What is e mudra loan

An e-Mudra loan is a digital credit facility offered under the Pradhan Mantri Mudra Yojana (PMMY) to provide collateral-free financial assistance to small and micro-enterprises. It allows entrepreneurs to apply online for loans up to ₹10 lakh (and up to ₹20 lakh in specific categories) through various banks and financial institutions. Key features include:

• Collateral-free loans for non-corporate, non-farm sectors.
• Three main categories: Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh).
• Quick digital processing and disbursement to support working capital or business expansion.