What is Mudra Loan?
Mudra Loan is a Government of India initiative under the
Pradhan Mantri Mudra Yojana (PMMY), aimed at supporting micro and small businesses
by improving access to formal credit. In Hyderabad, Mudra loans are offered by eligible
banks, NBFCs, and MFIs as per their internal lending policies and RBI guidelines.
HyderabadLoans is an informational and guidance platform that helps individuals understand
Mudra loan eligibility, required documents, and the general bank process before approaching a lender.
Mudra Loan Scheme in Hyderabad
Mudra loans are designed to promote entrepreneurship and self-employment among small traders,
service providers, shop owners, vendors, and micro enterprises in Hyderabad. These loans are
collateral-free, subject to lender assessment and eligibility.
Types of Mudra Loans Available
Shishu Loan
- Loan amount: Up to ₹50,000
- Suitable for new or very small businesses
Kishore Loan
- Loan amount: ₹50,001 to ₹5 Lakhs
- Suitable for growing businesses needing working capital
Tarun Loan
- Loan amount: ₹5 Lakhs to ₹10 Lakhs
- Suitable for established small enterprises planning expansion
Tarun Plus (Tarun+)
- Indicative loan amount: Above ₹10 Lakhs and up to ₹20 Lakhs
- Suitable for: Well-established micro and small enterprises with higher funding needs
- Offered by: Select banks and NBFCs based on internal MSME lending policies
Purpose of Mudra Loans for Hyderabad Businesses
Mudra loan products are structured to support the working capital and growth needs of micro enterprises operating across different sectors in Hyderabad. These loans are designed to address the specific requirements of various business activities and entrepreneur segments.
Types of Financial Support Under MUDRA
- Micro Credit Scheme (MCS): Loans up to ₹1 Lakh, generally routed through Micro Finance Institutions (MFIs).
- Refinance Support: Refinance assistance provided to Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, and NBFCs to enable Mudra lending.
Eligibility Criteria for Mudra Loan in Hyderabad
Applicants in Hyderabad are generally considered for Mudra loans if they meet the following conditions, subject to lender policies:
- Indian citizen
- Minimum age of 18 years
- Engaged in non-farm income generating business activities
- Startup or existing small-scale business
- Micro manufacturers, traders, or service providers
- Loan requirement strictly for business purposes
Interest Rates for Mudra Loans in Hyderabad
Interest rates on Mudra loans are determined by the respective bank or NBFC. MUDRA does not fix interest rates. Lending institutions in Hyderabad set rates based on borrower profile, business risk, and credit assessment, in accordance with RBI guidelines.
—Tenure of Mudra Loan Assistance
The repayment tenure for Mudra loans in Hyderabad varies depending on the loan amount, business cash flows, and lender policy. Refinance assistance extended by MUDRA to lending institutions is generally aligned with RBI norms and may extend up to a maximum tenor of 36 months.
Business Activities Covered Under Mudra Loan in Hyderabad
Agriculture Allied Businesses
Non-farm agriculture allied activities such as dairy, poultry, fisheries, livestock, and apiary businesses operating in and around Hyderabad.
Food & Small Processing Units
Small-scale food businesses including bakeries, packaged food preparation, fruit and vegetable trading, and similar activities.
Service Sector Enterprises
Service-oriented businesses such as salons, boutiques, medical stores, repair centers, dry cleaning units, and photocopy services.
Textile & Artisan Businesses
Artisan and textile-related activities including tailoring, embroidery, weaving, knitting, and handicraft production.
Transport & Small Logistics
Small transport businesses involving auto-rickshaws, e-rickshaws, taxis, and light commercial vehicles, subject to bank norms.
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HyderabadLoans.in is an informational and loan guidance platform. Mudra loans are sanctioned and disbursed solely by banks, NBFCs, and MFIs as per RBI and PMMY guidelines. We are not affiliated with MUDRA Ltd or the Government of India.
Mudra Loan in Hyderabad – Frequently Asked Questions (FAQs)
What is a Mudra Loan?
Mudra Loan is a Government of India initiative under the Pradhan Mantri Mudra Yojana (PMMY) designed to support micro and small enterprises by improving access to formal credit. In Hyderabad, Mudra loans are provided by eligible banks, NBFCs, and MFIs as per RBI guidelines and lender policies.
What are the types of Mudra loans available?
Mudra loans are offered under four categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), Tarun (₹5 lakh to ₹10 lakh), and Tarun Plus (above ₹10 lakh up to ₹20 lakh), subject to lender eligibility and MSME assessment.
Who is eligible for a Mudra loan in Hyderabad?
Applicants must be Indian citizens aged 18 years or above, engaged in non-farm income-generating business activities. Startups, small traders, manufacturers, and service providers may be considered based on business viability and lender norms.
Is collateral required for Mudra loans?
Mudra loans are generally collateral-free. However, lenders may assess business cash flows, credit history, and repayment capacity before approval.
What is the interest rate for Mudra loans?
MUDRA does not prescribe fixed interest rates. Interest rates are determined by the lending bank or NBFC based on borrower profile, business risk, and RBI guidelines.
What is the repayment tenure for Mudra loans?
Mudra loan tenure varies by loan amount and lender policy. Refinance assistance under PMMY may extend up to 36 months, while end-borrower tenure depends on cash flows.
Which business activities are covered under Mudra loans?
Mudra loans cover non-farm micro enterprises including trading, manufacturing, services, food processing, textiles, transport, and allied activities.
Do you provide or approve Mudra loans?
No. HyderabadLoans.in is an informational and guidance platform only. Loan approval and disbursement are handled by banks or NBFCs as per PMMY and RBI guidelines.