HDFC Bank Mudra Loan

Last Updated : Nov. 18, 2024, 12:27 p.m.

Starting or growing a small business often requires financial support, and finding the right loan can make all the difference. HDFC Bank offers the Mudra Loan, a special financing option under the Pradhan Mantri Mudra Yojana (PMMY). This loan is designed to help micro and small enterprises in India that are engaged in manufacturing, trading, or services.

With loan amounts up to ₹10 lakh, the HDFC Bank Mudra Loan provides entrepreneurs with the funds they need without the hassle of extensive paperwork or the requirement of collateral.

HDFC Bank Mudra Loan Key Highlights

Main Features of HDFC Bank Mudra Loan

HDFC Bank offers Mudra loans with many benefits for customers. Find out more below:

• Loan Amount Up to ₹10 Lakhs

You can get a loan of up to ₹10 Lakhs through various Mudra loan schemes. There's no minimum limit, so you can meet both small and large financial needs easily.

• Minimal Documentation

Applying for a Mudra loan from HDFC Bank doesn't require a lot of paperwork. You just need to provide some documents for identity and address proof, along with business-related documents.

• No Collateral Required

HDFC Bank provides Mudra loans without asking for any collateral. This means you can keep your assets safe while getting the funds you need to start or grow your business.

Types of HDFC Bank Mudra Loans

These loans, provided under the Pradhan Mantri Mudra Yojana (PMMY) scheme, are aimed at supporting small business owners at various phases of their business development. You can access these loans through the HDFC Bank Mudra loan application process, which offers loans in several categories designed for different stages of business growth.

• Shishu

This category is ideal for entrepreneurs who are just starting out and need initial capital to get off the ground.

Loan amount: Up to ₹50,000
Used for: Buying raw materials, stocking up inventory, purchasing small equipment, or other startup expenses.

• Kishor

This category is designed specifically for businesses that are already operational and need additional funds to manage their growth or expand their operations.

Loan amount: Between ₹50,000 and ₹5 lakh
Used for: Enhancing the business infrastructure, increasing working capital, extending the market reach, or upgrading technology and equipment.

• Tarun

It is aimed at well-established businesses that are looking to scale significantly or enter new markets.

Loan amount: Between ₹5 lakh and ₹10 lakh
Used for: Major expansion projects, large-scale upgrading of facilities and systems, or adoption of higher-end technology.

HDFC Bank Mudra Loan Eligibility Criteria

Small, non-corporate businesses that are not involved in farming—but are in manufacturing, trading, or services—can apply for these loans. The loan amount they need should be less than ₹10 lakh.

Which Activities Are Covered Under the HDFC Bank Mudra Loan Scheme?

If you're considering an Axis Bank Mudra loan, here are the types of activities you can get funding for. If you have any questions, feel free to visit your nearest bank branch.

Transport Vehicles
You can get financial assistance to buy vehicles used for transporting goods and passengers. This includes:

• Auto-rickshaws
• Small goods carriers
• Three-wheelers
• E-rickshaws
• Taxis

Tractors, tractor trolleys, and power tillers used only for business purposes are also eligible. Two-wheelers used for commercial activities can also be financed under PMMY.

Community, Social, and Personal Services
Support is available for businesses like:

• Salons and beauty parlors
• Gyms
• Boutiques
• Tailoring shops
• Dry cleaning services
• Bicycle and motorcycle repair shops
• Desktop publishing and photocopying centers
• Pharmacies
• Courier services

Activities Related to Agriculture
Eligible activities include:

• Fish farming
• Beekeeping
• Poultry farming
• Livestock rearing
• Grading and sorting of agricultural products
• Collection and aggregation services
• Agro-industries
• Dairy farming
• Fisheries
• Agricultural clinics
• Agribusiness centers
• Food and agro-processing

These activities should help generate income or support livelihoods. Note that crop loans and land improvements like canals, irrigation systems, and wells are not covered.

Business Loans for Traders and Shopkeepers
Individuals running shops, trading businesses, service enterprises, or other non-farm income-generating activities can receive financial support. Loans of up to ₹10 lakh per business or borrower are available.

Textile Products Sector
Financial assistance is provided for activities such as:

• Handloom and powerloom operations
• Khadi activities
• Chikan embroidery work
• Zari and zardozi embroidery
• Traditional embroidery and handicrafts
• Traditional dyeing and printing
• Apparel design
• Knitting
• Cotton processing
• Computerized embroidery
• Stitching
• Making textile products like bags, vehicle accessories, and home furnishings.

HDFC Bank Mudra Loan Interest Rates

HDFC Bank determines Mudra loan interest rates based on various criteria, including the applicant's business type, financial evaluation, prior performance, loan amount, and repayment period.

HDFC Bank Mudra Loan Tenure

Although banks can decide the interest rates based on your credit history, the time you have to repay a MUDRA loan is the same at all banks. The government has fixed a repayment period of 5 years for these loans. You must pay back the full amount within this timeframe.

Documents Required to Apply for HDFC Bank Mudra Loan

Here are the documents required to apply for Mudra loan with HDFC Bank:

• Valid photo identity proof
• Current address proof
• Proof of income - Latest ITR Financial Docs of Income
• Last 6 months Bank statement
• Loan application form
• Ownership proof of residence/office
• Proof of continuity of business
• Trade references

How to Apply for HDFC Bank Mudra Loan?

• Go to the nearest branch or visit the HDFC Bank website.
• Provide accurate information about yourself and your business in the form.
• Include necessary documents like identity proof, address proof, and business details.
• The bank will review your application based on the factors mentioned and inform you of the decision.

HDFC Bank Mudra Loan Customer Care Numbers

In case of any doubt or query regarding the HDFC Bank Mudra loan, you can contact customer care representatives at the following numbers:

1800 1600
1800 2600

Conclusion

The HDFC Bank Mudra Loan is designed to make funding accessible for small businesses without the hassle of providing collateral. By considering your type of business, financial situation, previous banking history, loan amount, and desired repayment period, HDFC Bank aims to provide a loan that fits your needs.

If you're looking to start or expand your business, the Mudra Loan from HDFC Bank could be a helpful option.