Vijaya Bank now merged with Bank of Baroda, is a provider of banking and financial services that also offers Mudra Loans to its customers at an interest rate of MCLR (7.35) + SP + 0.50% onwards. Micro Units Development and Refinance Agency Bank (MUDRA) scheme is an initiative from Government of India to help in the funding of MSMEs. The Mudra loan is offered through nationalised banks in form of RuPay debit card, called V Mudra card. The cardholder can use the money for his/her daily working capital needs or purchase of equipment, etc. The Mudra loan amount will be credited to Rupay debit card issued by the Vijaya bank.
Vijaya Bank Mudra Loan Interest Rate 2022
Like any other loan, the interest rate of Mudra loan is pegged with MCLR (Marginal Cost of funds based Lending Rate). The bank will charge the interest rate equivalent to MCLR (7.35) + SP + 0.50% onwards that is much below any other business loans prevailing in the market. Micro and small entrepreneurs’ may take advantage of this government supported loan.
Also Know: What is the interest rate on Mudra loan? Compare with Top Banks
Mudra Loan Categories
Based on loan amount sanctioned, Vijay Bank Mudra loan is categorised into three categories: Shishu, Kishor and Tarun. Below is the snapshot of these categories:
| Sr. No | Category | Loan Amount |
| 1. | Shishu | Up to Rs. 50000 |
| 2. | Kishor | From Rs. 50000 to Rs. 5 Lakh |
| 3. | Tarun | Rs. 5 Lakh to Rs. 10 Lakh |
Apply for Business Loan @ 14.99% onwards per annum Apply Now
Features and Benefits of Vijaya Bank Mudra Loan
- Vijaya bank has introduced “V Mudra Card” to give Mudra loan to its micro enterprises’ The basic purpose of V Mudra Card is to fulfil working capital finance of microenterprises
- V Mudra card is the co-branded debit card on Rupay platform
- The rules and regulations of the card are jointly governed by Vijaya bank and Mudra Limited
- Vijaya Bank is the issuer of the V Mudra card. The applicant has to fill simple form and submit it along with necessary documents at the nearest branch of Vijaya bank
- The card is issued against simple hypothecation of the movable assets. However, there is no need for collateral to avail Mudra loan
- Any micro entrepreneurs performing non-agricultural activity can avail Vijaya bank Mudra loan
- There is no issuance charges or processing fees of the Mudra card. However, the applicable fees and charges as per Rupay card shall be applied to Mudra card as well
Eligibility of Vijaya Bank Mudra Loan
Mudra loan is provided under Pradhan Mantri Mudra Yojana (PMMY). The purpose of PMMY is to encourage entrepreneurship in the country.
| Mudra Loan Category | Eligibility |
| Shishu Loan | Purpose: To facilitate funding for start-up business
Primary requirements: You have to submit your business idea report to the bank in a proper format. The report should include the profitability of your business and new employment generated from your business Basic identification and residential documents of the applicant as per Document list |
| Kishor and Tarun Loan | Purpose: To facilitate funding for the expansion of your existing business
Primary requirements: · You have to submit your expansion plans and capital equipment requirement needs. The report should include the profitability of your business and new employment generated from your business · Basic identification and residential documents of the applicant as per the list of documents · Financial statement and tax returns of the last 3 years |
Documents required to avail Vijaya Bank Mudra Loan
| Identification Documents | Passport, Driving Licence, Voter’s ID Card, Aadhar Card |
| Residential Proof | Electricity Bill, Water Bill, Gas Bill |
| Mandatory Documents | · PAN card
· Applicant’s passport size photographs (two) · Caste certificate if the applicant is from SC/ST/Special category and desires to avail loan under this category at concessional terms |
| Business Identification and address Documents | · Business License
· GST Registration · SSI (Small Scale Industries) registration · Rental or ownership agreement of the business premises |
| Business Continuity Documents | · Last 3 years’ tax returns
· Last 3 years’ financial statements · Current Account Bank Statement |
Based on the applicant’s financial profile and loan amount, the bank may ask for more documents or waive off certain documents.
Related Post: Documents Required for the Business Loan Application
Frequently Asked Questions
Ques. Do I need to give any security or collaterals to avail Vijaya Bank Mudra Loan?
Ans. You can create hypothecation of any movable assets in favour of Vijaya bank to avail Mudra loan. There is no need to give any collaterals for this purpose.
Ques. Where can I use my V Mudra Card?
Ans. Your V Mudra card is issued as Rupay Debit card to you, with the eligible loan amount. You can withdraw cash from your V Mudra card or use it at POS (Point of Sale) machines.
Ques. Who can avail Mudra loan?
Ans. Mudra loan is aimed to “fund the unfunded”. Hence, small businessmen and entrepreneurs who find it difficult to avail regular bank loan can apply for Mudra loan. Few examples of the eligible applicants are small manufacturing unit owners, machine operators, truck operators, repair shops, food business owners and similar other applicants.