MUDRA Loans are classified into four categories to signify the stage of growth and funding needs of the beneficiary micro unit/entrepreneur.

• •Shishu: Covers loans up to ₹50,000 for businesses in their nascent stage or looking to start.
• •Kishor: Covers loans above ₹50,000 up to ₹5 Lakh for those who need funds to expand their operations.
• •Tarun: Covers loans above ₹5 Lakh up to ₹10 Lakh for established businesses seeking significant expansion or modernization.
• •Tarun Plus: Covers loans above ₹10 Lakh up to ₹20 Lakh (New limit) for entrepreneurs who have successfully repaid previous Tarun loans and are ready for substantial growth.

• •Working Capital: Available through Cash Credit/Overdraft limits.
• •Term Loan: For purchasing machinery, equipment, and other capital assets.
• •Business Expansion: For capacity expansion and modernization of existing units.
• •Vehicle Loans: For purchase of commercial transport vehicles (e.g., auto-rickshaws, taxis, utility vehicles).

• •Applicant must be an Indian Citizen, aged 18 to 65 years.
• •Engaged in an income-generating, non-corporate, non-farm small/micro enterprise.
• •Covered Sectors: Manufacturing, Trading, Services, and activities allied to agriculture (e.g., poultry, dairy, bee-keeping, agro-processing).
• •Applicant should not be a defaulter to any bank or financial institution.
• •Open to: Individuals, Sole Proprietorships, Partnership Firms, Private/Public Limited Companies, and entities of other legal forms.

• •Collateral-Free: No collateral or third-party guarantee is required, as the loan is covered under the Credit Guarantee Fund for Micro Units (CGFMU).
• •Flexible Repayment: Repayment period can be structured up to 7 years.
• •Low Processing Fee: Typically nil for Shishu loans, with low fees for other categories.
• •MUDRA Card: Issuance of a RuPay debit card to efficiently manage the working capital portion of the loan.

MUDRA Loans are extended through Member Lending Institutions (MLIs) across India.

• •Identify MLI: Approach Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), NBFCs, or Micro Finance Institutions (MFIs).
• •Online Application: Apply through the official JanSamarth or Udyamimitra portals.
• •Offline Application: Obtain and submit the application form along with required documents to the nearest branch of an MLI.
• •Review: The bank/financial institution reviews the business plan and documents for sanction and disbursement.

Essential documents for the MUDRA loan application (may vary by category and lender).

1. Identity Proof: Self-attested copy of Aadhaar Card, PAN Card, Voter ID, or Passport.

2. Address Proof: Recent utility bill (not older than 2 months), Voter ID, or Aadhaar Card.

3. Business Proof: Copies of relevant licenses/registration certificates, ownership documents, and proof of business continuity.

4. Financial Documents: Bank statements (last six months), Last two years' Balance Sheets/ITR (mandatory for loans above ₹2 Lakh).

5. Application Form: Duly filled MUDRA loan application form with recent passport-sized photographs.