SBI Mudra Loan Apply Online

May 19, 2025

3–4 minutes

The Hon’ble Prime Minister introduced the Pradhan Mantri MUDRA Yojana (PMMY) on April 8, 2015, with the objective of providing small and micro businesses that are not corporations or firms with loans of up to Rs. 10 lakh. These loans are labeled as MUDRA loans under PMMY. These loans are provided by small financing banks, NBFCs, MFIs, RRBs, and commercial banks. The borrower may apply in person at any of the above-mentioned lending institutions or online at http://www.udyamimitra.in. Under the sponsorship of PMMY, MUDRA has produced three products, “Shishu,” “Kishore,” and “Tarun,” to represent the financial needs and developmental stage of the recipient micro unit or entrepreneur. These products also act as a benchmark for the growth or graduation period that follows.

SBI Mudra Loan

Under the PM MUDRA Yojana (PMMY) program, SBI provides business loans up to Rs 10 lakh with a five-year term. The Government of India launched the PM MUDRA (Micro Units Development & Refinance Agency) Yojana to support the growth and refinancing of micro-unit firms. Businesses engaged in manufacturing, trading, services, and agriculture may utilize the funds from the SBI PMMY loan for reasons such as modernization, capacity development, and other business needs.

SBI Mudra Loan Amount

The loan amount varies on the fact that what is the category of the loan and the borrower’s eligibility. The general breakdown is –

Category	Loan Amount
Shishu	Up to Rs. 50,000
Kishor	Above Rs. 50,000 to Rs. 5 lakh
Tarun	Above Rs. 5 lakh to Rs. 10 lakh*

*Budget 2024 has proposed to increase the Mudra loan limit to Rs. 20 lakh for entrepreneurs who have repaid previous loans under the ‘Tarun’ category

SBI Mudra Loan Interest Rate

The interest rates for the SBI PM MUDRA Yojana are not publicly available. Nonetheless, the MCLR (marginal cost of funds-based lending rate) is associated with the interest rates.

Repayment Tenure of SBI Mudra Loan

The repayment tenure for SBI Mudra loans has some general guidelines-

Shishu: Typically 3 to 5 years
Kishore: Typically 5 to 7 years
Tarun: Typically 7 to 10 years

The exact repayment tenure is decided on a case-by-case basis. It’s always better to visit the official website of SBI for more specific information.

Fee and Charges for SBI Mudra Loan Yojna

Particulars	Processing Fees
For Shishu and Kishore to MSE Units	NIL
For Tarun	0.50% p.a. of the loan amount

Eligibility Criteria of SBI Mudra Loan

SBI provides PM MUDRA Yojana loans to both new and established business units functioning in the manufacturing, commerce, and service sectors. Businesses engaged in related agricultural operations are also qualified to apply for SBI Mudra Loans.

Margin

Loan Amount	Margin
For up to Rs 50,000	NIL
Above Rs 50,000 to Rs 10 lakhs	10%

Collateral

Because the Credit Guarantee Fund for Micro Units (CGFMU) is guaranteeing it, there is no collateral. As primary security, however, hypothecation of stocks and receivables in the case of CC and equipment and machinery in the case of term loans is necessary.Document Required for Getting SBI Mudra Loan

Generally, these documents are needed for getting an SBI Mudra Loan-

Identity Proof

Aadhaar Card
Driving License
Voter ID Card
Passport

Address Proof

Aadhaar Card
Driving License
Voter ID Card
Passport
Utility Bill (Electricity, Gas, Water)
Rent Agreement

Income Proof

For self-employed individuals: Income Tax Returns, audited financial statements, bank statements, GST registration certificate, etc.
For salaried individuals: Salary slips, Form 16, bank statements

Other Documents

Photographs
Business plan (for loans above ₹50,000)
Collateral security (if applicable)

Note – Please take into account that these are general requirements. Actual requirements might differ keeping in account the loan amount, the different categories (Shishu, Kishore, Tarun), and individual circumstances. It’s best to directly consult with SBI for more up-to-date information.

Achievements Under PMMY Since Inception