Any individual running non-corporate non-farming business activities can apply for a MUDRA loan under the Pradhan Mantri Mudra Yojana Scheme. The following are the Mudra Loan Eligibility criteria:

  1. Applicants should have an age limit of 18 years and a maximum of 65 years.
  2. Individuals, startup firms, business owners, entrepreneurs, SMEs, and MSMEs are eligible.
  3. Traders, Artisans, Manufacturers, Retailers, etc. engaged only in trading, services, and manufacturing sectors are also eligible.
  4. If the applicant’s requirements in less than 10 lakh.
  5. Applicants with good repayment history, and no bank dues.
  6. People belonging to the SC/ST/OBC category.
  7. Applicants with no loan defaults with any financial institution.

The following business bodies are eligible for Mudra Loan:

1. Business vendors and shopkeepers:

Shopkeepers and vendors like fruits and vegetable vendors can apply for a loan ranging up to ₹ 10 Lakh.

2. Service Sector Units: 

Beauty parlours, boutiques, parcel services, automobile repairs, dry cleaning, gymnasiums, saloons, tailoring units, etc.

3. Textile industry: 

Textile industries such as handloom, knitting, silk work, apparel design, embroidery, traditional dying, etc. can get monetary help from mudra loans.

4. Food production sector: 

Start us dealing in food processing, shops, food parcel services, or cold storage can avail this mudra loan and expand their business.

5. Agricultural activities: 

Loans under this scheme can be availed for agricultural activities such as dairy farming, poultry, fishing, and the improvement of small canals and wells.

6. Vehicle: 

Loans will be available to purchase passenger cars, goods transport vehicles, and three-wheelers.

The eligibility documents for the Mudra loan vary for different loan purposes. The documents required for specific purposes are as follows:
  1. Documents for Vehicle Loan
  • Duly filled application form for Mudra Yojana
  • Vehicle loan application form
  • 2 passport-size photos of the applicant
  • Identity proof such as an Aadhaar Card, Passport, Voter ID Card, Driving License, etc.
  • Address proof such as an Aadhaar Card, Passport, Bank statements, telephone or electricity bill.
  • Income proof
  • Lastly, bank statement for the latest 6 months
2. Documents for Business Instalment Loan
  • Duly filled application form for Mudra Yojana
  • Loan application form
  • 2 passport-size photos of the applicant
  • Identity proof such as an Aadhaar Card, Passport, Voter ID Card, Driving License, etc.
  • Residential Address proof such as an Aadhaar Card, Passport, Bank statements, telephone or electricity bill.
  • Proof of ownership of the enterprise or residence.
  • Trade references
  • Proof of qualification, establishment, and business continuity
  • 2 years ITR and CA certified financials
  • Bank statement for the last 6 months
3. Documents for Business Loan
  • Duly filled application form for Mudra Yojana
  • Loan application form
  • Identity and Age proof such as Aadhaar Card, Passport, Voter ID Card, Driving License, etc.
  • Residential Address proof such as an Aadhaar Card, Passport, Bank statements, telephone or electricity bill
  • Proof of ownership of the enterprise or residence
  • Proof of qualification, establishment, and business continuity
  • Bank statement for the last 12 months
  • Proof of business continuity
  • Income tax return for recent 2 year
Is the Agriculture sector Eligible for Mudra Loan?

MSMEs include the agricultural sector, but only a few types of businesses in the agricultural sector are eligible for Mudra Loan:

  • Livestock
  • Poultry
  • Beekeeping
  • Fishing
  • Agribusiness centers
  • Agriclinics
  • Food and agri-produce business
Must Read: MUDRA Loan Application Form
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