IDBI Bank Mudra Loan

Please Note: IDBI Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.

IDBI Bank is one of the largest banks in India that offers banking products, financial solutions, and MUDRA loans (Micro Units Development and Refinance Agency) to its customers nationwide. The bank offers many services, including providing loans to MSME sector through the IDBI Bank Mudra Loan scheme. This loan is for those MSME enterprises that are in the service, trade, manufacturing sectors, or non-farm-based agriculture sectors. The loan amount can be used for business expansion, purchasing plant & equipment, buying machinery, staff training, hiring workers, etc.

IDBI Bank Mudra Loan Highlights – 2022

Interest Rate	Depends on applicant’s profile
Loan Amount	Min. No Limit & Max. up to Rs. 10 lakh
Type of Facility	Term Loan & Overdraft / Cash Credit
Processing Fee	Nil up to Rs. 5 lakh & up to 0.50% for others
Repayment Tenure	12 months for OD & CC, Term loan up to 5 years
Collateral or Security	Not required
Guarantee	No third party guarantee required
Margin	Nil for loans up to Rs. 50,000, 25% for others

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.

IDBI Bank Mudra Loan Interest Rates & Processing Charges

IDBI Bank Mudra Loan Interest rates and processing charges are:

Category	Shishu	Kishore	Tarun
Rate of Interest	12.00% Onwards	12.50% Onwards	12.50% Onwards
Processing Charge	Nil	Nil	Up to 0.50% of the loan amount

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

Comparison of Interest Rates on Business Loan Offered by Top Banks in 2022

Bank/NBFCs	Interest Rate
Axis Bank	10.75% p.a. onwards
Flexiloans	1% per month onwards
HDB Financial Services Ltd.	8% - 26% p.a.
HDFC Bank	10.75% - 25% p.a.
IDFC First Bank	10.50% p.a. onwards
Indifi	1.50% per month onwards
Kotak Mahindra Bank	16% - 26% p.a.
Lendingkart	12% - 27% p.a.
Mcapital	2% per month onwards
NeoGrowth Finance	15% - 40% p.a.
Tata Capital	12% p.a. onwards
UGRO Capital	9% - 36% p.a.
Bajaj Finserv	10% to 26%

Also view: Interest rates offered by other Mudra loan providers

Eligibility for IDBI Bank Mudra Loan

The MUDRA scheme has certain eligibility criteria and will be provided to those who fall under this eligibility. The eligibility criteria for MUDRA loan in IDBI bank will be as follows:

• Minimum age of the applicant should be 18 years and maximum up to 65 years
• Eligible entities: Individuals, startups, business owners, women entrepreneurs and MSMEs
• Applicants with good financial and repayment history shall be preferred
• Applicant with no loan defaults with any bank of NBFC
• Indian Citizens with no criminal background

Related Post: Business Loan eligibility criteria and documents required

IDBI Bank Mudra Loan – Categories

IDBI Bank Mudra loan is divided into three categories based on the maximum amount of loan offered. These are:

Mudra Loan Scheme	Amount
Shishu	Up to Rs. 50,000
Kishore	Between Rs. 50,000 & Rs. 5.00 Lakh
Tarun	Between Rs. 5.00 Lakh & 10.00 Lakh

• Shishu

Through Shishu scheme of IDBI Bank Mudra Loan, applicants can avail up to Rs. 50,000. This scheme will greatly help customers who are starting a new business. The interest rate charged by IDBI Bank on Shishu loan is 12.00% onwards.

• Kishore

Kishore scheme provides a loan amount over Rs. 50,000 but less than Rs. 5 lakh. It is best suited for businesses that already exist but seeks expansion. The amount can be used to hire additional staff, purchase machinery and so on.

• Tarun

Tarun allows maximum loan amount disbursal under Mudra scheme. Customers under the Non-Corporate Small Business (NCSB) category may avail a loan up to Rs. 10 Lakh. This loan amount allows the customer to expand their business rapidly, or meet the working capital needs of their growing business.

What is the repayment period for Mudra loan in IDBI Bank

IDBI Bank Mudra loan must be repaid within the repayment period. The repayment periods are:

Term Loan

Term loans tenure can go up to a maximum of 5 years

Cash Credit / Overdraft

Cash credit or Overdraft must be repaid within 12 months. Do note that the bank may ask the customer to pay the principal amount anytime they want.

Features and Benefits

IDBI Bank Mudra Loan comes with many features and benefits, some of them are:

• Security free loans
• Loan tenure up to 5 years
• The maximum loan amount is Rs. 10 Lakh
• The processing fee is waived for loans up to Rs. 5 lakh
• Flexible repayment option

How to Apply for Mudra Loan in IDBI Bank

Applicants can apply for IDBI Mudra Loan through the following ways. They are:

Online Application

To apply for IDBI Bank Mudra Loan online follow the below-mentioned steps:

1. Go to IDBI Bank MSME Loan application page
2. Duly fill the form
3. Submit the application

Customers can visit the track application page to follow their application’s progress.

Offline Application

Applicants can also apply for IDBI Bank by visiting the nearest IDBI Bank branch. Once there they can contact the loan officer who will guide them through the loan application process.

Documents Required

The following documents are required to apply for IDBI Bank Mudra Loan:

Identity Proof	Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.
Residence/Business Proof	Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill (not more than 3 months old), etc.

Additional documents required are:

• IDBI Bank Mudra Loan application form
• Proof of Minority if applicable
• Rent agreement
• Clearance from the pollution control board, if applicable
• Projected balance sheets for the next 2 years if the loan is required for working capital
• Projected balance sheets for loan tenure in case of term loan
• Takeover of loan – sanction letter from the bank with detailed terms and conditions
• Small Scale Industries (SSIs)/Micro Small Medium Enterprises (MSMEs) registration if necessary
• Quotation of machinery to be purchased
• Passport sized Photographs
• Proof of business
• Memorandum and Article of Association of company
• Asset and Liability statement of the borrower (for loans over Rs. 5 lakh)
• Photocopy of lease deeds, title deeds. Wherever applicable

The documents listed are for indicative purposes only, additional documents may be required.

FAQs on IDBI Bank Mudra Loan

Q. Who can apply for IDBI Bank Mudra Loan?

Ans. Citizens of India who run or want to establish a Micro Small Medium Enterprises (MSME) can apply. Individuals, proprietary concern, partnership firm, private limited company, public company, or any other legal form can apply for IDBI Bank Mudra Loan. Do note that these enterprises must be in non-farm based agricultural activities like beekeeping or engaged in manufacturing, trade, service sector.

Q. How much amount can one get for under IDBI Bank Mudra Loan scheme?

Ans. A customer may get up to a maximum of Rs. 10 lakh under Tarun scheme of IDBI Bank Mudra Loan Yojana.

Q. Can customers get the Mudra Card?

Ans. Yes, customers can avail Mudra Card which is a debit card under the Rupay payment platform. This card offers great convenience to customers who seek IDBI Bank Mudra Loan to meet their working capital needs.