Multiple banks. Different interest rates. Call it a "conflict of interest".
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    Mudra Loan Interest rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    12.50% - 19.50% Fixed
    0 One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Paperless approval option available Get Goibibo goCash worth Rs 5,000
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    12.50% - 19.50% Fixed
    ₹0 One time fee
    25L Max
    1-5 Years
    Response Time Within 30 minutes
    Get Goibibo goCash worth Rs 5,000 Paperless approval option available
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    Perks
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    Customer Reviews
    15.95% - 18.95% Fixed
    2% One time fee
    20L Max
    1-3 years
    Response Time Within 30 minutes
    What you'll love
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    Perks
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    Good to Know
    Eligibility Criteria
    11.49% - 20.15% Fixed
    Up to 2%
    15L Max
    1-5 years
    Response Time Within 30 minutes
    What you'll love
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    13% - 20% Fixed
    1.5% (min. ₹1150) One time fee
    15L Max
    1-5 years
    Response Time Within 30 minutes
    What you'll love
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    Perks
    Think about
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    11.49% - 17% Fixed
    0.25% to 2%
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.99% - 19% Fixed
    0.25% to 2.5% One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Paperless approval option available Get Goibibo goCash worth Rs 5,000
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    12.99% - 19% Fixed
    0.50% to 2.5% One time fee
    20L Max
    1-5 years
    Response Time Within 30 minutes
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    17.25% - 37% Fixed
    1.5% to 6.0% One time fee
    15L Max
    1-4 Years
    Response Time Within 30 minutes
    What you'll love
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    11.99% - 17% Fixed
    0
    30L Max
    1-5 years
    Response Time Within 30 minutes
    What you'll love
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    Perks
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    Fees & Charges
    Good to Know
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    11.49% - 18.49% Fixed
    2.5% (min. ₹1149) One time fee
    20L Max
    1-5 Years
    Response Time Within 30 minutes
    Get Goibibo goCash worth Rs 5,000 Paperless approval option available
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    DOCTORS LOAN
    12.99% - 14.50% Fixed
    0.99% to 2% One time fee
    45L Max
    1-5 years
    Response Time Within 30 minutes
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    Personal Loan BYTES FROM OUR KITCHEN

    What is PMMY?

    Pradhan Mantri Mudra Yojana is a special scheme set up by the Government of India through an institution named Micro Units Development & Refinance Agency Limited (MUDRA) in order to provide financing aid through loans to the non-corporate non-farm sector income generating activities of micro and small entities (subject to those enterprises with credit needs below INR 10 lakhs).

    The Pradhan Mantri Mudra Yojana (PMMY) has three facilities or options available for catering to enterprises at different stages of growth and financing needs. These options are Shishu, Kishore and Tarun.

    Pradhan Mantri Mudra Yojana (Mudra Bank Loan) Interest rates

    Mudra Loan Interest rates

    The loans availed as per this scheme can be used for multiple purposes, like vehicle loans for automobiles meant for commercial purposes, business instalment loans that can aid in working capital financing / purchase of plant and machinery / renovating the infrastructure and/or business loans group and rural business credit.

    As per the financing options available under the scheme, the interest rates and loan limits vary to accommodate for the growth stage of the concerned enterprise availing the loan. As of November 2015, the applicable rates and limits are as follows

    1. Shishu – Loans up to a maximum of INR 50000 with rate of interest being 1% per month or 12% per annum. Repayment period up to 5 years
    2. Kishore – Loans exceeding INR 50000 up to INR 5 lakhs. The rate of interest will be dependent on the bank, in accordance with the schemes guidelines, keeping the credit history of the applicant in view. Repayment period based on the discretion of the bank
    3. Tarun – Loans exceeding INR 5 lakhs up to INR 10 lakhs. The rate of interest will be dependent on the bank, in accordance with the schemes guidelines, keeping the credit history of the applicant in view. Repayment period based on the discretion of the bank

    It is clear from the above mentioned points that the first option which caters to budding businesses has the most affordable rates and a fixed repayment term irrespective of the applicant’s or the business’ performance and history. The above, however are subject to change based on the scheme’s guidelines.

    A total of 27 Public Sector Banks, 17 Private Sector Banks, 31 Regional Rural Banks, 4 Co-operative banks, 36 Microfinance Institutions and 25 Non-Banking Financial Institutions have currently been selected to allow disbursement of this loan. 60% of the loans under this scheme are set to be offered through the ‘Shishu’ option and the rest 40% will be through the ‘Kishore’ and ‘Tarun’ schemes.

    Mudra Loan Interest rates (Fixed)

    Sl No Bank/NBFC/MFI Interest rate (Fixed) Tenure
    1 HDFC 12.75% to 20% 1-5 years
    2 HDBFS 15.95% to 18.95% 1-3 years
    3 Tata Capital 13.49% to 19.50% 1-5 years
    4 Kotak Mahindra Bank 11.5% to 18% 1-5 years
    5 Capital First 13% to 20% 1-5 years
    6 Citibank 12.75% to 15.75% 1-5 years
    7 IndusInd Bank Ltd 12.99% to 18.25% 1-5 years
    8 Fullerton 19.50% to 37% 1-4 years
    9 Standard Chartered Bank 12.50% to 17% 1-5 years
    10 ICICI Bank 11.49% to 17.50% 1-5 years

    Mudra Loan Interest rates (Floating)

    Sl No Bank/NBFC/MFI Interest rate (Floating) Tenure
    1 Aditya Birla Finance Ltd 14% 1-3 years
    2 Allahabad Bank 13.70% 1-5 years
    3 Bank of Baroda 14.15% 1-3 years
    4 Bank of Maharashtra 15.20% 1-3 years
    5 Bank of India 12.7% to 14.7% 1-3 years
    6 Canara Bank 13.65% 1-3 years
    7 Central Bank 12.70% 1-3 years
    8 Dena Bank 13 % to 14% 1-3 years
    9 IDBI Bank 12.75% to 13.75% 1-5 years
    10 Indian Bank 12.65% to 13.65% 3 years
    11 Indian Overseas Bank 14.70% 1-5 years
    12 Karur Vysya Bank 13.9% to 16.40% 1-3 years
    13 Oriental Bank of Commerce 11.2% to 12.95% 1-5 years
    14 South Indian Bank 14.80% 1-4 years
    15 State Bank of Bikaner and Jaipur 13.2% to 14.2% 1-5 years
    16 State Bank of Hyderabad 15.25% to 15.75% 1-3 years
    17 State Bank of India 17.80% 1-4 years
    18 State Bank of Mysore 16.90% 1-3 years
    19 State Bank of Patiala 12.65% to 14.65% 1-5 years
    20 State Bank of Travancore 13.2% to 13.45% 1-5 years
    21 Tamilnad Mercantile Bank 14.4% to 16.4% 1-5 years
    22 UCO Bank 14.1% to 15.1% 4-5 years
    23 Union Bank of India 14.4% 1-5 years
    24 Vijaya Bank 13.7% 1-5 years

    Mudra Loan Interest rates FAQs

    1. What is the interest rate under the Mudra/PMMY Scheme?

      Interest rates are dynamic and decided by the lending institution under broad guidelines from the RBI so as to keep the products cost effective.

    2. What is the target audience for Mudra Scheme?

      Mudra is targeted at Non-Corporate Small Business (NCSB) segment that includes business entities such as small manufacturing plants, shopkeepers, service sector installations, vegetable/fruit vendors, repair shops, truck operators, food-service units, artisans, machine operators, small industries, food processors etc.

    3. Why are the interest rates different for different institutions?

      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.

    4. Are the loans subsidised by the central government?

      No, these loans are not subsidised by the central or state governments.

    5. What does the Mudra application form look like?

      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.

    6. Where can I find the Mudra Loan application forms?

      You can find the application forms online on the Mudra website or get one from any of the intermediaries.

    7. What is the repayment criteria for Mudra Loans?

      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.

    8. Do all banks in India fall under the Mudra Scheme?

      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.

    9. Is the PMMY Scheme active now?

      Yes, the scheme has been active since April 8th 2015 throughout the country.

    10. How long is the processing time for Loans under the Mudra Scheme?

      Lower amount Shishu loans are generally disbursed within 7-10 days while the other categories have processing times varying from lender to lender.

      Know more about Mudra Loan

      Mudra loan is a new scheme from the Government of India that aims to rejuvenate the refinancing sector for micro unit’s enterprises. Learn more about the Mudra Bank Loan here.

      Know more about Mudra Loan Eligibility

      Mudra loans come with minimal eligibility requirements as the aim is to empower the business community at the margins. Learn more about the eligibility requirement for Mudra Loans here.

    News About Mudra Loan Interest Rates

    • 54,000 applicants from Pune for Mudra Scheme

      Based on statistics from the district administration of Pune, 54,000 applicants have applied for the MUDRA (Micro Units Development and Refinance Agency Bank) scheme and a total of Rs.995 crore has been disbursed under the scheme. MUDRA scheme is a government scheme introduced to develop micro units by offering refinancing options, in order to encourage entrepreneurship. The rural areas in Pune have displayed a good response for all the three schemes (Shishu, Kishore, Tarun). Despite the response, Pune district administration officials intend to educate more people about the scheme, and spread awareness on the same, so that more people can avail the benefits of the Mudra scheme.

      22nd September 2016

    • MUDRA Loans cross Rs.42,000 crore this Year

      MUDRA has disbursed over Rs.42,000 crore in the first five months of this financial year. MUDRA is the Micro Units Development and Refinance Agency, a pet project of Prime Minister Modi. It was set up as a subsidiary of Small Industries Development Bank of India in April 2016. The annual target of MUDRA is Rs.1,80,000 crore. MUDRA has already hit one-fourth of this target. In the first quarter of this financial year, the agency disbursed only Rs.15,000 crore. In the last two months, this figure almost doubled to Rs.27,000. The agency expects the second half of the fiscal year to be much brighter as the monsoons have been good. The upcoming harvest season and the festivals should lend more support to the loan market.

      12th September 2016

    • ‘Loan Mela’ organized by Punjab National Bank

      Under the MUDRA scheme and Stand up India scheme, Punjab National Bank organized a series of workshops and seminars. As part of their Monsoon Festival Bonanza for their customers, the bank launched a ‘Loan Mela’ which involves giving out loans to select customers of the bank. The loans offered under this scheme have a variety of waivers attached to them such as waiver of processing fees and document fees for select loans such as housing loans and education loans. Along with providing loans, the Loan Mela also serves as a workshop which offer educational seminars as well as target other products such as such as term plans and health policies.

      25th August 2016

    • Maharashtra, One among the Top Three beneficiaries of the Pradhan Mantri Mudra Yojana Scheme

      In the year 2015-2016, residents of Maharashtra received around Rs 13,372.42 crore as advancement credit to micro units in the state. In his report submitted to Lok Sabha, Santosh Kumar Gangwar, Minister of State for Finance, stated that Maharashtra is the third state which received such high credit for micro units after Karnataka which received around Rs. 16,469.43 crore and Tamil Nadu which received about Rs 15,496.86 crore. Around 35 lakh state residents were benefitted by the Pradhan Mantri Mudra Yojana Scheme, out of which, over 83% of loan disbursals went to women. According to the minister’s data, about Rs. 1.33 lakh crore funds were released by banks and other financial institutes under this scheme so far.

      23rd August 2016

    • Micro-finance Institutions, Banks Also Providing MUDRA Loans, says Credit Suisse

      A research note issued by Credit Suisse mentions that besides Public Sector Banks, financial institutions like microfinance lenders and private banks are also providing MUDRA (Micro Unit Development and Refinance Agency) loans to customers. MUDRA, is a government led initiative, started in the year 2015, which aims at extending financial aid to individuals who are in the initial stages of becoming entrepreneurs. The agency started off with the target of providing loans worth Rs 1.2 lakh crore, with a ticket size of below Rs 10 lakh.

      16th August 2016

    • SBH Extends Loans worth Rs. 306 crore under Mudra Scheme

      According to reports, State Bank of Hyderabad (SBH) officials mentioned that during the current financial year, SBH has extended loans worth Rs 221 crore to almost 11,323 beneficiaries in Telangana and loans worth Rs 85 crore to 5,181 beneficiaries in the state of Andhra Pradesh, under the Mudra scheme. These loans were disbursed from out of Rs 515 crore which has been provided to over 24,000 beneficiaries across the country under the Mudra Scheme by State Bank of Hyderabad. In 2015, SBH had extended loans worth a total of Rs. 1,374 crore to over a lakh beneficiaries, going over and beyond the set target of Rs.1,275 crore. In Telangana, the bank disbursed loans worth Rs. 565 crore to 47,229 borrowers.

      2nd August 2016

    • MUDRA Plans to Launch Portal to Streamline Loan Application Process

      In an effort to simplify the loan application process for customers, Micro Units Development & Refinance Agency Ltd. (MUDRA) plans to launch a web portal which will not only make application forms available but also guide customers through the process of the application. The portal will also provide customers with extensive support regarding the various aspects of setting up of a business enterprise. Jiji Mammen, CEO of MUDRA Bank, mentioned that the portal is one of the first initiatives proposed by the agency this year, along with others like including enterprises that are related to agriculture like poultry, food processing units and dairy.

      22nd July 2016

    • MUDRA Bank to implement new loan monitoring modules

      The MUDRA Bank, which was established to provide financial solutions to micro, small and medium enterprises or MSMEs is all set to establish new guidelines to monitor the loans provided. At a recent seminar on microfinance, the CEO of the bank indicated that new modules will be adopted to streamline the data, with district-wise disbursement of loan to be monitored. MUDRA Bank doled out loans amounting to Rs. 1.33 lakh crore last year, beating its estimated target of Rs. 1.22 lakh crore. This has inspired the bank to increase its target for this year, which has been set at Rs. 1.80 lakh crore. The bank, which offers finance under three categories, Shishu, Kishor, and Tarun has already disbursed loans to the tune of Rs. 25,000 crore in the first quarter.

      20th July 2016

    • Women Entrepreneurs can avail the MUDRA Loan to launch new businesses

      The Mudra Yojana will be very beneficial to women entrepreneurs to start a new business according to Union Textiles Minister, Smriti Zubin Irani. Speaking at the 15th annual convocation ceremony of Vandana Luthra Curls and Curves Institute of Beauty and Nutrition, the Minister said that women can get loans ranging from Rs. 50,000 to Rs. 1 lakh at low interest rates. Other schemes like”Seekho Aur Kamao” and the “Pradhan Mantri Vikas Yojana” are also available for women to start businesses. VLCC has signed a Memorandum of Understanding (MoU) with the Ministry of Social Justice and Empowerment to offer skill training to backward classes. Skill based training programmes would also be introduced in collaboration with different Governments.

      14th July 2016

    • Mega credit camp conducted by Punjab National Bank in Chennai

      A mega credit camp was conducted by Punjab National Bank under the Mudra scheme along with Bajaj Auto Ltd and Khivraj Motors. This was held for MSMEs and retail customers inclusive of auto drivers. The Mela saw attendance from the Circle Head, Chennai, Nasim Ahamad, Zonal Manager, Vinod Joshi and the Deputy Circle Head, Nanda Kumar. Loans were sanctioned for MSMEs and retail loans were given to 860 beneficiaries, amounting to Rs. 136 crores. The key features of the 'Stand up India Scheme' were highlighted. This scheme is being introduced to promote entrepreneurship opportunities amongst Scheduled Tribes, Scheduled Castes and women. Loans ranging between Rs. 10 lakhs and Rs. 100 lakhs would be sanctioned in this regard.

      5th July 2016

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