HDFC Bank Mudra Loan - Check Interest, Eligibility Criteria & How to Apply

The micro, small and medium enterprises (MSME) form the foundation of the Indian economy, contributing almost 27% of the GDP. Further, over the years, the footprint of such enterprises has increased in the country, with over 7.9 million registered MSMEs. 

 

To facilitate the growth of this sector and help them expand, the Government of India introduced the Pradhan Mantri Mudra Yojana scheme in 2015. This scheme offers affordable funding to MSMEs with a maximum loan amount of up to Rs.10 Lakhs.

 

In this regard, HDFC Bank Mudra loan offers financing to eligible business enterprises with minimal documentation and quick approval.

 

Keep reading to know more details regarding Mudra loans offered by HDFC Bank.

HDFC Bank Mudra Loan Highlights

The Mudra loan scheme offers affordable loans to MSMEs engaged in non-farm business activities. Find the key highlights of this scheme in the table below:

*Note that the HDFC Bank Mudra loan interest rate depends on the type of credit and your business profile among other eligibility parameters.

HDFC Bank Mudra Loan Features

A Mudra loan from HDFC Bank comes with various features and benefits for its customers. Find about them below:

• Loan up to Rs. 10 Lakhs

With various types of Mudra loan schemes, you can obtain a loan value of up to Rs. 10 Lakhs. Apart from that, there is no capping on the minimum loan value you can obtain. Thus, you can obtain your small and big-ticket financial needs with ease.

• Minimal documentation

To obtain a Mudra loan from HDFC Bank, you do not need to submit many documents. Instead, you simply need to furnish a few documents for identity and address verification. Apart from that, business-related documents are also a must.

• Zero processing fees

One of the most beneficial features of a Mudra loan is that you do not have to pay any processing fees when you apply for HDFC Bank Mudra loan online. Further, the RBI has regulated banks and NBFCs to charge interest rates depending on MCLR. This makes the overall cost of borrowing affordable.

• Interest as per RBI guidelines

The HDFC Bank Mudra loan follows the marginal cost of lending rate, or MCLR, as prescribed by the Reserve Bank of India. This ensures you receive credit at attractive interest rates, bringing the EMIs down. You can calculate your overall EMI obligation beforehand through an online EMI calculator.

• No collateral

Mudra loans are offered by HDFC Bank without the requirement of any collateral. So, you can now stay assured of retaining your assets with yourself while enjoying high-value financing to expand or set up your business enterprise.

HDFC Bank Mudra Loan Interest Rates

As mentioned above, HDFC Mudra loan interest rate depends on the MCLR rate, as prescribed by the RBI. Find the rate of interest for different types of Mudra loans in the below table:

*Note that the interest rates mentioned above are indicative and might change depending on the type of loan you take and your credit history. 

 

Additionally, the interest rate on Mudra loans offered by Scheduled Commercial Banks and Regional Rural Banks features a maximum capping of 3.5% on refinancing rate. On the other hand, this capping is kept at 6% for NBFCs.

HDFC Bank Mudra Loan Eligibility Criteria

HDFC Bank offers Mudra loan against easy eligibility parameters. Here are the pointers relating to HDFC Bank Mudra loan eligibility:

 

• The loan is extended to non-farm business enterprises engaged in manufacturing, trading and other services.

• The credit requirements of such enterprises must be up to Rs.10 Lakhs.

• Prospective enterprises must fall under the MSME sector.

• Business engaged in allied agricultural activities, including fisheries and horticulture, may also apply for this credit

Besides, maintaining a good credit score is also crucial to obtain Mudra loans. This is because your credit score displays your creditworthiness. As a result, with a healthy credit score, you will be able to obtain a high-value loan amount at lower interest rates.

Documents Required for HDFC Bank Mudra Loan

HDFC Bank offers Mudra loan with minimal documentation to fasten the loan application procedure. You can apply online for HDFC Bank Mudra loan by submitting these documents:

 

• Valid photo identity proof

• Address proof or utility bills

• Latest income tax returns for income proof

• Bank account statement for the previous six months

• Ownership proof of the office

• Continuity of business proof

• Trade references

• Duly filled in Mudra loan application form

Note that the bank may ask you for additional documents if required.

Types of Mudra Loan

The Indian Government introduced the Mudra loan scheme in 2015 to help small and medium non-farm business enterprises meet their financial requirements. To cater to a wide range of such enterprises, the scheme offers various phases of loans for different purposes. Consequently, the interest rate for different types of Mudra loan varies significantly. Apart from that, the maximum loan amount is also different for different Mudra loan types.

 

You can apply for these types of HDFC Bank Mudra loan:

1. Shishu Mudra Yojana

If you are just starting out or in the early stages of your business, you can apply for a Mudra loan through this scheme. This scheme provides a maximum loan amount of Rs.50,000 over a 5-year period. Shishu Mudra Yojana is available to the following types of businesses:

 

• Businesses in the service sector

• Sole proprietorships and partnerships

• Micro enterprises and manufacturing companies

• Repair shops, vendors, and truck owners

• Food service businesses

This loan's interest rate ranges between 1% and 12% and can rise depending on the type of business you own and your credit score. Furthermore, you can obtain a 2% interest subsidy if you repay your loan on time. 

2. Kishore Mudra Yojana

This scheme is provided to assist a business owner in maintaining his or her business. It offers loans ranging from Rs.50,000 to Rs.5 Lakhs. The interest rate under this scheme ranges between 8.60% and 11.15%. However, if you keep your credit score low, you may have to pay more interest.

3. Tarun Mudra Yojana

You can get this Mudra loan if you want to expand your business or purchase a new plant or machinery. This scheme allows you to obtain a high-value loan of between Rs.5 Lakhs and Rs.10 Lakhs. Furthermore, the interest rate for this type of credit is higher, ranging from 11.15% to 20%. However, the interest rate you must pay will be determined by your loan requirement and credit history.

 

You can consider assessing these schemes and applying for the one that suits your requirements through Bajaj Markets, which is a diversified marketplace housing various loan offers.

How to Apply for HDFC Bank Mudra Loan

The steps to apply for HDFC Bank Mudra loan online are extremely simple and convenient. Simply follow these steps:

 

• Step 1: Visit the official website of HDFC Bank and navigate to the Mudra loan section.
• Step 2: Click on ‘Apply Now’.
• Step 3: Fill the online application form with a few basic details.
• Step 4: Complete the verification and submit your application.

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

HDFC Bank Customer Care

For any queries regarding your HDFC Bank Mudra loan, you can reach out to the bank on 1800 202 6161 or 1860 267 6161.

 

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