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 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 sector. The loan amount can be used for business expansion, to purchase plant & equipment, buying machinery, staff training, hiring workers, etc.
IDBI Bank Mudra Loan Interest Rate in India 2021
|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:
|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
IDBI Bank Mudra Loan – Eligibility
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
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|
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 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 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 loans tenure can go up to a maximum of 5 years
Cash Credit / Overdraft
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:
To apply for IDBI Bank Mudra Loan online follow the below-mentioned steps:
- Go to IDBI Bank MSME Loan application page
- Duly fill the form
- Submit the application
Customers can visit the track application page to follow their application’s progress.
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.
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.