MUDRA loan is offered by banks to aid non-corporate, non-farm sector income generating microenterprises that require credit below Rs.10 lakh. Interest rates on MUDRA loans start at the rate of 7.30% p.a. and the loan repayment tenure ranges between 1 year and 7 years.
|Interest Rate||7.30% p.a. onwards|
|Loan Amount||Up to Rs.10 lakh|
|Loan Tenure||Up to 7 years|
|Processing Fee||Subject to the lender|
|HDFC Bank||As per bank guidelines||At the discretion of the bank|
|ICICI Bank||As per bank guidelines||At the discretion of the bank|
|Allahabad Bank||As per bank guidelines||1-5 years|
|Bank of Baroda||9.65% p.a.||At the discretion of the bank|
|Bank of Maharashtra||9.25% p.a.||At the discretion of the bank|
|Bank of India||Linked to MCLR||1-7 years|
|Canara Bank||As per bank guidelines||Up to 7 years|
|Central Bank||As per bank guidelines||At the discretion of the bank|
|IDBI Bank||Linked to Bank’s Base Rate and Rating||1-5 years|
|Indian Overseas Bank||As per bank guidelines||At the discretion of the bank|
|Oriental Bank of Commerce||As per bank guidelines||At the discretion of the bank|
|State Bank of India (SBI)||Linked to MCLR||1-5 years|
|Tamilnad Mercantile Bank||8.95% p.a. onwards||1-7 years|
|UCO Bank||8.85% p.a. onwards||At the discretion of the bank|
|Union Bank of India||7.30% p.a. onwards||At the discretion of the bank|
|Vijaya Bank||9.65% p.a. (Merged with Bank of Baroda)||At the discretion of the bank|
MUDRA Loan is offered under 3 different schemes. The loan amount is dependent on these schemes. The schemes are as follows:
|Name of Scheme||Loan Amount|
|Shishu||Up to Rs.50,000|
|Kishor||Rs.50,000 to Rs.5 lakh|
|Tarun||Rs.5 lakh to Rs.10 lakh|
MUDRA loans are unsecured in nature as no collaterals are required to avail the loan. This is a reason why interest rates vary from institution to institution as every organization calculates the risk factor on its own and establishes rates accordingly.
For the starting category of Shishu Loans, a 1-page application form needs to be duly filled and submitted. For Kishor and Tarun categories of loans, a 3-page application form needs to be submitted.
You can find the application forms online on the MUDRA website or get one from any of the intermediaries.
The repayments terms and conditions are decided by the intermediary lending institution according to its rules considering the cash flow of the business in question.
Yes, the Department of Financial Services (DFS) has already sent advisories to Public Sector Banks, Scheduled Commercial Banks and Regional Rural Banks for bringing all loans up to Rs.10 lakhs disbursed for non-farm income generation activities after April 7th 2015 under the MUDRA Scheme. The DFS has also instructed all banks to provide loans under the scheme and put targets per branch.
Yes, the scheme has been active since April 8th 2015 throughout the country.
Lower amount Shishu loans are generally disbursed within 7-10 days while the other categories have processing times varying from lender to lender.
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