What are the eligibility criteria of Mudra loan?

The Pradhan Mantri Mudra Loan Scheme got inaugurated in the year 2015 by Prime Minister Narendra Modi. People in India are going to be eligible for assistance of approximately Rs 10 lakh to form up their small businesses under this programme. Individuals who are seeking loans would not be needed to pay any processing fees under this Pradhan Mantri Mudra Yojana. Similarly , you know what, the payback duration for loans made under such a plan has been boosted by five years.  You can check out the Mudra loan Eligibility and find out if you can avail it. Remember that the citizens of the country get issued a Mudra card to apply for Mudra loans under this PM Mudra Loan program.

What you need to remember is that  individuals must fulfil the MUDRA loan eligibility criteria to avail of this scheme’s benefits. Relying on their eligibility, they can easily get loans up to even Rs. 10 Lakh.

Eligibility criteria for this MUDRA loans

The following can qualify for the MUDRA loan:

  • Artisans
  • Small manufacturers
  • Fruit as well as vegetable dealers
  • Shopkeepers
  • People engaged with agriculture (livestock, even poultry, pisciculture, and more.)

People also need various types of business statements and a report that does project their revenue as part of the MUDRA loan eligibility criteria. Remember that contrary to other business loans that emerge with a long list of eligibility criteria such as a minimum number of years in business, minimum income, profit figures, audited financial statements, etc, Mudra loans got introduced to make it convenient for small and establishing businesses to simply get or avail a business loan.The minimum eligibility criteria to make the most of Mudra Loans are:

  • Individuals applying for the loan should be between the age of 18 to 56.
  • Only non-farm related type of businesses like manufacturing, services, or even trading are allowed.
  • The need of loan amount must not exceed the specific limits in each category

Moreover, remember that any public sector/private sector/regional rural bank is going to be eligible for a MUDRA loan if it fulfils the following criteria:

  • Must have generated profits for the previous two years
  • Level of net performing assets must be below fifteen percent, ten percent and even six percent for public sector, private sector, and even regional type of rural banks correspondingly.
  • Net worth has to be above Rs.250 crore for private and even public sector banks. For regional rural banks, it has to be above Rs.50 crore.
  • Capital to Risk Weighted Assets Ratio or CRAR has to be as per the RBI regulations

The point is simple, for different types of businesses and institutions; there remains changes in the eligibility points.


To sum up, you can check out emi calculator businessloan to ensure that you are taking the best loan for you. Keeping the right things in mind, you can avail the loan with ease. Once you know the type of loan and the eligibility things; you can make the most of the right loan for your business.

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