Kishore Mudra Loan: Limit, Amount & Eligibility

Kishore Mudra Loan under PMMY supports businesses looking to expand operations. It offers affordable finance without collateral, making it ideal for small and medium enterprises aiming for growth.

What is Kishore Mudra Loan?

Kishore Mudra Loan is a category under the Pradhan Mantri Mudra Yojana for entrepreneurs seeking Business Loans for businesses that have moved beyond the initial stage and require funds for expansion. It covers loan amounts between ₹50,001 and ₹5,00,000, bridging the gap between Shishu and Tarun categories. This scheme promotes entrepreneurship by providing accessible finance for manufacturing, trading, and service sectors.

Also Read: What is Business Loan: A Complete Guide

Kishore Mudra Loan Limit & Amount

The Kishore category offers loans ranging from ₹50,001 to ₹5,00,000. These funds can be used for purchasing equipment, working capital or business expansion. Compared to Shishu (up to ₹50,000) and Tarun (₹5,00,001 to ₹10,00,000), Kishore serves businesses in the growth phase.

Loan Category Comparison:

• Shishu: Up to ₹50,000 – For startups and very small businesses.
• Kishore: ₹50,001 to ₹5,00,000 – For businesses seeking expansion.
• Tarun: ₹5,00,001 to ₹10,00,000 – For established businesses scaling operations.

Eligibility Criteria for Kishore Mudra Loan

• Applicant must be an Indian citizen aged 18 to 65 years.
• Business should fall under manufacturing, trading, or services sector.
• Valid business registration such as Udyam certificate.
• Good credit history and repayment capacity.
• KYC compliance with identity and address proof.

Also Read: What is Udyam Registration Number

Features and Benefits of Kishore Mudra Loan

• Collateral-free loans ensuring easy access to finance.
• Affordable interest rates starting from 8.60%.
• Flexible repayment tenure up to 5 years.
• Quick disbursal process to meet urgent business needs.
• Supports entrepreneurship and financial inclusion.

Kishore Mudra Loan Interest Rates and Charges

Interest rates typically range between 8.60% and 12%, depending on the lender and applicant profile. Processing fees are nominal, and there are minimal prepayment penalties. Always compare rates before applying to optimise costs.

Required Documents for Kishore Mudra Loan

• Identity proof (Aadhaar, PAN).
• Address proof (Utility bills, passport).
• Business registration certificate (Udyam, GST).
• Financial statements and bank account details.
• Passport-sized photographs.

How to Apply for Kishore Mudra Loan: Online & Offline Process

Applicants can choose between online and offline methods. Online applications are faster and convenient, while offline applications allow personal interaction with bank representatives.

Online Application Steps

• Visit the official lender website and navigate to Mudra Loan section.
• Fill in the application form with personal and business details.
• Upload required documents and submitted the form.
• Track application status online and await approval.

Offline Application Steps

• Visit the nearest bank branch offering Mudra Loans.
• Collect and fill out the application form.
• Attach photocopies of required documents.
• Submit the form and discuss terms with the loan officer.

Business Loans as an Alternative to Kishore Mudra Loan

While Kishore Mudra Loan under PMMY offers affordable finance for small businesses, it comes with

specific eligibility criteria and capped limits of up to ₹5 lakh. For entrepreneurs seeking higher funding or

more flexible terms, a Business Loan can be a practical alternative. Business Loans provide larger amounts,

customisable tenures and competitive interest rates, making them suitable for expansion, equipment purchase or working capital needs. To plan repayments effectively, use a Business Loan EMI Calculator, which helps estimate monthly instalments based on loan amount, interest rate and tenure, ensuring better financial control.

Apply now for a Business Loan.

FAQs

Q.1. What is the maximum loan limit under Kishore Mudra Loan?

A. The maximum limit is ₹5,00,000 under the Kishore category.

Q.2. Can I apply for multiple Mudra loans simultaneously?

A. No, you can only avail one Mudra loan at a time under PMMY.

Q.3. What are the typical timelines for Kishore Mudra Loan approval?

A. Approval usually takes 7 to 10 working days after document verification but timeline vary by lenders.

Q.4. Is collateral mandatory for Kishore Mudra Loan?

A. No, Mudra loans are collateral-free, making them accessible to small businesses.

Q.5. Can startups avail Kishore Mudra loans?

A. Yes, if they meet eligibility criteria and require funds beyond ₹50,000.

Disclaimer:

The content presented on this page, including images and factual information, is intended solely as a summary derived from publicly available sources. GHFL/GFL (“Company”) does not claim ownership of such information, nor does it represent that the Companies have exclusive knowledge of the same. While efforts are made to ensure accuracy, there may be inadvertent errors, omissions, or delays in updating the content. Users are strongly encouraged to independently verify all information and seek expert advice where necessary. Any decisions made based on this content are solely at the discretion and responsibility of the user. Godrej Capital and its affiliates assume no responsibility for any loss or damage that may result from the use of or reliance on the information provided herein.