Union Bank of India MUDRA Loan

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

Union Bank of India is a government-owned bank that offers Mudra loans, in addition to its other banking and financial products and services. The bank offers Mudra (Micro Units Development and Refinance Agency) loans at an interest rate of 10.30% p.a. onwards. Mudra loans are collateral-free loans offered under the Pradhan Mantri Mudra Yojana (PMYY) initiated by the Government of India.

Click here to download Application form for Mudra Loan offered by Union Bank of India

Union Bank of India Mudra Loan Interest Rates

Interest Rate	10.30% p.a. onwards
Loan Amount	Maximum up to Rs. 10 lakh, Minimum has no limit
Repayment Tenure	Up to 7 years, moratorium period of 6 months
Processing Fee	Nil
Collateral/Security	Not required
Prepayment Charges	Nil
Margin	5% for loans falling under the ‘Shishu’ loan scheme 10% for loans falling under the ‘Kishore’ and ‘Tarun ‘loan scheme.

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

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

Shishu Loan Scheme: Loans up to Rs. 50,000 (For new businesses)The Mudra Yojana is categorized into 3 schemes: Shishu, Kishor and Tarun which are further classified on the basis of their growth, development and funding requirements.

• Kishor Loan Scheme: Loans from Rs. 50,001 to Rs. 5,00,000 (For new and existing enterprises)
• Tarun Loan Scheme: Loans from Rs. 500,001 to Rs. 10,00,000 (For established businesses and enterprises)

Shishu: Under this category the loan offers the amount up to Rs. 50,000. This category is mainly for the people who want to start their own business.

Kishor: Under this category the loan offers the amount ranging from Rs. 50,000 to Rs. 5 lakh. This category is mainly for the people who want to expand their business and needs some extra funding in their business. The start-ups can also avail for this category too.

Tarun: Under this category the loan offers the amount ranging from Rs. 5 lakh to Rs. 10 lakh. The businesses that have already been established themselves fall under this category. Here the loan helps in expanding their business and also offers help in buying assets. This is the maximum amount of loan offered in this scheme.

Eligibility for Union Bank of India Mudra Loan

• Age criteria: Min. 18 years and Max. 65 years
• Individuals, business owners, entrepreneurs, retailers, traders, manufacturers, SMEs and MSMEs are eligible
• Applicants with no defaults with any financial institution
• Indian citizen with no criminal record

Documents Required for Loan Application

The following documents will be required for applying for the MUDRA scheme, the list of documents is as follows:

• Duly-filled application form with 2 Passport-sized photographs of applicant
• Identity, Age, and Address Proofs: Passport, Driving License, Aadhar card, Voter ID card, Utility bills, etc.
• Self-written Business Plan
• Income Proof: Last 1 year ITR and last 12 months’ bank statement
• Applicant’s and Business PAN card
• Business address and existence proof
• Copy of Business License, Business Establishment Certificate
• Details of Suppliers and Machineries
• Quotation of items and machinery to be purchased
• ID Proof of SC/ST/OBC category, if applicable
• Any other document required by the bank

Benefits of Union Bank Mudra Loan

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.

Union Bank of India Mudra Loan Customer Care Number

Tool-Free Number – 022-22892250

FAQs

1. Is there any MUDRA loan for women?

Ans. The government have clarified that women of SC/ST and OBC category would be preferred while giving loans under this scheme.

Also Read: Top 5 Business Loan Schemes for Women Entrepreneurs

2. Do all banks give MUDRA loan?

Ans. Yes, all the banks such as all scheduled commercial banks in public and private sector; Regional Rural Banks (RRBs); all Micro Finance Institutions (MFI); Small Business Finance companies and NBFCs and scheduled urban and state co-operatives.

3. Are loans that are covered under MUDRA are collateral-free loans?

Ans. Yes, the loans covered under MUDRA are collateral-free loans. However, assets created out of the bank loan to be charged with the bank.

4. Are the loans subsidised by the central government?

Ans. No, these loans are not subsidised by the central or state governments.

5. Generally what is the processing time for loans under the MUDRA scheme?

Ans. Generally it takes 7- 10 days for processing of lower amount like Shishu loan while other categories have processing time varying from bank to bank.

6. How can I get PSB loan in 59 minutes from Union Bank?

Ans. Interested applicants looking to apply for PSB loans need to visit their official website ”psbloansin59minutes.com” and further select their desired lender (Union Bank) to proceed with loan formalities.

7. How can I get a Mudra loan application form?

Ans. To download Mudra loan application form you can click on the link below and scroll down to get the link of loan application form in Hindi and English.
https://www.unionbankofindia.co.in/english/mudra-loan.aspx

8. How can I check my Union Bank Mudra loan status?
Ans. For checking your Mudra loan application status, you can either call on the bank’s toll-free number (1800-22-2244) or can visit the nearest bank branch along with the loan details like reference number or loan application number.