Union Bank of India Mudra Loan

Micro enterprises are offered loans under Pradhan Mantri Mudra Yojana by Union Bank of India. Micro enterprises, particularly those in the trading, manufacturing and service sector in urban, rural and metro areas will be offered loans by the bank.

Why choose Union Bank of India Mudra Loan?

Here’s why choosing Union Bank of India Mudra Loan to finance your business is advantageous:

• Affordable Interest rates

  Mudra loan by Union Bank of India is offered with competitive interest rates. It is in the range of Base Rate (at present 9.65%) to Base Rate +1.50%.

• Simple, transparent processing:

  As a borrower, one need not worry about putting up a collateral because loans covered under MUDRA yojana do not need collateral. Further, the friendly customer care service providers make sure that customers are taken care of throughout the process by handholding them through all the steps.

Features of Union Bank of India Mudra Loan

Loans are divided into three categories based on the loan amount:

1. Tarun is the category of loan in which the loan amount is between Rs. 5.00 Lakhs and Rs. 10.00 Lakhs.
2. Kishore is the category of loan in which the loan amount is between Rs. 50,000 and Rs. 5.00 Lakhs.
3. Shishu is the category of loan in which the loan amount is up to Rs. 50,000.

While assets which are created out of the bank loan is to be charged with the bank, borrowers do not need to put up a collateral for other loans.

The following documents need to be submitted towards the security documents:

• Hypothecation Agreement
• DP Note
• Letter of continuity
• Term Loan agreement (If there is term loan) etc.

One can find common loan application form on the official website of the bank.

Union Bank of India Mudra Loan Interest Rates

Pradhan Mantri Mudra Yojana Loan by Union Bank of India is offered with competitive interest rates. It is in the range of Base Rate (at present 9.65%) to Base Rate +1.50%.

Union Bank of India Mudra Loan FAQs

1. How much can I borrow as loan amount?

   Loans are divided into three categories based on the loan amount:

   • Tarun is the category of loan in which the loan amount is between Rs. 5.00 Lakhs and Rs. 10.00 Lakhs.
   • Kishore is the category of loan in which the loan amount is between Rs. 50,000 and Rs. 5.00 Lakhs.
   • Shishu is the category of loan in which the loan amount is up to Rs. 50,000.
2. Which documents do I need to submit for a loan?

   The following documents need to be submitted towards the security documents:

   • Hypothecation Agreement
   • DP Note
   • Letter of continuity
   • Term Loan agreement (If there is term loan) etc.

   One can find common loan application form on the official website of the bank.

3. What kind of business is eligible to apply for a loan from Union Bank of India?

   Micro enterprises are offered loans under Pradhan Mantri Mudra Yojana Loan by Union Bank of India. Micro enterprises, particularly those in the trading, manufacturing and service sector in urban, rural and metro areas will be offered loans by the bank.