Central bank of India is a government-owned commercial bank that focuses in providing Mudra loan, along with other banking products to its customers. MUDRA (Micro Unit Development and Refinance Agency) is a scheme introduced by government of India to provide funding to MSMEs throughout India. Mudra loan is granted to any non-farm activities in manufacturing, trading or service sector within a maximum limit of Rs. 10 Lakh. Mudra Yojana is applicable throughout the country in both, rural and urban sectors for their growth and development.
Click here to download Application form for Mudra Loan offered by Central Bank of India
Central Bank of India Mudra Loan – Features – 2021
Age Criteria | Min. 18 years & Max. 65 years |
Interest Rate | As per business requirements |
Loan Amount | Max. up to Rs. 10 lakh |
Repayment Tenure | Up to 5 years |
Collateral | Not required |
Processing Fee | Nil |
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.
Features and Benefits
- Loan amount up to Rs. 10 lakh
- No collateral required
- Nil processing fees or other loan-related charges are payable
- No foreclosure or pre-payment charges
Types of Mudra Loan
According to the stage of business and amount of loan granted, Central Bank of India’s Mudra loan is categorised into three types: Shishu, Kishor and Tarun. Below are the details of each type:
Sr No | Types of Mudra Loan | Amount of Loan |
1. | Shishu | Up to Rs. 50000 |
2. | Kishor | Above Rs. 50000 and up to Rs. 5 Lakh |
3. | Tarun | Above Rs. 5 Lakh and up to Rs. 10 Lakh |
Read Also: What are the Types of MSME Loans?
Eligibility Criteria
The Central bank of India decides eligibility based on overall guidelines of the Mudra loan under Pradhan Mantri Mudra Yojana (PMMY). Below is the category-wise check-list to decide eligibility:
Mudra Loan Type | Eligibility |
Shishu Mudra Loan | Type of Business Activity: Start-up Key Highlights: |
Kishor and Tarun Mudra Loan | Type of Business Activity: Providing funding for the expansion of the existing business Key Highlights: ·Submit the report of your business expansion plan |
Also Know: What interest rate is charged on MUDRA loan?
Documents required for Loan Application
Duly Filled Application form along with Passport-sized photographs Identification Documents | Passport, Aadhar Card, Driving Licence, Voter ID |
Residential Address Proof | Power Bill, Gas Bill, Water Bill |
Key Documents | ·PAN card of the applicant ·Recent passport size photographs(two) ·Caste certificate (Only if applicable) for special category concessions) |
Business Documents | ·Business License from the competent authority ·GST Registration Certificate ·Certificate from SSI(Small Scale Industries) registration (Only if applicable) Registered or notarised agreement for Rental or ownership proof of the business premises |
Business Documents for turn-over proof | ·Income tax returns (Last three years) ·Profit and Loss Account, Balance Sheet (Last three years) ·Bank Statement of Current Account (Last 12 months) |
Central bank of India may waive off certain documents for the lower loan amount. It may also ask more documents if necessary.
Read Also: how to apply for a loan under PMMY?

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Frequently Asked Questions
Q. While availing Mudra loan, can I avail the subsidy?
Ans. Although subsidy is not an integral part of the Mudra loan, you can avail the subsidy for your project from the different scheme of the state or central government. Applying or availing the subsidy doesn’t disqualify you from taking Mudra loan.
Read Also: How much is the subsidy on the Mudra loan?
Q. Which type of business is applicable for Mudra loan?
Ans. The Mudra loan can be availed for any kind of non-farm business activity. The important criteria are not the type of business, but the viability and size of the business.
Q. How can I prepare project reports to avail Mudra loan?
Ans. To guide the applicants to prepare an acceptable project report, the government has uploaded many sample project profiles on the website https://udyamimitra.in/ProjectProfiles. You can view several project profiles according to industry or business. You can view the profile that is nearest to your business activity and prepare the profile for your application.
Q. Whether Term Loan and Working Capital can be given by the Bank?
Ans. Yes, the Central bank of India offers both term loan and working capital loan in form of various MSME loan schemes.
Also Read: How to apply for an MSME loan online and get approval in 59 minutes?
Q. Is collateral security required for getting mudra loan from central bank of india?
Ans. No, there is no collateral or security required by Central bank of India for availing Mudra loan.