There are a few differences between a MUDRA loan and business loan that are provided to individuals. 

S.No

MUDRA loan

Business loan

1

MUDRA stands for Micro Units Development and Refinance Agency Ltd. Refinance support is provided to banks and MFIs for lending to micro units only.

A business loan can be applied for by any entrepreneur and a private or public business person to establish, expand or improve his/her business. It can be a small or large business

2

Loan amounts of up to Rs.10 lakhs are only provided.

Loan amounts of up to Rs.1 crore or more are provided.

3

This is offered by the Government under the Pradhan Mantri Mudra Yojana (PMMY) scheme.

Business loans are NOT provided under the government scheme

4

Mudra loans can be availed by traders, vendors shopkeepers and other service sector businesses.

Business loans can be availed by any business person or entrepreneur who requires capital for his/her business.

5

A Mudra Card is a debit card that is issued against the loan account for the working capital portion of the loan. This helps the individual withdraw credit and keeps the interest burden at minimum.

A business loan gets credited into the customer’s existing account and no separate debit card is issued for the same.



To apply for a business loan, click here.