Union Bank of India MUDRA Loan: Features, Eligibility & Application Process

Union Bank of India MUDRA Loan Important Points

Union Bank of India offers MUDRA loans under two major schemes: Digital Shishu MUDRA Loan (STP) and MUDRA (Kishor & Tarun) STP. These loans are designed to support micro-businesses with funding for working capital, asset purchase, and business expansion.

Feature	Digital Shishu MUDRA Loan	Kishor & Tarun MUDRA Loan
Maximum Loan Amount	Up to ₹50,000	Up to ₹10 lakh
Margin	Nil	10% (Kishor), 25% (Tarun)
Collateral	None	Covered under CGTMSE
Guarantee	None	Personal guarantee required
Interest Rate	EBLR + 1.25%	As per bank norms
Repayment Period	Up to 36 months	Up to 84 months
Processing Fees	None	None
Convenience Fee	₹950 + GST	₹1,000 + GST
Digital Process	Fully digital	Digital documentation available

Digital Shishu MUDRA Loan (STP)

The Digital Shishu MUDRA Loan is ideal for small businesses that require limited funding for working capital needs.

• Purpose: To meet working capital requirements
• Loan Amount: Up to ₹50,000
• Repayment Tenure: 12 to 36 months
• Moratorium: Not applicable

Digital Shishu MUDRA Loan – Key Features

• No margin requirement
• No collateral or personal guarantee required
• Security through hypothecation of business assets
• Convenience fee of ₹950 + GST
• Fully digital application and processing

How to Apply for Union Bank of India Shishu MUDRA Loan

• Visit the official website of Union Bank of India
• Select “New Application” under MUDRA Loan section
• Click on “Accept & Proceed”
• Fill in the application form with required details
• Submit the application online

MUDRA (Kishor & Tarun) STP

The Kishor and Tarun schemes are suitable for businesses that need higher funding for expansion or capital investment.

• Kishor Loan Amount: ₹50,001 to ₹5 lakh
• Tarun Loan Amount: ₹5 lakh to ₹10 lakh
• Purpose: Working capital and business expansion

MUDRA (Kishor & Tarun) Loans – Key Features

• Margin requirement: 10% for Kishor and 25% for Tarun
• Repayment tenure: Up to 60 months (Kishor) and 84 months (Tarun)
• No collateral required (covered under CGTMSE)
• Personal guarantee required from promoters
• Security through hypothecation of assets

How to Apply for Union Bank Kishore & Tarun Loans

• Visit the Union Bank of India official website
• Select Kishor or Tarun loan option
• Click on “Continue” and log in
• Fill in the required details
• Submit your application

Union Bank of India e-MUDRA Loan Interest Rates

Interest rates for Union Bank of India MUDRA loans vary based on the scheme:

• Digital Shishu Loan: EBLR + 1.25% (subject to change)
• Kishor & Tarun Loans: As per prevailing bank rates

Eligibility Criteria For Digital Shishu e-MUDRA Loan:

• Existing micro-business in manufacturing, trading, or service sector
• Must not be a defaulter with any bank or financial institution
• Should have a Union Bank savings account
• Minimum 6 months of banking history

Eligibility Criteria For Kishore & Tarun e-MUDRA Loans:

• Applicant must not be listed as a defaulter
• Minimum 6 months old bank account with any scheduled bank
• Open to new and existing microbusinesses
• Business should be in agriculture, manufacturing, trading, or services
• Promoter age between 21 and 65 years
• Valid Udyam Registration Number required