MUDRA Loan Overview
LoanPao’s MUDRA Loan in India 2025 provides collateral-free financing up to ₹10 lakh for micro enterprises under the Pradhan Mantri Mudra Yojana (PMMY). With interest rates of 7%–12% p.a. and tenures up to 5 years, these loans support working capital, equipment purchase, or business expansion. LoanPao’s network of 500+ RBI-compliant lenders, including banks and NBFCs, ensures approvals within 2–5 days via a digital process. For broader MSME financing, explore our MSME Loan or MSME Equipment Loan pages.
Apply below or use our EMI Calculator to plan repayments. Contact us at +91-971-769-5334 for assistance.
Benefits of MUDRA Loan
Up to ₹10 Lakh
Financing for micro business needs.
Collateral-Free
No security required under PMMY.
Low Interest Rates
Starting at 7% p.a.
Flexible Tenure
Up to 5 years for repayment.
Digital Process
Online application with e-KYC.
Trusted Lenders
500+ RBI-compliant banks and NBFCs.
Eligibility Criteria
| Criteria | Details |
|---|---|
| Business Type | Micro enterprises, non-corporate small businesses (manufacturing, trading, services) |
| Applicant | Individuals, proprietorships, partnerships with a business plan |
| Business Vintage | New or existing businesses |
| Loan Amount | ₹50,000–₹10 lakh (Shishu, Kishore, Tarun categories) |
| Collateral | No collateral required |
| CIBIL Score | 600+ preferred but not mandatory |
Check your eligibility with our CIBIL login tool or contact info@loanpao.in.
Documents Required
- KYC: Aadhaar, PAN, Voter ID of applicant
- Business Proof: Udyam registration (if applicable), trade license
- Bank Statements: Last 6–12 months
- Business Plan: Detailing loan usage
- Income Proof: ITR or sales records (if available)
- Address Proof: Utility bill, rent agreement
- Caste Certificate: For SC/ST/OBC applicants (if applicable)
MUDRA Loan Categories
| Category | Loan Amount | Purpose |
|---|---|---|
| Shishu | Up to ₹50,000 | Startup or early-stage micro businesses |
| Kishore | ₹50,001–₹5 lakh | Growing businesses needing working capital |
| Tarun | ₹5,00,001–₹10 lakh | Established businesses for expansion |
How to Apply for MUDRA Loan
Apply with LoanPao in 3 simple steps:
- Fill the form below with business and loan details.
- Upload KYC, business proof, and business plan via e-KYC.
- Get approval within 2–5 days and funds shortly after.
Start your application or call +91-971-769-5334 for support.
Compare MUDRA Loan Providers
| Provider | Interest Rate (p.a.) | Loan Amount | Tenure | Processing Fee |
|---|---|---|---|---|
| State Bank of India | 7%–10% | ₹50,000–₹10 lakh | 1–5 years | Nil–0.5% |
| Bank of Baroda | 8%–11% | ₹50,000–₹10 lakh | 1–5 years | Nil–1% |
| Axis Bank | 9%–12% | ₹50,000–₹10 lakh | 1–5 years | 0.5–1% |
Note: Rates and terms are indicative and subject to change. Contact LoanPao for updated offers (July 2025).
Uses of MUDRA Loan
MUDRA Loans can be used for:
- Working capital for inventory or raw materials
- Purchasing small equipment or tools
- Expanding business operations
- Meeting operational expenses like rent or salaries
- Setting up a new micro enterprise
Why Choose LoanPao for MUDRA Loan?
Wide Lender Network
Compare offers from 500+ RBI-compliant lenders.
EMI Calculator
Use our EMI calculator to plan repayments.
24/7 Support
Contact us at +91-971-769-5334 or info@loanpao.in.
Tips for a Successful MUDRA Loan Application
- Prepare a clear business plan outlining loan usage.
- Ensure all KYC documents are valid and updated.
- Maintain regular bank transactions for credibility.
- Apply for the appropriate category (Shishu, Kishore, Tarun) based on business needs.
- Use our EMI Calculator to align EMIs with cash flow.