Union Bank of India Mudra Loan: Empower Your Business

The Union Bank of India Mudra Loan is a government-backed scheme. It helps small and medium-sized enterprises get financial help. This loan is part of the Pradhan Mantri Mudra Yojana (PMMY) to boost entrepreneurship and job creation.

With this loan, businesses can get funds for various needs. This includes working capital, buying equipment, and expanding. The loan offers good interest rates, flexible repayment, and doesn’t need much collateral.

Entrepreneurs can get up to Rs. 10 lakh through the union bank mudra yojana. This helps them start or grow their businesses. The scheme has helped a lot, with over 28.89 crore loans given out from April 1, 2018, to March 31, 2023.

The total funds given out are about US$ 213.22 billion (Rs. 17.77 lakh crore).

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Union Bank of India Mudra Loan: Empower Your Business

Table of Contents

Key Takeaways

  • The Union Bank of India Mudra Loan is a government-backed scheme designed to provide financial assistance to small and medium-sized enterprises.
  • The mudra loan by union bank offers a range of benefits, including competitive interest rates, flexible repayment terms, and minimal collateral requirements.
  • The union bank mudra yojana has been successful in promoting entrepreneurship and job creation, with over 28.89 crore loans sanctioned under PMMY from April 1, 2018, to March 31, 2023.
  • The total amount of funds sanctioned under PMMY is approximately US$ 213.22 billion (Rs. 17.77 lakh crore).
  • The scheme has promoted entrepreneurship and job creation, with an estimated 11.2 million additional jobs generated by MUDRA loans from 2015 to 2018.
  • The proportion of self-employed jobs generated by MUDRA loans is 55%, while the proportion of new jobs created in existing businesses is 45%.

Understanding Union Bank of India Mudra Loan

To apply for a Union Bank Mudra Loan, you need to know what it is. A Mudra Loan is a financial help for small and medium businesses. The Union Bank of India has three types: Shishu, Kishore, and Tarun. Each has different loan amounts, interest rates, and repayment terms.

Before applying, check if you meet the eligibility criteria. You must be between 21 and 65 years old. Also, you need a UBI account for at least six months and a Udyam Registration Number.

What is a Mudra Loan?

A Mudra Loan helps small and medium businesses financially. The loan amount depends on the type. Shishu offers up to Rs. 50,000, Kishore between Rs. 50,001 and Rs. 5 lakhs, and Tarun between Rs. 5 lakhs and Rs. 10 lakhs.

Categories of Mudra Loans

The three types of Mudra Loans are:

  • Shishu: Up to Rs. 50,000
  • Kishore: Between Rs. 50,001 and Rs. 5 lakhs
  • Tarun: Between Rs. 5 lakhs and Rs. 10 lakhs

Features and Benefits

The Union Bank of India Mudra Loan has many benefits. It has an easy application process and quick fund disbursal. It supports various business activities and has flexible repayment terms.

The interest rates vary by category. Shishu has an interest rate of EBLR + 1.25%. The fees are minimal, with no fees for Shishu and a fee of Rs. 950 plus GST for Kishore and Tarun.

CategoryLoan AmountRepayment PeriodInterest Rate
ShishuUp to Rs. 50,000Up to 36 monthsEBLR + 1.25%
KishoreBetween Rs. 50,001 and Rs. 5 lakhsUp to 60 monthsVariable as per bank rates
TarunBetween Rs. 5 lakhs and Rs. 10 lakhsUp to 84 monthsVariable as per bank rates

Eligibility Requirements for Mudra Loan Applications

To get a Union Bank of India business loan under the Mudra scheme, businesses need to meet certain criteria. They must have a solid business plan and a good credit score. Also, they should have a stable financial history and be registered with all necessary licenses and permits.

The Union Bank of India has a team that checks loan applications. They help with the requirements for business loans. Key things include a six-month banking relationship and a valid Udyam Registration Number. The business owner’s age should be between 21 and 65, and the business should not owe money to any bank.

Businesses also need to show they have a certain level of turnover and profit. The requirements can change based on the loan type, like Digital Shishu, Kishore, or Tarun loans. It’s important to check the specific needs for each loan to see if you qualify for a Union Bank of India business loan.

  • Valid business plan and registration
  • Good credit score and stable financial history
  • Minimum banking relationship of six months
  • Valid Udyam Registration Number
  • Promoter’s age between 21 to 65 years

By fulfilling these requirements, businesses can boost their chances of getting a Union Bank of India business loan under the Mudra scheme.

Maximum Loan Amount and Funding Options

The Union Bank of India Mudra Loan offers various funding options for different business needs. The interest rates are competitive. The loan amount varies based on the loan category.

There are three types of loans under the Mudra scheme: Shishu, Kishore, and Tarun. The Shishu category allows loans up to ₹50,000. The Kishore category offers loans from ₹50,001 to ₹5 lakhs. The Tarun category provides loans from ₹5 lakhs to ₹10 lakhs. Recently, the Tarun category’s loan limit was raised to ₹20 lakh for successful borrowers, introducing Tarun Plus.

Loan Category Limits

  • Shishu: up to ₹50,000
  • Kishore: ₹50,001 to ₹5 lakhs
  • Tarun: ₹5 lakhs to ₹10 lakhs, with Tarun Plus for loans up to ₹20 lakh

The interest rates for Union Bank Mudra Loan depend on the loan category and credit score. The loan offers flexible repayment terms. This includes monthly installments and bullet payments, helping businesses manage their finances.

With the Union Bank of India Mudra Loan, businesses can get the funds they need to grow. They benefit from competitive interest rates and flexible repayment terms.

Interest Rates and Repayment Terms

The Union Bank of India has great interest rates for Mudra loans. They range from MCLR + 0.40% to MCLR + 1.65%. You can choose to pay back monthly or in one big payment. The loan term can go up to 5 years, based on your financial situation.

For the union bank mudra yojana, interest rates are about 9.5%+. These rates can change based on RBI rules. The loan amounts vary: up to Rs. 50,000, Rs. 5 lakhs, and Rs. 10 lakhs.

Repaying the union bank mudra yojana is easy. You can pay online or set up auto-debit. The Shishu category has a 36-month repayment period. Kishore and Tarun categories have 60 and 84 months, respectively.

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Union Bank of India Mudra Loan: Empower Your Business

The union bank mudra yojana also has an overdraft of Rs. 5,000. This helps with business needs. All PMMY loans are covered by the Credit Guarantee Fund for Micro Units (CGFMU), adding security for borrowers.

Some key features of the union bank mudra yojana include:

  • Competitive interest rates
  • Flexible repayment terms
  • Overdraft facility of Rs. 5,000
  • Credit guarantee coverage
  • Loan amounts up to Rs. 10 lakhs

The union bank mudra yojana offers many benefits. It’s a great choice for small business owners and entrepreneurs in India.

Required Documentation for Union Bank Mudra Loan

To apply for a Union Bank of India Mudra Loan, you need to provide certain documents. These include identity proof, business documents, and financial records. The Union Bank of India has a team ready to help with your loan application and guide you on what documents you need.

When applying for a Union Bank Mudra Loan, you’ll need to submit your identity proof. This can be a valid passport, driving license, or Aadhaar card. You’ll also need to provide your business documents, like a business plan and financial statements. Lastly, you’ll need to include your financial records, such as income tax returns and bank statements.

Identity Proof Documents

The following identity proof documents are accepted:

  • Valid passport
  • Driving license
  • Aadhaar card

Business Documentation

The following business documentation is required:

  • Business plan
  • Balance sheet
  • Profit and loss statement

Financial Records

The following financial records are required:

  • Income tax returns
  • Bank statements
  • Audit reports

Make sure all your documents are in order before applying for a Union Bank Mudra Loan. This will help speed up the application process and improve your chances of getting approved. If you’re thinking about applying for a Union Bank Mudra Loan, carefully review the required documents and prepare your application well to apply for union bank mudra loan.

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Union Bank of India Mudra Loan: Empower Your Business
Document TypeDescription
Identity ProofValid passport, driving license, or Aadhaar card
Business DocumentationBusiness plan, balance sheet, and profit and loss statement
Financial RecordsIncome tax returns, bank statements, and audit reports

Step-by-Step Application Process

To apply for a Union Bank of India loan, follow these easy steps. First, go to the Union Bank of India website and fill out the online form. You’ll need to provide basic information like your name, address, and contact details.

The bank’s loan schemes offer great benefits. These include easy repayment terms and competitive interest rates. After submitting your form, the bank will review it and get back to you in a few days. If approved, you’ll get the loan amount quickly.

Here’s how to apply for a Union Bank of India loan:

  • Visit the Union Bank of India website
  • Fill out the online application form
  • Submit the required documents
  • Wait for the bank’s response
  • Receive the loan amount

Remember, these loans don’t need collateral or a guarantor. They support non-farm businesses in manufacturing, trading, and services.

Many have benefited from these loans. For instance, Raju Das Bairagi’s income went from ₹200-250 to ₹500-600 with a Mudra loan. Rohit Prasad Maravi’s income jumped from ₹5,000 to ₹17,000 after getting a taxi loan.

Loan CategoryMaximum Loan AmountRepayment Period
Digital Shishu MUDRA LoanRs. 50,000Up to 36 months
KishorRs. 50,001 to Rs. 5 lakhs60 months
TarunBetween Rs. 5 lakhs and Rs. 10 lakhsUp to 84 months

Business Activities Covered Under the Scheme

The Union Bank of India offers business loans for different activities. These include manufacturing, service, and trading. The loans help with working capital, buying equipment, and expanding your business.

For manufacturing, the loan can cover raw materials, machinery, and equipment. Service businesses can use it for marketing, staff salaries, and rent. Trading activities can finance inventory and transportation costs.

These loans are for micro and small enterprises, up to Rs. 10 lakhs. There are three categories: Shishu, Kishore, and Tarun. Each has different loan amounts and repayment terms.

Loan CategoryLoan AmountRepayment Term
ShishuUp to Rs. 50,000Typically 5-7 years
KishoreRs. 50,001 to Rs. 5 lakhsTypically 7-10 years
TarunRs. 5 lakhs to Rs. 10 lakhsTypically 10-15 years

Union Bank of India business loans are for individual owners and businesses. You need an application form, address and identity proof, and a bank statement to apply.

Processing Time and Loan Disbursement

The Union Bank of India Mudra Loan is fast and efficient. Loan applications are reviewed in a few days. You’ll get a response within a week.

If approved, you’ll get the loan amount quickly. The interest rates are competitive. They depend on the loan type and your credit score.

The loan process is clear, and you’ll get updates regularly. Here’s a quick look at how it works:

Loan CategoryMaximum Loan AmountRepayment PeriodInterest Rate
Digital ShishuUp to Rs. 50,000Up to 36 monthsEBLR + 1.25%
KishorRs. 50,001 to Rs. 5 lakhsUp to 60 monthsCompetitive interest rates
TarunRs. 5 lakhs to Rs. 10 lakhsUp to 84 monthsCompetitive interest rates

The interest rates help small businesses and entrepreneurs grow. With fast processing, the Union Bank of India Mudra Loan is perfect for business needs.

Additional Benefits and Support Services

The Union Bank of India Mudra Yojana offers many benefits and support services. These help businesses grow and succeed. Entrepreneurs can get insurance to protect against unexpected events like natural disasters.

Some key benefits include:

  • Insurance coverage for unforeseen events
  • Business advisory services, including financial planning, marketing, and management
  • Training programs to help businesses develop new skills and improve their operations

The Union Bank of India has a dedicated team to support businesses. They offer guidance and help throughout the loan period. This ensures businesses can make the most of the union bank mudra yojana.

Business Advisory Services

The union bank mudra yojana also provides business advisory services. These include financial planning, marketing, and management. They help businesses build a strong foundation for long-term success.

Training Programs

Along with advisory services, the union bank mudra yojana offers training programs. These help businesses develop new skills and improve operations. Topics include financial management, marketing, and sales.

Conclusion: Transforming Your Business with Union Bank Mudra Loan

The Union Bank of India Mudra Loan is a key tool for small and medium businesses in India. It offers loans from ₹50,000 to ₹10 lakh. This helps businesses grow, whether starting or expanding.

With the Pradhan Mantri Mudra Yojana, getting the capital you need is easier. The loan has low interest rates and no need for a lot of collateral. It also supports women and underprivileged groups.

By using this program, you can find new chances to grow. It helps drive innovation and boosts your union bank of india mudra loan success.

FAQ

What is the Union Bank of India Mudra Loan?

The Union Bank of India Mudra Loan is a government-backed scheme. It helps small and medium-sized enterprises get financial help. It’s part of the Pradhan Mantri Mudra Yojana (PMMY) to boost entrepreneurship and job creation.

What are the categories of Mudra Loans offered by Union Bank of India?

Union Bank of India has three Mudra Loan categories: Shishu, Kishore, and Tarun. Each has its own loan amounts, interest rates, and repayment terms.

What are the eligibility requirements for the Union Bank of India Mudra Loan?

To get a Union Bank of India Mudra Loan, businesses need a solid business plan and good credit. They must also be registered and have all necessary licenses. Plus, they should have a minimum turnover and profit margin.

What are the maximum loan amounts for the different Mudra Loan categories?

Loan amounts vary by category. Shishu offers up to ₹50,000, Kishore up to ₹5 lakhs, and Tarun up to ₹10 lakhs.

What are the interest rates and repayment terms for the Union Bank of India Mudra Loan?

Interest rates are competitive and depend on the loan category and credit score. Repayment terms are flexible, from 3 to 5 years, with options like monthly installments or bullet payments.

What type of documentation is required to apply for the Union Bank of India Mudra Loan?

Businesses need to provide identity proof, business documents, and financial records to apply.

What is the application process for the Union Bank of India Mudra Loan?

Applying is easy, online or offline. First, visit the Union Bank of India website and fill out the form. The bank will review it and respond within a few days.

What types of business activities are covered under the Union Bank of India Mudra Loan?

The loan supports various business activities, like manufacturing, services, and trading. It can fund working capital, equipment, and expansion plans.

How long does the loan processing and disbursement take for the Union Bank of India Mudra Loan?

Processing is quick. The bank reviews applications in a few days and responds within a week. If approved, the loan is disbursed quickly.

What additional benefits and support services are offered by Union Bank of India for the Mudra Loan?

The loan comes with extra benefits like insurance, business advice, and training. These help businesses grow and succeed.

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