| Particulars | Union Bank MUDRA |
|---|---|
| Loan Amount | From Rs. 10,000 to Rs. 20 lakh |
| Facility | Term Loan, Working Capital |
| Interest Rates | 9.75% to 11.00% |
| Tenure |
|
| Processing Fees | NIL |
Union Bank MUDRA STP
Union Bank of India offers MUDRA loan @ 9.75% p.a. onwards to micro enterprises engaged in trading, manufacturing and service sector including professionals under the PM MUDRA Yojana (PMMY). Prospective borrowers can avail Union Bank MUDRA loan for up to Rs. 20 lakh for repayment tenure of up to 7 years. Please Note: Union Bank of India is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
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15.5L Reviews
51M+Satisfied Customers
65+Lending Partners
800+Cities across India
Paisabazaar Exclusive Benefits
Paisabazaar Exclusive Benefits
Wide Choice
Curated offers from top lenders
Quick Disbursal
Money in your account instantly
SmartMatch
Offers ranked according to eligibility
Digital Process
Hassle-free & paperless
Find Best Business Loan Offers
HDFC Bank
Max Loan Amt.Upto ₹75L
Rate of Interest16% - 28%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
Axis Bank
Max Loan Amt.Upto ₹75L
Rate of Interest11.5% - 19%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
Kotak Mahindra Bank
Max Loan Amt.Upto ₹2Cr
Rate of Interest11.75% - 26%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
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Step 2: Enter OTP to verify your mobile number.
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Step 5: Compare offers and apply for the best-suited loan.
Union Bank MUDRA Loan at a Glance
Interest Rates of Union Bank of India MUDRA Loan
| Quantum | Spread over EBLR | Interest Rate(p.a) |
|---|---|---|
| From Rs. 10,000 & up to Rs. 50,000 | EBLR + 1.50% | 9.75% |
| Above Rs. 0.50 lakh & up to Rs. 2.00 lakh | EBLR + 1.75% | 10% |
| Above Rs. 2.00 lakh & up to Rs. 10.00 lakh | EBLR + 2.75% | 11% |
| Above Rs. 10.00 lakh & up to Rs. 20.00 lakh | EBLR + 2.25% | 10.5% |
Interest Rates updated as of 26th November, 2025
Swipe to see more table data
Fees & Charges of Union Bank MUDRA Loan
Fees and charges of Union Bank MUDRA loan STP (Straight through Processing):
For Union Bank Shishu Loan
| Particulars | Charges |
|---|---|
| Processing fees | NIL |
| Digital convenience fee | Rs. 950 |
| Stamp charges | Rs. 171 |
| Insurance charges | NIL |
For Union Bank MUDRA - Kishor, Tarun & Tarun Plus
| Particulars | Charges |
|---|---|
| Processing | NIL (Up to Rs. 10 lakh), Above Rs. 10 lakh as applicable |
| Digital Convenience fee | Rs. 1,000 up to Rs. 10 lakh & Rs. 2000 above Rs. 10 lakh |
| Penal interest on delayed payments | 2% p.a. for the duration of the instalments delayed |
| Penal interest on non-submission or delay in submission of stock statement | 1% p.a. |
| Prepayment penalty | NIL |
Applicants should note that Union Bank provides a 3-day cooling-off or look-up period during which they will not be charged any penalty on loan prepayment.
Features of Union Bank MUDRA Loan
Loan Amount
Union Mudra loans are divided into the following four categories signifying the growth and funding needs of the beneficiary micro-entrepreneur:
| Categorisation | Loan Amount |
|---|---|
| Shishu | Up to Rs. 50,000 |
| Kishor | Above Rs. 50,000 to Rs. 5 lakh |
| Tarun | Above Rs. 5 lakh to Rs. 10 lakh |
| Tarun Plus | Above Rs. 10 lakh to Rs. 20 lakh |
As per the Budget announcement and the Official Gazette dated 24 October 2024, a new loan category, Tarun Plus, has been introduced. This category offers business loans ranging from above Rs. 10 lakh to Rs. 20 lakh to eligible individuals who have previously availed and successfully repaid loans under the Tarun category.
Loan Types:
Repayment (No prepayment penalty will be levied)
| Category | Repayment Terms |
|---|---|
| For WC | Running account repayable on demand (Interest to be served as and when due). |
| WCDL | To be repaid within a maximum period of 36 months in equated monthly installments. |
| TL > Rs. 2 lakh up to Rs. 5 lakh | To be repaid within a maximum period of 60 months in equated monthly installments. |
| TL above Rs. 5 lakh | To be repaid within a maximum period of 84 months in equated monthly installments. |
Margin
Security
Guarantor
Eligibility Criteria for Union Bank MUDRA Loan
Union Bank of India offers MUDRA loans to micro-enterprises having business in trading, manufacturing and service sectors under the PM MUDRA Yojana. Professionals like CA/CS/ICWA/Medical professionals/Architect, etc. can also avail Union Bank MUDRA loan.
Eligibility for Union Bank Shishu Loan
Eligibility for Union Bank MUDRA - Kishor & Tarun STP
Note: Tarun Plus is offered to those borrowers who have successful repaid their loans in the Tarun category.
Documents Required for availing Union Bank MUDRA Loan
For Union Bank Shishu MUDRA Loan
MUDRA loan applicants have to submit documents digitally on the NeSL platform through the Aadhaar-based OTP system. Business proof or establishment certificate, GST or Udyog Aadhaar are required to be uploaded.
Prospective borrowers should take note of the following while availing of a loan:
For Union Bank MUDRA - Kishor & Tarun STP
Eligible micro-entrepreneurs can visit the Union Bank of India branch for submission of required documents. Alternatively, eligible individuals or proprietorship concerns can also submit MUDRA loan documents online through the Aadhaar OTP-based system.
How Can I Apply for a Business Loan Online?
Get up to ₹1 Crore in 5 Simple Steps
Step 1: Enter your mobile number in the application form.
Step 2: Enter OTP to verify your mobile number.
Step 3: Provide your personal details.
Step 4: Select a bank account for account aggregator consent.
Step 5: Compare offers and apply for the best-suited loan.
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FAQs
The government has clarified that women of SC/ST and OBC categories would be preferred while giving loans under this scheme.
Yes, the MUDRA loans covered are collateral-free.
No, these loans are not subsidised by the central or state governments.
Generally, it takes 7- 10 days for the processing of lower amounts, like the Shishu loan. For other categories, the processing time may vary from bank to bank.
To apply online for a Mudra loan, you can visit the official website of Union Bank or visit Jansamarth website.
To check your Mudra loan application status, you can either call the bank's toll-free number (1800-22-2244) or visit the nearest bank branch along with the loan details, like reference number or loan application number.
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Written By
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