Union Bank Of India Mudra Loan

Features of Union Bank Mudra Loan

The following are the key features of the Union Bank Mudra Loan:

• Loan Categories: Mudra loans are offered under four categories – Shishu, Kishore, Tarun, and Tarun Plus.
• Quick Loan Approvals: Faster processing and approvals to support business growth and expansion.
• Competitive Interest Rates: Attractive rates of interest that make Mudra loans affordable and easy to manage.
• Customized Loan Amount: Borrowers can choose loan amounts based on their business needs and funding requirements.
• Collateral-Free Loans: No collateral or third-party security is required for Union Bank Mudra Loans.
• Personal Guarantee: A personal guarantee from all promoters of the business is mandatory.
• Security: Hypothecation of stocks and book debts is required. For term loans, a charge on assets financed by the bank is mandatory.
• Purpose of the Loan: The loan can be used for manufacturing, trading, and service-related activities, including working capital needs, machinery or equipment purchase, and business expansion.
• Interest Rates:
  • Shishu Loans: Starting from 9.75% p.a.
  • Kishore & Tarun Loans: Typically range between 10.75% p.a. and 11.75% p.a.
• Repayment Tenure:
  • Shishu: Up to 3 years
  • Kishore: Up to 5 years
  • Tarun: 5 to 7 years
• Processing Fees: Most Mudra loans do not attract processing fees. However, applicable charges may include stamp duty and digital convenience fees.
• Application Mode: Union Bank offers online and straight-through digital processing options to simplify the Mudra loan application process.

Union Bank Mudra Loan Interest Rate

The following are the lists of interest rates offered by the Union Bank of India Mudra Loan. They are:

Fees and Charges of Union Bank of India Mudra Loan

Margin Requirement

Margin is the amount of contribution that the bank might require from the borrower for the sake of the total project or the cost. It is the amount of contribution on the borrower’s part while the remaining amount will be funded by the bank.

Types of Mudra Loans Offered by Union Bank

The following are the types of Mudra Loans offered by Union Bank of India:

1. Union Mudra:

• All micro enterprises engaged in manufacturing, trading, and service sectors, including professionals, are eligible for this loan.
• Need-based term loan or composite loan provided to eligible borrowers for capital assets or working capital requirements.
• Loans are sanctioned strictly for income-generating business activities and not for consumption purposes.
• Maximum Loan Amount: Up to Rs.10 Lakhs.
• Loan Types Offered: Composite Loan, Term Loan, and Working Capital.
• Supports financial inclusion for small and micro businesses.

2. Mudra Straight Through Processing (STP):

Under Mudra Straight Through Processing, the following loan variants are available:

• Shishu Mudra STP
• Mudra STP for Kishore and Tarun categories

3. Straight Through Processing – Shishu Mudra (Up to Rs.50,000):

• Designed for existing customers with faster and simplified loan processing.
• Suitable for today’s fast-paced business environment where instant financing is essential.
• Enables quick access to funds with minimal documentation and high convenience.

4. Mudra (Kishore and Tarun) Straight Through Processing:

• Available for eligible micro enterprises involved in manufacturing, trading, and allied activities.
• Provides faster credit access to support business expansion and operational needs.

Union Bank Mudra Loan Eligibility

• Indian citizen operating a small business or startup.
• Age and business based on bank guidelines.
• Promoter’s Age needs to be 21 years to 65 years of age.
• Entity should have a valid Udyam Registration Details
• Borrower, Proprietor, Partner should have a valid Aadhar or PAN number.
• Business entity should have a bank account with any commercial bank.
• The Borrower or the Promoter name should not appear in the list of defaulters.
• Satisfactory credit history and repayment capacity.
• Valid business registration documents.
• Compliance with the guidelines set by MUDRA Yojana.

Documents Required for Union Bank Mudra Loan

The following is the list of documents required for the Union Bank Mudra Loan. They are:

• ID Proof: Aadhar card, PAN card, Passport
• Address Proof: Utility Bills or Lease agreement
• Business Registration Documents: GST registration, partnership deed, MOA
• Financial Statements: Balance sheet, profit & loss account, cash flow statement for 2 years.
• KYC documents of owners or authorized signatories of the business
• Business plan and projections

How to Apply for Union Bank of India Mudra Loan Online

1. The Union Bank of India Mudra Loan is processed and disbursed entirely online to eligible individuals. From the application to loan disbursement, the entire process is done online.
2. Go to the unionbankofindia Official webpage.
3. In the Search bar, type “Union Mudra”
4. Select from the various options displayed in the drop-down list. Some of the options include Union Mudra, Mudra STP, Straight Through Processing, Mudra (Kishore and Tarun)
5. Click the “Know More” button.
6. On the Union Mudra web page, click the “Apply Now” button.
7. Click the “Proceed” button to be redirected to a different web page.
8. Select the “New Application” option.
9. The loan terms and conditions are displayed on your screen.
10. Click the “Accept & Proceed” button.
11. Enter the required details. Some of them include the Saving Account Number, Date of Birth, and entering the Captcha in the desired box, then clicking the “Fetch OTP” button. Remember, you need to be an existing UBI account holder to apply for the Mudra loan.
12. And follow the rest of the compliance led by the bank. Very soon, one of the bank’s representatives will get in touch with you about your loan status.

Union Bank of India Mudra Loan Apply Online for ₹50,000

The ₹50,000 MUDRA loan from Union Bank of India is offered under the Shishu category and is specially designed for existing customers who need small-ticket funding to manage or expand their business activities. This loan is ideal for street vendors, shop owners, service providers, small manufacturers, and self-employed individuals looking for quick working capital without the burden of collateral.

Important Instructions Before Applying for the Loan

Before proceeding with the application, ensure you meet the following conditions to avoid rejection or delays:

• You must be an existing savings account holder with Union Bank of India.
• A minimum banking relationship of 6 months with Union Bank of India or any other bank is required.
• Only individual applicants are eligible; applications from firms, companies, or other entities are not accepted.
• The applicant should be a micro-entrepreneur engaged in an income-generating business.
• Your PAN, Aadhaar, and latest address must be updated in the bank records.
• The mobile number linked to your bank account should also be registered with UIDAI.
• While applying, the applicant must be physically present at the business or work location.
• The maximum loan amount available through this platform is ₹50,000, with a repayment tenure of up to 36 months.
• Ensure all details entered in the application form are accurate and complete to assess eligibility correctly.
• Documents such as GST registration, Udyam/Udyog Aadhaar, business proof, or establishment certificate should be uploaded if available.
• The loan amount must be used strictly for income-generating business purposes and not for personal or consumption needs.

This clear compliance with eligibility norms helps in faster processing and smoother approval of the loan application.

Illustrative Example: Union Bank of India Mudra Loan ₹50,000

Online Application Process for ₹50,000

Applying online for a ₹50,000 MUDRA loan is a straightforward process. Existing customers can visit the official Union Bank website or access the loan application through their branch’s digital channels. You need to fill in basic details such as personal information, business type, loan requirement, and bank account details. Once the form is submitted, the bank verifies your KYC and account history before processing the request.

If you are an existing Union Bank customer, applying online for a ₹50,000 MUDRA loan is one of the easiest ways to access short-term business funding. With minimal documentation, faster processing, and borrower-friendly terms, this loan helps small entrepreneurs meet immediate business needs and maintain steady cash flow.

Disclaimer: This page includes information that has been compiled from many sources and is only offered for informational purposes. Given that this type of data may change over time, we cannot guarantee the accuracy of the information supplied or included within it. It is anticipated that the user will confirm with the relevant source before making any choices or taking any actions.

Frequently Asked Questions