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Please Note: Indian Overseas Bank is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
Indian Overseas Bank is one of the most trusted banks in India that provides many financial services, including loans to MSMEs. Business loans of loan amount up to Rs. 10 lakh are offered under IOB Mudra loan scheme. These collateral-free business loans under Mudra scheme can be used to establish a new business or expand an existing one, if it is not a corporate or a farm-based enterprise.
Indian Overseas Bank Mudra Loan – Interest Rate – 2022 |
|
| Interest Rate | Depends on the applicant’s profile |
| Maximum Loan Amount | Rs. 10.00 Lakh |
| Age | Min. 18 years and Max. 65 years |
| Margin | Up to 25% |
| Collateral / Security | Not required |
| Repayment Tenure | Up to 5 Years |
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank, NBFC 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% |
To know at which interest rate other lenders are offering Mudra loans, Click here
Eligibility for Indian Overseas Bank Mudra Loan
Micro Small and Medium Enterprises (MSMEs) involved in income generating sectors like service, manufacturing and trading are eligible to apply for IOB Mudra loan. The Enterprise can even be in agriculture-related activities like dairy, beekeeping and so on. The loan can be availed by any Indian citizen.
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Indian Overseas Bank Mudra Loan – Categories
IOB Mudra Loan is divided into three categories based on the loan amount offered. The three categories and the amount that is disbursed through them 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 IOB Mudra Loan applicants may get up to Rs. 50,000. This amount is beneficial to customers who require initial funding to set up their business
- Kishore
Customers who require loan amount over Rs. 50,000 but less than Rs. 5 lakh can apply for Kishore scheme under IOB Mudra Yojana. It is a good option for businesses that are already set up but want expansion. The money can be used to hire additional staff, purchase machinery and so on
- Tarun
Through Tarun scheme, customers may avail a loan up to Rs. 10.00 Lakh. This allows the customer to expand their business rapidly, purchase expensive equipment, or meet other demands of their growing business
Repayment tenure of IOB Mudra Loan
The maximum repayment tenure offered by IOB Mudra Loan is up to 5 years.
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Documents Required
The documents required to successfully apply for IOB Mudra Loan are as mentioned:
| 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. |
- Mudra loan application form
- Passport-sized photographs of applicant & co-applicant
- Self-drafted Business Plan
- Business and Applicant’s PAN card
- Income Proofs: Last 1 year’s ITR & bank statement for the last 6 months
- Proof of business establishment, tenure, and address
- Copy of P&L and Asset and Liability Statement
- Proof of minority, if applicable
FAQs
Q. Who can apply for IOB Mudra Loan?
Ans. Indian citizens engaged in non-corporate, non-farm-based agricultural activities like agribusiness, beekeeping, and so on can apply. Moreover, applicants in the manufacturing, trading, or service sector can also apply for IOB Mudra Loan.
Q. What is the maximum amount that IOB will disburse through Mudra Loan?
Ans. The maximum loan amount that IOB will disburse through Mudra Loan is Rs. 10 lakh.