UCO bank is a commercial bank that offers Mudra loan in addition to the banking products offered to its customers nationwide. The rate of interest offered by UCO bank for MUDRA Yojana is 8.85% onwards. The MUDRA scheme provides financing of Rs. 10 lakh to the non-corporate, small and micro enterprises in both rural and urban areas. UCO bank is a commercial bank that offers Mudra loan in addition to the banking products offered to its customers nationwide.
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There are criteria set and the eligibility of the borrowers are being checked before the banks give any loan to you. The eligible persons for taking this MUDRA loan are:
- Entities, such as proprietary concern, partnership firm, private limited, public limited company and any other legal forms
- Age Criteria: Applicants with no loan defaults or irregular repayment history
- Applicants with good financial and repayment history
- Indian Citizens with no criminal background
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Documents required for Loan Application
- Identity Proof: Aadhar card, Voter ID card, PAN card
- Business Plan
- ID Proof of SC/ST category, if any applicant falls under this category
- 2 passport size photographs of applicant
- Age Proof
- Address Proof
- Income Proof
- Last 12 months’ bank statement
- Business establishment certificate
Related Post: What documents do you need for a business loan?
Types of Mudra Loan
Micro Units Development and Refinance Agency (MUDRA) scheme is designed to help in the growth and development of MSMEs. There are three stages of PM MUDRA Yojana, made according to the requirement in stages of development in business. The three types of MUDRA scheme are as follows:
Shishu: Under this stage the applicant will get fund up to Rs.50, 000. This stage will offer to entrepreneurs who are in the initial stage of their business or require fewer amounts of funds in order to get their business started.
Kishor: Under this stage the applicant will get fund ranging from Rs. 50, 000 to Rs. 5 lakh. Kishor loan scheme can be availed by entrepreneurs who already running businesses and started it but they want additional funds for the business or simply the entrepreneurs who require loan for startup business.
Tarun: Under this stage the applicant will get funds ranging between Rs. 5 lakh to Rs.10 lakh. In this stage the entrepreneur have to require the eligibility criteria to apply for this loan. Also this is the maximum limit of amount that an entrepreneur could get who is applying for start-up business.
Benefits of MUDRA Scheme from UCO Bank
There are some benefits of this MUDRA scheme and they are as follows:
- To provide help to the Lower Income Groups (LIGs) and neglected section of country in setting up and developing their business
- To help the Small Scale and Micro enterprises grow and develop their enterprises
- To help in creating easy access to finance for the unbanked and also help to lower the cost of finance
Thus, MUDRA loan will help all small business owners to gain easy access to finance and regulate the policy guidelines for this loan.
Frequently Asked Questions
Q. Is ITR compulsory for Mudra loan?
Ans. Yes, last 1 years’ ITR is compulsory for Mudra loan. The ITR is required to be submitted only by existing businesses and enterprises.
Q. What is the repayment period of UCO Bank Mudra Loan?
Ans. The repayment period of UCO loan is from 12 months to 5 years.
Q. Is there any collateral or security needed to avail for UCO mudra loan?
Ans. No collateral or security is required by the bank for Mudra loans.
Q. What is the mudra loan processing fee in UCO Bank?
Ans. The mudra loan processing fee is nil for loans up to Rs. 10 lakh.
Q. What is the minimum interest rate for an SME loan?
Ans. The SME loan interest rate offered is 9.85% onwards.
Q. How to Download Mudra loan application form?
Ans. To download Mudra loan application form, you can visit the PMMY’s official website or click on this link: https://www.mudra.org.in/Home/PMMYBankersKit
Q. Why is it important to calculate EMI before availing of a Mudra loan?
Ans. EMI calculation makes the loan repayment cycle much easier and convenient. It helps in making a budget and managing finances on a monthly basis.
Q. Does UCO bank have scheme for financing 2-wheeler under MUDRA loan scheme?
Ans. Yes, the UCO bank provides scheme for financing 2-wheeler under MUDRA loan scheme. For further details you can visit the nearest branch of this bank and also visit the bank’s official website.