Indian Bank Mudra Loan

Last Updated : Nov. 18, 2024, 1:35 p.m.

Indian Bank offers two specialized loan products under the Pradhan Mantri Mudra Yojana (PMMY): the Online Shishu Mudra Loan and the Weaver Mudra Scheme. These financial solutions are designed to support the growth of micro-entrepreneurs and traditional weavers, helping them expand their businesses and sustain their crafts.

Whether you're looking to start a new venture in the manufacturing, trading, or service sector, or you're a weaver needing funds for materials and equipment, these loans provide the necessary financial support with favorable terms, all without requiring collateral.

Types of Indian Bank Mudra Loan

Furthermore, we will discuss the two main types Mudra loans offered by Indian Bank:

Online Shishu Mudra Loan

Now, let's explore the main features, eligibility criteria, interest rates, and more of the Online Shishu Mudra Loan offered by Indian Bank.

Features and Benefits:

The Online Shishu Mudra Loan is a digitally driven product from Indian Bank, designed to offer instant MSME loans to pre-selected customers as part of the "Project Wave" initiative. This initiative aims to streamline banking processes through digitalization.

The loan targets individuals and proprietary firms, excluding bank staff and government salaried employees, and supports any legitimate business purpose such as starting new ventures in various sectors. Below are some of the features and benefits of this type of loan:

• Loan Amount : The loan ranges from a minimum of ₹10,000 to a maximum of ₹50,000.
  
• Repayment : The loan is structured as a term loan with a flexible repayment period ranging from 24 to 60 months (up to 5 years).
  
• Fees : There are no processing or documentation fees, although charges for CIBIL and e-stamping/e-signing may apply.
  
• Security : No collateral or security is required to avail of this loan.

Indian Bank Shishu Mudra Loan Interest Rates

The interest rate for the Online Shishu Mudra Loan is set at the repo rate plus 4.40% per annum. This rate is subject to change based on fluctuations in the repo rate, ensuring that the pricing remains competitive and aligned with economic conditions.

Indian Bank Shishu Mudra Loan Eligibility

Here are the Indian Bank Mudra loan eligibility criteria you need to meet to apply:

• Applicants should be between 18 and 60 years old with a minimum CIBIL score of 700.
• Those with no credit history can also apply with a CIBIL score of -1.
• Additionally, applicants must hold an active bank account with Indian Bank for over a year.
• The customer account must already comply with C-KYC (Central KYC) or E-KYC (Electronic KYC) requirements.
• The asset associated with the account must not be classified as a Non-Performing Asset (NPA) currently or at any point in the past two years.
• The Customer Information File (CIF) should not have any other business loans from our bank at the time of the application.
• The business account, either Savings (SB) or Current Account (CA), must be active and in an open status, with the mode of operation by the applicant being single.

Documents Required to Apply for Shishu Mudra Loan

Here’s the list of documents required to apply for Shishu Mudra Loan:

• PAN Card
• Aadhaar Card
• Valid email address
• Udyam Registration Certificate
• An active mobile number that is linked to your savings or current account, Aadhar Card, and Udyam Registration Certificate.

Weaver Mudra Scheme

Below, we have highlighted the main features, interest rates, eligibility criteria, and more of the Weaver Mudra Scheme by Indian Bank:

Features and Opportunities:

The Weaver MUDRA Scheme caters to individual handloom weavers, weaver entrepreneurs, and various handloom organizations by offering financial assistance through two main products:

• Weaver MUDRA Scheme : For loans up to ₹10 lakhs.
• Concessional Credit : For loans above ₹10 lakhs and up to ₹100 lakhs.

This scheme not only aids in meeting the capital requirements but also supports day-to-day operational expenses through term loans and working capital solutions.

Indian Bank Weaver Mudra Loan Interest Rates & Subventions

The loans feature an interest rate set by Indian Bank's prevailing policies, with specific subventions for organizations, including a concessional rate of 6% for the first three years, backed by interest subvention for rate differences up to 7%.

Indian Bank Weaver Mudra Loan Eligibility

Eligible borrowers include individual weavers, SHGs, JLGs, and handloom organizations such as cooperatives and producer companies. Applicants must provide documentation like the Pehchan card, Yarn passbook, or state-issued identity cards.

Margin Requirements:
For loans up to ₹0.50 lakh, no margin is required. For loans ranging from ₹0.50 lakh to ₹5 lakh, a 10% margin is required. Meanwhile, loans from ₹5 lakh to ₹10 lakh require a 15% margin.

Margin Money Assistance:

• For individual handloom weavers and weaver entrepreneurs: Margin assistance is 20% of the loan amount, capped at ₹25,000.
  
• For handloom organizations: Margin assistance is 20% of the loan amount, with a maximum of ₹20 lakh. This translates to ₹2 lakh for every 100 weavers or workers.

Security Requirements:

• Hypothecation: This involves pledging assets such as raw materials, work-in-progress goods, finished goods, book debts, equipment, and plant and machinery financed by the bank and margin money.
  
• CGTMSE coverage: Mandatory for all loans under the Weaver MUDRA and Concessional Credit schemes, ensuring additional security and risk mitigation for the bank.

Documents Required to Apply for Weaver Mudra Loan

Here are the documents you will need to apply for Weaver Mudra Loan by Indian Bank:

• Yarn Passbook
• Pehchan card issued by the Office of the Development Commissioner (Handlooms)
• ID card issued by the State Government
• And for handloom organizations: registration certificate, profit and loss account, list of registered weavers, and balance sheet.

Application Process

The application process is entirely digital, allowing customers to apply via Indian Bank's website , IndOASIS Mobile App, or through Internet Banking.

Indian Bank Mudra Loan Customer Care Number

In case you have any questions regarding Indian Bank Mudra loan or its application process, you can contact the customer care representatives at 1800 4250 0000.

Conclusion

The Indian Bank Mudra Loan provides a great opportunity for small business owners and traditional weavers to grow their businesses. With options like the Online Shishu Mudra Loan and the Weaver Mudra Scheme, Indian Bank is helping to fuel economic growth and preserve cultural crafts. These loans are designed to be easy to access and manageable, with no need for collateral. This means more entrepreneurs can get the support they need to expand their operations and reach new markets.