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Learn more about PNB MUDRA Loans, including the application process, eligibility criteria, and required documents.
The Punjab National Bank (PNB) MUDRA loan scheme is an initiative under the Pradhan Mantri MUDRA Yojana (PMMY). It is designed to empower micro and small businesses in India. Entrepreneurs, self-employed individuals, and small business owners in the non-agricultural sector can get this loan to start, expand, or modernise their businesses. The loan is ideal for sectors like manufacturing, trading, and services.
PNB offers MUDRA loans in 3 categories:
Shishu: Loans of up to ₹50,000 for budding entrepreneurs
Kishor: Loans ranging from ₹50,001 to ₹5 Lakhs for established businesses needing further development
Tarun: Loans between ₹5 Lakhs and ₹10 Lakhs for businesses aiming for growth or expansion
These loans do not require any collateral and have flexible repayment options, making them a preferred choice for small enterprises seeking financial assistance.
Here are the key highlights of the PNB MUDRA loan:
| Parameters | Particulars |
|---|---|
Nature of Facility |
|
Maximum Loan Amount |
Up to ₹10 Lakhs |
Security |
Loan will be covered under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) |
Purpose |
Empowers non-farm micro-enterprises in manufacturing, trading, and services by offering collateral-free financing to support working capital, equipment purchase, or business expansion under PMMY. |
Margin |
Nil |
Repayment Period |
Up to 5 years including maximum moratorium period of 3 months |
Rate of Interest |
Base Rate (9.60%) +2.25%+ TP (0.50%) |
Disclaimer: The interest rates depend on the loan type and may change accordingly
Here are some of the key features of the Punjab National Bank MUDRA loan scheme.
The PNB MUDRA loan will be sanctioned instantly, provided that applicant furnishes all necessary documents
The application process is simple, hassle free, and can be completed entirely online, from anywhere
The maximum eligible loan amount under the PNB Shishu scheme is ₹50,000
The maximum eligible loan amount under the PNB Kishor scheme is ₹5 Lakhs
The maximum eligible loan amount under the PNB Tarun scheme is ₹10 Lakhs
| Loan Amount | Interest Rate (p.a.) |
|---|---|
Up to ₹50,000 |
9.40% |
Above ₹50,000 – ₹10 Lakhs |
10.65% |
Disclaimer: The interest rates are subject to change based on the loan type and PNB's lending policies. The information provided is for informational purposes only. It is advised to contact Punjab National Bank directly to verify the most current rates before applying.
The eligibility criteria for PNB MUDRA loans vary based on the type of loan under the Pradhan Mantri MUDRA Yojana (PMMY). Below are the key requirements for each loan category:
1. Shishu Scheme (Loan up to ₹50,000)
Age: Applicants must be between 18 and 60 years
Business Stage: Suitable for new businesses or start-ups
Udyam Registration: Required for MSME verification
Existing Account Holder: Must have an account with PNB, active for at least 6 months
2. Kishor Scheme (Loan between ₹50,001 and ₹5 Lakhs)
Age: Applicants must be between 18 and 60 years
Business Stage: For businesses that are already operational and need further development
Udyam Registration: Required for MSME status verification
Existing Account Holder: Must have an active PNB account for at least 6 months
3. Tarun Scheme (Loan between ₹5 Lakhs and ₹10 Lakhs)
Age: Applicants must be between 18 and 60 years
Business Stage: For established businesses looking to expand
Udyam Registration: Required for MSME verification
Existing Account Holder: Must have an account with PNB for at least 6 months
Here's a breakdown of the three types:
It provides small loans to help establish or grow a new enterprise.
Loan Amount: Up to ₹50,000
Suitable for: Start-ups and small businesses in the initial phase
Interest Rate: Typically around 9.40% (may vary based on PNB's lending policies)
This scheme is for businesses that are already established.
Loan Amount: ₹50,001 to ₹5 Lakhs
Suitable for: Growing small businesses that need funds for working capital, purchasing inventory, or upgrading equipment
Interest Rate: Generally around 10.65% (subject to change by PNB)
The Tarun scheme is intended for businesses that are in an advanced stage and require larger amounts of capital to scale up their operations.
Loan Amount: ₹5 Lakhs to ₹10 Lakhs
Suitable for: Businesses that need significant financial support for expansion or upgrading infrastructure
Interest Rate: Typically around 10.65% or higher (based on the bank’s policies)
When applying for a PNB MUDRA Loan, applicants are required to submit specific documents to verify their eligibility and support their loan application.
Here is a comprehensive list of documents required for all MUDRA loan categories, namely Shishu, Kishor, and Tarun:
Disclaimer: This table is based on the latest publicly available information from PNB and related sources and is for reference purposes only. The actual document requirements may vary depending on the branch, your business type, loan amount, and other eligibility criteria. Applicants are advised to check with the specific PNB branch or official bank documentation at the time of application to ensure they have all required documents.
Here are the details:
Term Loan:
Repayable over a period of up to 3 years or more, depending on the loan amount and business cash flow.
Interest rates range from Base Rate (currently 9.60%) to Base Rate + 2.25% + TP (0.50%), subject to RBI/government guidelines.
Working Capital:
Typically sanctioned for short-term needs, with tenure and renewal subject to business performance and bank review.
Moratorium Period:
May be considered based on the borrower's financial assessment and business viability, though specific duration is not explicitly stated.
No collateral required for Mudra loans.
Assets created from the loan may be hypothecated to the bank.
These terms are designed to suit the financial capacity and operational needs of micro enterprises, ensuring ease of access and flexibility in repayment.
To apply for the PNB eMUDRA Loans, applicants need to follow these steps:
Navigate to the PNB eMUDRA portal.
Select your preferred login options from ‘Customer ID’, ‘Account Number’ or ‘Mobile Number’ and enter the corresponding details in the input field below.
Click on the ‘Proceed’ button and follow the steps that occur further.
Complete the final e-Sign through OTP authentication.
The application request will be processed and disbursed within the stipulated time period.
Disclaimer: Applicants may apply for the PNB MUDRA Shishu category online and get loan amount sanctioned almost immediately. Whereas, for loans under the Kishor and Tarun categories, applicants might have to visit the nearest PNB branch and get in touch with a representative.
Here are some ways to contact PNB customer service in case of any queries.
Toll free number(s)
Banking: 1800 1800, 1800 2021
Balance Enquiry: 1800 180 2223 (Toll Free)
Credit Card: 1800 180 2345 (Toll Free)
Loan Products: 1800 180 8888 (For Loan Products)
Retail Products: 1800-180-5555 (For Retail products), 1800-330-3333 (For Digital products)
Email: care@pnb.co.in
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. |
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. |
Short-term skill training and certification to enhance employability. |
|
Credit-linked subsidy for setting up micro-enterprises. |
|
Bank loans (₹10 Lakhs–₹1 Crore) to SC/ST and women entrepreneurs for greenfield enterprises. |
|
Recognition and support for startups through funding, tax benefits, and incubation. |
|
Credit guarantee for collateral-free loans to micro and small enterprises. |
|
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.
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.
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Individuals, proprietorships, partnership firms, AOPs, LLPs, companies, and handloom weavers under Weaver MUDRA, engaged in non-farm micro-enterprises (manufacturing, trading, services), with no defaulters allowed. Handloom weavers may need satisfactory credit history.
PNB offers Shishu up to ₹50,000; Kishor between ₹50,000–₹5 Lakhs; Tarun between ₹5 Lakhs–₹10 Lakhs (with proposal to extend to ₹20 Lakhs).
Shishu (e-Mudra) applications are processed almost instantly online; other categories (Kishor, Tarun) typically require 7–10 days from complete application.
Non-farm agri-allied activities include pisciculture, poultry, beekeeping, livestock rearing, food/agro processing, these income-generating ventures qualify under Mudra’s scope. These may be funded like other non-farm enterprises.
Shishu loans generally have no processing fee. For other categories, fees vary, PNB may charge approx 1% upfront (min. ₹10,000), refundable if disbursement is made within six months.
Income proof isn’t mandatory for Shishu. For Kishor & Tarun (especially ≥ ₹2 Lakhs), you may need 2 years’ unaudited balance sheets, income tax/sales tax returns, bank statements, and financial projections.
Entrepreneurs looking to start a business or expand their existing business can apply for the PNB MUDRA Loan.
Under the Tarun category, eligible business owners can get a loan of up to ₹10,00,000.
The processing time depends on the applicant's credit history, loan amount, validity and authenticity of the furnished documents. But, generally, PNB MUDRA loans are processed within 7 to 10 days, with loans under the Shishu category being processed almost instantly in most cases.
The PNB MUDRA loan is offered to enterprises engaging in non-farm agricultural activities like bee keeping, pisciculture, grading, livestock, poultry, dairy, fishing and other similar activities.
Under the Shishu category, the processing fees will be nil whereas under the Kishor or Tarun schemes, the processing charges will be 0.5% of the total loan amount, exclusive of applicable charges.
No, income proof is not required for the PNB MUDRA loan. However, depending on the loan category, other income-related documents may be required.
