions serve potential beneficiaries such as individuals, proprietors, partnership and private limited companies as well as other legal entities. With the support of banks providing Mudra Loans, PMMY aims to achieve last-mile credit delivery. This way, all those in need of business financing have access to credit.
As an owner of a micro, small, or medium enterprise, you too may be looking for a Mudra Loan. You can apply online or offline at any of the above institutions to boost your business. If you are looking for a business loan of over ₹10 Lakhs or don’t meet the eligibility terms, consider other business or the MSME loans.
Whether to get new equipment or expand your business geographically, you can get a business loan of up to ₹50 Lakhs at Bajaj Markets. These zero-collateral loans are approved in as little as 2 minutes and have flexible repayment tenures to suit your needs.
Here are some of the major banks you can get this loan from:
HDFC bank
Axis Bank
Bank of Baroda
Indian Bank
State Bank of India
Punjab National Bank
MUDRA loan interest rates vary from one bank to another and are based on the interest cap as mandated by the RBI. Currently, the rates start at 7.30% onwards.
Yes, if you are a micro entrepreneur, you could opt for a Mudra Loan depending on the amount you require. For a higher amount, browse top business loans on Bajaj Markets. These require minimal documentation and are easy to apply for online.
The following documents are required to apply for a Mudra bank loan:
● Loan application form
● 2 passport size photographs
● Photo Identity proof
● Address proof
● Income proof
● Bank statement (last 6 months)
You can get a Mudra Loan online by meeting the eligibility criteria, filling the loan application and submitting the needed paperwork. You can do so at one of the financial institutions on the Mudra Loan banks list.
Yes. To offer these loans, permissible financial institutions must meet certain requirements related to licences, profitability, business continuity and more.
Yes, private banks like the ICICI Bank, YES Bank, Kotak Mahindra Bank and HDFC Bank among others, offer Mudra Loans.
There are more than 200 banks, NBFCs and microfinance institutions who currently offer Mudra Loans. You can view the Mudra Loan banks list on the official website.
The Micro Units Development and Refinance Agency Ltd oversees the Mudra Loan scheme.
Regional rural banks must have a credit to risk assets ratio of greater than 9%.