The Mudra loan limit depends on the band you borrow in. The Pradhan Mantri Mudra Yojana lends to non-corporate, non-farm small and micro entrepreneurs, and it now has four bands. This guide explains each limit, who qualifies for the top band and what the EMI looks like at an assumed rate.
For the whole scheme, read our Mudra loan Yojana guide. For the smallest band, see the Shishu Mudra loan article.
Quick answer: The Mudra loan limit is ₹50,000 for Shishu, up to ₹5 lakh for Kishore, up to ₹10 lakh for Tarun and up to ₹20 lakh for Tarun Plus. A Business Standard report from 25 October 2024 says the Tarun Plus ceiling of ₹20 lakh doubled the earlier ₹10 lakh limit and applies to entrepreneurs who took and repaid a Tarun loan. Lenders set their own interest rates, so confirm terms with your bank.
Key Takeaways
- There are four bands: Shishu, Kishore, Tarun and Tarun Plus.
- The top limit is ₹20 lakh under Tarun Plus.
- Tarun Plus is for borrowers who took and repaid a Tarun loan, per the report.
- Loans are described as collateral-free; the report gives no further guarantee detail.
- Choose a band by project cost, then test the EMI against your cash flow.
Mudra Loan Limit by Band
| Band | Loan limit | Typical use |
|---|---|---|
| Shishu | Up to ₹50,000 | Very small start-ups and street or home-based work |
| Kishore | ₹50,000 to ₹5 lakh | Growing shops, workshops and service units |
| Tarun | ₹5 lakh to ₹10 lakh | Established micro units that need equipment or stock |
| Tarun Plus | ₹10 lakh to ₹20 lakh | Repeat borrowers who repaid a Tarun loan |
Moreover, the Business Standard article lists the bands as Shishu up to ₹50,000, Kishore from ₹50,000 to ₹5 lakh, Tarun up to ₹10 lakh and Tarun Plus up to ₹20 lakh. Additionally, our other guides show the same boundaries. Therefore, a ₹7 lakh project falls in Tarun, and a ₹15 lakh project needs Tarun Plus.
Who Can Use the Tarun Plus Limit
The report says the higher limit is for entrepreneurs who previously took and successfully repaid loans under the Tarun category. In other words, a first-time borrower cannot jump straight to ₹20 lakh. Consequently, build a clean repayment record in a lower band first. Read our guide on Mudra loan eligibility to see who qualifies at all.
Confirm with your bankThe report is from October 2024. Banks apply their own checks, so ask your branch which band and limit it will sanction for your project.
What the Scheme Covers
- Non-corporate, non-farm small and micro enterprises
- Lenders include banks, NBFCs, microfinance institutions and other financial intermediaries
- The scheme launched on 8 April 2015, per the report
- Loans are described as collateral-free
- Each lender sets its own interest rate; see our guide to the Mudra loan interest rate
Check the EMI at Each Mudra Loan Limit
This table uses an assumed rate of 10.0% over 5 years. It is not a bank quote, and your lender may charge a different rate.
| Band limit | Loan amount (₹) | EMI (₹) | Total interest (₹) |
|---|---|---|---|
| Shishu | 50,000 | 1,062 | 13,741 |
| Kishore | 5,00,000 | 10,624 | 1,37,411 |
| Tarun | 10,00,000 | 21,247 | 2,74,823 |
| Tarun Plus | 20,00,000 | 42,494 | 5,49,645 |
Compare these figures with your monthly income. Then, run your own numbers in the Mudra loan EMI calculator.
How to Pick the Right Band
A smaller band can be the smarter choice. For example, borrow what your quotations support, because a bigger loan raises your EMI and your risk. Moreover, a clean repayment in Kishore or Tarun opens the door to a higher limit later.
Documents Banks Usually Ask For
| Document | Purpose |
|---|---|
| Identity and address proof | KYC |
| Business proof or Udyam certificate | Shows the enterprise exists |
| Bank statements | Show cash flow |
| Quotations for assets or stock | Support the amount you ask for |
| Photographs and category proof, if applicable | Complete the form |
For a full list, read our Mudra loan documents checklist. Requirements vary by lender.
Mistakes to Avoid
- Asking for the maximum limit: request what your plan supports.
- Assuming Tarun Plus is open to all: the report ties it to earlier Tarun repayment.
- Using an old limit: the ceiling was ₹10 lakh before the 2024 change.
- Skipping the EMI test: therefore, check the instalment against cash flow.
- Paying an agent: apply directly to a lender.
FAQs on Mudra Loan Limit
What is the Mudra loan limit?
Up to ₹20 lakh under Tarun Plus, after the band limits of ₹50,000, ₹5 lakh and ₹10 lakh.
What is the Shishu limit?
Up to ₹50,000, per the report.
What is the Kishore limit?
From ₹50,000 up to ₹5 lakh.
What is the Tarun limit?
Up to ₹10 lakh.
Who can get Tarun Plus?
The report says entrepreneurs who took and repaid a Tarun loan.
Is collateral needed?
The report describes Mudra loans as collateral-free but gives no further detail. Ask your lender.
Does the limit differ by bank?
The bands are scheme-wide, but each lender decides the amount it sanctions and the rate it charges.
When did the Tarun Plus limit start?
The report is dated 25 October 2024 and describes the doubling of the ceiling to ₹20 lakh.
Match the Limit to Your Plan
Choose the band that fits your project cost, test the EMI and apply with a clear plan. Knowing the Mudra loan limit for each band keeps your request realistic. Explore more business loans and schemes and use the free business tools.
Business Reports is an independent information website. We are not affiliated with, endorsed by or acting for any government department, bank, NBFC, KVIC, NABARD, SIDBI or MUDRA, and we do not provide loans or process applications. Figures are indicative; confirm details on official portals or with your bank. Read our disclaimer and advertising disclosure.