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Mudra loan (Shishu / Kishor / Tarun)

MUDRA is a refinancing scheme, not a loan product — the government refinances the lender, which then sets its own rate, so there is no single MUDRA interest rate. The category you fall into determines the paperwork: Shishu (up to ₹50,000) is deliberately light, while Kishore and Tarun expect 6-12 months of bank statements, prior ITRs, and increasingly a project report with CMA data. GST and Udyam registration are not mandatory, but their absence is the most common reason a Tarun application is declined.

Cached answer Researched 27 September 2026 2 sources read pre-warmed entry
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Interest rate band 8.85% - 16.00% p.a. (set by each lending institution, not by MUDRA; public sector banks typically price at the lower end) Your rate depends on credit score, amount and tenure.
Processing fee Typically nil to 1% of the loan amount, set by the individual lender. MUDRA itself charges no processing fee to the borrower.
Who regulates what. MUDRA Ltd and the Department of Financial Services set the scheme's category limits and refinancing terms. The RBI governs KYC and the lending norms the bank must follow. Because these are unsecured collateral-free loans, there is no property, no registration and no stamp duty anywhere in the process.
RBI rules State stamp act Registrar / state Bank policy

11 steps, in the order you do them

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  1. 01

    MUDRA loan application form

    Pending
    Bank policy

    The lender's own form. Every MUF (micro unit) uses the same government-scheme category, so the form content is broadly similar across banks.

    Where to get it
    Any MUDRA-lending bank, NBFC or microfinance institution
    Cost
    Free
    Typical time
    1 day
    Source
    MUDRA loan document checklist
  2. 02

    Identity proof

    Pending
    RBI rules

    Aadhaar, PAN, Voter ID or passport. PAN is effectively required in every case.

    Needs MUDRA loan application form first

    Where to get it
    Held by you; Aadhaar and PAN from the relevant authorities
    Cost
    Free
    Typical time
    1 day
    Source
    MUDRA loan document checklist
  3. 03

    Address proof

    Pending
    RBI rules

    Aadhaar, an electricity or telephone bill, a rent agreement, or a bank passbook.

    Needs Identity proof first

    Where to get it
    Utility provider or your bank
    Cost
    Free
    Typical time
    2 days
    Source
    MUDRA loan document checklist
  4. 04

    Passport-size photographs

    Pending
    Bank policy

    Two to six depending on the category of the loan and the lender.

    Needs Identity proof first

    Where to get it
    Any photo studio
    Cost
    ₹100 – ₹400
    Typical time
    1 day
    Source
    MUDRA loan document checklist
  5. 05

    Proof of business existence

    Pending
    Bank policy

    Business registration, Udyam certificate, trade licence or Shop and Establishment certificate. Not required for every Shishu case but expected from Kishore upward.

    Needs MUDRA loan application form first

    Where to get it
    Udyam portal, GSTN, or your municipal corporation
    Cost
    Free
    Typical time
    7 days
    Source
    MUDRA loan document checklist, by category
  6. 06

    Project report or DPR

    Pending
    Bank policy

    Basic for Shishu, required for Kishore and Tarun. Should include business description, cost of project, means of finance, sales and profit projections, and a repayment schedule. Incomplete project reports are a leading cause of decline.

    Needs Proof of business existence first

    Where to get it
    Prepared by you, or by a consultant or your CA
    Cost
    ₹0 – ₹5,000
    Typical time
    7 days
    Source
    MUDRA project report requirement
  7. 07

    CMA data (Credit Monitoring Arrangement)

    Pending
    Bank policy

    A CA-prepared set of financial statements with projected balance sheets, cash flow and DSCR. Increasingly requested even for smaller MUDRA instalment loans.

    Needs Project report or DPR first

    Where to get it
    From a chartered accountant
    Cost
    ₹1,000 – ₹5,000
    Typical time
    7 days
    Source
    MUDRA CMA data requirement
  8. 08

    Bank statements — 6 months for Kishore, 12 for Tarun

    Pending
    Bank policy

    Statements of all operative accounts used for the business, not only the account held with the lending bank. Banks look for clean credits and no cheque returns.

    Needs Identity proof first

    Where to get it
    Your bank
    Cost
    Free
    Typical time
    2 days
    Source
    MUDRA loan document checklist, by category
  9. 09

    Income tax returns for the previous year

    Pending
    RBI rules

    Or sales tax returns where applicable. Not required for Shishu where the business is new; expected from Kishore upward and essential for Tarun.

    Needs Bank statements — 6 months for Kishore, 12 for Tarun first

    Where to get it
    incometax.gov.in or the sales tax portal
    Cost
    Free
    Typical time
    2 days
    Source
    MUDRA loan document checklist
  10. 10

    Quotation for machinery or equipment

    Pending
    Bank policy

    Required where the loan funds assets, so the lender can assess the project cost. Quoted prices must be realistic — an inflated quote undermines the sanction.

    Needs Project report or DPR first

    Where to get it
    From suppliers or dealers
    Cost
    Free
    Typical time
    3 days
    Source
    MUDRA loan document checklist
  11. 11

    Constitution documents, if the borrower is not an individual

    Pending
    Registrar / state

    Partnership deed for a firm; certificate of incorporation, MOA, AOA, board resolution and director list for a company; LLP agreement for an LLP.

    Needs MUDRA loan application form first

    Where to get it
    Registrar of Firms, or the MCA portal
    Cost
    Free
    Typical time
    7 days
    Source
    MUDRA documents by borrower constitution

What we could not confirm

  • There is no single MUDRA interest rate — each lending institution prices its own loans within MCLR-linked limits.
  • GST and Udyam registration are not mandatory, but strongly affect sanction for Kishore and Tarun categories.

Sources read for this answer

2 of them
  1. MUDRA loan documents required 2026 — full checklist by category projectreportbank.com
  2. Bajaj Finserv — Pradhan Mantri MUDRA interest rate and categories bajajfinserv.in
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2026-09-27T14:33:59.141850+00:00
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mudra loan (shishu / kishor / tarun)||resident|
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What documents, in what order, with what approximate costs and how many working days each step takes, are required for Mudra loan (Shishu / Kishor / Tarun) for a resident Indian applicant (ordinary resident, taxed in India)? Also state the current interest rate range as a band (for example "8.50% - 9.75% p.a.") and the processing fee. Note separately which items come from RBI rules, which from the state stamp act or registrar, and which are the bank's own policy. If a detail is not publicly disclosed, say so explicitly rather than estimating. Cite every source.
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