UCO Bank Mudra Loan

UCO Bank offers business loans under the Mudra loan scheme. These loans help aspiring entrepreneurs to set up small businesses. Existing businesses can also avail these loans for the expansion of their activities. The interest rate on UCO Bank Mudra loans is 8.85% p.a.

Updated On - 03 Oct 2025

UCO Bank Mudra Loan Details

Interest Rate

8.85% p.a.

Minimum Loan Amount

No limit

Maximum Loan Amount

Rs.10 lakh

Eligibility Criteria for UCO Bank Mudra Loan

The following categories of applicants can get a Mudra loan from UCO Bank:

  1. Individuals
  2. Partnership Firms
  3. Proprietary Concerns
  4. Public Companies
  5. Private Ltd. Companies
  1. Other Legal Firms

Other Loans under Mudra Scheme

Apart from the business loan detailed above, UCO Bank also offers vehicle loans under the Mudra scheme:

Two Wheeler Under Mudra Scheme

The objective of this loan is to provide funding for the purchase of a two-wheeler under the Mudra scheme.

Highlights of the loan:

  • This loan is available at all UCO bank branches and can be availed by non-salaried individuals.
  • This is a type of term loan.
  • All loans disbursed through this product are classified under MSME or MUDRA scheme.
  • The primary security for this loan can be the hypothecation of assets taken with the loan amount. There is no need for a collateral security or third-party guarantee.
  • A comprehensive insurance policy should be taken for the two-wheeler with bank clause.
  • Hypothecation clause should be registered with the Regional Transport Authority.
  • All documents and RTO vehicle transfer forms may have to be furnished at the bank.

Interest Rate

8.85% p.a.

Loan Repayment

60 EMIs (starting a month after loan disbursal)

Loan Amount

  1. Shishu - Up to Rs.50,000
  2. Kishore - Rs.50,001 to Rs.1 lakh

Margin

Nil

E-Rickshaw Under Mudra Scheme

The objective of this loan is to provide funding for the purchase of an e-rickshaw under the Mudra scheme.

Highlights of the loan:

  • This term loan is available at all UCO bank branches.
  • The e-rickshaw should be marked as hypothecation under the scheme.
  • The permit and clearance required for operating the e-rickshaw should be obtained by the borrower from the local authorities.
  • Only 1 loan will be provided per individual borrower.
  • The primary security for this loan can be the hypothecation of assets taken with the loan amount. There is no need for a collateral security or third-party guarantee.
  • A comprehensive insurance policy should be taken for the e-rickshaw with bank clause.

Interest Rate

8.85% p.a.

Loan Repayment

60 to 84 EMIs with moratorium period of 3 months*

Loan Amount

Need-based loan; no minimum amount restriction

Margin

Nil

*Interest will be served during the moratorium period

FAQs on UCO Bank Mudra Loan

  • What is UCO Bank Mudra Loan?

    UCO Bank Mudra Loan is a financing scheme offered by UCO Bank to support micro-enterprises and small businesses under the Mudra Yojana initiative.

  • What is the interest rate for UCO Bank Mudra Loan?

    The interest rate for UCO Bank Mudra Loan varies depending on factors such as the loan amount, repayment tenure, and the applicant's creditworthiness.

  • Is collateral required for UCO Bank Mudra Loan?

    For loans up to Rs. 10 lakh, UCO Bank generally does not require collateral or third-party guarantee. However, this may vary based on the loan amount and other factors.

  • What is the repayment tenure for UCO Bank Mudra Loan?

    The repayment tenure for UCO Bank Mudra Loan can extend up to 5 years, depending on the loan amount and the borrower's repayment capacity.

  • How long does it take for UCO Bank to process Mudra Loan applications?

    The processing time for UCO Bank Mudra Loan applications may vary, but it usually takes a few days to a few weeks, depending on the completeness of the application and other factors.

Disclaimer
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.