What is a Mudra Loan?
Mudra Loan is a government-backed financial scheme under the Pradhan Mantri Mudra Yojana (PMMY) that provides funding to micro, small, and medium enterprises (MSMEs). Launched by the Government of India, this scheme aims to support entrepreneurs by offering collateral-free loans for business expansion or new business setup.
The Mudra Loan is available through banks, NBFCs, and micro-finance institutions, helping businesses get the capital they need without complex paperwork.
Why Choose a Mudra Loan for Your New Business in 2025?
Mudra Loans are ideal for entrepreneurs because they offer:
- Collateral-Free Loans: No need to pledge property or assets.
- Low Interest Rates: Competitive rates compared to private loans.
- Easy Repayment Terms: Flexible EMIs and repayment options.
- Government Support: Backed by the Indian government, ensuring security.
- Multiple Loan Categories: Different loan options for various business needs.
Types of Mudra Loans
Mudra Loans are categorized into three segments based on business requirements and loan amounts:
| Category | Loan Amount | Purpose |
| Shishu | Up to ₹50,000 | Ideal for startups and new small businesses |
| Kishor | ₹50,000 – ₹5 Lakh | For business expansion and working capital |
| Tarun | ₹5 Lakh – ₹10 Lakh | For well-established businesses aiming for growth |
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Eligibility Criteria for Mudra Loan 2026
To apply for a Mudra Loan, you must meet the following eligibility criteria:
- The applicant must be an Indian citizen.
- Age should be 18-65 years.
- The business should fall under MSME, manufacturing, trading, or service sector
- The applicant must have a clear repayment history and a good credit score.
- The business plan should be viable and profitable.
Documents Required for Mudra Loan
To apply for a Mudra Loan, you will need the following documents:
– KYC Documents: Aadhaar Card, PAN Card, Voter ID, Passport, or Driving License.
– Business Proof: Registration certificate, GST certificate, or Udyam Registration.
– Bank Statements: Last 6 months’ bank statement.
– Business Plan: A detailed report on the business model and expected revenue.
– Income Proof: ITR, salary slips, or audited financial statements (for existing businesses).
Interest Rates & Charges for Mudra Loan 2026
| Lender | Interest Rate | Processing Fee | Loan Tenure |
| SBI | 7.5% – 10.5% | 0.50% – 1% | Up to 7 years |
| HDFC Bank | 8.0% – 12.5% | 0.5% – 2% | Up to 5 years |
| ICICI Bank | 7.5% – 11.5% | 1% – 2% | Up to 7 years |
| Bajaj Finserv | 10.5% – 14% | 1.5% | Up to 6 years |
| Tata Capital | 9.0% – 12% | 1% | Up to 5 years |
Note: Interest rates vary based on the applicant’s creditworthiness and business profile.
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How to Apply for a Mudra Loan in 2026?
You can apply for a Mudra Loan through Bravima Solution by following these steps:
- Check Eligibility: Ensure you meet the business loan requirements.
- Prepare Documents: Collect all required documents such as KYC, business proof, and financial details.
- Choose Loan Type: Decide between Shishu, Kishor, or Tarun based on your funding needs.
- Apply Online/Offline: Visit a bank, NBFC, or apply online through Bravima Solution.
- Loan Processing: The lender will review your application, verify documents, and assess creditworthiness.
- Approval & Disbursement: Once approved, the loan amount is credited to your bank account.
Who Can Benefit from a Mudra Loan?
Mudra Loans are beneficial for:
- Startups & New Businesses – Entrepreneurs looking to establish a business.
- Small Businesses – Grocery stores, medical shops, salons, food stalls, etc.
- Manufacturing Units – Textile, handicrafts, small-scale industries.
- Traders & Retailers – Businesses in e-commerce, retail, and wholesale.
- Service Sector – Beauty parlors, travel agencies, repair services, etc.
Mudra Loan vs Other Business Loans
| Feature | Mudra Loan | Other Business Loans |
| Government Support | Yes | No |
| Collateral Requirement | No | Yes (in most cases) |
| Loan Amount | ₹50,000 – ₹10 Lakh | ₹1 Lakh – ₹50 Crore |
| Eligibility | MSMEs, startups | Large businesses, corporations |
| Interest Rates | Lower (7.5% – 12%) | Higher (10% – 18%) |
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FAQs on Mudra Loan for New Businesses in 2026
1. Can I get a Mudra Loan without collateral?
Yes, Mudra Loans are collateral-free and do not require property or assets as security.
2. How long does it take for a Mudra Loan to be approved?
It usually takes 7-15 days for loan approval, depending on the lender.
3. Can I apply for a Mudra Loan online?
Yes, you can apply online through banks, NBFCs, or Bravima Solution’s digital loan platform.
4. What is the minimum and maximum loan amount?
The loan ranges from ₹50,000 to ₹10 lakh, depending on the business category.
5. Can I use a Mudra Loan for a franchise business?
Yes, Mudra Loans can be used for franchise businesses, retail stores, and small enterprises.
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