Mudra Loan: A Government Initiative to Empower Small Businesses
09 April 2025 · Sachin Gadekar
Everything You Need to Know About PM Mudra Loan for Small Businesses
What is a Mudra Loan?
At TapBonds, we believe in unlocking financial opportunities, and Mudra Loans are a key tool for entrepreneurs and small businesses in India. If you're looking to grow your business, start a venture, or secure working capital, the Pradhan Mantri Mudra Yojana (PMMY) could be just what you need.
The Mudra Loan is a government-backed loan scheme launched under PMMY to provide affordable credit to micro and small enterprises. It empowers non-corporate, non-farm small businesses by offering collateral-free loans of up to ₹10 lakhs.
Types of Mudra Loans
| Category | Loan Amount | Ideal For |
|---|---|---|
Key Features of Mudra Loans
Loan Amount: ₹50,000 to ₹10 Lakhs
No Collateral Required
Flexible Repayment Options
Low Interest Rates
Available through Banks, NBFCs, and MFIs
Who Can Apply for a Mudra Loan?
Eligible applicants include:
Small manufacturing units
Traders and shopkeepers
Food businesses
Artisans
Service sector businesses
How to Apply for a Mudra Loan Online?
You can apply for a Mudra Loan through:
SBI e-Mudra Loan Portal – Visit sbi.co.in and navigate to the e-Mudra section to apply digitally.
2. Partner Banks – Apply via banks like HDFC, Bank of Maharashtra, ICICI, etc.
3. Mudra Website – mudra.org.in provides details and support for all Mudra offerings.
Required documents typically include:
Business plan
KYC documents
Bank statements
Income proof
SBI e-Mudra Loan: Quick Access for Entrepreneurs
The SBI e-Mudra Loan is one of the most popular offerings. It allows you to apply online with minimal paperwork and offers quick disbursement for amounts up to ₹50,000.
Why Mudra Loans Matter
Mudra Loans have helped over 30 crore entrepreneurs build or scale their businesses. Whether you're a street vendor or a small factory owner, PMMY offers accessible finance to bring your vision to life.
Conclusion
At TapBonds, we help you explore smart financial products beyond bonds and investments. Mudra Loans are a testament to how inclusive finance can transform India’s entrepreneurial landscape.
For updates on investment opportunities, bonds, IPOs, and smart loans, keep visiting TapBonds.com.
FAQs
1. What is the Mudra Loan scheme?
The Mudra Loan scheme is a government initiative under PMMY that provides collateral-free loans up to ₹10 lakhs to micro and small businesses.
2. What are the different types of Mudra Loans?
There are three categories: Shishu (up to ₹50,000), Kishor (₹50,001–₹5 Lakhs), and Tarun (₹5–₹10 Lakhs), each catering to different stages of business growth.
3. Can I apply for Mudra Loan online through SBI?
Yes, you can apply for an e-Mudra loan through the SBI portal for quick and easy processing, especially for loans up to ₹50,000.
4. Is any collateral required for Mudra Loan?
No, Mudra Loans are unsecured loans, meaning you don't need to provide any collateral.
5. What is the interest rate for Mudra Loans?
Interest rates vary by lender but generally range from 7% to 12% depending on the category and bank.