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Current Mudra Loan Interest Rates – January 2023
| Banks/NBFCs | Interest Rate (p.a.) |
| Ziploan | 8.00% onwards |
| PSB Loans in 59 minutes | 8.50% onwards |
| PNB | 8.80% onwards |
| Union Bank of India | 10.30% onwards |
| Saraswat Bank | 11.65% onwards |
| City Union Bank | 12.00% – 12.50% |
| Bajaj Finserv | 1% – 12.00% |
| Lendingkart Finance | 1% per month onwards |
| Flexiloans | 1% per month onwards |
| Fullerton India | 1% – 20.00% |
Note: Interest Rates are updated as on January 2023.
The Mudra Loan Interest Rates vary from bank to bank and depend on the applicant’s profile and business requirements. The collateral-free business loan amount is offered under three loan schemes named Shishu, Kishor, and Tarun. The maximum loan amount offered is up to Rs. 10 lakh with no minimum limit to borrow. The repayment tenure offered is from 12 months to 5 years, may exceed as per business requirements. The processing and foreclosure fees charged are Nil to nominal.
Must Read: What are the documents required for applying Mudra loan?
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Mudra Loan Details
Features:
- Collateral-free loans up to Rs. 10 lakh
- Loan Categories: Shishu, Kishore & Tarun
- Interest Rate: Varies from lender to lender and depends on applicant’s profile and business requirements
- Loan Amount: No minimum limit to borrow and max. up to Rs. 10 lakh
- Repayment Tenure: From 12 months to 5 years, may exceed for specific cases
- Processing Fee: Nil to nominal
- Foreclosure Charges: Nil
- Concessional Interest Rates for Women Entrepreneurs
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Mudra Loan Categories
MUDRA Yojana under Pradhan Mantri Mudra Yojana (PMMY) categorises these loans into three segments viz., Shishu, Kishor, and Tarun. The three loan schemes under Mudra Yojana along with the loan amount offered are as follows:
| Types | Loan Amount | Details |
| Shishu | Up to Rs. 50,000 | This stage caters to the needs of entrepreneurs who are yet to start their businesses or whose enterprises are at an early stage. |
| Kishor | From Rs. 50,001 – Rs. 5,00,000 | This stage helps the businesspersons who have started their business but are in a need of funds to sustain it in the market. This segment is also for those entrepreneurs who need a larger sum of money than what Shishu loan offers for starting their businesses. |
| Tarun | From Rs. 5,00,001 – Rs. 10,00,000 | This is the highest level of the scheme and an entrepreneur is eligible for a loan from Rs. 5 lakh and up to Rs. 10 lakh. These loans are meant for business owners who need to set up a large business or need funds to expand the enterprise. |
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Also Know: What is the process and requirement of taking a loan from Mudra Bank?
Tips to avail MUDRA Loan at Low Interest Rate
It’s simple to get a mudra loan at a low-interest rate. You just need to follow the below-mentioned suggestions:
- Check and compare loan deals offered by various Banks/NBFCs offering Mudra loans
- Nature and type of business shall define the interest rates
- Businesses engaged in lesser risk shall avail loans at lower interest rates
- Higher the annual turnover & volume; the lower shall be the offered interest rate
- Applicants with good creditworthiness and repayment capability shall be preferred
- Applicant’s income, required loan amount and opted repayment tenure also define the interest rates
- Applicants with no previous loan defaults will have an advantage
To apply for a Mudra loan or to check the exact interest rates, you shall need to personally contact the eligible Bank/NBFC or may visit their official websites.
Factors affecting Mudra Loan Interest Rates
The factors that affect Mudra loan interest rates are the applicant’s income, creditworthiness, nature of business, required loan amount, repayment tenure, etc.
List of Banks/NBFCs offering Mudra Loans – 2023
Mudra loans under Pradhan Mantri Mudra Yojana (PMMY) are offered by selected financial institutions from the RBI that are eligible to offer Mudra loans are as follows:
- Axis Bank
- Bajaj Finserv
- Bank of Baroda
- Bank of Maharashtra
- Canara Bank
- Central Bank of India
- City Union Bank
- Flexiloans
- Fullerton India
- HDFC Bank
- ICICI Bank
- Indian Overseas Bank
- Lendingkart Finance
- PNB
- PSB Loans in 59 minutes
- Saraswat Bank
- SBI
- UCO Bank
- Union Bank of India
- Ziploan, etc.
Mudra loans are collateral-free loans offered at competitive interest rates along with concessional interest rates for women entrepreneurs with Nil to nominal processing fees and foreclosure charges.