Mudra Loan Documents

The Pradhan Mantri Mudra Yojana (PMMY) offers micro-loans to entrepreneurs and small businesses in India. To apply for a Mudra loan, you'll need to submit a variety of documents to verify your identity, address, business credentials, and loan requirements. Read till the end to know the essential documents you'll need to compile for your Mudra loan application.

The Mudra loan is not available directly from the government of India but can be availed through government-authorised banks and NBFCs. The specific documents needed may differ depending on the financial institution.

Highlights of Mudra Loan

Before getting into the list of documents, let’s go through the highlights of the Mudra loan:

Mudra Interest Rates Per RBI guidelines, the cap is 3.5%.
Refinancing in Mudra loan cap is 6% p.a and can vary based on lenders.
Loan Amount Upto 10 Lakhs
Loan Category Shishu (up to 50,000),
Kishore (50,000 to 5 lakh)
Tarun (5 lakh to 10 lakh)
Loan Type Collateral Free Loan (without Security)
Loan Facility Cash Credit, Overdraft & Term Loan
Repayment Tenure Depends on the Lender

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Documents Required for MUDRA Loan

The list of documents needed for Mudra loans can differ based on the lender you select. However, here are the common documents that you must provide when seeking a Mudra loan:

Proof of Identity

You are required to provide one of the following documents as proof of identity:

  • Aadhaar card
  • PAN card
  • Driving license
  • Voter’s ID
  • Passport
  • Any other government-issued photo ID card

Proof of Residence

You need to submit any of these documents as proof of address:

  • Aadhaar card
  • Passport
  • Voter’s ID
  • Government-issued domicile certificate
  • Utility bills like electricity, telephone, gas, or house tax bills

Proof of Business

To establish the existence, address, and ownership of your business, you must provide any of these documents:

  • Proof of Business Continuity
  • Business registration
  • Business License
  • Business certificate
  • Partnership Deed, Memorandum, or Article of Association

Other Documents

The following are the additional documents required when applying for a Mudra loan:

  • Duly-filled Mudra loan application form
  • Passport-size photographs of business owners and partners
  • Government-issued caste/community certificate for Scheduled Castes (SCs), Other Backward Castes (OBCs), and Scheduled Tribes (STs)
  • Balance sheet for the last two years
  • Estimated balance sheet for the next financial year or the loan tenure
  • Bank account statement for the last 6 months
  • Sales record for the last year
  • A comprehensive and well-documented business plan
  • Trade references

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Documents Required for Vehicle Loan under PMMY

Documents needed for a vehicle loan under Pradhan Mantri MUDRA Yojana (PMMY) include:

  • Completed Mudra Yojana application form
  • Vehicle loan application
  • Two passport-sized photographs
  • Acceptable forms of identification such as an Aadhaar Card, Passport, Voter ID Card, and Driving License
  • Address proof like an Aadhaar card, passport, bank statements, phone or electricity bills
  • Proof of income
  • Bank statement for the last six months

Documents Required for a Business Loan under PMMY

The following documentation is necessary for obtaining a business loan under the Pradhan Mantri MUDRA Yojana (PMMY):

  • Completed Mudra Yojana application form
  • Proof of residential address, such as Aadhaar card, passport, bank statements, or utility bills
  • Evidence of business or residence ownership
  • Proof of business qualification, establishment, and continuity
  • Evidence of business continuity
  • Bank statements from the previous 12 months
  • Income tax returns for the past two years

Documents Required for Business Installment Loan under PMMY

The business installment loan application under Pradhan Mantri MUDRA Yojana (PMMY) requires the following documents:

  • Completed Mudra Yojana application form
  • Loan application
  • Two passport-sized photographs of the applicant
  • Acceptable forms of identification such as an Aadhaar Card, Passport, Voter ID Card, Driving License, etc.
  • Proof of residential address (e.g. Aadhaar card, passport, bank statements, telephone or electricity bill)
  • Evidence of business or residence ownership
  • Proof of business qualification, establishment, and continuity
  • Trade references
  • Certified financials by CA and ITR for two years
  • Bank statement for the previous six months

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Eligibility Criteria for Mudra Loan

Mudra loans are accessible to the following categories of entities:

  • Individuals and small to medium-sized enterprises
  • Artists, traders, retailers, and manufacturers
  • Sole proprietorships, partnership firms, and limited liability partnerships (LLPs) are restricted to the trading, manufacturing, and service sectors.
  • Micro and small manufacturing units
  • Small-scale industry (SSI) units

Check the detailed Mudra Loan Eligibility from the linked page.

Categories of Mudra Loans

The Pradhan Mantri Mudra Yojana (PMMY) provides a variety of loan products across three segments, addressing different phases of micro-enterprise development:


  • Loan amount: Up to Rs. 50,000
  • Ideal for: Startup enterprises.
  • Purpose: Fulfilling initial working capital requirements, procuring equipment, and covering establishment expenses.


  • Loan amount: Above Rs. 50,000 and up to Rs. 5 lakh.
  • Ideal for: Growing businesses in need of capital for expansion.
  • Purpose: Investing in machinery, upgrading technology, increasing inventory, and expanding operations.


  • Loan amount: Above Rs. 5 lakh and up to Rs. 10 lakh.
  • Ideal for: Established businesses aiming for further growth and diversification.
  • Purpose: Establishing new units, acquiring land, and executing large-scale expansion projects.

Advantages of Mudra Loan Scheme

The primary goal of the Mudra loan scheme is to provide appropriate formal credit support to small businesses that contribute significantly to job creation in India.

Here are some key advantages of the Pradhan Mantri Mudra Loan scheme:

  • No need for collateral for loans up to Rs 10 lakhs: This allows numerous small businesses without assets to pledge to access loans.
  • Competitive interest rates and processing charges: Starting at a low 9%, the attractive interest rates facilitate easier loan repayment.
  • Flexible repayment alternatives: Repayment schedules can be tailored according to business cash flows.
  • Streamlined documentation and quick processing: Minimal paperwork and expedited loan approval compared to conventional business loans.
  • Streamlined documentation and quick processing: Minimal paperwork and expedited loan approval compared to conventional business loans.
  • Diverse funding choices: Loans are offered based on the business stage Shishu, Kishore & Tarun, up to Rs 10 lakhs.

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Frequently Asked Questions

To demonstrate your ownership of the business, you can submit documents such as Business Registration, License, Certificate, Partnership Deed, Memorandum, or Articles of Association.

No, a Mudra loan is unsecured, eliminating the need for collateral.

When applying for a Shishu Mudra loan, you must provide proof of identity, address, income, and business. Additionally, documents verifying SC, ST, or OBC status and business continuity are required.

Yes, including a copy of your Income Tax Return (ITR) is mandatory when applying for a Mudra loan.

The MUDRA loan limit varies based on the stage of the MUDRA scheme, with loans falling under three categories: Shishu (up to ₹50,000), Kishor (up to ₹5 lakh), and Tarun (up to ₹10 lakh).

Banks can refuse MUDRA loans if the applicant does not meet the eligibility criteria or fails to provide the necessary documentation.

Yes, you can apply for a MUDRA loan online through the official MUDRA website or participating banks' online portals.

Yes, if you have successfully repaid your previous MUDRA loan, you can apply for a new one.

MUDRA loans are primarily intended for funding small business activities and may not be used for purchasing personal assets like cars.

MUDRA loans are a government initiative aimed at supporting small businesses, and they are generally considered safe when obtained through authorized financial institutions.

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