ICICI Bank Mudra Loan

Last Updated : Nov. 18, 2024, 3:55 p.m.

Under the Pradhan Mantri MUDRA Yojana (PMMY), the ICICI Bank Mudra Loan provides micro and small companies with loans ranging from ₹50,000 to ₹10 lakhs. It provides financial assistance for business expansion, equipment purchase, and working capital needs through term loans, working capital loans, and overdraft facilities.

What do you understand about Mudra Loan?

A Mudra Loan is a type of financial assistance provided under the Pradhan Mantri Mudra Yojana (PMMY), a government initiative aimed at promoting micro-enterprises and entrepreneurship in India. The scheme is specifically designed to offer collateral-free loans to small and micro businesses in the non-corporate, non-farming sectors. The loans are provided by various financial institutions, including banks, Non-Banking Financial Companies (NBFCs), and microfinance institutions (MFIs).

MUDRA provides three customized solutions under the Pradhan Mantri MUDRA Yojana (PMMY) according to the financial need and growth stage of microenterprises:

• Shishu: Loans up to ₹50,000

Target Audience: Small start-ups, new entrepreneurs, and micro-enterprises in their initial stages.

Purpose: Primarily for businesses in their early stages that need minimal capital. The funds can be used for purchasing raw materials, tools, machinery, or other basic infrastructure requirements.

Interest Rates: Generally lower due to the small loan amount and low risk.

Repayment Tenure: Flexible, depending on the lender's policy.

• Kishore: Loans above ₹50,000 and up to ₹5,00,000

Target Audience: Small businesses looking to expand or stabilize their operations.

Purpose: For enterprises needing funds to upgrade machinery, purchase additional inventory, or manage working capital.

Interest Rates: Moderate, depending on the lender's assessment of the business risk and borrower profile.

Repayment Tenure: Typically ranges from 3 to 5 years, with variations depending on the bank or financial institution.

• Tarun: Loans above ₹5,00,000 and up to ₹10,00,000

Target Audience: Established businesses requiring significant capital for growth and expansion.

Purpose: For substantial business investments like purchasing large machinery, expanding business operations, or setting up new facilities.

Interest Rates: Slightly higher due to the larger loan amount but competitive to encourage business growth.

Repayment Tenure: This can go up to 5 years, depending on the bank's policies.

Objectives of Mudra Loan?

The primary objective of Mudra Loans is to promote financial inclusion, foster entrepreneurship, and support the growth of small businesses in India. By providing access to affordable credit, the scheme aims to boost employment, contribute to economic development, and help small entrepreneurs expand their businesses.

ICICI Bank Mudra Loan Interest Rate

These are the ICICI Bank Mudra Loan interest rates for your knowledge -

These variables like The business profile, credit history, and other pertinent information are used to calculate the interest rate for an ICICI Bank Mudra Loan. The loan officer will decide the exact rate after reviewing the loan application.

ICICI Bank Mudra Loan Collateral Fee

ICICI Bank offers Mudra Loans under the Pradhan Mantri Mudra Yojana (PMMY), which are designed to support small and micro-enterprises. One of the key features of these loans is that they are collateral-free, meaning borrowers do not need to provide any security or asset as collateral to avail of the loan.

However, processing fees or upfront fees may apply, which are charged based on the bank's internal policies. These fees are generally nominal and are aimed at covering administrative costs related to loan processing. The exact fee structure can vary depending on the loan category (Shishu, Kishore, or Tarun) and the loan amount.

Key Points:

• No collateral is required for Mudra Loans.
• Processing fees or upfront charges may be applicable, depending on the bank's policy.
• The fees are typically reasonable to ensure accessibility to micro-entrepreneurs.

*For specific details on the fees applicable to a Mudra Loan, it is recommended to contact ICICI Bank directly or visit their official website.*

ICICI Bank Mudra Loan Eligibility Criteria

The MUDRA Loan is available to all Non-Corporate Small Business Segment (NCSBS), including :

• Proprietorship and partnership firms such as small manufacturing units,
• Foodservice units, Service sector businesses, truck operators, shopkeepers, fruit and vegetable vendors, repair shops, machine operators, small industries, and food processors in both rural and urban areas.

*Bank branches will provide loans under the MUDRA scheme based on customer requirements. These loans are collateral-free.*

Categories Eligible for ICICI Bank Mudra Loan

Here are the categories for which Mudra Loan could be availed -

• Vehicle Loan: Includes financing for commercial vehicles, cars, and two-wheelers.
• Business Installment Loan (BIL): Covers funding for working capital, purchasing plant and machinery, and office renovations.
• Business Loans Group (BLG) and Rural Business Credit (RBC): Offers facilities like drop-line overdrafts, overdrafts, and working capital loans.

ICICI Bank Mudra Loan Documents Required

Here are the documents that are required while applying for the ICICI Bank Mudra Loan -

ICICI Bank Mudra Loan Nearest Bank Branch

By clicking on this link , you can find your nearest ICICI Bank branch for applying for Mudra Loan.

How to Apply For ICICI Bank PMMY Mudra Loan?

To apply for a Mudra Loan under the Pradhan Mantri Mudra Yojana (PMMY) at ICICI Bank -

• Bring the completed loan application form and required paperwork to the closest ICICI Bank branch.

Currently, ICICI Bank does not offer an online application process for Mudra Loans under PMMY.

ICICI Bank Mudra Loan Customer Care Number