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.
