Union Bank Mudra Loan: Apply, Documents and Status Guide (2026)
Reviewed by: WeCredit Research Team
Last updated: September 16, 2026
Union Bank Mudra loan is Union Bank of India’s lending route under Pradhan Mantri MUDRA Yojana (PMMY). It helps eligible micro enterprises get term loan or working capital support for manufacturing, trading, services and professional activities, including Union Bank’s digital Mudra STP options.
Quick answer: Union Bank offers Mudra support under Shishu, Kishor, Tarun and Tarun Plus, with online Mudra STP routes for eligible applicants. Shishu STP is commonly available up to Rs. 50,000 for existing customers. Approval, interest, margin and tenure depend on Union Bank’s checks.
Union Bank Mudra Loan Categories
| Category | Loan amount | Who it is for |
|---|---|---|
| Shishu | Up to Rs. 50,000 | New or very small businesses needing basic working capital |
| Kishor | Above Rs. 50,000 and up to Rs. 5 lakh | Existing micro businesses needing inventory, tools or early expansion |
| Tarun | Above Rs. 5 lakh and up to Rs. 10 lakh | Established micro businesses planning growth |
| Tarun Plus | Above Rs. 10 lakh and up to Rs. 20 lakh | Borrowers who have availed and successfully repaid a previous Tarun loan |
Union Bank’s Mudra STP pages list digital processing for Shishu, Kishor, Tarun and Tarun Plus. Always confirm the live category and amount available for your profile on the bank site before applying.
Union Bank Mudra Loan Eligibility
As per Union Bank’s Union Mudra scheme page, eligible borrowers are usually micro enterprises engaged in manufacturing, trading and services, including professionals such as CAs, company secretaries, architects and medical professionals, subject to bank policy.
- The loan should be for an income-generating business purpose, not personal expenses.
- Facility may be offered as composite loan, term loan and/or working capital.
- Shishu STP is often positioned for existing Union Bank customers needing up to Rs. 50,000.
- Tarun Plus is only for entrepreneurs who have successfully repaid a previous Tarun category loan.
- Union Bank may check KYC, account conduct, business purpose, documents and repayment capacity.
Documents Required for Union Bank Mudra Loan
Exact documents depend on category, facility type and whether you apply through Mudra STP or a branch. Keep these ready.
- Filled Mudra or MSME application form with photographs
- Identity proof such as Aadhaar, PAN, passport, voter ID or driving licence
- Address proof of applicant and business premises
- Bank statements for recent months
- Business proof such as Udyam registration, shop licence, GST details or professional registration
- Quotation, invoice, stock estimate or use-of-funds note
- ITR, sales records or financial statements for higher amounts
- Proof of successful Tarun repayment for Tarun Plus
Interest Rate, Security and Tenure
Union Bank publishes product terms and interest-rate references on its Mudra STP pages. Final pricing still depends on the sanctioned facility and your profile.
- Ask for the current interest rate, processing fee, convenience fee and total repayment amount before accepting.
- Confirm whether the facility is term loan, working capital, overdraft or another eligible structure.
- Mudra loans are designed as collateral-free under PMMY, though primary security on assets created from the loan may still apply.
- Match the EMI or repayment cycle with your business cash flow.
How to Apply for Union Bank Mudra Loan
- Read the latest details on the official Union Mudra page and Mudra STP page.
- Choose Shishu, Kishor, Tarun or Tarun Plus based on your funding need.
- Prepare KYC, bank statements, business proof and a clear use-of-funds note.
- Apply through Union Bank Mudra STP online services where available, a Union Bank branch, or JanSamarth.
- Complete verification and any additional documentation requested by the bank.
- Read the sanction letter for rate, fees, tenure and repayment conditions before accepting.
How to Check Union Bank Mudra Loan Status
Track status only through official Union Bank channels. Use the acknowledgment or application ID shared during Mudra STP or branch application, the bank’s track-application option where available, or the JanSamarth dashboard if you applied there. Avoid third-party sites that ask for fees or OTP outside bank flows.
Useful Related Guides
- Mudra Loan Eligibility and Documents
- SBI Mudra Loan
- HDFC Bank Mudra Loan
- Canara Bank Mudra Loan
- How to Track Mudra Loan Application Status
Official Sources
- Union Bank – Union Mudra
- Union Bank – Mudra STP
- Union Bank – Mudra STP (Shishu, Kishor, Tarun and Tarun Plus)
- JanSamarth
- Department of Financial Services – PMMY
Conclusion
Union Bank Mudra loan can help eligible micro businesses access formal credit under PMMY, including digital Mudra STP routes. Choose the right category, keep documents ready, apply only through official Union Bank or JanSamarth channels, and confirm current terms before you accept the sanction.
Frequently Asked Questions
What is Union Bank e-Mudra or Mudra STP?
Mudra STP is Union Bank’s online or straight-through processing route for eligible Mudra applicants. Shishu STP is commonly used for smaller tickets, while Kishor, Tarun and Tarun Plus may use separate STP flows.
What is the maximum Union Bank Mudra loan amount in 2026?
Eligible borrowers may get up to Rs. 20 lakh under Tarun Plus if they have successfully repaid a previous Tarun loan. Confirm the live category and limit on Union Bank’s current Mudra pages.
Is collateral required for Union Bank Mudra loan?
Union Bank states that Mudra loans do not require collateral. Primary security on assets created from the loan and bank verification still apply.
How do I check Union Bank Mudra loan status?
Use your application or acknowledgment ID on Union Bank’s official track-application options, follow up with the branch, or check JanSamarth if you applied there.
