Mudra Loan Scheme

Mudra Loan or Mudra Loan Scheme in City Union Bank , Eligibility, Document Required, Interest Rate & How to apply?: Government of India has launched Pradhan Mantri Mudra Yojana (PMMY) on 8th April 2015 with a concept of 'funding the unfunded' micro enterprises in the country. It is government's finance scheme to provide business loan to new or existing micro or small scales businesses from rural areas in India.

Mudra Loan Purpose City Union Bank

To offer MUDRA Loan facility for financing the credit requirements of all non-farm income generating activities, under Pradhan Mantri Mudra Yojna (PMMY).

Mudra Loan Eligibility City Union Bank

Non-farm enterprises in manufacturing, trading and services whose credit needs are below Rs.10.00 lakh. Applicant should not be defaulter of any Bank/Financial Institution.

Mudra Loan Amount City Union Bank

1. Shishu: Loans up to Rs.50,000 provided to only startup businesses
2. Kishore: Loans above Rs.50,000 and up to Rs.5 lakh provided to only those businesses that have already started up but need financial aid for establishing
3. Tarun: Loans above 5 lakh and up to Rs.10 lakh provided to only those business that are already established but require funds for expansion

Credit Facility

1. Cash Credit - For meeting the Working Capital Requirement of the Business Unit
2. Term Loan - For meeting different purposes that require longer loan tenure

Mudra Loan Margin

Margin will be taken is based on the policy framework of the bank, depending upon overall guidelines of RBI in this regard. Banks may not insist for margin for Shishu loans.

Further, margin depends upon activity of finance. Please contact your nearest bank branch for more details.

Mudra Loan Interest Rate City Union Bank

Shishu - 12.00%
Kishore - 12.25%
Tarun - 12.50%

Security for Mudra Loan

No collateral

Mudra Loan Tenure City Union Bank

Up to 5 Years

Guarantee

No requirement of third party guarantee.

Mudra Loan Processing Charges

Banks may consider charging of upfront fee as per their internal guidelines. The upfront fee/ processing charges for Shishu loans are waived by most banks.

Please contact your nearest branch for getting more details.

Mudra Loan Documents Required City Union Bank

Mudra Loan Documents Required in City Union Bank are mentioned below infull detail.

1. Proof of Identity: Self attested copy of Voter's ID Card/ PAN card/Aadhaar Card/Passport/Photo IDs issued by Govt.authority etc.
2. Proof of Residence: Recent telephone bill/electricity bill/property tax receipt (not older than 2 months)/Voter's ID Card/Aadhaar Card/Passport of individual/Proprietor/Partners/ Bank pass book or latest ccount statement duly attested by bank officials/ Domicile Certificate/ Certificate issued by Govt. authority/Local panchayat/Municipality etc.
3. Photos (two copies) not older than 6 months of individual/proprietor/Partners/Directors.
4. Quotation of machinery/Other items to be purchased.
5. Name of supplier/details of machinery/price of machinery and/or items to be purchased.
6. Proof of identity/Address of the Business Enterprise - Copies of relevant licenses/Registration certificates/other documents pertaining to the ownership, identity and address of business unit, if any.
7. Proof of category like SC/ST/OBC/Minority etc.
8. Statement of accounts (for the last six months), from the existing banker, if any.
9. Last two years balance sheets of the units along with income tax/sales tax return etc.(Applicable for all cases from Rs.2 lakhs and above)
10. Sales achieved during the current financial year upto the date of submission of application.
11. Project report (for the proposed project) containing details of technical & economic viability.
12. Memorandum and Articles of Association of the company/Partnership deed of partners etc.
13. In absence of third party guarantee, Asset & Liability Statement from the borrower including Directors & Partners may be sought to know the networth.