Today, we will explore how to apply for a loan online under the Mudra Yojana scheme. Under the Mudra Yojana, the government provides loans ranging from a few hundred rupees up to several lakhs and that too, without requiring any collateral or guarantee. If you were to visit a bank directly to apply for a loan under this scheme, banks often tend to reject the application or demand an excessive amount of documentation. However, I am going to share a simple method here that allows you to register online and obtain your loan approval letter directly through this platform.
I will demonstrate the entire process live so you can see exactly how it works. You will receive all the necessary information right here. First, you need to open your web browser and search for “Jan Samarth.” This will bring up the government’s official website. We have provided a direct link to this website in the video description and in the pinned comment, allowing you to access this portal directly. Now, since we are looking to obtain a loan under the Mudra Yojana, it falls under the category of a business loan. You need to scroll down to the bottom of the page, where you will find an option labeled “Business and Activity Loans.” Click on this option.
Here, several special categories are displayed such as handloom businesses, street vendors, homestay providers, startups, or Jan Aushadhi Kendras. While these specific categories are listed, the vast majority approximately 99% of applicants will not fall into any of them. Therefore, you should click on the option labeled “Other Business Loans.” On the next screen, you will need to indicate whether you are starting a new business or if you already have an existing one. If you wish to obtain a loan for a business that is already operational, select that option; if you are planning to launch a new business, select the “New” option. If your educational qualification is 8th grade or higher, select “Yes.” Additionally, training is currently being offered under the PMEGP scheme;
if you wish to avail yourself of this training, you can do so here by selecting “Yes.” This specific option is intended for those individuals. Basically, if you are starting a business for the first time or even if you are an established business owner this is where you would undergo the necessary training. Next, you need to navigate to the “Select Nature of Business” section. Here, you must specify the specific activities involved in your business operations. Whether you are engaged in manufacturing (producing goods), providing services (such as running a salon, a repair shop, or a coaching center), or involved in trading (buying and selling products like a grocery store) you must select the appropriate option here. You also need to declare your social category. If you belong to the General, OBC, SC, or Minority categories (such as Sikh or Muslim), you must make the corresponding selection here. An option regarding physical disability will also appear; since I am not physically disabled, I will skip this.
However, if an applicant is physically disabled, they should select that option. Furthermore, if you hail from the North-Eastern or border regions specifically the states listed here you must click “Yes.” In my specific case, I will select “No.” Since I have neither taken out a loan previously nor made any repayments, I will select “No” for this option as well. You must also specify the nature of your location whether you reside in an urban or a rural area by making the appropriate selection here. You should select the “Individual” option here. However, if an organization or a company is applying, they must select the “Non-Individual” option. Finally, the next step involves declaring the “Estimated Project Cost.”
Here, you must specify the total capital required for the business activity you intend to undertake including the cost of machinery, inventory (stock), furniture, and all other expenses essentially, the total funds required, including working capital. A common mistake people make is assuming that if, for instance, a machine costs ₹5 lakhs, they simply enter ₹5 lakhs as the total project cost here; consequently, they later find themselves without sufficient working capital. Therefore, you must enter the *entire* required loan amount under the ‘Estimated Project Cost’ section. You will also find an option here to specify the amount of capital you intend to invest personally in this business. If you do plan to invest your own funds, it sends a positive signal to the bank indicating that the applicant is personally committed to and investing in the venture. You should enter that specific amount here. Subsequently, the remaining balance representing the amount the bank is willing to lend you will be automatically displayed.
Now, we need to click on the ‘Calculate Eligibility’ option. As soon as we click, a ‘Congratulations’ message appears on our screen. Here, you will see that there are two specific schemes under which we are eligible to receive a loan. The details of these loans are listed here. For instance, we had used ₹4 lakhs as an example earlier; the system now indicates that the bank can sanction a loan of ₹4.5 lakhs for you. If you are seeking a larger loan amount, the calculation displayed here will be adjusted accordingly based on the figure you entered initially. It is worth noting that you are not necessarily restricted to a loan of just ₹1 lakh. As of today, under the ‘Tarun Plus’ scheme, the government offers loans of up to ₹20 lakhs. Ultimately, the specific loan amount you require will determine which category you fall under.
As you can see here, the specific loan amount being offered to us is displayed. The corresponding monthly EMI we are required to pay is also indicated here. The tenure of the loan will be 5 years. Right alongside this, you will notice that a second scheme is presented to us one under which we also have the option to avail a loan. This is the Prime Minister’s Employment Generation Programme (PMEGP). Under this scheme, the government provides training; the loan is disbursed only after this training has been completed. Therefore, if you are interested in pursuing such an initiative, you can avail a loan under this specific scheme. However, as we have already decided to obtain a loan under the Mudra Scheme, we need to click on the “Log in to Apply” option. Now, we must enter our mobile number here. Next, click on the “I have read” option. Click on the tab, scroll down again, and click “Next.” Following this, the “Get OTP” option will appear before you.
A code will be sent to your phone; enter that code here and then click on the “Submit OTP” tab. Here, you are required to enter your email ID. Then, click on the “Verify Email OTP” option. A six-digit code will be sent to your email inbox as well. Enter that code here and click on the “Submit OTP” tab. You will now be prompted to set a password so that you can log in again whenever you return to the portal. You must set a password of at least 8 characters. I have provided an example to illustrate the type of password you can create. Once done, click on the “Proceed” tab. We have now successfully logged in. Click on the “Proceed” tab once again. All the information you have entered so far is now displayed here. If you need to make any corrections, you can do so by clicking on the “Edit” option. Otherwise, click on the “Continue” option. So, what exactly will be required to proceed with the application? So, just as an Aadhaar card is mandatory and you must possess a PAN card if you have already obtained an Udyam Aadhaar registration, you can enter its details here. Therefore, we need to click on the ‘Proceed’ tab. A consent form will appear again;
you must scroll through it, click ‘Next,’ and then an option to enter your PAN details will be presented to you. We will click on this specific option. You must enter your personal PAN number in the designated field. Right here, you must also enter the Date of Birth exactly as it appears on your PAN card. Similarly, enter your Name exactly as it is printed on the PAN card. Finally, click on the ‘Submit’ tab. In this manner, your PAN card has been successfully verified. Following this, we also need to verify our Aadhaar details. We have now entered our Aadhaar number in the provided field. Upon clicking the ‘Get OTP’ tab, a One-Time Password (OTP) will be sent to your mobile phone for verification purposes. You must enter that OTP here and then click on the ‘Submit’ tab. Consequently, your Aadhaar has also been successfully verified.
After verifying both of these details, if you possess an Udyam Registration Certificate meaning you have registered as an MSME you can proceed further. This registration offers you numerous benefits and serves as a crucial legal document for your business. In fact, if you are still contemplating a name for your business, you can obtain an MSME certificate under that chosen name and subsequently use that very name when applying for a loan. Therefore, if you have already obtained your MSME certificate, click on this specific option. Enter the certificate details here, provide your mobile number, and click on the ‘Submit’ tab. This process will ensure that your MSME certificate is also successfully verified. We must now click on the ‘Proceed’ tab.
The next interface that appears before us will look something like this, informing you thatn as is the case here no GST number details were found. This is because we have never previously obtained a GST registration number. Consequently, the system now asks: “Is a GST number not applicable to your business?” Whatever the reason may be, you must specify it here. In my particular case, for instance, this section is not applicable; therefore, we will simply click on the “Proceed” tab. Following this, a form will appear before you, where you must carefully enter all the required information. You are required to enter the name under which you intend to operate your business. Additionally, you must specify the date on which this business commenced operations. You also need to indicate the nature of your business for example, since my business is a proprietorship, I will select that option here.
If you are operating as an individual business owner, this is the option you should select. Next, you must select your State, followed by your District. You are then required to disclose the total number of customers your business has served to date. (Note: You would typically only possess this data if your business is already operational.) Therefore, please enter that figure here. Furthermore, you must indicate the highest single sales amount generated from a single customer. This refers to the total cumulative sales made to one specific customer—not on a monthly basis, but rather the total aggregate amount sold to that customer over the entire duration of the business. Following this, you will encounter a section for “Monthly Sales,” where you must provide a detailed breakdown of the sales figures for each individual month. For each month listed, you must enter the corresponding sales revenue generated assuming, of course, that you are operating an existing business. At this juncture, I would like to clarify one important point: if you are starting a *new* business, you may enter “0” in these fields, as you would not yet possess any historical sales data. However, if your business is *already* operational, you should *not* enter “0,” because…
Since this specific data allows the bank to easily assess the nature of your business, it facilitates the loan approval process. In essence, this serves as the compilation of your business report. As we have already indicated above, we must now click on the ‘Proceed’ tab. The next page that appears requires us to share our income details. First, you must indicate whether or not you file Income Tax Returns. If you have any existing sources of income—and only if you select the ‘Yes’ option—you will be required to enter the relevant details in this section. You must then navigate to the ‘Name of Entity’ section. If you file tax returns for a business, you will enter the business details here; alternatively, if you hold a personal PAN card as an individual, you may enter those details instead.
We have entered the necessary information here; subsequently, we will enter our PAN number, followed by the ‘Date of Incorporation’—indicating the date on which the business commenced operations. You must specify your total sales for the current financial year, as well as your projected sales for the upcoming financial year. Thus, you will provide the current figures here, alongside your expected future projections. You must also report your net profit for the previous year and your projected net profit for the future. Furthermore, you need to list your current inventory holdings and their corresponding monetary value, as well as your projected inventory levels for the future. You are required to complete this entire worksheet in this manner. Next, proceed to the ‘Receivables from Debtors’ section. Here, you will record any outstanding amounts currently owed to you—specifically, payments due for goods you have sold on credit.
Then, move on to the ‘Payables to Creditors’ section. If you have procured goods from other vendors on credit and are yet to make the payment, you must disclose those liabilities here. Let me offer a quick tip: if you are operating an existing business, it is generally advisable to reflect certain figures in this report—specifically, by showing that you sell goods on credit to customers while simultaneously procuring goods on credit from suppliers. This approach helps generate a more robust and positive financial report. Next, you need to navigate to the section titled “Investment in Plant & Manufacturing Equipment.” If you have made any investments in equipment during the current financial year, you must disclose them here. You also need to indicate your plans for future investments. Now, scroll down to the bottom of the page.
Here, you must specify your total net worth. You also need to state the total assets currently held by the company, as well as its total liabilities. Therefore, you should enter the figures that are applicable to your specific business case. If you are a new business owner applying for a loan for the very first time, you may enter “0” (zero) in these fields and proceed further. Having completed these steps, the next page that appears is the “Bank Details” section. Here, you are presented with two options to verify your bank account—the very account into which your approved loan amount will be disbursed. One option allows you to upload your bank statement; you can simply upload a digital copy of your statement here. The second option allows you to verify your bank account directly.
If you choose to upload your bank statement, you must provide data covering the last six months. You can download this statement from your bank’s website and then upload it here by clicking the “Browse” option. In my case, verifying the bank account online seems like the easier option, so I will click on that. I will then enter my account number in the designated field. You must specify the date (month and year) when the account was opened. Enter your bank account number, and then, in the “Confirm” section, re-enter your account number to verify it. You also need to indicate the account type—whether it is a Savings or a Current account. Finally, enter your bank’s IFSC code in the appropriate field, and then click on the “Verify” option. Once this is done, the next section that appears is “Business Details.”
Here, the first step is to enter the total number of employees currently working for your business. You must also specify the date (month and year) since which your business operations have been active. Next, proceed to the “Business Address” section. Here, you must first indicate whether your business address is rented or self-owned. If it is self-owned, select “Owned”; otherwise, select “Rented.” Subsequently, you need to enter the details of the premises where your business is located—specifically, the house number, building name, or apartment name. You will then be asked, “Do you have any pension plan?” If you do, you may provide the details; otherwise, you can simply click the “No” option. I have now completed this step. Next, you will find an option to indicate whether you utilize local resources—such as labor,
raw materials, or power—from the immediate vicinity of your business. If such inputs are available and utilized in your specific case, you can select the appropriate option here; if they are not available, you can indicate that accordingly. The next section covers “Proprietorship Details,” specifically regarding the extent of the proprietor’s ownership stake in the business. If it is a solo proprietorship, the ownership will be 100%; however, if there are multiple promoters involved in the company, options will appear allowing you to enter their respective details accordingly. In my specific case, the ownership is 100% held by this individual. Regarding the salutation, you should select the appropriate title—such as “Shri,” “Shrimati,” or “Kumari”—that you wish to prefix to the name. Following this, you will enter your First Name, Middle Name, and Last Name, thereby breaking down your full name across these distinct sections. Father’s Name…
The name will be entered here. Gender, mobile number, and email ID are the basic details required; you will enter them here. Next, regarding your educational qualifications—several categories are displayed here—you must select the option that corresponds to your specific background. You will then be asked about your total work experience. Specifically, how many years of total experience do you have in the particular business you are currently undertaking? If you are already operating this business, you can provide those details. If you are starting a new business, you should indicate your previous employment history or professional background accordingly. What is your net worth?
You must enter this information here as well. You should fill this section in the same manner as you recorded your figures in your balance sheet. Regarding net worth, we often receive questions from people asking what exactly it entails. Fundamentally, net worth is calculated by subtracting your total liabilities from your total assets. You will enter this figure here. You will also find specific options available in this section. If the applicant is a person with a disability—specifically regarding hearing or vision impairments—they should indicate this here; in my case, however, we will select the “No” option. Next, regarding your Udyam Registration details: if you have already entered them, the registered address associated with that registration will be automatically fetched and displayed here. Additionally, you will find a separate field to enter your current residential address; simply enter your current home address in this section.
Following this, you will proceed to the next section: “Main Proprietor/Partners.” Here, you must identify the individuals who are actively managing the business. For instance, in this specific case, 100% of the equity is held by a single individual. However, if there are multiple promoters involved, you must list them here. In my case, the name will be automatically populated and selected based on the details previously entered (since we had indicated 100% ownership). Finally, you will navigate to the section regarding your Income Tax Assessment status. If you have previously filed income tax returns, you must indicate this here; otherwise, select the “Not Assessed” option. Lastly, if you currently hold any life insurance policies, you must provide those details in the designated field. If not, click on the “No” option. Select your social category—whether SC, ST, or OBC—from the options provided here. Choose your marital status from the available choices. If you are married, you must enter your spouse’s name (i.e., your life partner’s name) in the designated field. Subsequently, you are required to provide details regarding your spouse. Specifically, what is their occupation? Are they self-employed, currently employed (working), or “Not Employed” (unemployed)? You will find multiple options listed here; select the one that applies in your case.
If you have any dependents—such as children—you must enter their details as well. Indicate your housing status: is the home self-owned (belonging to you or a family member, such as your parents) or is it rented? You will find the relevant options listed here; make your selection accordingly. Once you have completed these steps, you will be asked to specify the total number of dependents you have. This figure should include individuals such as your children and your spouse; enter the combined total in the provided field. Next, indicate the number of earning members within your family. After entering this information, click on the “Proceed” tab. The subsequent question will present an option labeled “Associated Concerns.”
Here, if you currently hold a position—such as Partner, Director, or Co-owner—in any existing company, you must indicate “Yes” to acknowledge your affiliation. However, if you are starting a brand-new business and are not currently associated with any other company, select the “No” option and then click on the “Proceed” tab. Upon completing these steps, the next section to appear will be “Business and Loan Details.” This section constitutes the most critical part of the entire process. First, you must select your industry—that is, the specific sector to which your business belongs. When you click on this field, a list of various industries will appear for you to choose from. Whether your business falls under the Power & Oil sector, Shipping & Logistics, or Textiles—you must select the specific category that applies to you.
If you do not see your category listed here, you may select “Other.” Depending on whether you operate within the service sector, engage in product manufacturing, or work as a contractor, various distinct options will appear; you should make your selection accordingly. Next, proceed to the “Sub-sector” section. Here, you must specify the particular sub-sector of your business—for instance, if it is a service-based business, make the appropriate selection. You will then be prompted to enter your MSME number. If you have already completed your Udyam Registration, you will have been issued an MSME number; you may enter that specific number here. You should search for and select the names of the specific services you provide; as you type, suggestions will appear for you to choose from.
This is also the section where you must provide a detailed description of your business—explaining exactly what you do. For example, if you run a handloom business, a salon, or a repair shop, you should describe your operations—such as where you source your inventory and how your business functions. Furthermore, if there are any “proposed activities” for your business—specifically, what you intend to do in the future once you have secured the loan—you should outline them here. For instance, you might state: “We are currently operating within the state of Uttar Pradesh, but we intend to expand this business further and extend our operations into other states.” Essentially, you must clearly articulate your specific objectives and plans in this section. Finally, if you have established a tie-up or partnership with any organization—for marketing purposes or any other aspect of your product/business—you must provide the details of that arrangement here. Once completed, proceed to the “Loan Details” section.
Here, the loan amount you selected earlier will automatically populate in the section above. Next, you need to navigate to the ‘Purpose’ section. Here, you must specify the intended use for this loan amount. If you require working capital—that is, funds to sustain the day-to-day operations of the business—select that option; alternatively, if the funds are needed for acquiring assets, make the appropriate selection here. Following this, a new form will appear before you. Here, you will be asked to provide details regarding your monthly sales and expenses for the current financial year. If you have an existing business, you must declare your monthly sales figures here. You also need to specify your monthly costs related to raw materials and inventory.
Additionally, you must provide the total monthly figures for salaries and wages, as well as any other miscellaneous expenses—such as rent or electricity bills. Once you have entered these details, your balance sheet will be automatically generated and displayed here. You will then be asked whether your business is registered with a Gram Panchayat (Village Council); if so, please indicate this. You will also be asked if you hold a ‘Drug License’; if you possess such a license, please declare it. Finally, you will be asked if you have previously availed a loan under the ‘Tarun Yojana’ scheme. In our case, we have not; therefore, we will select the ‘No’ option and proceed to click the ‘Submit’ tab.
On this portal, if you currently have any outstanding or existing loans, the relevant data will be automatically fetched and displayed here. Your task here is to review the loans listed—which represent the loans you have previously availed—and indicate whether any balances remain pending. Essentially, you are required to specify the lending bank or financial institution, as well as the specific purpose for which each loan was taken. If you prefer not to disclose this information, you may select the ‘Not Disclose’ option and proceed further, particularly if the details regarding your existing loans were not automatically fetched and populated. If you wish to disclose any existing loans, you can click on the “Add Other Loan” option to manually specify the total sanctioned amount, the remaining outstanding balance, and whether there are any overdue payments.
If any of these apply to your situation, please provide the details; in my case, however, they do not. We will now click on the “Proceed” tab. Next, you will encounter a crucial section of the form dedicated to document uploads. First, navigate to the KYC section; here, you must select one document for KYC verification—such as a PAN card, Passport, Voter ID, or Driving License—and then click the “Upload” button. For instance, since we selected the PAN card, we will proceed to upload it, and the document is now successfully uploaded.
Note that documents such as utility bills are not strictly mandatory; however, even if you have a new business and lack other supporting documents, you *must* upload a KYC document here. As for the remaining documents—such as the Udyam Certificate, which we previously indicated we possessed—you should upload them here if they are applicable to your case and available to you. Additionally, you will notice that certain documents are mandatory to upload—for example, a Caste Certificate. If you do not belong to the General category, you will be required to upload a Caste Certificate. We have now selected and uploaded the necessary documents. Following this, we must click on the “Next” tab. You will now see that we have reached the final page of the application. We have successfully filled in all the information requested in the form, and our application has moved to the “Completed” section.
If you wish to review your form, you can click on the “View” option to check all the details you entered—including identity details, banking information, business particulars, sales figures, and credit history. In my case, all the steps have been completed, and we are now ready to submit the form. To do so, we will click on the “Submit Application” option. You will now see a “Congratulations” message appear once again, indicating the actual loan amount that the bank is prepared to offer you. You will observe that the details appear here in a pre-determined format. Within this interface, you will notice that a “Digital Approval” status is displayed next to several banks. This indicates the specific loan amount for which digital approval has been granted—information you can readily view here.
You can also check the applicable interest rate and the loan tenure offered by each institution; for instance, SBI is offering a tenure of 7 years, while Bank of India offers 3 years. Now, you must select the name of the bank from which you wish to obtain the loan. Even if your primary bank account is held with a different institution, you still have the option to secure a loan from any other bank of your choice. If you wish to obtain a loan from a specific bank—perhaps one offering favorable interest rates—you can click on it to view its detailed terms, such as the exact interest rate and whether any processing fees apply.
You can verify all these details right here. For example, if you feel that a particular bank seems like a better option and decide to proceed with a loan from them, simply select that bank and click on the “Yes” option. Next, an option to select a specific branch will appear on your screen. You will be asked to specify which branch you would like to map this loan account to. To do this, select your state and then choose your district; a list of all the branches of that specific bank located within that district will then be displayed. Finally, select the specific branch to which you wish to map your loan account by clicking on the “Select” option to proceed with the digital approval process from the bank.
…but it has now been received. As you can see, we have received a confirmation letter from SBI, which details the specific branch we selected and the loan amount for which we obtained digital approval. This information is clearly mentioned here. What we need to do now is click on the ‘Download’ option. Upon doing so, a letter will be generated through this portal, providing you with the digital pre-approval letter for your loan. The next step is to carry this letter with you and visit the specific branch you selected, informing them that you have applied for this loan. Alternatively—should you not visit the branch yourself—the bank will contact you directly; they will summon you to the branch to complete the necessary documentation formalities.
As you can observe here, our application has been successfully submitted, and we have received digital approval; however, the actual loan amount has not yet been sanctioned. Once the loan amount is sanctioned, an update will appear here. Similarly, once the loan is disbursed and credited to your account, an update regarding that transaction will also be displayed right here.