Published on Feb 27, 2025Updated on Sept 23, 2026
From time to time, the Government of India has introduced various schemes to support the growth of small and micro enterprises. One such notable initiative is the e-Mudra loan scheme.
In this article, we’ll learn more about this digital lending facility, including the benefits, eligibility criteria, and the e-Mudra loan online application process.
The e-Mudra loan is a financial product under the Pradhan Mantri Mudra Yojana (PMMY), offering loans up to INR 20 lakhs to non-corporate, non-farm small/micro enterprises. These loans are disbursed through multiple lending institutions, including Non-Banking Financial Companies (NBFCs), ensuring accessibility to a wide range of borrowers.
The e-Mudra loan scheme for MSMEs aims to:
The e-Mudra loan scheme offers several advantages to beneficiaries:
The e-Mudra loan eligibility can vary by the participating lending institution. However, you must meet the following general criteria:
The documents commonly required for an E-Mudra loan registration process include:
*Additional documents may be required depending on your individual profile and the lender’s eligibility criteria at the time of loan application.
Under the Pradhan Mantri Mudra Yojana (PMMY), the government has introduced four loan categories – Shishu, Kishore, Tarun, and Tarun Plus.
The primary objective of the scheme is to promote entrepreneurship and support micro and small enterprises in their various growth stages.
The Shishu loan category is designed for early-stage businesses or startups that are just beginning their journey.
The Kishore loan category is aimed at helping businesses scale up by funding activities like hiring more staff, purchasing additional equipment, or expanding their product range.
The Tarun loan category is designed for businesses that are in the established growth stage and looking for funding for businesses looking to expand further or diversify.
The Tarun Plus loan category is tailored for businesses in the advanced growth stage aimed at providing them with substantial funding for large-scale projects. This category is available to those who have availed of and successfully repaid Tarun loans.
The interest rates for E-Mudra loans vary depending on the lender and the loan category. However, they are generally lower than rates from traditional financial institutions, making them an attractive option for small businesses.
The online Mudra loan registration process is simple and can be completed in a few steps:
For the latest application guidelines, visit the official PMMY website or your preferred lender’s portal.
The loan can be used for a variety of business-related purposes including:
The e-Mudra loan is a valuable financial tool for small business owners and entrepreneurs seeking to expand their ventures. It provides accessible funding without collateral requirements, making it a viable choice for micro and small enterprises.
If you're looking for additional financing options, SMFG India Credit offers tailored business loans of up to INR 1 Crore* with no collateral required. You can avail of competitive interest rates and flexible loan tenures ranging from 12 to 60 months. Check your eligibility and apply online today!
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
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Indian citizens running micro or small businesses in the non-farm sector and meeting the specific eligibility criteria of their chosen lender can apply.
Interest rates vary by lender and are determined based on the applicant’s profile and loan amount, but they are generally competitive.
You can apply online by filling out the e-Mudra loan application form and submitting the required documents.
The categories are: Shishu (up to INR 50,000), Kishor (INR 50,001 to INR 5,00,000), Tarun (INR 5,00,001 to INR 10,00,000), and Tarun Plus (INR 10,00,001 to INR 20,00,000).
No, e-Mudra loans are collateral-free.
The repayment tenure can range up to 48-60 months, depending on the loan amount and policies of the lender.
Visit the official website of the chosen participating financial institution or the Udyamimitra portal to download the form or apply online.
No, but it offers affordable interest rates and does not require collateral.
Yes, if the previous loan has been repaid satisfactorily, you may be eligible to apply for another loan under the scheme.
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