Pradhan Mantri Mudra Yojana is a special scheme set up by the Government of India through an institution named Micro Units Development & Refinance Agency Limited (MUDRA) in order to provide financing aid through loans to the non-corporate non-farm sector income generating activities of micro and small entities (subject to those enterprises with credit needs below INR 10 lakhs).
Pradhan Mantri Mudra Yojana (Mudra Bank Loan) Interest rates
As per the financing options available under the scheme, the interest rates and loan limits vary to accommodate for the growth stage of the concerned enterprise availing the loan. As of November 2015, the applicable rates and limits are as follows
- Shishu – Loans up to a maximum of INR 50000 with a rate of interest being 1% per month or 12% per annum. Repayment period up to 5 years
- Kishore – Loans exceeding INR 50000 up to INR 5 lakhs. The rate of interest will be dependent on the bank, in accordance with the scheme’s guidelines, keeping the credit history of the applicant in view. Repayment period based on the discretion of the bank
- Tarun – Loans exceeding INR 5 lakhs up to INR 10 lakhs. The rate of interest will be dependent on the bank, in accordance with the scheme’s guidelines, keeping the credit history of the applicant in view. Repayment period based on the discretion of the bank
It is clear from the above-mentioned points that the first option which caters to budding businesses has the most affordable rates and a fixed repayment term irrespective of the applicants or the business’ performance and history. The above, however are subject to change based on the scheme’s guidelines.
A total of 27 Public Sector Banks, 17 Private Sector Banks, 31 Regional Rural Banks, 4 Co-operative banks, 36 Microfinance Institutions and 25 Non-Banking Financial Institutions have currently been selected to allow disbursement of this loan.
Mudra Loan Interest rates 2018 (Updated)
| Mudra Loan Bank | Interest rate | Tenure |
| HDFC | 12.75% to 20% | 1-5 years |
| HDBFS | 15.95% to 18.95% | 1-3 years |
| Tata Capital | 13.49% to 19.50% | 1-5 years |
| Kotak Mahindra Bank | 11.5% to 18% | 1-5 years |
| Capital First | 13% to 20% | 1-5 years |
| Citibank | 12.75% to 15.75% | 1-5 years |
| IndusInd Bank Ltd | 12.99% to 18.25% | 1-5 years |
| Fullerton | 19.50% to 37% | 1-4 years |
| Standard Chartered Bank | 12.50% to 17% | 1-5 years |
| ICICI Bank | 11.49% to 17.50% | 1-5 years |
| Aditya Birla Finance Ltd | 14% | 1-3 years |
| Allahabad Bank | 13.70% | 1-5 years |
| Bank of Baroda | 14.15% | 1-3 years |
| Bank of Maharashtra | 15.20% | 1-3 years |
| Bank of India | 12.7% to 14.7% | 1-3 years |
| Canara Bank | 13.65% | 1-3 years |
| Central Bank | 12.70% | 1-3 years |
| Dena Bank | 13 % to 14% | 1-3 years |
| IDBI Bank | 12.75% to 13.75% | 1-5 years |
| Indian Bank | 12.65% to 13.65% | 3 years |
| Indian Overseas Bank | 14.70% | 1-5 years |
| Karur Vysya Bank | 13.9% to 16.40% | 1-3 years |
| Oriental Bank of Commerce | 11.2% to 12.95% | 1-5 years |
| South Indian Bank | 14.80% | 1-4 years |
| State Bank of Bikaner and Jaipur | 13.2% to 14.2% | 1-5 years |
| State Bank of Hyderabad | 15.25% to 15.75% | 1-3 years |
| State Bank of India | 17.80% | 1-4 years |
| State Bank of Mysore | 16.90% | 1-3 years |
| State Bank of Patiala | 12.65% to 14.65% | 1-5 years |
| State Bank of Travancore | 13.2% to 13.45% | 1-5 years |
| Tamilnad Mercantile Bank | 14.4% to 16.4% | 1-5 years |
| UCO Bank | 14.1% to 15.1% | 4-5 years |
| Union Bank of India | 14.4% | 1-5 years |
| Vijaya Bank | 13.7% | 1-5 years |
