Mudra Loan Scheme 2.0 is a government scheme that helps small and micro businesses in India. This scheme offers easy loans up to INR 20 lakh to help you start or grow your business in non-farm and non-corporate sectors. If you run a small business and need financial support, this scheme can be very helpful.
Updated Mudra Loan Scheme 2.0 for 2025
In the Union Budget for 2024-25, the Finance Minister announced an improved Mudra Loan Scheme 2.0. The main update is raising the maximum loan amount from INR 10 lakh to INR 20 lakh. This means small business owners can get more money to expand or start their businesses.
Purpose of Mudra Loan Scheme
The main goal of this scheme is to support small and micro enterprises so they can grow their businesses. Growing these businesses creates jobs and helps the Indian economy. So far, the government has helped many entrepreneurs with loans worth over INR 5.4 lakh crore under this scheme.
If you have a business idea but need funds, Mudra Loan Scheme 2.0 could be the right choice for you.
Loan Categories Under Mudra Scheme
- Shishu: Loans up to INR 50,000 for startups and very small businesses.
- Kishor: Loans from INR 50,000 to INR 5 lakh for growing businesses.
- Tarun: Loans from INR 5 lakh up to INR 20 lakh for well-established small businesses.
Who Can Apply? (Eligibility Criteria)
- Small manufacturing units
- Shopkeepers and retailers
- Vegetable and fruit sellers
- Artisans and craftsmen
- Truck operators and transporters
- Food service providers
- Repair and maintenance shops
Documents Needed for Mudra Loan Application
- Aadhar Card
- Ration Card
- Mobile number linked with Aadhar
- Electricity bill (for address proof)
- Any valid address proof
- PAN Card
Benefits of Mudra Loan Scheme 2.0
- Easy loans up to INR 20 lakh for small and micro businesses.
- Helps you start or grow your business without financial pressure.
- Creates jobs by encouraging entrepreneurship.
- Loan money is directly deposited into your bank account for quick access.
How to Apply Online for Mudra Loan Scheme 2.0 in 2025
Follow these simple steps to apply online:
Step 1: Visit the official Mudra website.
Step 2: Click on the Udyamimitra portal link on the homepage.
Step 3: Select “Apply Now” and fill in your name, email, and mobile number.
Step 4: Enter the OTP sent to your mobile and submit.
Step 5: Complete the registration form with all the required details and upload your documents.
Step 6: Review your application and submit it to finish the process.
Offline Application Process for Mudra Loan Scheme
- Visit your nearest Commercial Bank, Regional Rural Bank (RRB), Small Finance Bank, Micro Finance Institution (MFI), or Non-Banking Financial Company (NBFC).
- Download the application form from the official website by choosing your loan category – Shishu, Kishor, or Tarun.
- Fill in the form carefully and attach all necessary documents like proof of identity and address.
- Submit the completed application form to the bank or lending institution officer.
Contact Information
If you need help, you can email: help[at]mudra[dot]org[dot]in
Frequently Asked Questions
What is the purpose of Mudra Loan Scheme 2.0?
It is meant to support small and micro businesses to grow by giving easy and affordable loans.
What is the highest loan amount under this scheme in 2025?
You can get loans up to INR 20 lakh.
Who can get this Mudra loan?
Small business owners, shopkeepers, artisans, vendors, and similar workers can apply.
By using the Mudra Loan Scheme 2.0 in 2025, you can give your small business a better chance to succeed and build a brighter future.