Mudra Loan is an MSME loan provided by the Government to the business or start-ups to kick start their business or to improve their business growth.
This scheme was launched in the year 2015 and ever since many applicants got the benefits of the Mudra loan.
The main aim of the Mudra Loan is to offer loans to the informal sectors that are otherwise not entitled to any loan due to informal business structure.
The interest rates are very nominal and the scheme can also be availed from multiple banks especially Government Banks in India.
You can also apply for Mudra Loan in Union Bank of India. In this column, we will discuss how to apply for Mudra Loan in the Union Bank of India? documents required, process, etc.
Types of Mudra Loan
There are three different types of mudra loans that are designed for specific requirements of the applicant. The following are the mudra loan that you can apply for-
- Shishu- up to Rs.50,000/-
- Kishor-Rs.50,000/- to Rs.5 lakhs
- Tarun- Rs.5 lakhs to Rs.10 lakhs
Based on the requirement of the applicant, the bank will provide you with a loan of up to Rs.10 lakhs. The payment period, interest rates, and documentations are very relaxed hence increasing the loan scheme coverage.
Eligibility Criteria for Mudra Loan
The following are the eligibility criteria for Mudra Loan in Union Bank of India-
- The individual applying for Mudra Loan must be a citizen of India
- The minimum age for applying for the Mudra Loan is 18 years of age and the maximum age is 65 Years
- Any existing business or start-up can apply for the Mudra loan
- No collateral or third-party guarantees are required
- The interest rate offered under Mudra Loan is 5-12.5%
How to Apply for Mudra Loan in Union Bank of India?
You can follow these steps to apply for Mudra Loan in Union Bank of India–
- Visit your nearest Union Bank of India Bank premises and ask the bank representative for the Mudra Loan application process
- The bank representative will ask for your requirement and tenure and also provide you with the loan details. Make sure to negotiate the interest rates along with the repayment tenure to get the best deal
- After that, you’ll have to fill out the Mudra Loan Application form and attach xerox copies of the below-mentioned documents. You’ll also have to carry the original while visiting the bank branch
- Now, after submission, you’ll have to wait for the bank to process your application
- During the processing of the application, the bank might send some inquiries to your premises or office
- After processing your applicant, the bank will communicate to you whether your application has been passed or rejected
- If passed, your account will be credited with the loan amount and you can then start using those funds for your business use
Documents Required for Mudra Loan in Union Bank of India
The following are the documents required for the Mudra Loan in Union Bank of India-
- Duly filled application form with passport-sized photographs
- Business Plan
- KYC documents of the Applicant: Voter’s ID card, Passport, Driver’s license, PAN Card, Aadhar card, Utility Bills (Water and Electricity)
- Bank Statement for the last 12 months
- Company establishment certificate
- Udayam Certification Number
- Proof of belonging to SC/ST, OBC, or any minority group, if applicable
- Any other document required by the bank
FAQ
No, Mudra Loan offers loans with any CIBIL score requirement. You can apply for Mudra Loan without a CIBIL score.
Yes, under the Mudra loan for women scheme, housewives and other women entrepreneurs can apply for Mudra Loan at very discounted interest rates.
MUDRA Loan is an NBFC Loan that supports the MSMEs by proving funds for the growth of an existing enterprise or the kick-starting of a new venture.
Yes, A start-up can apply for a Mudra Loan and the documents required for application are also very normal.
ITR is an essential document for applying for a loan however, for start-ups ITR can be bypassed by the bank, it depends on the bank you are applying to.
