Age Limit in Mudra Loan

Age Limit in Mudra Loan

The Pradhan Mantri Mudra Yojana, simply referred to as Mudra Yojana, is a financial aid scheme designed and launched by the NDA government. This scheme aims towards extending financial aid to non-corporate non-farm manufacturing and service units in India that employ majority of the Indian labor force in the unorganized sector.

Mudra is a scheme and it is not a bank. This means that the loans under the scheme or the Yojana can be availed only through designated participating banks and financial organizations which fulfill the eligibility criteria as mentioned by the government.

All public sector banks, private sector banks, state co-operative banks, urban co-operative banks, regional rural banks, micro finance institutions and non-banking financial companies that fulfill the following criteria can extend loans under the Mudra scheme:

  • They have a net worth of INR 100 crores or more.
  • They maintain NPAs of 3% or below.
  • They maintain CRAR of 9% or above.
  • They have been making profits for 3 years in a row.

Age limit in Mudra Yojana

Now, Mudra scheme has come up with three different categories of loans which have been named as Shishu loan, Kishor loan and Tarun loan. The names selected for the loan categories often send out the message that there is some kind of age limit in Mudra Yojana. This however is not true. The names of the loan categories have no relationship with age whatsoever. Instead, they actually refer to the size and status of a business that is seeking financial aid under the Mudra Yojana.

Let us take a quick look at each of the loan category and understand what the names actually refer to:

Shishu Loan: This refers to startup business. In other words, potential entrepreneurs with excellent business ideas can apply for this loan so that they can set up their businesses. Shishu simply refers to a business that is yet to start. The amount of loan that can be availed under this category is INR 50,000.


Kishor Loan: This refers to business which have already started up but are yet to establish themselves properly in market with a strong foundation. Businesses that fall under this category can avail a loan amount ranging between INR 50,000 and INR 500,000.

Tarun Loan: This loan is designed for businesses that have already established themselves in market but don’t have a proper financial foundation that can help them to expand. Amount of loan allowed under this category is between INR 500,000 and INR 10,00,000.

Thus, there is basically no such thing called age limit in Mudra Yojana.

Leave a Comment