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MUDRA Loan Interest Rate

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 NameRate of InterestLoan Term
HDFC BankAs per bank policiesBased on the bank’s decision
State Bank Of India(SBI)Related to MCLR1- 5 yrs
UCO Bank8.85 % p.a. onwardsBased on the bank’s decision
IDBI BankRelated to the bank’s base rate and rating1- 5 yrs
Indian Overseas BankAs per bank policiesBased on the bank’s decision
Bank of Baroda9.65 % p.a. Based on the bank’s decision
Union Bank of India7.30% onwardsBased on the bank’s decision
Canara BankAs per bank policiesUp to 7 yrs
Central BankAs per bank policiesBased on the bank’s decision
Allahabad BankAs per bank policies1-5 yrs
Bank of IndiaRelated to MCLR1-7 yrs
Bank of Maharashtra9.25% p.a.Based on the bank’s decision
Vijaya Bank9.65% p.aBased on the bank’s decision
Tamilnad Mercantile Bank8.95% p.a onwards1-7 yrs
Oriental Bank of CommerceAs per bank policiesBased 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.