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Mudra Loan Eligibility Criteria (Rules) | Who Can Apply For Mudra Loan

Mudra Loan Eligibility Criteria | Who Can Apply For Mudra Loan

  • Citizenship: You have to be a citizen of India in order to take part in this scheme. It is open to all citizens who adhere to the below mentioned norms.
  • Small business owners: If you are a small business owner, this means that if you are a truck operator, shopkeeper, vegetable vendor, artisan, etc. you are eligible for this scheme.
  • All non corporate entities: Corporate firms and personnel are not eligible to take loan under the Mudra scheme. But it is open to all non corporate entities.
  • Age limit: The age limit for participating in this scheme has been set between 23 and 28 years. Also, when the loan matures, the person should not have attained more than 65 years of age.
  • Income limit: This scheme is applicable for people who have average monthly income between Rs. 17000 and Rs. 15 lakh. You can also have income in this range as an annual turnover.The minimum amount described as profit should be Rs. 1 lakh per year after paying taxes. For self-employed persons or proprietorship owners, the same should not exceed Rs. 2 lakh.
  • Occupational stability: If you are a salaried individual, then the minimum o years you have been in the workforce should be of 2 years. In case you have your own business, then should have done a stable business for at least 5 years. Doctors should be working in their field for 3 years at least.
  • Nonfarm income generating activities: You can only take the loan for any startup that generates income outside of the farming activities. For agricultural purposes you cannot take this loan.

Apart from this, you have to have at least a one year service relationship with the bank in order to apply for this loan. Or, you have to have spent at least a year in your current address.

Mudra Loan Eligibility Criteria FAQ

FAQs of Mudra Loan Eligibility Criteria

  • I have a savings bank account. Can I apply for Mudra Loan?

    Yes, you can request for Mudra loan if you have a savings bank account. The amount of loan, the interest rate and the time period of repayment shall be decided by the lending authority after checking out your account activity and more details.
  • I have just graduated and joined the workforce. Can I avail the loan?

    Yes, you can avail the loan under the ‘Shishu, Kishor and Tarun’ bands of this scheme. Under any of these three banks, you can get loan assistance of up to Rs. 10 lakhs.
  • What do I have to keep mortgage or collateral for this loan? You don’t need to keep anything mortgage or as collateral for this scheme. These are unsecured loans which you must repay over a period of time only.
  • Can a physically handicapped person avail the Mudra Loan?

    Yes, any person who follows the above criteria can avail this loan. The scheme does not differentiate between applicants. It goes for all irrespective of their economic background, religion, physical ability, etc.
  • What are the documents needed for this scheme?Different lenders ask for different documents. You have to specifically ask your lender what kind of documents they are looking for.
  • Do I need to have a PAN card to get the loan?PAN card and Mudra loan have not been linked, nor has there been any indication of such in any document anywhere. However, in order to fulfill the KYC norms, the lending institutions may ask for your PAN card details.
  • Do I need to file my income tax returns to get this loan?

    You may or may not need to file your returns, depending upon the norms decided upon by your lending institution. However, the government has not mentioned anywhere that it is compulsory.
  • I am a small dealer. Can I avail this loan?

    Mudra loan is available through various Non Banking Finance institutions and MFIs. Hence, you as a small dealer you can take loans from them.


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  1. प्रदीप कुमार

    स्टेट बैंक ऑफ़ इंडिया शाखा जिरौली (जिला – बुलंदशहर, उत्तर प्रदेश ) के ब्रांच मैनेजर महोदय मुद्रा लोन के विषय मे बात करने को ही राजी नहीं हैं । इस सम्बन्ध मे कई बार मैनेजर महोदय से बात कर चुका हूँ । लेकिन वो तैयार ही नहीं हैं । मै मेडिकल स्टोर संचालक हूँ और अपने व्यापार का विस्तार करना चाहता हूँ ।

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