MUDRA Loan Eligibility Criteria 2022

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MUDRA Loan Eligibility Criteria 2022 Highlights

As per MUDRA official website, more than 90% of the non-corporate small businesses (NCSB) sector don’t have access to formal sources of finance.


The MUDRA scheme was launched on the 8th of April, 2015 by the Hon’ble prime minister.  It’s a flagship scheme of the Government of India to “fund the unfunded” by offering them affordable business loan up to Rs 10 lakh. However, people are willing to take MUDRA loan, but due to lack of knowledge about the eligibility criteria, people don't feel getting it. First of all, the borrower should know that MUDRA is an NBFC set up by the India government to develop micro sector enterprises. Small scale businesses that do not have to the access to the formal channel of borrowing can be benefited from MUDRA. As per MUDRA official website, more than 90% of the non-corporate small businesses (NCSB) sector don’t have access to formal sources of finance. Since MUDRA provides refinance support to the various bank to give loans to the borrower, so before checking the MUDRA loan eligibility criteria, first, check which financial institutions are chosen to lend MUDRA loans.

Read MoreSBI MUDRA Loan

List of The Partner Institution That Provides MUDRA Loans

Co-Operative Bank

Private Sector Banks

Public Sector Banks

TJSB Sahakari Bank Ltd.

Axis Bank Ltd.

UCO Bank Public Sector Banks

Ahmedabad Mercantile Co-op Bank Ltd.

Catholic Syrian Bank Ltd.

Allahabad Bank

AP State Apex Co-op Bank Ltd.

City Union Bank Ltd.

Andhra Bank

Bassein Catholic Co-op Bank

DCB Bank Ltd.

Bank of Baroda

Citizen Credit Co-op Bank Ltd.

Federal Bank Ltd.

Bank of India

Dombivali State Co-op Bank Ltd

HDFC Bank Ltd.

Bank of Maharashtra

Gujrat State Co-op Bank Ltd.

ICICI Bank Ltd.

Canara Bank

Jalgaon Janata Sahakari Bank Ltd.

IDFC Bank Ltd.

Central bank of India

Kalupur Commercial Co-op Bank

Indus Ind Bank Ltd.

Corporation bank

Mehsana Urban Co-op Bank

Jammu & Kashmir Bank Ltd.

Dena Bank

Nutan Nagrik Sahakari Bank Ltd.

Karnataka Bank Ltd.

IDBI Bank Ltd.

Rajkot Nagarik Sahakari bank

Karur Vysya Bank Ltd.

India Bank

Saraswat Co-operative bank

Kotak Mahindra Bank Ltd.

India Overseas Bank

Surat People co-op Bank Ltd.

Nainital Bank Ltd.

Oriental Bank of Commerce

Tamil Nadu Apex State Co-op Bank Ltd.

South Indian Bank

Punjab and Sind Bank


Tamilnad Mercantile Bank Ltd.

State Bank of India


The Ratnakar Bank Ltd.

Syndicate Bank


Yes Bank Ltd.

Union Bank of India


United Bank of India 


Vijaya Bank





Annapurna Mahila Multistate Co-op Credit society

Aditya Birla Finance Ltd.

Altura Financial Services Ltd.

Belghoria Jankalyan Samity

Ananya Finance for inclusive growth Pvt. Ltd.

Arohan Financial Services P. Ltd.

Bhartiya Micro Credit

ASA International India Microfinance Ltd.

Arth Micro Finance Pvt. Ltd.

Cashpor Micro Credit

Bansal Credits Ltd.

Ashirwad Microfinance Private Limited


Capital First Limited

Belstar Investment & Finance P. Ltd.

Chanura Microfin Manipur

ECL Finance Limited

Chaitanya India Fin Credit Pvt. Ltd.

Community Collective Society for Integrated development

Equitas Finance P. Ltd.

Digamber Capfin Ltd.

Dhosa Chandreshwar Bratyajana Samity

Esskay Auto Finance Ltd.

Fino Finance P. Ltd.

Disha India Micro Credit 

Five star Business Credits Ltd.

Fusion Micro Finance P. Ltd.

Humana People To people India 

Fullerton India Credit Co. Ltd.

Future Financial Services Ltd.


IKF Finance Ltd.

Grameen Development & Finance P. Ltd.

Life Foundation

India Infoline Finance Ltd. (IIFL)

Hindustan Microfinance Private Limited

Mahana Foundation

Indiabulls Financial Services Ltd.

IDF Financial Services Pvt. Ltd.

Mahasemam Trust 

Intec Capital Ltd.

Jagaran Microfin P. Ltd.

Mahashakti foundation

Jumbo Finvest (India) Limited 

Janalakshmi Financial Services, Pvt. Ltd.

Network of Entrepreneurship & Economic development

Kotak Mahindra Prime Limited

Light Microfinance Ltd.


L&T Finance Ltd.

M power Microfinance Private Limited

Sakhi Samudaya Kosh

Maanveeya Development & Finance Private Ltd.

Madura Microfinance Ltd.

Sampurana Training and Entrepreneurship Programme

Magma Fincorp Ltd.

Margdarshak Financial Services Ltd.

Sanghmitra Rural Financial Services 

Mahindra & Mahindra Finacial services Ltd.

Midland Microfin Ltd.

Seba Rahara

MAS Financial Services Private limited

MSM Microfinance Limited

Shakti Mahila Sangh Bahu Uddeshya Sahkari Maryadit

Moneywise Financial Services, Pvt. Ltd.

Muthoot Fincorp Limited

Society for Model Gram Bikash Kendra

Pudhuaaru Financial Services Ltd.

Muthoot Mircofin Ltd.

Swayam Micro Services 

Reliance Capital Ltd.

Nabard Financial Services Ltd

Women’s Voluntary Organisation

Religare Finvest Ltd.

Namra Finance Ltd.


S.E. Investments Ltd.

Navachetana Microfin Services Pvt. Ltd.


Sakthi Finance Ltd.

NEED Livelihood Micro finance P. Ltd.


Shriram City Union Finance Ltd.

Nightingale Finvest Pvt. Ltd.


Shriram Finance Corporation, Pvt. Ltd.

Pahal Financial Services P. Ltd.


SREI Equipment Finance Ltd.

S V Creditline Pvt. Ltd.


Tata Motors

Sahyog Microfinance Ltd.


TVS Credit Services Ltd.

Saija Finance Private Ltd.


Vistaar Financial Services P. LTd. 

Samasta Microfinance Ltd.


Sambandh Finserve Pvt. Ltd.


Satin Credit Care Network Ltd.


Shikhar Microfinance Pvt. Ltd.

Types of MUDRA Loan Schemes

Since MUDRA loans are provided in three different categories, you need to choose the best suitable class according to your need.

  • Shishu:  Loans Up to Rs 50,000/-
  • Kishor:  Loans above Rs 50,000 and up to Rs 5 lakh.
  • Tarun:  Loans above 5 lakh and up to Rs 10 lakh.

Sectors Eligible to Take MUDRA Loan

Once you choose the loan amount, kindly check that if your profession is covered under the MUDRA loan scheme or not. Currently, the government providing credit cover to four sectors which are:

  • Land Transport Sector/ Activity: Under this category, you can get financial assistance to purchase commercial vehicles such as auto rickshaw, small goods transport vehicle, three-wheelers, e-rickshaw, passenger cars, taxis, etc. for carrying goods or passengers.
  • Community, Social & Personal Service Activities: The financial support is extended to set-up and grow saloons, beauty parlours, gymnasium, boutiques, tailoring shops, dry cleaning, cycle and motorcycle repair shop, DTP and Photocopying Facilities, Medicine Shops, Courier Agents, etc.
  • Food Products Sector:  This category offers financial inclusion for businesses like papad making, achaar making, jam/jelly making, agricultural produce preservation at rural level, sweet shops, small service food stalls and day to day catering/ canteen services, cold chain vehicles, cold storages, ice-making units, ice cream making units, biscuit, bread and bun making, etc.
  • Textile Products Sector/ Activity: The main aim of this sector is to revive the activities such as handloom, power loom, chikan work, zari and zardozi work, traditional embroidery and handwork, traditional dyeing and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching and other textile non-garment products such as bags, vehicle accessories, furnishing accessories, etc.

Eligible Borrowers Under Mudra Loan Scheme

  • Individuals 
  • Proprietary Concern
  • Partnership Firm
  • Private Ltd. Company
  • Public Company
  • Any Other Legal Forms

MUDRA Loan Eligibility Criteria

  • The applicant should be an Indian citizen.
  • The applicant should not be a defaulter to any bank or financial institution.
  • The candidate should have a satisfactory credit track record.
  • The individual borrower should possess the necessary skills/experience/knowledge to carry out the business activity successfully.

MUDRA Loan Documents Required

Shishu Category

  • Proof of personal Identity: A self-certified copy of Voter's ID card/ Driving License/ PAN Card/ Aadhar Card/ Passport/ Photo Ids, issued by Govt. authority etc.
  • Proof of residence: Recent telephone bill/ Electricity bill/ Property tax receipt/ Voter’s ID card/ Aadhaar card/ Passport of Individual/ Proprietor/ Partners, Certificate issued by Govt. Authority/ Local Panchayat/ Municipality etc.
  • Applicant's two recent photographs not older than six months.
  • Proof of SC/ST/OBC/ Minority, if applicable.
  • Proof of business identity: Address of the business enterprise, if available
  • Six months account statement of the current bank account
  • Quotation of the machinery/equipment that to be purchased.

Kishore/Tarun Category

  • Proof of personal Identity: A self-certified copy of Voter's ID card/ Driving License/ PAN Card/ Aadhar Card/ Passport/ Photo Ids, issued by Govt. authority etc.
  • Proof of residence: Recent telephone bill/ Electricity bill/ Property tax receipt/ Voter’s ID card/ Aadhaar card/ Passport of Individual/ Proprietor/ Partners,Certificate issued by Govt. Authority/ Local Panchayat/ Muncipility etc.
  • Applicant's two recent photographs not older than six months.
  • Proof of SC/ST/OBC/ Minority, if applicable.
  • Address of Business: Copies of relevant licenses/registration certificates/ lease or rent agreement/ Other documents about the ownership, identity of the address of business unit/ Udyog Aadhaar Memorandum.
  • Six months Account statement of the current bank account
  • Last two years unaudited balance sheets of the existing units, along with income tax/ sales tax returns etc. (Only applicable for the loans of Rs 2 lakh and above)
  • Projected balance sheets of the start-ups/ existing units for one year, in case of working capital limits and for the period of the loan in case of term loan (Only applicable for the loans of Rs 2 lakh and above).
  • Sales achieved during the current financial year, up to date of submission of the application (in case of existing units).
  • Performa invoices/ Quotation for the assets to be purchased and estimates for the civil works (if needed).
  • Asset & Liability statement of the borrower including, Directors & Partners.
  • Memorandum and articles of association of the company/partnership deed of partners, etc., if applicable.
  • Two photos of applicant /proprietor/ partners/ directors not older than six months.

Note: Additional Documents May Be Asked as Per the Requirement of Each Case. 

Things to Remember Before You Apply for MUDRA Loan

  • The MUDRA loan can be availed in the form of term loan (repayment is EMIs)/ overdraft (OD) and cash credit (CC) (funds available on demand for a shorter repayment tenure).
  • Mudra loan is extended by the banks (all branches)/ NBFCs/ MFIs.
  • For working capital limit, you can get recently launched “MUDRA Card”. It’s a debit card issued on RuPay platform.
  • Under MUDRA loan scheme the highest amount of Rs 10 lakh can be availed.
  • The banks decide the interest rates as per their policy, but the MUDRA ltd ensures that the interest rates should be reasonable.
  • The bank may charge a marginal amount as a processing fee. However, most of the banks have waived processing charges for Shishu loans.
  • As per the Master Circular on lending to MSME Sector (para 4.2) dated July 01, 2014, for loans up to Rs 10 lakh banks are not mandated to accept collateral security. In fact, banks have to encourage their branch level functionaries to avail of the Credit Guarantee Scheme cover (whenever required).
  • The maximum tenure of the Mudra loan is 36 months.

How to Apply for MUDRA Loan

  • Select the category in which you require MUDRA loan (refer types of MUDRA loan).
  • Check your eligibility (refer eligible borrower section)
  • Approach any financial institution (refer to the list of partners table) who is qualified to extend MUDRA loan. It is advisable to apply for it with your existing bank.
  • Collect all your documents required to apply for MUDRA loan (refer to the list of necessary documents).
  • Fill the MUDRA loan application form and annex essential documents with it.

Read More: PSB loans in 59 minutes

➤ FAQs

Ques. What are the eligibility criteria for MUDRA loan?

An Indian citizen with a clean credit record can apply for MUDRA loan. However, this is the essential eligibility criteria. To get a detailed insight into the eligibility criteria, read this article.

Ques. Which bank is the best to apply for MUDRA loan?

MUDRA loans are available at all the Indian banks, including private sector banks and public sector banks though you should apply for it with your current bank.

Ques. What are the documents required to get MUDRA loan?

The general documents include identity proof, address proof, and photographs. To get a category-wise list of documents required for MUDRA Loan, read this article.

Ques. Is there any subsidy available under MUDRA loan?

Currently, there is a subsidy available for MUDRA loan, but the interest rates are cheaper than the usual loans.