Union Bank Of India (UBI) Pradhan Mantri Mudra Yojana (PMMY) Scheme for Collateral Free Bank Loan

UBI "Union Mudra" Bank Loan Features

The UBI Union MUDRA bank loan for Micro enterprises comes in three categories depending the size of the loan amount:

1. The first one named Shishu disburse maximum loan amount of Rs. 50,000/- to the Micro Enterprises without any collateral security.
2. The second one is named Kishore that disburse loan amount above 50,000/- and maximum upto 5 lakhs to the Micro Enterprises without any collateral security.
3. The third one is named Tarun that disburse loan amount above 5 lakhs and maximum upto 10 lakhs to the Micro Enterprises without collateral security.

Other features are: assets created out of the bank loan to be charged with the Bank. Since it's a collateral free bank loan, all customers under UBI Union MUDRA scheme should be documented by Demand Promissory Note (DP Notes), Hypothecation Agreement, Letter of Continuity, Term Loan Agreement (If there is term loan) etc.

Eligibility for UBI Union MUDRA Bank Loan

All Micro enterprises engaged in manufacturing, trading and service sector including professionals (CA / ICWA / CS / Architect / Medical Professionals etc).

Nature of UBI Union MUDRA Bank Loan

Composite Loan, Term Loan, and / or Working capital (Fund Based and Non-Fund Based)

Assessment / Quantum of facility of UBI Union MUDRA Bank Loan

Maximum loan limits upto Rs. 10.00 lakhs. It's sanctioned mainly to meet need based requirement under three named categories such as Shishu (maximum amount of Rs. 50K), Kishore (from above 50K to maximum upto 5 lakhs) and Tarun (from above 5 lakhs to maximum upto 10 lakhs).

UBI Union MUDRA Bank Loan Rate of Interest

1. MCLR + 0.40% for loan amount upto Rs. 50,000/-
2. MCLR + 0.90% for loan amount above Rs. 50,000/- upto Rs. 2 lakhs
3. MCLR + 1.65% for loan amount above Rs. 2 lakhs and upto 10 lakhs

Margin Money Required for UBI Union MUDRA Bank Loan

1. 5% margin money required for obtaining loan amount under the Shishu category
2. 10% margin money required for obtaining loan amount under the Kishore category
3. 10% margin money required for obtaining loan amount under the Tarun category

Repayment of UBI Union MUDRA Bank Loan

1. Loan amount obtained as Working Capital: 12 months subject to renewal as per extant guidelines. Interest to be recovered as and when due.
2. Loan amount obtained as Term Loan: To be repaid within maximum period of 84 months (maximum 7 years) in equated monthly installments (EMI) inclusive of maximum moratorium period of  6 (six) months. Period of Moratorium to be allowed judiciously. Repayment Schedule in Finacle should invariably be mentioned as EMI.

How to Apply for UBI Union MUDRA Bank Loan?

Download MUDRA Bank Loan Application form and take print out. Fill all the relevant details and attach the supporting documents and submit to the bank nearest to you.

A centralized contact number (022-22892250) is provided by Union Bank of India (UBI) in order to get any clarification with respect to UBI Union MUDRA Bank Loan.

Supporting Documents Required for Shishu MUDRA Bank Loan

1. Prof of identity - Self attested copy of Voter's ID card / Driving License/ Pan Card/ Aadhaar Card/ Passport / Photo Id issued by Govt. authority etc.
2. Proof of Residence - Recent telephone bill / electricity bill (not older than 2 months), latest property tax receipt, Voter's ID card, Aadhaar Card, Passport of individual / Proprietor / Partners, Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.
3. Applicant's Recent Photograph (2 Copies) not older than 6 months.
4. Proof of SC / ST / OBC / Minority, if applicable.
5. Proof of identity / Address of the Business Enterprises - if available.
6. Statement of Account from the existing Banker for the last six months, if any.
7. Quotation of Machinery / other items to be purchased.

Supporting Documents Required for Kishore MUDRA Bank Loan

1. Proof of identity - Self attested copy of Voter's ID card / Driving License / PAN Card / Aadhaar Card / Passport / Photo Id issued by Govt. authority etc.
2. Proof of Residence - Recent telephone bill / electricity bill (not older than 2 months), latest property tax receipt, Voter's ID card, Aadhaar Card, Passport of individual / Proprietor / Partners, Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.
3. Proof of SC / ST / OBC / Minority, if applicable.
4. Proof of Identity / Address for the Business Enterprise - Copies of relevant Licenses / Registration Certificates / Lease to Rent agreement / Other Documents pertaining to the ownership, identity of address of business unit / Udyog Aadhaar Memorandum.
5. Statement of Accounts from the existing Banker for the last six months, if any.
6. Last two years unaudited balance sheet of the existing units along with income tax / sales tax returns etc. (Applicable for loans of Rs. 2 lakhs and above.)
7. Projected balance sheets of the start-up / existing units for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for loans of Rs. 2 lakhs and above).
8. Sales achieved during the current financial year up to the date of submission of application (in case of existing units).
9. Proforma invoices / Quotations for the assets to be purchased and estimates for the civil works, if any to be undertaken. Aspect of technical feasibility and economic viability may be discussed with borrower if felt necessary.
10. Asset & Liability statement of the borrower including Directors & Partners.
11. Memorandum and Articles of association of the company / Partnership Deed of Partners etc. wherever applicable.
12. Photos (two copies) of applicant / Proprietor / Partners / Directors not older than 6 months.

Supporting Documents Required for Tarun MUDRA Bank Loan

1. Proof of identity - Self attested copy of Voter's ID card / Driving License / PAN Card / Aadhaar Card / Passport / Photo Id issued by Govt. authority etc.
2. Proof of Residence - Recent telephone bill / electricity bill (not older than 2 months), latest property tax receipt, Voter's ID card, Aadhaar Card, Passport of individual / Proprietor / Partners, Certificate issued by Govt. Authority / Local Panchayat / Municipality etc.
3. Proof of SC / ST / OBC / Minority, if applicable.
4. Proof of Identity / Address for the Business Enterprise - Copies of relevant Licenses / Registration Certificates / Lease to Rent agreement / Other Documents pertaining to the ownership, identity of address of business unit / Udyog Aadhaar Memorandum.
5. Statement of Accounts from the existing Banker for the last six months, if any.
6. Last two years unaudited balance sheet of the existing units along with income tax / sales tax returns etc.
7. Projected balance sheets of the start-up / existing units for one year in case of working capital limits and for the period of the loan in case of term loan.
8. Sales achieved during the current financial year up to the date of submission of application (in case of existing units).
9. Proforma invoices / Quotations for the assets to be purchased and estimates for the civil works, if any to be undertaken. Aspect of technical feasibility and economic viability may be discussed with borrower if felt necessary.
10. Asset & Liability statement of the borrower including Directors & Partners.
11. Memorandum and Articles of association of the company / Partnership Deed of Partners etc. wherever applicable.
12. Photos (two copies) of applicant / Proprietor / Partners / Directors not older than 6 months.