The Union Bank Mudra Loan is perfect for small businesses wanting to grow. It offers flexible terms and an easy application process. This loan helps entrepreneurs get the funds they need to thrive.
India is the third-largest startup ecosystem in the world, as of March 2024. Bengaluru and Mumbai are among the top 50 startup cities globally. The Pradhan Mantri MUDRA Yojana (PMMY) now offers loans up to ₹20 lakh. This is a big increase, making it easier for small businesses to get loans.
The union bank mudra loan scheme gives loans up to ₹20 lakh. It has flexible terms and an easy application process. This makes it a great choice for entrepreneurs. By using the mudra loan scheme, small businesses can get the funding they need to grow and succeed.
Key Takeaways
- The Union Bank Mudra Loan provides loans up to ₹20 lakh to small and micro enterprises.
- The mudra loan scheme offers flexible terms and easy application processes.
- India is the third-largest startup ecosystem in the world as of March 2024.
- Bengaluru and Mumbai are ranked among the top 50 startup cities globally.
- The union bank mudra loan is designed to support small and micro enterprises.
- The mudra loan benefits include access to funding, flexible terms, and easy application processes.
Understanding the Union Bank Mudra Loan Scheme
The Union Bank Mudra Loan scheme has different types of loans for small businesses. To see if you qualify, look at your business’s age, identity, and finances. Also, the union bank mudra loan interest rate matters because it affects the loan’s cost.
The mudra loan application process is easy and fast. You can apply online or in person. The scheme has three main types of loans: Shishu, Kishor, and Tarun. Each has its own benefits and features.
- Shishu: Loans up to ₹50,000, with a repayment period of up to 36 months
- Kishor: Loans from ₹50,001 to ₹5 lakhs, with a repayment period of up to 60 months
- Tarun: Loans from ₹5 lakhs to ₹10 lakhs, with a repayment period of up to 84 months
Knowing about the different Mudra Loans and their benefits helps small businesses. They can pick the best loan for their needs and growth.
Category | Loan Amount | Repayment Period |
---|---|---|
Shishu | Up to ₹50,000 | Up to 36 months |
Kishor | ₹50,001 to ₹5 lakhs | Up to 60 months |
Tarun | ₹5 lakhs to ₹10 lakhs | Up to 84 months |
Union Bank Mudra Loan Interest Rates and Charges
The Union Bank Mudra Loan has competitive interest rates, making it great for small businesses. The interest rates change based on the borrower’s profile. For example, women and priority sector borrowers get lower rates.
When looking to get a Mudra loan from Union Bank, it’s key to check the interest rates. The Union Bank Mudra Loan has the following rates:
- For women borrowers: 8.5% – 10.5% per annum
- For priority sector borrowers: 9% – 11% per annum
- For general category borrowers: 9.5% – 12% per annum
The loan also has flexible repayment terms, up to 7 years. This makes it easier for small businesses to repay. Knowing the interest rates and charges helps in making the right funding choices.

The Union Bank Mudra Loan is a great chance for small businesses to get funding at good rates. By understanding the interest rates and how to apply, businesses can grow and succeed.
Eligibility Requirements for Union Bank Mudra Loan
To get a Union Bank Mudra Loan, small businesses need to meet certain criteria. These rules help make sure the loan goes to businesses that can really use it. The criteria cover age and identity, the type of business, and financial health.
Applicants must be at least 21 years old and have a valid ID. The business should be small or micro with a yearly income of up to ₹10 crore. When applying online, you’ll need to share detailed info about your business, like financial statements and a solid business plan.
Key Eligibility Criteria
- Age: 21-65 years
- Identity proof: Valid documents such as Aadhaar card, PAN card, etc.
- Business category: Small or micro enterprise with a turnover of up to ₹10 crore
- Financial criteria: Good credit history and a viable business plan
Knowing the mudra loan eligibility criteria is key for small businesses. Meeting these requirements boosts your chances of getting a Union Bank Mudra Loan. This can lead to many benefits for your business.
The Union Bank Mudra Loan is a fantastic chance for small businesses to get funding. By checking the union bank mudra loan online application and making sure you qualify, you can start working towards getting the funds you need to grow.
Loan Type | Maximum Loan Amount | Repayment Tenure |
---|---|---|
Digital Shishu Mudra Loan | Up to ₹50,000 | 12-36 months |
Kishore Loans | ₹50,001-₹5 lakhs | Up to 60 months |
Tarun Loans | ₹5 lakhs-₹10 lakhs | Up to 84 months |
Required Documents for Application
To start the mudra loan application process, you need to gather all the right documents. The Union Bank Mudra Loan asks for identity proof, address proof, business proof, and financial statements. These are key for loan approval and make the process easier.
The union bank mudra loan calculator helps figure out loan amounts and repayment plans. But knowing the needed documents is also important. Your identity proof could be a passport, driving license, or voter ID. Address proof might include a utility bill, rent agreement, or bank statement.
To get mudra loan from union bank, you’ll need to show your business’s proof. This includes a business registration certificate, tax registration certificate, or business license. You’ll also need to provide financial statements like a balance sheet, profit and loss statement, and cash flow statement. Having these documents ready can help you get the loan you need to grow your business.

It’s a good idea to check the Union Bank website for the latest on required documents. Also, use the union bank mudra loan calculator to see if you qualify. By following these steps and having the right documents, you can easily apply for a mudra loan and advance your business.
Step-by-Step Union Bank Mudra Loan Application Process
The Union Bank Mudra Loan application process is simple and easy to follow. You can apply online or in person. The union bank mudra loan online application lets you apply from home. It’s great for those who like online forms.
If you prefer talking to someone, you can apply in person. This way, you can get help and feedback right away. Knowing the mudra loan application process helps small businesses apply smoothly.
Online Application Method
To apply online, go to the Union Bank website. Fill out the form and upload your documents. The how to get mudra loan from union bank steps are clear and easy to follow.
Offline Application Process
For in-person application, visit a Union Bank branch. A representative will help you with the application. They’ll make sure you have all the necessary documents.
Application Tracking System
After applying, you can track your application status online. This system gives you updates in real-time. It helps you stay informed and plan ahead.

The Union Bank Mudra Loan application is designed to be quick and easy. It aims to help small businesses get funding fast. By following the steps, you can have a smooth application experience.
Loan Type | Maximum Loan Amount | Repayment Period |
---|---|---|
Digital Shishu MUDRA Loan | Rs. 50,000 | Up to 36 months |
Kishor loans | Rs. 50,001 to Rs. 5 lakhs | 60 months |
Tarun loans | Between Rs. 5 lakhs and Rs. 10 lakhs | Up to 84 months |
Maximum Loan Amount and Repayment Terms
The Union Bank Mudra Loan offers many benefits. It has a maximum loan amount of ₹10 lakh and a repayment period of up to 7 years. To find out how much you can borrow and how long to repay, use the union bank mudra loan calculator. This tool helps small businesses see if they qualify and plan their payments.
There are different Mudra loan types, like Shishu, Kishore, and Tarun. Each has its own loan limits and repayment terms. Here are the loan limits for these categories:
- Shishu: Up to ₹50,000
- Kishore: From ₹50,000 to ₹5,00,000
- Tarun: From ₹5,00,000 to ₹10,00,000
To get a mudra loan from union bank, you must meet certain criteria and provide needed documents. The repayment period can be up to 5 years. Interest rates vary by bank. For example, Union Bank of India charges 7.30% p.a. onwards for loans up to ₹10 lakh, with a 1 to 7 year term.
It’s important for small businesses to understand the mudra loan benefits and repayment terms. By using the union bank mudra loan calculator and looking at the different loan categories and limits, you can find the best loan for your business.
Understanding the Loan Disbursement Process
The Union Bank Mudra Loan process is fast and easy. It helps small businesses get funds quickly. The mudra loan application process usually takes 7-10 days. This time is used to check documents and send out the loan.
After approval, the loan can be sent in several ways. This includes direct bank transfers, demand drafts, or direct credit. The union bank mudra loan online application lets you track your loan easily. You’ll get updates on when you can expect the funds.
The mudra loan benefits are many. You get loans without needing collateral, low interest rates, and flexible payback plans.
The steps in the loan disbursement process are:
- Checking your documents
- Processing your loan application
- Sending you the loan money
It’s key for small businesses to know how the loan process works. This helps with planning and makes things smoother. By picking Union Bank Mudra Loan, businesses can get funds fast. This lets them focus on growing their business.
Loan Category | Loan Amount | Repayment Tenure |
---|---|---|
Shishu | Up to ₹50,000 | 36 months |
Kishor | ₹50,001 to ₹5 lakhs | Up to 60 months |
Tarun | ₹5 lakhs to ₹10 lakhs | Up to 84 months |
Tips for Successful Loan Approval
To boost your chances of getting a mudra loan from Union Bank, it’s key to know the eligibility criteria and interest rates. Understanding how to apply for a mudra loan can also make the process smoother.
A good credit history is vital for loan approval. The interest rate for Union Bank mudra loans depends on your credit score. To improve your chances, have a solid business plan and accurate financial statements ready.
Here are some tips to remember when applying for a mudra loan:
- Make sure you meet the mudra loan eligibility criteria, including age and business requirements.
- Check the union bank mudra loan interest rate and understand the repayment terms.
- Learn how to get mudra loan from union bank by following the application process carefully.
By following these tips and understanding the eligibility criteria, you can increase your chances of getting a mudra loan from Union Bank.
Loan Category | Maximum Loan Amount | Repayment Term |
---|---|---|
Shishu | ₹50,000 | Up to 36 months |
Kishor | ₹5 lakhs | Up to 60 months |
Tarun | ₹10 lakhs | Up to 84 months |
Conclusion: Taking Your First Step Towards Business Growth
The Union Bank Mudra Loan is a great chance for small businesses in India to grow. It offers flexible payments, low interest, and an easy application process. This loan can help entrepreneurs succeed.
Whether you’re starting or expanding, the Union Bank Mudra Loan can help. The government supports small businesses with programs like the Pradhan Mantri Mudra Yojana. Now is the perfect time to get this loan and grow your business.
FAQ
What is the Union Bank Mudra Loan?
The Union Bank Mudra Loan helps small businesses. It gives them money to grow and create jobs. This loan is for investing in new technology and expanding operations.
What are the different categories of Mudra Loans available?
There are three types of Mudra Loans: Shishu, Kishor, and Tarun. Shishu is up to ₹50,000, Kishor up to ₹5 lakh, and Tarun up to ₹10 lakh. Each offers flexible repayment and low interest rates.
What are the interest rates and charges for the Union Bank Mudra Loan?
The Union Bank Mudra Loan has competitive rates. Women and priority sector borrowers get lower rates. Repayment can be up to 7 years.
What are the eligibility requirements for the Union Bank Mudra Loan?
To qualify, you must be an Indian citizen and 18 or older. You need a valid ID and a small or micro enterprise. Your business should have a turnover of up to ₹10 crore and a good credit history.
What documents are required for the Union Bank Mudra Loan application?
You’ll need ID and address proof, business documents, and financial statements. This includes a balance sheet and profit and loss statement.
How do I apply for the Union Bank Mudra Loan?
Apply online or offline. Online, fill out the form and upload documents on the bank’s website. Offline, visit a branch. You can track your application online.
What is the maximum loan amount and repayment term for the Union Bank Mudra Loan?
The loan is up to ₹10 lakh. Repayment is up to 7 years. You can choose monthly or quarterly payments.
How long does the loan disbursement process take?
Disbursement takes 7-10 days. It depends on the application’s complexity. You can get the money directly, by demand draft, or bank transfer.
How can I improve my chances of getting approved for the Union Bank Mudra Loan?
Have a good credit history and a solid business plan. Make sure your financial statements are accurate. Avoid mistakes like incomplete forms and missing documents.