Indian Bank Mudra Loan

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

Like various other financial institutions, Indian Bank also offers Mudra loans to its customers in form of majorly Online Shishu e-Mudra Loans. Micro Units Development and Refinance Agency (MUDRA) is an initiative by the Government of India, as a wholly-owned subsidiary of Small Industries Development Bank of India (SIDBI) to offer funding for the development and refinancing of small enterprises. The interest rate offered by Indian Bank under the Online Shishu e-Mudra scheme is 10.65% p.a. onwards for loan amount up to Rs. 50,000.

Click here to download Application form for Mudra Loan offered by Indian bank

Indian Bank Online (Shishu) e-Mudra Loan – 2023

Online (Shishu) e-Mudra Loan – Highlights
Age Criteria	Min. 18 years and Max. 60 years
Facility	Term Loan only
Purpose	Any Business purpose including New Business (Manufacturing/Service/Trading activities)
Target Group	Individuals & Proprietary Firms other than staff  & Government Salaried class
Interest Rate	10.65% p.a. onwards
Loan Amount	Minimum Rs. 10,000 & Maximum up to Rs. 50,000
Repayment Tenure	Minimum 24 EMIs & Maximum 60 EMIs
CIBIL Score	Minimum CIBIL score of 700 or more OR -1 with no credit history
Services Charges	Nil Processing fee, Nil Documentation Fees and Nil Inspection charges
Margin	Nil
Pre-payment/Foreclosure Charges	Anytime & Nil

Note: The mentioned interest rates 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 Business Loan Interest Rate Offered by Top Banks/NBFCs – 2023

Bank/NBFCs	Interest Rate
Axis Bank	14.95% - 19.20% p.a.	Apply Now
Bajaj Finserv	9.75% - 30% p.a.	Apply Now
Flexiloans	1% per month onwards	Apply Now
HDB Financial Services Ltd.	Up to 36% p.a.	Apply Now
HDFC Bank	10% - 22.50% p.a.	Apply Now
IDFC First Bank	10.50% p.a. onwards	Apply Now
Indifi	1.50% per month onwards	Apply Now
Kotak Mahindra Bank	16% - 26% p.a.	Apply Now
Lendingkart	12% - 27% p.a.	Apply Now
Mcapital	2% per month onwards	Apply Now
NeoGrowth Finance	19% - 24% p.a.	Apply Now
Tata Capital	12% p.a. onwards	Apply Now
UGRO Capital	9% - 36% p.a.	Apply Now

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?

Current MUDRA Loan Interest Rates – 2023

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: All the above mentioned interest rates are subject to change and depend on the sole discretion of the lender.

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

FAQs

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 is 10.65% p.a. onwards.

Q- Who are the beneficiaries for the MUDRA loan?

Ans. Small and Medium-scale industries owners, Start-up owners.

Q. What is Shishu e-Mudra loan?

Ans. Shishu e-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- 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.