About MUDRA Loan
The MUDRA Loan, under the Pradhan Mantri Mudra Yojana (PMMY), supports micro-enterprises in Delhi, India, with collateral-free loans up to ₹10 Lakh. Loanpao facilitates access to Shishu, Kishore, and Tarun categories for small businesses, startups, and entrepreneurs, offering competitive rates and fast processing.
Why Choose Loanpao?
- Loans up to ₹10 Lakh (Shishu: ₹50,000, Kishore: ₹5 Lakh, Tarun: ₹10 Lakh)
- Collateral-free financing
- Competitive interest rates starting at 8% p.a.
- Flexible tenure up to 5 years
- Quick disbursal within 7–15 days
- Support for manufacturing, trading, and service sectors
- Expert guidance on PMMY benefits
- Minimal documentation and streamlined process
Eligibility Criteria
| Criteria | Requirement |
|---|---|
| Applicant Type | Individuals, MSMEs, startups |
| Business Type | Non-corporate, non-farm small/micro enterprises |
| Age | 18–65 years |
| Loan Category | Shishu (≤₹50,000), Kishore (≤₹5 Lakh), Tarun (≤₹10 Lakh) |
| Credit History | No defaults preferred |
Documents Required
- KYC: Aadhaar, PAN, voter ID, or passport
- Business Proof: Shop license, GST registration, or Udyam certificate
- Income Proof: ITR or bank statements (6 months)
- Business Plan: For Kishore and Tarun categories
- Bank Details: Passbook or cancelled cheque
- Photograph: Recent passport-size photo
Loan Categories
| Category | Loan Amount | Interest Rate | Tenure |
|---|---|---|---|
| Shishu | Up to ₹50,000 | 8%–10% p.a. | Up to 3 years |
| Kishore | ₹50,001–₹5 Lakh | 9%–12% p.a. | Up to 5 years |
| Tarun | ₹5,00,001–₹10 Lakh | 10%–14% p.a. | Up to 5 years |
Calculate Your EMI
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How to Apply
- Submit an online application with business and personal details via Loanpao.
- Provide KYC, business proof, income documents, and a business plan (if required).
- Undergo verification by the lending institution.
- Receive loan approval and disbursal within 7–15 days.
- Utilize funds for business expansion or working capital.
Frequently Asked Questions
A MUDRA Loan under PMMY provides collateral-free financing up to ₹10 Lakh to micro-enterprises in manufacturing, trading, or service sectors.
Individuals, MSMEs, and startups aged 18–65 running non-corporate, non-farm micro/small enterprises are eligible.
MUDRA Loans are offered in three categories: Shishu (up to ₹50,000), Kishore (₹50,001–₹5 Lakh), and Tarun (₹5,00,001–₹10 Lakh).
No, MUDRA Loans are collateral-free, covered under the Credit Guarantee Fund for Micro Units (CGFMU).
Interest rates vary: 8%–10% (Shishu), 9%–12% (Kishore), and 10%–14% (Tarun), depending on the lender.
Tenure ranges up to 3 years for Shishu and up to 5 years for Kishore and Tarun categories.
The loan can be used for working capital, purchasing equipment, or business expansion in eligible sectors.
Loan disbursal typically takes 7–15 days after document verification and approval.
Missing repayments may incur penalties, affect credit scores, and limit access to future loans. Contact your lender for solutions.
Yes, MUDRA Loans encourage women entrepreneurs, with many lenders offering preferential rates under the scheme.