MSME Loan

MUDRA Loan in Hyderabad 2026: Now Up to ₹20 Lakh, How to Apply

Name: Loans Got Easy
Address: Sainikpuri, Hyderabad, Telangana, 500094, IN
Telephone: +918019011950
Price range: Free

Apr 11, 20266 min read

What Is the MUDRA Loan Scheme?

MUDRA (Micro Units Development and Refinance Agency) loans are government-backed business loans for non-farm micro and small enterprises. Available at all scheduled commercial banks, RRBs, cooperative banks, NBFCs, and MFIs. No collateral required. No minimum turnover. The only requirement is a viable business activity.

The 2024 Update: MUDRA Tarun Plus at ₹20 Lakh

As of October 2024, the government added a new Tarun Plus category for borrowers who repaid their previous Tarun loan on time:

| Category | Loan Amount | Who |

|---|---|---|

| Shishu | Up to ₹50,000 | New micro businesses, first loan |

| Kishor | ₹50,001 – ₹5 Lakh | Established micro businesses |

| Tarun | ₹5 Lakh – ₹10 Lakh | Growing businesses with track record |

| Tarun Plus (new) | ₹10 Lakh – ₹20 Lakh | Proven repayers of Tarun loans |

Who Qualifies in Hyderabad?

Almost any non-farm business qualifies:

Street vendors, auto-rickshaw drivers (vehicle loan variant)

Kirana stores, textile shops, medical shops

Beauty salons, tailoring, catering, food stalls

Small manufacturers, contractors, artisans

Plumbers, electricians, carpenters, repair shops

What you need: Aadhaar + PAN + bank account + proof of business activity (photos, invoices, rent agreement, or GST registration if applicable). No ITR required for Shishu and Kishor.

Interest Rates on MUDRA Loans in Hyderabad

Rates are not fixed — each lender sets their own, subject to their MCLR or EBLR. Typical ranges:

PSU banks (SBI, Canara, BoB): 9.5–11.5% for Kishor/Tarun

Private banks (ICICI, Axis): 12–15%

MFIs and NBFCs: Higher rates, faster processing

For the lowest MUDRA rates in Hyderabad, go directly to SBI or Canara Bank branches in your area with your Aadhaar, PAN, and business proof.

How to Apply for a MUDRA Loan in Hyderabad

Option 1 — Bank branch (recommended for Kishor/Tarun amounts): Walk into any PSU bank branch with documents. Fill MUDRA loan application (available at the branch). Processing takes 5–15 working days.

Option 2 — Online via udyamimitra.in: The official MUDRA portal connects to empanelled lenders. Upload documents digitally. Good for Kishor amounts.

Option 3 — Through us: We identify the right lender for your business type, prepare your file, and ensure no unnecessary enquiries on your CIBIL.

Common Rejection Reasons (And How to Avoid Them)

**No bank account or very new account:** Lenders want 6+ months of bank history. Open an account and transact for at least 3 months before applying.

**Multiple existing loans with defaults:** A clean repayment record is essential. Even microfinance defaults show up.

**Vague business proof:** "I do general trading" is insufficient. Show specific invoices, a GST number, or at minimum a sworn affidavit of business activity.

**Applying to many banks simultaneously:** Creates multiple CIBIL enquiries and reduces approval chances. Apply to one lender at a time.

If you're a small business owner in Hyderabad, MUDRA is the most accessible government-backed loan available. WhatsApp us — we'll tell you exactly which category and which lender fits your business in under 10 minutes.

Disclaimer: The information in this article is for general informational purposes only and does not constitute financial, legal, or investment advice. Interest rates, loan terms, and eligibility criteria are set by individual lenders and subject to change without notice. Please verify current rates directly with the lender or consult a qualified financial advisor before making any borrowing decision. Loans Got Easy is a DSA partner platform — we do not lend money directly.

Ready to apply? Get the best rate for your profile, free.

Check My Eligibility →