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Union Mudra

1. Eligibility All Micro enterprises engaged in manufacturing, trading and service sector including professionals (like CA/ICWA/CS/Architect/Medical professionals etc) will be eligible under the scheme.
2. Purpose • Need based term loan / CC Limit / Composite loan to eligible borrowers for acquiring capital assets and / or working capital marketing related requirements.
• Term loan / CC Limit / Composite loan to be provided only for income generating small business activities and not for consumption purposes.
3. Quantum of Finance - Maximum limits upto Rs.10.00 lacs can be sanctioned to meet need based requirement.Mudra loan are categorized as under depending on exposure.
Shishu Loan amount upto Rs.50,000/-
Kishore Loan amount exceeding Rs.50,000/-and upto Rs.5.00 lacs
Tarun Loan amount exceeding Rs.5.00 lacs and upto Rs.10.00 lacs
4. Margin Minimum Margin under Union Mudra is as under:
• 5% for loans falling under the Shishu loan category.
• 10% for loans falling under the Kishore loan category.
• 25% for loans falling under the Tarun loan category.
5. Interest Rate • The Rate of Interest would be as per the extant interest rate circular of our Bank.
• The Rate of Interest in case of PMMY accounts under agri allied activities / OD in PMJDY accounts covered under CGFMU shall be as per the extant guidelines.
6. Documentation Charges Flat Rs.500 + actual stamp duty, if any (Out of pocket expenses to be recovered by the Bank)
7. Facility Composite Loan. Term Loan and / or Working capital (Fund Based)
8. Security/Guarantee Primary:All assets created out of Bank’s finance shall be charged in favour of Bank by way of hypothecation / mortgage etc.
• Personal guarantee of all borrower(s), promoter directors, proprietor, partners of the firm.
No third party guarantee shall be taken, since the loan is to be covered under CGTMSE scheme.
9. Repayment i) Working Capital:
12 months subject to renewal as per extant guidelines.Interest to be recovered as and when due.
ii) Term Loan:
a. To be repaid within maximum period of 84 months in equated monthly instalmentsinclusive 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.
b. Branches may sanction for shorter tenor for the loan after evaluating the cash flow of the project/activities and the productive lifecycle of the asset created.
iii) Repayment to be made in Equated Monthly Instalments(EMI).

• For more details, Please contact our nearest branch.