Please Note: Indian Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
Like other financial institutions, Indian Bank is also a provider of Mudra loan to customers nationwide. Micro Units Development and Refinance Agency (MUDRA) is an initiative by Government of India, as a wholly-owned subsidiary of Small Industries Development Bank of India (SIDBI) to provide funding for the development and refinancing of small enterprises. It majorly focuses on the growth and development of non-corporate, non-farm and micro enterprises.
Click here to download Application form for Mudra Loan offered by Indian bank
The interest rate offered by Indian Bank under the Mudra scheme shall depend on the applicant’s profile, documents submitted and business requirements.
Indian Bank Mudra Loan – Interest Rate & Features – 2022
|Interest Rate||As per business requirements|
|Loan Amount||Maximum up to Rs. 5 lakh|
|Type of Facility||Term loan|
|Repayment Tenure||Up to 5 years|
|Collateral or Security||Not required|
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
|HDFC Bank||10.00% – 22.50% p.a.||Apply Now|
|FlexiLoans||1% per month onwards||Apply Now|
|ZipLoan||1% – 1.5% per month (Flat ROI)||Apply Now|
|Axis Bank||14.25% – 18.50% p.a.||Apply Now|
|IDFC First Bank||14.50% p.a. onwards||Apply Now|
|Kotak Mahindra Bank||16% – 19.99% p.a.||Apply Now|
|Fullerton Finance||17% – 21% p.a.||Apply Now|
|Bajaj Finserv||17% p.a. onwards||Apply Now|
|RBL Bank||17.50% – 25% p.a.||Apply Now|
|ICICI Bank||18% p.a. onwards||Apply Now|
|Indifi Finance||1.5% per month onwards||Apply Now|
|Lendingkart Finance||1.5% – 2% per month||Apply Now|
|Tata Capital Finance||19% p.a. onwards||Apply Now|
|NeoGrowth Finance||19% – 24% p.a.||Apply Now|
|Hero FinCorp||Up to 26% p.a.||Apply Now|
Apply for Business Loan @ 16% p.a. Apply Now
- Small and medium scale business owners
- A start-up is only eligible for Shishu loan
- A business that needs capital to establish itself is eligible for Kishore loan
- While an established business that need capital for expansion is eligible for Tarun loan
PMMY has a list of activities that can be covered under MUDRA loans. Micro, Small and Medium Enterprises (MSMEs) have to meet the eligibility criteria and can apply loans.
|Sector||Activities Covered under MUDRA Loan|
|Agriculture||To Start; establish or expand an agriculture business such as an apiary, a poultry farm, a dairy farm, a livestock farm, etc.|
|Food||Purchase of machinery or set up of business in making papad, jam and jellies, biscuit and bread, or selling of fruits and vegetables, etc.|
|Service||Set up a salon, boutique, chemist shop, dry cleaning, photocopying facility, etc.|
|Textile||Artisans who want to start, establish or expand their business in chikan work, zari work, embroidery, stitching, knitting, etc.|
|Transport||Purchase of vehicles for carriage of passengers or goods such as e-rickshaw, small goods transport vehicle, taxi, auto rickshaw, etc.|
Documents Required for Loan Application
- Duly filled loan application form with passport-sized photographs
- Business Plan
- Aadhar card, Voter ID, Driving license, Passport
- Address proof (Water bills / Tax bills / Telephone bills / Electricity bills / Aadhar card / PAN card)
- Last 6 months’ account statement
- Unaudited balance sheets
- Income Tax Return (ITR) statement
- All papers that validate the name and address of the business establishment
- If person belongs to SC/ST/OBC then associated documents presented
- Documents of all owners or business partners
Related Post: How to Apply for Mudra Loan Online?
Best SME/MSME Loan offers are just a click away Apply Now
The Pradhan Mantri MUDRA Yojana (PMMY) i.e. MUDRA and these loans are given by Commercial banks, Regional Rural Banks (RRBs), Small Finance Banks, Co-operative banks and NBFCs. The borrower can approach any of these institutions mentioned or can apply online from their official websites. Under PMMY, MUDRA is categorized under 3 schemes, named as Shishu, Kishor and Tarun, as per the growth or development and funding needs of the micro-enterprise or entrepreneur.
Shishu Loan: Under this Scheme, the person will be able to apply for a loan of a maximum loan amount of Rs. 50,000. This loan is mainly preferred by people who want to start their business.
Kishor Loan: Under this scheme, the person will get any amount ranging from Rs. 50, 000 to Rs. 5 lakh. This loan is given when the people who have already started their business and want to expand their business now.
Tarun Loan: Under this scheme, the person will get any amount ranging from Rs. 5 lakh to Rs. 10 lakh. This loan is given when those who own a medium-sized business. This is the maximum amount that will be granted under Mudra scheme. Under this scheme, the person must have to meet the benchmarks of their business and once this is done, they can apply for loan up to maximum Rs. 10 lakh.
Best Small Business Loan offers with minimum documentation Apply Now
Current MUDRA Loan Interest Rates – October 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%|
Note: Interest rates are updated as of October 2022.
Benefits of Indian Bank Mudra Loan
As small businesses are huge in numbers in India, it becomes difficult to manage the financial demands of each and every unit. However, under Mudra scheme Government makes sure that the economic demands are adequately met of these small businesses. Considering the needs and requirement of these businesses, Indian bank has also taken part in the Mudra Loan Yojana and have started offering loan to them. Some of the benefits are further mentioned:
- As per the scheme, Indian Bank will be granting microloans for the small scale business owners
- The beneficiaries will get a loan ranging from Rs. 50, 000 to 10 lakh
- This scheme is beneficiary for more than 58 million medium and small scale business owners
Q- What is the benefit of MUDRA loan?
Ans. The main motto of MUDRA loan is “Fund the Unfunded “. So under this scheme small businessmen can also take loan from the banks. Also the MUDRA loan not only helps for the start-up business but also for the expansion of the business.
Q-What is the rate of Interest for MUDRA loan in Indian bank?
Ans. The rate of interest for MUDRA loan offered by Indian bank depends on the applicant’s profile.
Q- Who are the beneficiaries for the MUDRA loan?
Ans. Small and Medium-scale industries owners, Start-up owners.
Q. What is Shishu Mudra loan?
Ans. Shishu Mudra Loan is a funding scheme initiated from Pradhan Mantri Mudra Yojana (PMMY) under Mudra scheme in which loan amount up to Rs. 50,000 can be availed by eligible borrowers.
Q. What is Mudra Card in Indian Bank?
Ans. Mudra card is a type of debit card that is issued by Indian bank for eligible borrowers. This card is used as a normal debit card to withdraw amount for business purposes.
Q. How can I check my Mudra loan status?
Ans. To check loan application status, you can either check online by visiting the bank’s official website or visit the nearest bank branch.
Q- What is the tenure of MUDRA loan?
Ans. The loan will be provided to the interested candidate for a period of 5 years. During that time the person will have to pay the instalments in the bank.
Q- Is there any contact number or toll-free number of the Indian Bank for extra query?
Ans. Yes, you can contact the Indian bank and the number is 1800-4250-0000. You can also visit the official website of Indian bank.