1. What is it?

  • The scheme was launched in 2015 by the Government of India to provide financial support to non-corporate, non-farm micro and small enterprises. www.codeforbanks.com+3India Brand Equity Foundation+3Bank of Baroda+3

  • The objective is to bring small enterprises into the formal credit system, foster entrepreneurship, generate employment, and support manufacturing, services, retail and allied activities. India Brand Equity Foundation+1

  • The term “MUDRA” stands for Micro Units Development & Refinance Agency.


    2. Who is eligible?

    Typical eligibility criteria are:

    • A non-corporate, non-farm small/micro enterprise (for example: shopkeepers, small manufacturers, artisans, service providers, vendors). India Brand Equity Foundation+1

    • The applicant must be above a minimum age (often 18 years) and meet the bank/financier’s norms. Mudra Loan India

    • The business must be income generating (or intended to be), e.g., manufacturing, trading, services, or agri-allied (but non-farm primary crop production is usually excluded). Bank


      3. Categories of MUDRA Loans

      The scheme classifies loans into categories based on the stage of business and amount required. www.codeforbanks.com+2Paisabazaar+2

      ShishuUp to ~ ₹50,000Seed / startup / very early stage Bank of Baroda+1
      KishoreAbove ~ ₹50,000 up to ~ ₹5,00,000Growing business needing higher funding Paisabazaar+1
      TarunAbove ~ ₹5,00,000 up to ~ ₹10,00,000 (or higher under new rules)Established business expanding www.codeforbanks.com+1
      Tarun PlusUp to ~ ₹20,00,000 (for those who have previously taken & repaid)Advanced stage expansion (recent update)