Union Bank Mudra Loan: Get Loans up to Rs. 10 lakh, Details Inside

Pradhan Mantri Mudra Yojana is scheme launched by Indian government in 2015. The purpose of this scheme is to promote small enterprises in India. In this scheme non-corporate, non-farm and micro-enterprises can take commercial loans up to Rs. 10 Lakh. Mudra loans can be obtained from all commercial banks or non-bank financial institutions, rural banks and small banks.  

About Union Bank Mudra loan: 

Union Bank of India is one of the largest banks that also provide Mudra Loan to Micro, Small & Medium Enterprises (MSMEs). You can avail Union Bank Mudra loans to meet number of business requirements such as business expansion, modernization, purchasing machinery etc. Those businesses that are comprise of vendors, small manufacturing unites shopkeepers, repair shops, artisans etc. through Union Bank can avail themselves benefits of Mudra Loan. 

Under PMMY Union Bank has extended finance to the micro enterprises which are in the business of manufacturing, trading and service sector in rural, urban & metro areas. 

There are three types of loans depending on the size of the loan, specifically as follows: 

• The first loan type, named as Shishu disburses the maximum loan of Rs. 50,000/- for Micro-Enterprises without any collateral security. 

• The second loan type, named as Kishore disburses loans of over 50,000/- and up to 5 lakhs to Micro Enterprises without any collateral security. 

• The third type of loan, named as Tarun, pays loans in excess of 5 lakh and up to 10 lakh to micro businesses without collateral security. 

Other Features of Under Union Bank Mudra Loan: 

• Assets that are created out of the bank loan to be charged with the Bank 

• It is required that all the customers under UBI Union MUDRA scheme should be documented by Demand Promissory Note (DP Notes), Hypothecation Agreement, Letter of Continuity, Term Loan Agreement (If there is term loan) etc. 

Eligibility for Union Bank Mudra loan: all Micro enterprises engaged in manufacturing, trading and service sector including professionals (CA / ICWA / CS / Architect / Medical Professionals etc) can apply for loan. 

Rate of Interest for Mudra Loan in Union Bank of India

• MCLR + 0.40% for loan amount upto Rs. 50,000/- 

• MCLR + 0.90% for loan amount above Rs. 50,000/- upto Rs. 2 lakhs 

• CLR + 1.65% for loan amount above Rs. 2 lakhs and upto 10 lakhs 

Documents required for Union Bank Mudra Loan

• Proof of identity- Pan Card/ Adhaar Card/ Driving License/ self attested copy of Voter’s ID card/ Photo ID issued by Govt. authority etc. 

• Proof of Residence- Electricity bill (latest and not older than 2 month)/ recent telephone bill/ latest property tax receipt, Voter’s ID card, Aadhaar Card, Passport of individual/ Proprietor/ Certificate issued by Govt. Authority/ Municipality/ Local Panchayat etc. 

• Proof of SC/ ST/ OBC/ Minority, if applicable. 

• A statement of Accounts from the current Banker for the last six months, if any. 

• Balance sheet of the project of the start-up/existing units for one year in case of working capital limits and for the period of the loan in term loan case. 

• Sales achieved during the present financial year up to the date of submission of application. 

• Quotations / Proforma invoices for the assets to be purchased and estimated for the civil works, if any t be undertaken.  

• Liability and asset statement of the borrower including Partners & Directors. 

• Partnership Deed of Partners / Memorandum and Articles of association of the company etc. if applicable. 

• Photos (two copies) of applicant/ Partners/ Directors not older than 6 months/ Proprietor. 

Mudra loan Form

Contact details for Mudra loan queries – 022-22892250