How to Apply For E Mudra Loan in 2023

4 min readDec 20, 2022

What is e mudra loan?

Micro Units Development and Refinance Agency Bank or MUDRA bank is a public sector financial institution by the Indian government. The bank supports by giving low-interest rate loans to non-banking Financial institutions and microfinance institutions so that they can provide credit to MSMEs. The bank was launched by prime minister Narendra Modi on April 8, 2015.

MUDRA bank is created under Pradhan Mantri Mudra Yojana (PMMY) scheme. The objective of the same is to provide services to small entrepreneurs outside the service region of banks. According to the survey conducted by NSSO in 2013, there were around 57.6 million small businesses expected to be the target clients.

MUDRA is a wholly owned subsidiary of SIDBI (Small Industries Development Bank of India). The loan applicants are classified into three categories.

Shishu mudra loan: the allowed loan amount is up to Rs 50,000
Kishore mudra loan: the allowed loan amount is up to Rs 5,00,000
Tarun mudra loan: the allowed loan amount is up to Rs 10,00,000

The loan allocation is

40% to Shishu mudra loan
35% to Kishore mudra loan
25% to Tarun mudra loan

Can a mudra loan be applied online?

Yes, anyone can apply for a mudra loan under Pradhan Mantri Mudra Yojana from a nearby bank branch, non-banking financial company, MFIs, etc. The borrowers can apply online on the Udyamimitra portal (www.udyamimitra.in).

How to Apply For E Mudra Loan

1. Visit the official website of SBI and click on proceed

2. Then provide the necessary information like the Aadhar card of the applicant for e-KYC through the Aadhar number. The e-sign as well as e-KYC needs to be completed with the help of OTP authentication for processing loans and disbursement.

3. After completing the formalities for the bank as well as the loan process, the loan applicant will receive an SMS which will indicate the state to initiate the additional process by revisiting the portal.

4. This process must be completed within 30 days after getting the receipt of the loan sanction via SMS.

Who can apply for a mudra loan

The applicant must be 18 years and the maximum age limit for the loan is 65 years.
The maximum loan requirement that can be fulfilled is Rs 10,00,000.
The entities must be involved in the allied agriculture sector since April 1, 2016.

Who are eligible for a mudra loan

Those who are eligible for mudra loans are

Small manufacturing unit
Food production sector: Fruit and vegetable vendors
Agriculture activities
Shopkeepers
Artisans and the textile industry
Apart from the above list, any Indian citizen who has a business plan for income-generating activity can apply for a mudra loan.

What is the interest of 50000 in the mudra loan

The interest rate on the mudra loan of 50000 ranges from 1% per annum to 12% per annum.

Is mudra loan interest-free?

No, the mudra loan is not interest-free. The interest may vary depending on the time taken to repay the loan amount.

Can I apply for mudra loan without ITR?

ITR is a necessary document if you want to apply for a mudra loan. If you are eligible, then you are required to provide an ITR of 2 years as proof because loan approval and the amount will depend on the current income of the business or applicant.