City Union Bank Mudra Loan

Last Updated : Nov. 18, 2024, 11:30 a.m.

Starting or growing a small business can be challenging, especially when it comes to finances. City Union Bank understands this and offers the Mudra Loan to support non-farm enterprises in manufacturing, trading, and services. If your credit needs are below Rs. 10 lakh, this loan could be the boost your business needs.

What is a Mudra Loan?

The Mudra Loan is a government initiative aimed at providing financial support to micro and small enterprises. It stands for Micro Units Development and Refinance Agency Ltd. The loan is designed to help businesses that might not have access to traditional banking services.

City Union Bank Mudra Loan Eligibility Criteria

To qualify for the City Union Bank Mudra Loan, here are the eligibility criteria you need to fulfill:

• Type of Business : Non-farm enterprises in manufacturing, trading, or services.
• Credit Needs : Must be below Rs. 10 lakh.
• Credit History : The applicant should not be a defaulter with any bank or financial institution.

Features and Benefits of City Union Bank Mudra Loan

Here are a few key features of the City Union Bank Mudra Loan:

• No Collateral Required: You don’t need to provide any security to get this loan. This makes it accessible to more business owners.
  
• Flexible Repayment Period: You can repay the loan in up to 5 years. This flexibility helps you manage your payments better.
  
• No Processing Fee: Your loan application is processed without a fee, reducing your costs when you apply for the loan.

City Union Bank Mudra Loan Interest Rates

Here are the interest rates for different categories of City Union Bank Mudra Loans:

• Shishu Plan (Loans up to Rs. 50,000): The interest rate for loans up to Rs. 50,000 is 12.00%. This plan is designed for new entrepreneurs starting small businesses.
  
• Kishore Plan (Loans from Rs. 50,001 to Rs. 5 lakh): For loans ranging from Rs. 50,001 to Rs. 5 lakh, the interest rate is 12.25%. This middle tier is aimed at businesses that are ready to take the next step in their expansion.
  
• Tarun Plan (Loans from Rs. 5,00,001 to Rs. 10 lakh): Loans from Rs. 5,00,001 to Rs. 10 lakh carry an interest rate of 12.50%. This is for more established businesses that need larger amounts to scale up operations.

City Union Bank Mudra Loan Processing Fees

The bank may charge an upfront fee according to their internal guidelines. Most banks, though, waive the upfront fee or processing charges for Shishu loans. Contact the City Union Bank customer service for more details.

Eligible Activities Covered Under CUB Mudra Scheme

The following activities are covered under the Mudra loan scheme:

• Purchasing Transport Vehicles: Entrepreneurs buying vehicles for transporting goods and passengers—such as auto-rickshaws, three-wheelers, small goods carriers, taxis, and e-rickshaws—can apply for Mudra loans.
  
• Commercial Use of Tractors and Two-Wheelers: Tractors, power tillers, tractor trolleys, and two-wheelers used exclusively for business purposes are also eligible for loans.
  
• Community and Personal Services: Business owners running salons, gyms, beauty parlors, tailoring shops, boutiques, dry cleaning services, pharmacies, bicycle and motorcycle repair shops, courier agencies, desktop publishing (DTP), and photocopying centers can obtain loans under Mudra Yojana.
  
• Food Product Businesses: Entrepreneurs involved in making pickles (achaar), papad, sweets, jams and jellies, operating small food stalls, providing daily catering or canteen services, ice-making and ice cream units, cold storage facilities, bread and bun making, biscuit production, and similar activities are eligible for loans.
  
• Textile Activities: Those engaged in handloom work, khadi activities, power loom operations, traditional dyeing and printing, traditional embroidery and handicrafts, apparel design, computerized embroidery, cotton processing (ginning), stitching, and making textile products other than garments (like vehicle accessories, bags, home furnishings, etc.) can apply for Mudra loans.
  
• Agriculture-Related Activities: Activities related to agriculture, such as beekeeping, poultry farming, livestock rearing, working in agro-industries, fisheries, dairy farming, food and agro-processing, agricultural clinics, agribusiness centers, and supporting services, are eligible for Mudra loans.

Required Documents to Apply for City Union Bank Mudra Loan

When applying for the Mudra Loan, you'll need to submit the following documents:

• Proof of Identity : Self-attested copy of Voter ID, PAN card, Aadhaar card, passport, or any government-issued photo ID.
• Proof of Residence : Recent utility bills (telephone, electricity), property tax receipt (not older than 2 months), Voter ID, Aadhaar card, passport, bank passbook, or domicile certificate.
• Photographs : Two recent passport-sized photos of the individual, proprietor, partners, or directors.
• Quotations : Details and quotations for machinery or items to be purchased.
• Business Proof : Licenses, registration certificates, or any document that proves the identity and address of your business enterprise.
• Category Proof : If applicable, documents proving SC/ST/OBC/Minority status.
• Bank Statements : Last six months' bank statements from your existing banker, if any.
• Financial Statements : For loans above Rs. 2 lakh, the last two years' balance sheets along with income tax and sales tax returns.
• Current Sales : Details of sales achieved during the current financial year up to the date of application.
• Project Report : A report detailing the technical and economic viability of your proposed project.
• Company Documents : Memorandum and Articles of Association or partnership deed.
• Asset & Liability Statement : In the absence of a third-party guarantee, a statement from the borrower, including directors and partners, to assess net worth.

How to Apply for Mudra Loan By City Union Bank?

Applying for the City Union Bank Mudra Loan is straightforward:

• Collect the Application Form : Visit your nearest City Union Bank branch to get the Mudra Loan application form.
• Fill in the Details : Provide accurate information about yourself and your business.
• Attach Required Documents : Make sure you have all the necessary documents as listed above.
• Submit the Application : Hand over your completed application and documents to the bank official.
• Await Approval : The bank will process your application and inform you of their decision.

City Union Bank Customer Care Numbers

In case you have any questions or want to learn more about Mudra Loan, you can contact a City Union Bank customer care representative at the following number:

• 044 7122 5000

Conclusion

The City Union Bank Mudra Loan is an excellent opportunity for small businesses to access much-needed funds without the burden of collateral or high processing fees. By providing flexible repayment options and competitive interest rates, City Union Bank is playing a significant role in empowering small entrepreneurs across India.

If you're looking to start or expand your business, consider the Mudra Loan from City Union Bank as a viable financing option.

For more information, visit your nearest City Union Bank branch or check their official website.