Union Bank MUDRA Loan
About This Loan
Union Bank of India offers MUDRA loans across Shishu, Kishore, and Tarun categories for micro entrepreneurs across urban, semi-urban, and rural India. The bank has a strong focus on rural and semi-urban lending with dedicated MSME loan officers at every branch. After the merger with Andhra Bank and Corporation Bank, Union Bank now has one of the most extensive branch networks among nationalised banks. Quick processing and digital-first application are supported through the Union Udaan portal and Union Bank mobile app, allowing most Shishu and small-ticket Kishore loans to be processed within 7 to 10 working days. The bank prioritises lending to first-time borrowers, women entrepreneurs, and reserved category applicants.
Maximum Amount
₹10,00,000
Interest Rate
9.80% – 13% p.a.
Tenure
Up to 5 years
Collateral
Nil
Processing Fee
Nil (Shishu) / 0.50% (Kishore & Tarun)
Eligibility
Indian citizen with viable non-farm business plan; KYC compliant; no default history.
Application Process
- 1Visit Union Bank branch or apply via unionbankofindia.co.in
- 2Submit application with supporting documents
- 3Branch processes and sanctions within 7-21 days
Documents Required
- Loan application form
- Aadhaar and PAN card
- Business plan or project brief
- Bank statements (for Kishore/Tarun)
- Business proof / Udyam Registration
Official Links
Related Government Schemes
Disclaimer
This information is sourced from publicly available bank and financial institution websites. EduMetrics is not a financial advisor or lending institution and does not guarantee the accuracy of interest rates, eligibility criteria, or loan terms. Please verify all details with the respective bank before applying.