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Learn all about Punjab and Sind Bank Mudra Loan, eligibility, and application process.
Punjab and Sind Bank extends the Mudra Loan under the Pradhan Mantri Mudra Yojana (PMMY), targeting small business owners and entrepreneurs in India. This financial assistance helps micro and small enterprises to grow, providing collateral-free loans with flexible terms.
Punjab and Sind Bank offers Mudra loans in three categories, based on the business lifecycle and funding requirements:
Loan Category |
Loan Amount (₹) |
Interest Rate (Approx.) |
Tenure |
|---|---|---|---|
Shishu |
Up to 50,000 |
Varies; generally competitive |
Up to 5 years |
Kishore |
Above 50,000 up to 5,00,000 |
Depends on credit profile |
Up to 5 years |
Tarun |
Above 5,00,000 up to 10,00,000 |
As per applicant profile |
Up to 5 years |
Disclaimer:Punjab and Sind Bank Mudra Loan terms, including loan amounts, interest rates, tenure, and eligibility criteria, are subject to change at the bank’s discretion without prior notice. Actual loan offerings, interest rates, processing fees, and repayment terms may vary depending on the applicant’s profile, prevailing regulatory guidelines, and bank policies. These loans are collateral-free, designed to promote entrepreneurship across various sectors such as retail, transport, agriculture, and textiles.
Here are the key features that make the Punjab and Sind Bank Mudra Loan an attractive option for small business owners:
Collateral-free Financing: No security required, easing accessibility.
Mudra Card: Facilitates easy credit access at ATMs and POS machines.
Flexible Use: Funds can be utilised for working capital or term loans to expand businesses.
Wide Sector Support: Eligible businesses include traders, transport operators, agro-processing units, textile artisans, and community services.
Accessible at Branch Level: Available across all Punjab and Sind Bank branches.
Job Creation: Has contributed to generating significant grassroots employment.
The Punjab and Sind Bank Mudra Loan interest rate varies according to the borrower’s creditworthiness, loan amount, and repayment tenure. These rates are aligned with the bank’s prevailing lending norms, ensuring affordability and flexibility for borrowers.
Below is a table outlining the approximate Punjab and Sind Bank Mudra Loan interest rates:
Loan Type |
Punjab & Sind Bank Mudra Loan Interest Rate (Approx.) |
|---|---|
Shishu |
Around 9% to 10.5% p.a. |
Kishore |
Around 10% to 11.5% p.a. |
Tarun |
Around 11% to 12% p.a. |
Disclaimer: The interest rates mentioned in the table are indicative and may vary based on the borrower’s creditworthiness and prevailing market conditions. For exact and updated rates, please consult Punjab and Sind Bank’s official branch or website before applying.
The eligibility criteria for the Punjab and Sind Bank Mudra Loan ensure that aspiring entrepreneurs and small business owners can access financial support suited to their stage of business. The eligibility varies across the three Mudra loan categories, Shishu, Kishore, and Tarun, each of which caters to different funding needs and business sizes.
Below, we detail the specific eligibility requirements for Punjab and Sind Bank’s Shishu, Kishore, and Tarun Mudra loan schemes:
Small businesses needing loans up to ₹50,000.
Start-ups or micro-businesses in manufacturing, trading, or service.
No collateral required.
Should have a viable business plan and proof of income sources.
Businesses needing loans between ₹50,000 and ₹5,00,000.
Operational units showing business activity for at least some months.
Satisfactory credit history and capability to repay.
Expanding businesses requiring loans from ₹5,00,000 to ₹10,00,000.
Established enterprises needing funding for major upgrades or expansion.
Must demonstrate sound financial management and repayment capacity.
Applicants must furnish the list of documents below based on the loan category:
Identity Proof: Aadhaar and PAN card, passport, or voter ID.
Address Proof: Utility (electricity/water) bills, lease or rental agreement, or Aadhaar card.
Business Proof: Business registration certificate, GST registration, or trade license.
Bank Statements: Last 6 months’ statements.
Income Proof: ITR, salary slips, or financial statements.
Photographs: Passport size photographs.
Specific document requirements might slightly vary for Shishu, Kishore, and Tarun loans, so checking with the branch is advisable before application.
The typical repayment tenure ranges from 12 months to 5 years, subject to the loan amount and borrower's repayment capacity. Extensions can be considered based on business needs. Flexible repayment schedules help reduce financial burden on entrepreneurs.
The application process for Punjab and Sind Bank Mudra Loan is designed to be simple and accessible, accommodating both offline and online applicants. Whether you prefer visiting a branch or applying digitally, the bank provides clear pathways to support your loan request.
Below are the detailed steps for applying online and offline for a Punjab and Sind Bank Mudra Loan:
Go to your closest branch to discuss your loan requirements and eligibility with the branch manager.
Obtain the Pradhan Mantri Mudra Yojana loan application form from the branch office.
Complete the form accurately with all necessary personal, business, and financial details.
Attach necessary documents such as identity proof, business registration, address proof, PAN card, and financial records along with your application.
Hand over the fully filled application form and documents to the branch officer for processing.
The bank will verify your documents and business details before approving the loan and disbursing the funds into your account.
Visit the Punjab and Sind Bank official website and register on the PSB UnIC internet banking or digital banking platform if you are a new user.
Download the Mudra loan application form from the official website, and accurately fill in your business and personal details.
Prepare and upload scanned copies of necessary documents such as identity proof, business proof, address proof, PAN, and financial documents.
Submit your completed application form along with the documents through the bank’s online portal.
A bank representative will contact you for further verification and may request additional information or documentation.
Once the verification is complete and the loan is sanctioned, the approved amount will be disbursed directly into your bank account.
Toll-Free Number: 1800 419 8300 (All India)
Customer Support Email: Available on the official website contact page
Branch Locator: Via Punjab and Sind Bank official website
Customer Service Timings: Typically 10 AM to 5 PM on working days
Customers are advised to contact the toll-free number or visit their branch for personalised assistance.
Small and micro-enterprises involved in manufacturing, trading, service, transport, agro activities, and textile sectors can apply. Entrepreneurs must have a viable business plan and meet the bank’s credit assessment criteria.
No, the Mudra Loan is not interest-free. Punjab and Sind Bank Mudra loans are typically offered at competitive interest rates linked to external benchmarks. The bank’s repo-linked lending rate (PRLR) stands at around 7.55% as of February 2025, with applicable markups depending on the borrower's credit profile. Interest is charged accordingly on Mudra loans.
Yes, Punjab & Sind Bank usually allows prepayment or foreclosure of Mudra loans without any additional foreclosure or prepayment penalties, enabling flexible repayment options.
Visit the official website of the Punjab & Sind Bank, navigate to the Mudra Loan section, select your loan category, fill out the online application form, upload required documents, and submit for processing.
The Kishore category covers loans above ₹50,000 up to ₹5,00,000, aiming to support growing businesses requiring moderate financial assistance.
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