HDFC Bank MUDRA Loan: Features, Interest Rates, Eligibility & Application Process

The Government of India launched the MUDRA (Micro Units Development & Refinance Agency Ltd.) scheme on April 8, 2015, to support non-corporate, non-farm MSMEs with loans up to ₹10 lakh. HDFC Bank offers MUDRA loans to help individuals start or expand their small businesses with ease.

Types of MUDRA Loans Offered by HDFC Bank

HDFC Bank provides three types of MUDRA loans based on your business requirements:

• Shishu: Loan amount up to ₹50,000. Interest starts from around 1% per month. Repayment tenure ranges from 1 to 5 years.
• Kishore: Loan amount from ₹50,001 to ₹5 lakh. Interest rate depends on the applicant’s credit profile. Tenure is decided by the bank (up to 5 years).
• Tarun: Loan amount from ₹5 lakh to ₹10 lakh. Interest rates and repayment terms are similar to Kishore loans.

Key Features of HDFC Bank MUDRA Loan

A Loan of up to Rs.10 lakhs

Under the MUDRA scheme, you can avail loans ranging from small amounts to a maximum of ₹10 lakh, helping both small and growing businesses meet their financial needs.

These Loans come with Minimum Documentation

HDFC MUDRA loans require only basic documentation such as identity proof, address proof, and essential business details, making the process simple and hassle-free.

The Processing Fee is Zero

HDFC Bank offers MUDRA loans with zero processing fees when applied online, making it a cost-effective financing option. Interest rates are linked to MCLR guidelines set by RBI.

These Loans Don't Require Collateral

MUDRA loans from HDFC Bank are unsecured, meaning no collateral or asset pledge is required, ensuring your assets remain safe.

HDFC Bank MUDRA Loan Interest Rates

Interest rates for HDFC Bank MUDRA loans are based on MCLR and may vary depending on the applicant’s credit profile:

• Shishu: 1% – 12%
• Kishore: 8.60% – 11.15%
• Tarun: 11.15% – 20%

Note: Interest rates are indicative and subject to change based on bank policies and applicant profile.

Eligibility Criteria and Documents Required for HDFC e-MUDRA Loan

Eligibility Factors

• Must be an Indian citizen
• Age between 18 and 65 years
• Applicable for startups and existing non-farm businesses
• Suitable for micro and small business owners

Eligible Entities:

• Individuals
• Partnership firms
• Proprietorship businesses
• Small enterprises

Documents Required

• Proof of identity (Aadhaar, PAN, Voter ID)
• Proof of address (utility bills, passport)
• Recent passport-sized photographs
• Bank statements for the last 6 months
• Income or financial statements (if applicable)
• Business registration or establishment proof
• Completed loan application form

Steps to Apply for HDFC Bank e-MUDRA Loan

• Visit the official HDFC Bank website
• Navigate to the MUDRA loan section
• Click on “Apply Now”
• Fill out the online application form
• Complete verification and submit your application

After submission, a bank representative will contact you for further processing and document verification.