Mudra loan interest rates 2025: How to secure the best deal | Mint

The interest rates on Mudra loans are something prospective entrepreneurs and small company owners must understand when applying for financial support under the Pradhan Mantri Mudra Yojana (PMMY). Let’s discuss the factors that determine Mudra loan interest rates and how borrowers can bargain for the best terms.

Pradhan Mantri Mudra Yojana

The PMMY, is a flagship program of the Government of India which makes access to finance easier for micro and small, non-farm, and non-corporate enterprises. Loans are extended through channels that include banks, microfinance institutions, and non-banking financial firms. Mudra loans fall into three categories, depending on the loan amount:

How to secure Mudra loan at best interest rates?

Take into consideration the following strategies to maximize benefits and minimize the costs of borrowing:

In conclusion, Mudra loan program is one of the good financial tools available for small businesses to seek cheap loans. However, borrowers need to be cautious of the terms they take, understand interest rates available with various lending institutions, and manage their debt prudently. 

Although Mudra loans carry very minimal interest rates, over-debt may put a strain on the financial resources of an enterprise at any time, particularly in a recessionary period.

Note: Personal loan interest rates and other provisions keep changing with time. Readers are advised to check the relevant bank’s official website for the latest updates.