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Central Bank of India Mudra Loan

Learn More about the Central Bank of India Mudra Loan, the steps to apply, the criteria for eligibility, necessary documents, and much more.

If you are running a non-corporate micro or small business, you can apply for a MUDRA loan through the Central Bank of India. Central Bank of India MUDRA Loan extends a credit for up to Rs. 10 Lakhs at a flexible tenure between 3 and 5 years.

Central Bank of India MUDRA Loan Highlights

The Central Bank of India MUDRA Loan scheme, under the Pradhan Mantri Mudra Yojana (PMMY), is designed to provide financial assistance to micro and small enterprises in India. This initiative aims to promote entrepreneurship and employment generation by offering accessible credit to non-corporate, non-farm small/micro enterprises.

The following highlights provide an overview of the key features and benefits of the Central Bank of India MUDRA Loan scheme:

Credit Nature

  • Working capital loan: A short-term loan designed to finance daily operational expenses such as payroll, rent, and inventory.

  • Term loan: A lump sum loan with a fixed repayment schedule, typically used for long-term investments like equipment or business expansion.

  • Equipment Finance: A loan or lease arrangement that enables businesses to acquire necessary equipment without paying the full cost upfront.

  • Credit for agriculture-allied non-farm units: Financial support provided to non-farm units engaged in agriculture-related activities to enhance productivity and income.

Purpose

  • Meeting the credit requirements for running commercial activities

  • Buying necessary equipment, machinery, or other necessary items 

  • Expanding your new or existing venture

Eligible Borrowers

Owners of small non-corporate businesses

Loan Amount

Starting from Rs. 50,000 to Rs. 10 Lakhs; varies according to different MUDRA interventions:

  • Shishu: Up to Rs. 50,000

  • Kishor: Between Rs. 50,000 and Rs. 5 Lakhs

  • Tarun: Between Rs. 5 Lakhs and Rs. 10 Lakhs

Repayment Period

3 to 5 years

Processing Fees

  • No processing fee under Shishu and Kishor

  • 0.5% under Tarun

Interest Rate

MCLR-based interest rate 10.00% onwards

Disclaimer: The MUDRA loan is a financial product of the Central Bank of India, wherein, Bajaj Markets intends to help customers know about it in detail. Details like the interest rate, processing fees, credit limit, etc., are subject to change. Visit the website of the Central Bank of India for more details.

Central Bank of India MUDRA Loan Features

Central Bank of India is one of the major intermediary financial institutions that help the government provide financial assistance to small business setups. Following are the different features of the Central Bank of India MUDRA loan:

  • You can apply for a MUDRA loan under three categories. These are Shishu, Kishor and Tarun. 

  • It aims to respond to the credit shortages of small businesses, such as shopkeepers, small manufacturing units, repair shops, etc.

  • This MUDRA loan has no obligation to collateralise properties, thereby reducing hassles and time for loan applications.

  • You can choose your tenure within the range of 1 to 5 years according to your repayment potential.

  • The Central Bank of India MUDRA Loan comes with zero processing fees and foreclosure charges.

  • The credit availed through this MUDRA loan has no end-usage restriction. You can use the amount as per your necessity.

  • You will also get a MUDRA debit card to withdraw the required capital when necessary. 

  • Beneficiaries of the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme will get the overdraft facility.

Disclaimer: The features outlined above are based on the Central Bank of India's Cent Mudra Yojna as of 2025. Eligibility criteria, loan amounts, and terms may vary based on individual circumstances and are subject to change without prior notice. For the most accurate and up-to-date information, please contact the Central Bank of India directly or visit their official website.

Central Bank of India MUDRA Loan Interest Rates

Central Bank of India offers MUDRA loans under the Cent Mudra scheme, providing financial support to micro and small enterprises. The interest rates are linked to the bank's RBLR (Repo Linked Lending Rate), ensuring competitive and transparent pricing.

The following table outlines the interest rates applicable under various loan tenures:

MUDRA Loan Interventions Base Interest Rate

Shishu

MCLR

Kishor

MCLR

Tarun

MCLR

Disclaimer: The interest rates provided above are based on the Central Bank of India's RBLR (Repo Linked Lending Rate) and are subject to change without prior notice. The actual interest rate applicable to an applicant may vary depending on individual credit profiles, loan amounts, and repayment tenures. For the most accurate and up-to-date information, please contact the Central Bank of India directly or visit their official website.

Central Bank of India MUDRA Loan Eligibility Criteria

The Central Bank of India offers MUDRA loans under the Shishu, Kishor, and Tarun categories to support micro and small enterprises in non-farm sectors. Below are the detailed eligibility criteria for each loan type, presented under the respective subheadings:

Eligibility Criteria for Central Bank of India’s Shishu Mudra Loan

The table below outlines who can apply and the conditions for the Shishu loan category:

Criterion Details

Loan Amount Range

Up to ₹50,000

Eligible Borrowers / Business Types

Non-corporate micro / small units in non‐farm sectors: individuals, proprietorships, partnership firms, small manufacturers, traders, service providers, shopkeepers, artisans, food processors, repair shops, etc. Must operate in rural or urban areas.

Key Requirements / Conditions

• Udyam Registration Certificate mandatory

• No collateral or guarantor required under the scheme

• The activity should generate non-farm income (manufacturing / trading / services)

• The applicant should be a small enterprise / micro-unit as per scheme norms

Disclaimer: The eligibility details provided are based on information available from the Central Bank of India and the MUDRA scheme guidelines. Actual requirements may vary as per bank policies.

Eligibility Criteria for Central Bank of India’s Kishor Mudra Loan

The following table explains the borrower requirements and conditions for the Kishor loan category:

Criterion Details

Loan Amount Range

More than ₹50,000 up to ₹5,00,000

Eligible Borrowers / Business Types

Same types as for Shishu: Non-corporate, small / micro units in non-farm sectors (manufacturing, trading, services etc.), in rural or urban areas; individuals / proprietorships / partnerships etc.

Key Requirements / Conditions

  • Udyam Registration Certificate mandatory

  • No collateral / guarantor generally required (for small amounts) under the Mudra scheme

  • The business should be income generating and non-farm in nature

  • May require satisfactory credit history / not being a defaulter (depending on bank policies)

Disclaimer: The criteria mentioned are for general guidance only. The Central Bank of India may apply additional checks or conditions depending on the applicant’s profile and regulatory norms.

Eligibility Criteria for Central Bank of India’s Tarun Mudra Loan

The table here highlights the eligibility details for applicants under the Tarun loan category:

Criterion Details

Loan Amount Range

More than ₹5,00,000 up to ₹10,00,000

Eligible Borrowers / Business Types

Same general class: non-corporate small / micro units in non-farm sectors (manufacturing / trading / services / allied agriculture), individuals, proprietorships, partnerships etc, in both rural and urban areas.

Key Requirements / Conditions

  • Udyam Registration Certificate mandatory

  • Normally no collateral/guarantor under scheme; higher amounts may attract additional scrutiny or margin requirements.

  • The business must be non-farm income-generating; intended for expansion / higher scale than lower categories.

  • Applicants should not be defaulter in credit with banks (good credit standing) depending on bank discretion.

 Disclaimer: The eligibility information is indicative and subject to change. Final approval and terms are at the discretion of the Central Bank of India in line with the MUDRA scheme rules.

Documents Required for Central Bank of India MUDRA Loan

You need to stay prepared with photocopies of the following documents for the Central Bank of India MUDRA Loan:

Document Type Shishu (up to ₹ 50,000) Kishor (₹ 50,001 to ₹ 5,00,000) Tarun (₹ 5,00,001 to ₹ 10,00,000)

Completed loan / Mudra application form

required

required

required

Passport-sized photographs

required

required

required

Proof of identity (e.g. Aadhaar, Voter ID, PAN, Driving Licence)

required

required

required

Proof of address (utility bills, Aadhaar, lease/rent agreement etc.)

required

required

required

Business proof / proof of continuity of business (for existing business)

may be required

required

required

Last 6 months’ bank statements

may be required

required

required

Income proof (ITR / audited financials)

generally minimal or not required

required

required

Balance sheet of business for past years

not required or minimal for smaller amounts

may be required especially for upper limit of Kishor

required especially for Tarun for higher value loans

Proof of business address or ownership

basic requirement

required

required

Proof of eligibility category (if SC / ST / OBC / Minority etc.)

if applicable

if applicable

if applicable

Trade references / business references

optional

possibly required

likely required

Project report / details of proposed use of funds

generally not required

may be required

usually required for larger / term loans

Disclaimer: This table is indicative only. Actual document requirements can vary depending on the bank branch, nature of business (new vs existing), applicant’s profile, and the exact loan amount. It is advisable to confirm the documentation checklist with the Central Bank of India branch where you apply.

Central Bank of India MUDRA Loan Repayment Tenure

The repayment tenure for MUDRA loans under the Central Bank of India varies based on the loan category and amount. For digital term loans under the Cent Mudra scheme, the repayment tenure is structured as follows:

  • Up to ₹3 Lakhs: Repayment tenure ranges from 3 to 5 years.

  • Above ₹3 Lakhs: Repayment tenure extends up to 7 years.

For loans under the Cent Mudra scheme, the maximum loan amount is ₹10 Lakhs. The repayment tenure is determined based on the loan amount and applicant's repayment capacity. The bank offers flexibility in repayment schedules, allowing borrowers to choose a tenure that aligns with their financial situation.

It's important to note that the repayment tenure may vary for different loan categories and amounts. For instance, under the Cent Mudra scheme, the maximum repayment tenure is 84 months (7 years). However, for loans under other schemes like Cent Mortgage, the repayment tenure can be up to 120 months (10 years).

Disclaimer: Borrowers are encouraged to discuss their specific requirements with the bank to determine the most suitable repayment tenure for their MUDRA loan.

teps on How to Apply for Central Bank of India MUDRA Loan

You can easily apply for this loan by following the steps mentioned below:

  • Step 1: Visit the Central Bank of India Mudra Loan application portal.

  • Step 2: Enter your preferred option from ‘Individual’ and ‘Proprietorship’ for the constitution field.

  • Step 3: Enter your mobile number and preferred loan amount.

  • Step 4: Review the terms and conditions carefully and select the ‘I agree to the Terms and Privacy Policy’ checkbox.

  • Step 5: Click the ‘Proceed’ button.

Disclaimer: The steps provided are indicative of the general process for applying for a Mudra loan through the Central Bank of India’s online portal. The actual process may vary based on the applicant’s profile, loan amount, and the bank’s internal policies. It is recommended to review all details carefully before submitting the application and consult with the bank for any specific requirements or updates to the application procedure.

Central Bank of India Customer Care

For any of your assistance regarding the Central Bank of India MUDRA Loan, you can contact the lending institutions via: 

  • Toll-free Contact Number: 1800 3030

  • Pensioners (Toll-free): 1800 203 1911

  • Grievances: 6364861866 (WhatsApp)

Complaints for Cyber-frauds: 1930

Similar Schemes Offered by the Indian Government

Central Government Schemes

The following table highlights some of the most popular central government schemes in India that provide financial support, employment, or skill development opportunities: 

Scheme Name Purpose / Key Benefit

Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Financial inclusion with basic accounts, RuPay card, and access to insurance/pension.

Pradhan Mantri MUDRA Yojana (PMMY)

Micro-credit loans to small/micro enterprises under Shishu, Kishor, and Tarun categories.

MGNREGA

Guarantees 100 days of wage employment per rural household with unskilled work.

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

Short-term skill training and certification to enhance employability.

Prime Minister’s Employment Generation Programme (PMEGP)

Credit-linked subsidy for setting up micro-enterprises.

Stand-Up India

Bank loans (₹10 Lakhs–₹1 Crore) to SC/ST and women entrepreneurs for greenfield enterprises.

Startup India

Recognition and support for startups through funding, tax benefits, and incubation.

CGTMSE

Credit guarantee for collateral-free loans to micro and small enterprises.

DDU-GKY

Skilling and placement scheme for rural poor youth.

DAY–NRLM

Self-help group and livelihood support for women in rural areas.

Kisan Credit Card (KCC)

Affordable short-term credit facility for farmers.

Ayushman Bharat – PM-JAY

Health insurance scheme offering cashless treatment for secondary and tertiary care.

These schemes collectively aim to improve financial security, create jobs, and support entrepreneurship across India.

State-Level Schemes

Here’s a look at some notable state-level schemes launched by different governments to provide localised financial aid, social security, and employment benefits: 

Scheme Name State Purpose / Key Benefit

Rythu Bandhu

Telangana

Direct cash support to farmers per acre each season for input costs.

Aasara Pensions

Telangana

Monthly pension support for elderly, widows, and disabled persons.

TS-iPASS

Telangana

Single-window clearance for industries to boost investment and jobs.

YSR Rythu Bharosa

Andhra Pradesh

Annual income support package for farmers.

Kanyashree Prakalpa

West Bengal

Cash scholarship to keep girls in school and prevent early marriage.

LIFE Mission

Kerala

Housing and rehabilitation scheme linked with livelihood support.

Naan Mudhalvan

Tamil Nadu

Upskilling and scholarship programme to boost youth employability.

Mahatma Jyotirao Phule Shetkari Karjamukti Yojana

Maharashtra

Loan waiver and relief measures for indebted farmers.

Mukhyamantri Kanya Suraksha Yojana

Bihar

Cash transfer scheme to promote girl child education and welfare.

These state initiatives are designed to address region-specific challenges while complementing central programmes for inclusive development.

DISCLAIMER

The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

FAQs

Is a Mudra loan available in the Central Bank of India?

Yes, the Central Bank of India (CBI) does provide Mudra loans under the Pradhan Mantri Mudra Yojana (PMMY). The scheme, branded as Cent Mudra, has been active at CBI since April 8, 2015, supporting non-farm micro-enterprises engaged in manufacturing, trading, and services with credit requirements up to ₹10 Lakhs.

The interest rate on the Central Bank of India MUDRA loan starts from 10% per annum. This rate varies across the different interventions like Shishu, Kishor and Tarun.

Subsidy is not applicable for the Central Bank of India MUDRA loan. However, if your loan is linked with any government scheme allowing subsidy, you may be able to leverage that to decrease your cost of borrowing.

The Central Bank of India MUDRA loan is a collateral-free credit facility. You do not need to mortgage any of your assets as a security against the loan.

Guarantor is not necessary for this MUDRA loan. You can be eligible for the credit facility as long as you meet the required criteria.

The MUDRA loan is available for both rural and urban business owners. Beneficiaries just need to ensure that they meet the eligibility criteria for this credit facility properly.

If you meet the eligibility criteria for the MUDRA loan and you fill in the application form correctly, the chances of getting a rejection on your credit request are negligible. Further, since you give no collateral, you need to provide the necessary documents substantiating the growth aspect of your business.

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