MUDRA Yojana is a government-issued refinancing scheme in which financial institutions act as intermediaries, distributing credit to small-scale business owners. To get the credit without much hassle and at an attractive interest rate, you can contact any branch of United Commercial Bank Ltd. or, in short, UCO Bank.
Eligible business owners can get up to Rs. 10 Lakhs through UCO Bank MUDRA Loan and make the required investments in their venture. Since it is a credit facility with a low rate of interest and zero processing fees, it will become much easier to repay the loan.
Non-corporate business owners trying to accelerate commercial growth
Maximum of Rs. 10 Lakhs; it varies according to MUDRA interventions, as follows:
1 to 3 Years
MCLR-based interest rate starting from 8.05%
Disclaimer: The interest rate, processing fees, tenure, and other necessary aspects about the credit are subject to change as the policies of the lender.
MUDRA loan provides credit assistance to small-scale business owners so that they can invest adequately and enhance their growth opportunities. Following are the features of this UCO Bank MUDRA Loan:
Collateral is not necessary to get the MUDRA loan. Therefore, it reduces your hassles during loan applications.
The repayment period for this credit facility is flexible. You can choose tenure between 1 and 5 years.
There are three interventions or subcategories of MUDRA loan, namely Shishu, Kishor and Tarun.
All the interventions of UCO Bank MUDRA loans have a different range of allowed loan amounts.
You do not need to pay any processing fees on your credit. It can reduce your total cost of borrowing to a certain extent.
The credit comes with zero restriction of end usage, letting you utilise the amount to efficiently manage your business expenses.
You can get the credit from any of the branches of UCO Bank, nearest to your location.
You will also get a MUDRA debit card against your loan account. You can make multiple credit withdrawals, as necessary.
You need to meet the following eligibility standards to get the UCO MUDRA Loan:
Willing borrowers need to have non-corporate small business units from manufacturing, trading, services sectors or non-agriculture allied production farms.
They should have a sound and well-devised plan for growing the commercial prospect by utilising this credit.
During the credit application procedure, you will have to submit the following documents for the UCO MUDRA Loan:
Identity Proof: Aadhaar Card, voter ID card, passport, driving license, etc.
Residential Proof: Passport, Aadhaar Card, electricity or telephone bill, etc.
Business Documents: License of the business unit, business establishment certificate, etc.
Bank account statements for the last 6 months
2 passport-sized photographs of the applicant
Balance sheets of the last 2 years
Estimated balance sheet for the coming year
Project report demonstrating the economic prospect of your business
Note: You may have to provide additional documents if requested by the lending institution.
You can apply for the UCO Bank MUDRA Loan by following the steps mentioned below:
Step 1: Visit the official portal of the UCO Bank.
Step 2: Find the MUDRA loan application form and print it out.
Step 3: Fill in the application form properly.
Step 4: Attach all the necessary documents.
Step 5: Submit your duly filled application form to a nearby branch of the UCO Bank.
Following this, the branch will carefully examine your application and go through your documents before approving your loan.
Here are the different interventions of the UCO Bank MUDRA Loan:
You can apply for this category of MUDRA loan if your requested credit amount is lower than Rs. 50,000. It is specially tailored for owners of micro business setups who want a small amount of credit to buy the necessary machinery to increase production.
The Kishor section of the MUDRA loan lets you get a credit amount within the range starting from Rs. 50,000 to Rs. 5 Lakhs. It can be suitable for the owners of small ventures who want to make the necessary investments to accelerate the manufacturing capacity of their business.
You will get credit between Rs. 5 Lakhs and Rs. 10 Lakhs under the Tarun category of the MUDRA loan. You should go for this category of MUDRA loan, especially if you already have an established small business and you want to expand it or scale up production.
For any queries regarding your MUDRA loan, you can contact the financial institution through the following means:
Toll-Free Number: 1800 103 0123
Email ID: firstname.lastname@example.org
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The interest rate of the UCO Bank MUDRA loan starts at 8.05% onwards. The applicable interest rate, however, depends on several factors, including the credit amount, business and its profitability, past repayment record, etc.
You will not get any subsidy on your MUDRA loan. Nevertheless, if your loan is linked with a government scheme providing a subsidy, you can leverage it to reduce your outgoing interest.
A MUDRA loan is basically an unsecured credit facility. You do not need to collateralise your properties as security to get the credit from the UCO Bank.
You do not need to apply for this MUDRA loan with any guarantor. To avoid the chances of rejection on your loan application, you need to ensure that you are eligible and you have a well-grounded business plan.
You can apply for this loan if you have a small venture in business categories like the food production sector, textile industry, small manufacturing unit, truck owners, agriculture-allied activities, repairing shops, artisans, service sector farms, etc.
A MUDRA debit card will help you withdraw the finance required to maintain working capital at any time from ATMs.
Female entrepreneurs aspiring to enhance their small non-corporate enterprises can avail credit for up to Rs. 10 Lakhs through this MUDRA loan.