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Current MUDRA Loan Interest Rates – June 2022
| Banks/NBFCs | Interest Rate (p.a.) |
| Bajaj Finserv | 1% – 12% |
| City Union Bank | 9.65% – 10.90% |
| Flexiloans | 1% per month onwards |
| Fullerton India | 1% – 20% |
| Lendingkart Finance | 8.60% – 11.15% |
| PNB | 9.60% – 12.35% |
| PSB Loans in 59 minutes | 8.50% onwards |
| Saraswat Bank | 11.65% onwards |
| UCO Bank | 7.45% onwards |
| Union Bank of India | 7.85% – 9.10% |
| Ziploan | 8.00% onwards |
Note: Interest rates are updated as of June 2022.
The Mudra Loan Interest Rates vary from bank to bank and depend on the applicant’s profile and business requirements. The loan amount offered on collateral-free Mudra loans by the Banks/NBFCs is up to Rs. 10 lakh and repayment tenure of up to 5 years with no minimum limit to borrow. The factors that affect Mudra loan interest rates are the applicant’s income, creditworthiness, nature of business, required loan amount, repayment tenure, etc.
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.
Must Read: What are the documents required for applying Mudra loan?
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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
Mudra Loan Details
Features:
- Collateral-free loans
- Interest Rate: As per the applicant’s profile and business requirements
- No minimum limit to borrow
- Loan Amount: Up to Rs. 10 lakh
- Repayment Tenure: From 12 months to 5 years
- Processing Fee: Nil to nominal
- Foreclosure Charges: Nil
- Concessional Interest Rates for Women Entrepreneurs
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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Credit Facilities offered under Mudra Yojana
The MUDRA Loan Yojana under PMMY has a variety of sub-schemes designed for specific business needs. These schemes include:
- Credit for Micro Enterprises: This is in line with the most basic motive of the scheme. It focuses on maximizing the involvement of the population so that there can be more benefits and an increasing number of beneficiaries. The segment of the population which is involved in land transport, food production, textile, and community services can take advantage of the scheme and start their own small business unit to become self-dependent
- Mahila Udyami Scheme: This sub-scheme has been designed to keep women entrepreneurs in mind. It has an objective to encourage women, groups of women, Joint Liability Groups (JLGs), and Self-help Groups (SHGs) of women to set up micro-enterprises. Under this scheme, special and concessional interest rates are offered to women entrepreneurs
- Refinance Scheme for Banks: The MUDRA Yojana also refinances loan amounts of up to Rs. 10 lakh extended by the banks to borrowers. However, refinancing can only be provided for the enterprises engaged in the trading, manufacturing and services sectors. As per RBI guidelines for the scheme, scheduled commercial banks have to lend to the ultimate borrowers at their base rate to avail MUDRA refinance
- Micro Credit Scheme: The micro-credit scheme focuses on Micro Finance Institutions (MFIs) and provides them the financial support they need. The scheme makes funds available to individuals, groups of individuals, and micro-business entities
- MUDRA Card: Mudra card is a debit card issued to the Mudra account holders for multiple withdrawals and credits. The working capital limit can be utilized efficiently by using the Mudra card. This debit card is issued on the RuPay platform that provides hassle-free credit to its customers
- Credit Guarantee Fund: Credit Guarantee Fund for Micro Units (CGFMU) is a fund being managed by National Credit Guarantee Trustee Company Ltd. (NCGTC), an agency promoted by the Govt of India. Under this fund, all eligible microloans sanctioned under Mudra Yojana are covered under the guarantee fund. This fund provides relief to banks and NBFCs regarding risks related to collateral or security
- Equipment Finance Scheme: This scheme is designed to help micro-enterprises in their expansions. With the help of this scheme, qualified equipment can be purchased through the finance of up to Rs. 10 lakh
Also Know: What is the process and requirement of taking a loan from Mudra Bank?
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List of Banks/NBFCs offering MUDRA Loans
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 loan offers at competitive interest rates along with concessional interest rates for women entrepreneurs with Nil to nominal processing fees and foreclosure charges.