Union Bank of India MUDRA Loan

Union Bank of India provides MUDRA loans through two programs: MUDRA (Kishor & Tarun) STP and Digital Shishu MUDRA Loan STP. These loans are designed to help micro-businesses in a variety of industries, meet their financial demands. These loans could be appropriate for operating capital, asset acquisition, or other business expenses. The main characteristics of each loan type and how they could help your business are explained in this overview.

Union Bank of India MUDRA Loan Important Points

Feature	Digital Shishu MUDRA Loan STP	Digital Shishu MUDRA Loan STP
Maximum Loan Amount	Rs. 50,000	Up to Rs. 10 lakh
Margin	Nil	10% for Kishor; 25% for Tarun
Collateral	None	Covered under CGTMSE
Guarantee	None	Personal Guarantee required
Interest Rate	EBLR + 1.25%	Variable, as per bank rates
Repayment Period	Up to 36 months	Up to 84 months for Tarun
Processing Fees	None	None
Convenience Fee	Rs. 950 + GST	Rs. 1,000 + GST
Digital Options	Fully digital process	Digital document execution is available

HDFC Bank MUDRA Loan

Digital Shishu MUDRA Loan (STP)

Existing Shishu MUDRA customers who need term loans to cover their working capital requirements should seek Digital Shishu MUDRA Loan (STP). What you should know is as follows:

• Purpose: Term loans are offered to meet working capital needs.
• Maximum Loan Amount: The maximum amount that can be borrowed is Rs. 50,000.
• Repayment: Loans must be paid back in equal monthly payments for a maximum of 36 months. There is no moratorium period, and when applying for a loan, borrowers can select a payback term of 12 to 36 months.

Digital Shishu MUDRA Loan – Key Features

You should be aware of the following important aspects of the Digital Shishu MUDRA Loan:

• Margin: No minimum amount of margin is needed.
• Security: Hypothecation of stocks, book debts, and other assets made or acquired with bank financing is necessary for security.
• Collateral and Guarantee: No personal guarantees or collateral are needed.
• Processing and Documentation Fees: A Rs. 950 convenience fee is assessed, in addition to GST and actual stamp duty, which are automatically reimbursed at the time of payment.

Read Also: How to Track Your MUDRA Loan Application Status

How to Apply for Union Bank of India Shishu MUDRA Loan

From application to disbursement, the complete Digital Shishu MUDRA Loan application process is conducted online. Select “New Application.” Next, select “Accept & Proceed.” Complete the application and submit it.

MUDRA (Kishor & Tarun) STP

Both new and existing clients can apply for larger loans from the MUDRA (Kishor & Tarun) STP for companies that need more capital.

• Purpose: The goal is to provide working capital restrictions or need-based term loans for the sole purpose of funding revenue-generating business operations in order to fulfil working capital needs and/or buy capital assets.

Loan Amount:

• Kishore: Rs. 50,001 to Rs. 5 lakhs
• Tarun: Between Rs. 5 lakhs and Rs. 10 lakhs

MUDRA (Kishor & Tarun) Loans – Key Features

You should be aware of the following key characteristics of Union Bank of India’s Kishore and Tarun loans:

• Margin: Kishore loans have a 10% margin, while Tarun loans have a 25% margin.

Repayment:

• Kishore: Repayment due in 60 months.
• Tarun: Due within 84 months.

Security: Hypothecation of stock and book debts is necessary for security. A fee on bank-financed assets is required for term loans.

Collateral: Since loans are insured under the CGTMSE system, no collateral is needed.

Guarantee: Each promoter must provide a personal guarantee. We do not accept third-party guarantors.

How to Apply for Union Bank Kishore & Tarun Loans

Go to the official website of the Union Bank of India. Apply for loans from “Kishore and Tarun.” After that, click “Continue” and enter your login information. Complete the information and submit the loan application.

Union Bank of India e-MUDRA Loan Interest Rates

• Digital Shishu e-MUDRA Loan: The current interest rate for the Digital Shishu e-MUDRA Loan is EBLR + 1.25%. Depending on the terms and conditions, penal interest can be applicable.
• MUDRA (Kishor & Tarun) STP: Interest rates fluctuate and correspond to the going rates at banks.

Read Also: Understanding the MUDRA Loan Sanction Process

Eligibility Criteria For Digital Shishu e-MUDRA Loan:

• In addition to being current individual micro businesses operating in the manufacturing, trading, or service sectors, applicants must not be a bank or financial institution defaulters.
• Candidates must already have a UBI savings account and have been banking with UBI or another bank for at least six months.

Eligibility Criteria For Kishore & Tarun e-MUDRA Loans:

Borrowers must not be on any lists of defaulters and have bank accounts with any scheduled commercial bank that are at least six months old.

Open to microbusiness firms that are new to the bank (NTB) or existing to the bank (ETB) and involved in related agricultural, manufacturing, service, or trading activities.

The promoter must be between the ages of 21 and 65.

Every applicant needs to possess a current Udyam Registration Number.