Central Bank of India Mudra Loan

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If you are running a non-corporate micro or small business, you can apply for MUDRA loan through the Central Bank of India. Central Bank of India MUDRA Loan extends a credit for up to Rs. 10 Lakhs at a flexible tenure between 3 and 5 years.

Central Bank of India MUDRA Loan Highlights

Here is a quick overview of the basic details of Central Bank of India MUDRA Loan:

Credit Nature	Working capital loan Term loan Equipment Finance Credit for agriculture-allied non-farm units
Purpose	Meeting the credit requirements for running commercial activities Buying necessary equipment, machinery, or other necessary items Expanding your new or existing venture
Eligible Borrowers	Owners of small non-corporate businesses
Loan Amount	Starting from Rs. 50,000 to Rs. 10 Lakhs; varies according to different MUDRA interventions: Shishu: Up to Rs. 50,000 Kishor: Between Rs. 50,000 and Rs. 5 Lakhs Tarun: Between Rs. 5 Lakhs and Rs. 10 Lakhs
Repayment Period	3 to 5 years
Processing Fees	No processing fee under Shishu and Kishor 0.5% under Tarun
Interest Rate	MCLR-based interest rate 10.00% onwards

Disclaimer: The MUDRA loan is a financial product of the Central Bank of India, wherein, Bajaj Markets intends to help customers know about it in detail. Details like the interest rate, processing fees, credit limit, etc., are subject to change. Visit the website of the Central Bank of India for more details.

Central Bank of India MUDRA Loan Features

Central Bank of India is one of the major intermediary financial institutions that help the government provide financial assistance to small business setups. Following are the different features of the Central Bank of India MUDRA loan:

You can apply for a MUDRA loan under three categories. These are Shishu, Kishor and Tarun.
It aims to respond to the credit shortages of small businesses, such as shopkeepers, small manufacturing units, repair shops, etc.
This MUDRA loan has no obligation to collateralise properties, thereby reducing hassles and time for loan applications.
You can choose your tenure within the range of 1 to 5 years according to your repayment potential.
The Central Bank of India MUDRA Loan comes with zero processing fees and foreclosure charges.
The credit availed through this MUDRA loan has no end-usage restriction. You can use the amount as per your necessity.
You will also get a MUDRA debit card to withdraw the required capital when necessary.
Beneficiaries of the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme will get the overdraft facility.

MUDRA Loan Interventions	Base Interest Rate
Shishu	MCLR
Kishor	MCLR
Tarun	MCLR

Central Bank of India MUDRA Loan Eligibility Criteria

You can get this MUDRA loan from Central Bank of India by meeting the easy eligibility standards as mentioned below:

Should be the owner of small businesses like fruit and vegetable shops, food-service units, machine operators, repair shops, food processing units, etc.
Retailers, traders, artisans, manufacturers, and small vendors can also get the credit facility.
Must have a sound business plan with the potential to generate profit.

Documents Required for Central Bank of India MUDRA Loan

You need to stay prepared with photocopies of the following documents for the Central Bank of India MUDRA Loan:

Identification Proofs: Passport, driving licence, Aadhar card, voter id, etc.
Residential Proof: Gas bill, power bill, water bill, driving licence, Aadhar card, voter ID, etc.
Business Documents: GST registration certificate, income tax returns, balance sheet, profit and loss account, rental agreement, etc.
Bank account statements for the last 6 months
Photocopies of the loan applicant

Steps on How to Apply for Central Bank of India MUDRA Loan

You can easily apply for this loan by following the steps mentioned below:

Step 1: Visit the Udyamimitra portal and create your user account on the platform.
Step 2: Log in to the portal and fill in the MUDRA loan application form.
Step 3: Choose the nearest branch of the Central Bank of India as your lending institution.
Step 4: Visit the selected branch for the manual submission of your MUDRA loan application form and the necessary documents.

After completing these steps, you will have to wait for the approval of your loan requests. Then, you will receive the sanction letter for your loan.

Central Bank of India Customer Care

For any of your assistance regarding the Central Bank of India MUDRA Loan, you can contact the lending institutions via:

Toll-Free Contact Number: 1800 202 1911/1800 203 1911

DISCLAIMER

The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

Mudra Loans Offered by Banks

Mudra Loan Articles

What is the interest rate for the Central Bank of India PM MUDRA Loan?

The interest rate on the Central Bank of India MUDRA loan starts from 10% per annum. This rate varies across the different interventions like Shishu, Kishor and Tarun.

Is there any subsidy for the Central Bank of India MUDRA Loan?

Subsidy is not applicable for the Central Bank of India MUDRA loan. However, if your loan is linked with any government scheme allowing subsidy, you may be able to leverage that to decrease your cost of borrowing.

Is there any security needed for the Central Bank of India PM MUDRA Loan Yojana?

The Central Bank of India MUDRA loan is a collateral-free credit facility. You do not need to mortgage any of your assets as a security against the loan.

Is a guarantor required for the Central Bank of India PM MUDRA Loan Scheme?

Guarantor is not necessary for this MUDRA loan. You can be eligible for the credit facility as long as you meet the required criteria.

Is the Central Bank of India MUDRA Loan available for rural customers?

The MUDRA loan is available for both rural and urban business owners. Beneficiaries just need to ensure that they meet the eligibility criteria for this credit facility properly.

Can my MUDRA loan application form be rejected from the end of the Central Bank of India?

If you meet the eligibility criteria for the MUDRA loan and you fill in the application form correctly, the chances of getting a rejection on your credit request are negligible. Further, since you give no collateral, you need to provide the necessary documents substantiating the growth aspect of your business.