Banks offer MUDRA loans to aid income-generating microenterprises that require credit below Rs. 10 lakh. The PM MUDRA Yojana interest rate is one of the important factors when taking out a loan from this government program. The loan’s interest rates start at 7.30% p.a., and the repayment tenure ranges from 1 year to 7 years.
MUDRA Loan Details
Below are the specifics of the Mudra loan:
Loan Amount: up to Rs. 10 lakh.
Rate of Interest: from 7.30% p.a.
Loan Term: 7 years or less
Service Charges: Depending on the lender
MUDRA Loan Interest Rate by Banks
|Bank Name||Rate of Interest||Loan Term|
|HDFC Bank||As per bank policies||Based on the bank’s decision|
|State Bank Of India(SBI)||Related to MCLR||1- 5 yrs|
|UCO Bank||8.85 % p.a. onwards||Based on the bank’s decision|
|IDBI Bank||Related to the bank’s base rate and rating||1- 5 yrs|
|Indian Overseas Bank||As per bank policies||Based on the bank’s decision|
|Bank of Baroda||9.65 % p.a.||Based on the bank’s decision|
|Union Bank of India||7.30% onwards||Based on the bank’s decision|
|Canara Bank||As per bank policies||Up to 7 yrs|
|Central Bank||As per bank policies||Based on the bank’s decision|
|Allahabad Bank||As per bank policies||1-5 yrs|
|Bank of India||Related to MCLR||1-7 yrs|
|Bank of Maharashtra||9.25% p.a.||Based on the bank’s decision|
|Vijaya Bank||9.65% p.a||Based on the bank’s decision|
|Tamilnad Mercantile Bank||8.95% p.a onwards||1-7 yrs|
|Oriental Bank of Commerce||As per bank policies||Based on the bank’s decision|
FAQs on Mudra Loan
Is there any fee for a MUDRA loan?
The processing fees for Shishu & Kishore Category Mudra Loans are NIL.
Who can submit a Mudra Loan application?
Any Indian citizen who wants to start a non-farming business, such as manufacturing, processing, trading or providing services, and needs a loan of up to 10 lakh can go to a bank, microfinance institution or non-banking finance company to apply for a MUDRA loan.
How long does the MUDRA Scheme's loan processing take?
Shishu loans generally have a shorter processing time, usually 7-10 days. Other types of loans take longer, depending on the lender.