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What is E Mudra Loan

MUDRA loans that can be availed online are known as e-MUDRA Loans. Many commercial and public sector banks, small finance banks, NBFCs, and MFIs accept applications for e-MUDRA loans. Additionally, online applications are also available via the Udyami Mitra Portal. The lending programme was established to help banking institutions lend money to micro and small businesses. Thus generating income outside of the corporate and agricultural sectors (subject to the enterprises with credit requirements lower than ₹10 Lakhs).

E-Mudra Loan Interest Rate

Bank Name 

Rate of Interest 


State Bank of India (SBI)

Linked to MCLR

1 to 5 years


Linked to Bank’s Base Rate and Rating

1 to 5 years


Depends on the guidelines

At discretion of the bank

Bank of Baroda

9.65% per annum

At discretion of the bank

UCO Bank

From 8.85% per annum

At discretion of the bank


Depends on the guidelines

At discretion of the bank

Indian Overseas Bank

Depends on the guidelines

At discretion of the bank

Canara Bank

Depends on the guidelines

Up to 7 years

Central Bank of India

Depends on the guidelines

At discretion of the bank

Allahabad Bank

Depends on the guidelines

1 to 5 years

Union Bank of India

7.30% per annum

At discretion of the bank

Disclaimer: These details are subjected to changes. Please double check before taking a call.

Eligibility Criteria and Documents Required for E-Mudra Loan

The eligibility criteria and documents required in order to apply for an E-Mudra loan are given below:

Eligibility Criteria 


Age Limit 

18 years to 65 years

Who can Apply

Both new and existing businesses

Where to Apply

Private Sector Banks, Public Sector Banks, , Small Finance Banks, Regional Rural Banks, and Micro Finance Institutions


No need for collateral 

Documents Required 

ID Proof, address proof

How to Apply for an e-Mudra Loan

The Steps to Apply for an e-Mudra Loan through the Udyami Mitra Portal is as Follows:

  • Step 1: Go to the Udyami Mitra official website

  • Step 2: Select on “Apply Now” option

  • Step 3: In the next page, click on ‘Category of Borrower’ and select whether you are a new entrepreneur, existing entrepreneur, or self-employed.


  • Step 4: Input your name, contact number, email ID. Select ‘Generate OTP’, and then proceed.

  • Step 5: Insert the OTP that you received on your registered mobile number. By doing so your registration on the Udyami Mudra portal will be completed successfully.

  • Step 6: Fill out professional and personal details on the next page.

  • Step 7: Select the ‘Apply Now’ option under the ‘Loan Application Centre’ option.

  • Step 8: You will get three scheme options: ‘Tarun’, ‘Shishu’, and ‘Kishor’ from which you can choose the scheme that suits you the best. 

  • Step 9: After choosing the scheme, fill out your basic business details.

  • Step 10: Next, provide information of proprietors and directors, basic information related to the business, existing credit facilities, estimated working capital, credit report, etc. 

  • Step 11: Attach documents in .jpg, .bmp, png, or pdf format and make sure that its size is in between 250 kb and 5 MB. 

  • Step 12: After entering all information select ‘Submit’ .

  • Step 13: Lastly, you will be redirected to the declaration page where you have to tick the necessary checkboxes in order to complete the application process.

After completing all these steps successfully, you will get a notification with a loan application ID that you have to keep for future requirements.

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Benefits of Availing an e-Mudra Loan

The benefits of availing an e-Mudra loan are:

  • An entrepreneur does not have to furnish any guarantee to avail an e-Mudra loan.

  • An established or an aspiring business owner can avail up to ₹10 Lakhs as an e-Mudra loan.

  • As e-Mudra loans can be availed online, it saves time.

  • If the amount borrowed through an e-Mudra loan is under or equal to ₹5 Lakhs, many institutions do not charge a processing fee at all.

  • The borrower can repay the e-Mudra loan over the course of five years, subject to personal eligibility and the loan size.

  • Several banks and financial institutions offer e-Mudra loans to eligible applicants at affordable interest rates.

  • The amount available as e-Mudra loan can be used for things such as starting a business, expanding a venture, giving the establishment an overhaul or meeting working capital requirements during months of low turnover.

  • The eligibility criteria that one needs to fulfil to qualify for an e-Mudra loan is simpler as compared to the conditions an entrepreneur must satisfy to get a regular business loan.

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Who Can Apply for an E-Mudra Loan

Following are the persons who can apply for the E-Mudra Loan.

  • Both new and existing units can opt for the Pradhan Mantri Mudra Yojana loan.

  • Business sectors involved in producing goods can opt for this loan.

  • Individuals employed in the trading and services sector may opt for this loan. 

FAQs on e-Mudra Loans

What are the various ways to access e-Mudra?

One can gain access to an e-Mudra loan through the official websites of registered banks/NBFCs. Alternatively, one can also apply for an e-Mudra loan through the Udyami Mitra Portal.


Is any collateral required for an e-Mudra loan?

No. There is no need for any kind of collateral in order to avail an e-Mudra loan.


What is the repayment timeline for an e-Mudra loan?

Depending on the loan amount, the repayment timeline for an e-Mudra loan can be anywhere between 12 months to 60 months.


What is a MUDRA card & MUDRA Credit Plus?

A Mudra card is a debit card that is issued to a Mudra loan borrower against their loan account. This card is used to make withdrawals from the working capital portion of the sanctioned amount. A Mudra card also allows the borrower to make frequent credits into their loan account to reduce the interest burden by directly paying the principal component of the loan.


There are various non-credit challenges or constraints that the NBFCs face, which includes knowledge gaps, skill development gaps, information asymmetry, business or financial illiteracy, and lack of growth orientation. In the future, MUDRA intends to implement a credit-plus approach and provide Developmental and Support services to the target demographic in order to address these limitations. It will play the role of a market maker and create an ecosystem with the capacity to provide value in an effective and long-lasting way.

Does the e Mudra loan scheme offer any subsidies?

The e-mudra scheme introduced by the Pradhan Mantri Mudra Yojana (PMMY) doesn’t offer any subsidies for availing loans. However, it offers credit with flexible and easier terms to small businesses through banks as well as financial institutions.


How can I download the e Mudra loan application form online?

To download the e-mudra loan application form, simply visit the PMMY official website. Now, download the form depending on whether you require a loan under the Shishu, Tarun, or Kishore scheme.


Who is eligible for e mudra loan?

The e-Mudra PMMY scheme provides a loan to micro, small, medium, non-farming and non-corporate business enterprises situated in rural as well as urban areas in India. To become eligible for the scheme, you should be: 

  • An Indian citizen

  • A small-scale manufacturer

  • A vegetable and fruit vendor 

  • An artisan

  • A retailer/ shopkeeper 

  • An individual engaged in agriculture, including poultry, livestock units, fisheries.

Is it easy to get e mudra loan?

Yes, it is easy to avail an e-mudra loan, provided you fulfil the required criteria. Moreover, you do not need to submit any collateral for getting this loan. The loan is available for both new as well as existing MSMEs.


Can E-mudra loan be availed twice?

Once you avail a MUDRA loan, your credit report will include that information. So, if you apply for another loan from some other lender, they will come to know that you have already taken a MUDRA loan somewhere else. So, the lender is most likely to disapprove of your application.


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