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Eligibility Criteria for MUDRA Loan

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

Maximum Loan Amount

up to ₹10 Lakhs

Eligible Lending Institutions

Public Sector Banks, Private Sector Banks, Regional Rural Banks, Micro-Finance Institutions


Identity proof, residence proof, Income proof, application form, and passport-size photos

Eligible Entities

Some of the eligible entities 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

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 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.

FAQs on Mudra Loan Eligibility

What is the Mudra loan age limit?

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

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.

Is getting a Mudra loan easy?

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.

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