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Check features, documents, application process & annual reports of Kishore loan
You can apply for a Kishore Mudra loan under the Pradhan Mantri Mudra Yojana, a government-initiative designed to help owners of micro, small and medium enterprises get much-needed funding. Under this scheme, a Kishore loan lets you borrow between ₹50,000 and ₹5,00,000, depending on your business size, eligibility, and financial needs. These funds may be used for working capital, machinery upgrades, or to consolidate expensive debt. About 40% of total Mudra loan amounts disbursed go as Kishore loans to entrepreneurs. Here you’ll find all the essential details about Kishore Mudra loans.
Some of the features of the Mudra Kishore loan are:
The financing under a Mudra Kishore loan covers amounts ranging from ₹50,000 up to ₹5 Lakhs.
You can use the loan for working capital, consolidating high-interest debt, paying creditors, or enduring difficult economic periods.
The repayment period for a Kishore loan spans between 3 to 5 years.
No processing fees are required when you obtain a Mudra Kishore loan.
The maximum interest rate applicable to a Kishore loan borrower is 12% per annum.
You are not required to provide security or collateral to secure a Mudra Kishore loan.
Kishore loans under PMMY come with affordable interest rates, minimal fees, and flexible repayment terms. The table below highlights the key rates and charges you should know:
| Charge Type | Details |
|---|---|
Interest Rate |
Typically from 8.60% to 12% per annum. varies by bank and borrower credit profile |
Loan Amount Range |
₹50,001 to ₹5,00,000 |
Repayment Tenure |
3 to 5 years |
Processing Charges |
Usually Nil, some banks may charge nominal fees based on loan amount |
Documentation Charges |
Minimal charges possible such as e-stamping, e-signing, or CIBIL report fees |
Prepayment Penalties |
Generally Nil; no penalty for early repayment or foreclosure |
Other Fees |
Possible nominal account handling or inspection charges in some cases |
Notes |
Interest rates and charges vary by lender and are subject to bank discretion and policies |
Disclaimer: The interest rates, charges, and fees listed in this table are indicative and may vary by lender and borrower profile. These terms are subject to change without prior notice as per bank policies and regulatory guidelines. Borrowers are advised to confirm all details directly with their lending institution before applying.
The documents that you need to apply for a Mudra Kishore loan are:
Identity proof such as Voter ID, PAN Card, Aadhaar, driver’s licence, passport or any government-issued photo credential.
Residence proof like telephone or electricity bills, property tax receipts (within 2 months), Aadhaar, Voter ID, passport, bank passbook, account statements or domicile certificate from local authority.
Two recent passport-sized photos (must be no older than six months).
Business balance sheets for the two most recent financial years.
Income tax returns and sales tax returns for at least the past two years.
Bank account statements for the past six months.
Projected balance sheet for the upcoming year or for the duration of the loan term.
Memorandum of Association & Articles of Association (if the business is a private or public limited company).
Sales figures for the financial year immediately preceding the application year.
Reports demonstrating economic and technical viability of the business.
Proof of identity and address for the enterprise (licenses, registration ownership documents, etc.).
Caste certificate (SC/ST/OBC), if applicable.
Fulfill the following eligibility to get a Mudra Kishore loan:
You must be between 21 and 65 years old.
Your entity needs to have a valid Udyam Registration Number (URN).
You can be an individual, a proprietorship, or part of a partnership (including LLPs) classified as a Micro enterprise under the MSMED Act of 2006.
You can operate as an individual, proprietorship, or partnership (including LLPs) categorised as a Micro enterprise according to the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006.
You must have a valid Aadhar and PAN
Your business should maintain an account with any Scheduled Commercial Bank that has been open for at least six months
To apply for the Mudra Kishore loan, you must follow the below-mentioned steps:
Alternatively, if you want to apply for the Kishore loan through the offline method, you can visit a commercial or private sector bank. Once you are there, submit a duly filled copy of the downloaded mudra loan application form with all the documents required. Once they have been verified, you will receive the loan amount in the specified bank account. You must note that along with the required documents, you will additionally need to submit a self-written business plan.
The Mudra Kishore Loan is a valuable opportunity for micro business enterprises seeking growth in manufacturing, services, trading, or agriculture. If you meet the eligibility criteria, this loan can provide the financial support needed for expansion and increased profitability. Apply to empower your business and achieve your entrepreneurial goals with accessible funding tailored for small enterprises.
Under PMMY, the Kishore loan category offers financing from ₹50,001 up to ₹5,00,000 for eligible non-corporate, non-farm micro and small enterprises.
For loans above ₹50,000 (which includes Kishore), lenders generally require a minimum margin/contribution of 15-20% of the project cost.
Once all documents are submitted and eligibility is met, approval and disbursal often take about 7-10 working days for Kishore loans, though this varies by bank and loan amount.
Yes, having an existing business loan does not automatically disqualify you. As long as your credit history is satisfactory, you are not a defaulter, and you meet eligibility, you may be approved for Kishore under PMMY.
