HDFC Bank MUDRA Loan

We are here to help! – says the Government of India and it has been saying so since April 8, 2015, when it launched MUDRA loans. MUDRA stands for Micro Units Development & Refinance Agency Ltd. and MUDRA loans are a game-changer for Non-Corporate, Non-Farm MSME units who want a loan up to Rs.10 lakhs. Set up a new business unit or make use of it to expand your enterprise; it’s totally up to you.

Types of MUDRA Loans Offered by HDFC Bank

Three types of loans are offered under MUDRA. You can choose any based on your requirement:

1. Shishu: Loan amount up to Rs.50,000. Interest rate applied is a minimum of 1% per month. Repayment period is 1-5 years.
2. Kishore: Loan amount from Rs.50,001 up to Rs.5 lakhs. The interest rate is decided by assessing the credit history of the applicant in accordance with the scheme guidelines. Repayment tenure is totally decided by the bank but does not exceed 5 years. Loan amount from Rs.5 lakhs to Rs.10 lakhs. The interest rate and repayment conditions are the same as that of Kishore.
3. Tarun: Loan amount from Rs.5 lakhs to Rs.10 lakhs. The interest rate and repayment conditions are the same as that of Kishore.

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Key Features of HDFC Bank MUDRA Loan

HDFC Bank MUDRA Loan offers the following benefits to its customers:

A Loan of up to Rs.10 lakhs

MUDRA loan schemes comprise of Shishu, Kishore and Tarun where you can avail a maximum loan of Rs.10 lakhs. With this, there is no capping on minimum amount so that your both small and big financial needs can see help.

These Loans come with Minimum Documentation

HDFC MUDRA loans don’t require a bulk of documents. Only the basic ones required are your identity and address verification documents. Business-related documents are also needed.

The Processing Fee is Zero

HDFC Bank MUDRA loans have literally Zero Processing Fees imposed on them when applying online. The news from RBI is that it has regulated banks and NBFCs to charge the interest rate based on Marginal Cost of Funds Based Lending Rate (MCLR). Thus the loan becomes affordable.

These Loans Don’t Require Collateral

High-value financing is successful when you are 100% secure. Here, we are talking about your assets being safe totally. Yes, with HDFC MUDRA loans there is no risk of losing your assets as these loans don’t require any collateral to be pledged.

HDFC Bank MUDRA Loan Interest Rates

As prescribed by the RBI, MUDRA loans follow the MCLR rate. These are the interest rates for different loan categories of MUDRA.

Shishu Mudra Yojana – 1% – 12%

Kishore Mudra Yojana – 8.60% – 11.15%

Tarun Mudra Yojana – 11.15% – 20%

Note – The interest rate for these loans is indicative and can change depending on the applicant’s credit history and the type of loan you take.

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Eligibility Criteria and Documents Required for HDFC e-MUDRA Loan

You have to meet certain eligibility criteria and propose certain documents to avail HDFC Bank e-MUDRA loan. Following are those:

Eligibility Factors

Eligibility

• Indian citizens
• Age between 18 to 65 years
• Startups and existing businesses in non-farm sectors
• Applicable for micro and small business owners

Eligible Entities

• Partnership firms
• Individuals
• Small enterprises
• Proprietary firms

Documents Required

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

Steps to Apply for HDFC Bank e-MUDRA Loan

Follow the mentioned steps to apply for HDFC e-MUDRA loan online:

Step 1 – Visit the official website of HDFC Bank and go to the MUDRA loan section.

Step 2 – Click on ‘Apply Now’.

Step 3 – Fill out the online application form requiring a few basic details.

Step 4 – Complete the verification and submit your application.

A bank representative will then reach out to you to discuss further steps and the document verification process.