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Understand the MUDRA Loan eligibility criteria to check if your business qualifies for government‑backed funding of up to ₹20 Lakhs under the PMMY scheme.
Last updated on: April 14, 2026
MUDRA Loans under the Pradhan Mantri MUDRA Yojana (PMMY) offer collateral‑free funding up to ₹20 Lakhs for micro and small businesses engaged in income‑generating activities. These are available to Indian citizens aged 18-65 with a viable business plan. Applicants must have a good credit history and not be defaulters. You must meet specific eligibility criteria aimed at supporting small businesses and entrepreneurs. Let’s see the detailed eligibility criteria to get a 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 |
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:
|
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.
Reviewer
To check MUDRA Loan eligibility, you must be an Indian citizen aged 18-65 running a non-farm small business (manufacturing, trading, or service sector) needing up to ₹20 Lakhs, with no previous loan defaults. Verify eligibility by checking your business type (Shishu, Kishore, Tarun) and applying via the JanSamarth portal or at local banks.
PM MUDRA Yojana (PMMY) loans are available to Indian citizens with a non-farm, income-generating business (manufacturing, trading, or service sector) requiring up to ₹10 Lakhs (or up to ₹20 Lakhs for repeat borrowers). Eligible entities include individuals, sole proprietorships, partnerships, and small enterprises. Applicants must not be loan defaulters.
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.
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.
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.
As far as the age criteria for a MUDRA loan are concerned, the applicant must be between 18 and 65 years old to avail themselves of a MUDRA loan.
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