Mudra Card

What Is a Mudra Card?


In the year 2015, the Indian government launched the Pradhan Mantri Mudra Yojana (PMMY) in a bid to provide loans and other credit facilities to micro enterprises in the country. In fact the term Mudra itself stands for Micro Units Development & Refinance Agency, which is an RBI-registered NBFC. Before we get into the specifics of what a Mudra card is, let’s quickly take a look at the Mudra loan scheme.

What is the Pradhan Mantri Mudra Yojana (PMMY)?

The PMMY offers micro enterprises a way to obtain loans and credit facilities for running their operations smoothly through the Mudra loan scheme. Micro enterprises that are in need of financing can avail loans from partner Mudra bank and NBFCs.

According to this scheme, a micro enterprise can avail any one of the three different loans – Shishu, Kishore, Tarun. With the Shishu loan, a micro unit can avail loans of up to Rs. 50,000. Kishore loan, meanwhile, offers credit facilities ranging from Rs. 50,000 to Rs. 5 Lakhs. And finally, with the Tarun loan, a micro unit can get anywhere from Rs. 5 Lakhs to Rs. 10 Lakhs as a loan.

What is the Mudra card?

As the name itself signifies, the Mudra card is essentially a debit card that a micro enterprise owner can use to make withdrawals as and when they’re in need of funds. The debit card is linked to their respective Mudra loan account. For instance, with a Mudra card that’s linked to a Shishu loan account, the micro enterprise can withdraw funds as and when they need up to Rs. 50,000.

One of the primary advantages of having a Mudra card is that it allows the borrower to effectively and efficiently utilize their loan. It also minimizes the interest costs and promotes digital transactions. Another major advantage is that the Mudra card also serves to create a credit history, making it easier for the borrower to avail further loans in the future.

Since the Mudra card is essentially a debit card, it can be used to withdraw funds from any ATM and make payments through any ‘Point of Sale (POS)’ machine throughout India.

What are the Documents Required to Avail a Loan from a Mudra Bank?

All that you need to do is submit the following Mudra loan documents with the partner bank to avail a loan under the Mudra scheme.

  1. A duly filled application form. The application form must be in accordance with the type of loan being availed.
  2. Identity proof – Aadhaar, PAN, passport, voter ID, or driving license
  3. Address proof – Aadhaar, passport, voter ID, driving license, or utility bills
  4. Passport-size photographs of the individual applying for the loan – 2
  5. Income proof – Bank statement for the previous 6 months, Income Tax Returns, or audited financial statements for the previous 3 years
  6. Proof of business existence – Registration certificate, business license, or memorandum and articles of association


The Mudra loan scheme has helped transform micro enterprises by giving them unfettered access to financing. You can double check the list of Mudra banks and Mudra loan documents above to ensure a smooth process.

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