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Our Bank has initiated “Project Wave” with an objective to digitize the way of doing business by the Bank. As a part of digital initiative our Bank has launched “Online Shishu MUDRA loan” offering Instant MSME Loan to existing pre-selected customers through end to end digital processing. Customers are pre-selected based on various criteria viz age, credit score and transaction history, etc.

Customers can apply for loan and entire processing, assessment, documentation, sanction and disbursement will be done through digital journey. Customers can avail the facility through any of the following channels:

  • Internet Banking under Apply Loan Tab
  • Mobile Banking under Apply Loan Tab
  • Indian Bank Website

The special benefits of Online Shishu MUDRA loan:

  • No customer visit to Branch
  • No Physical application.
  • No KYC verification as only KYC compliant customers are selected
  • No manual appraisal and sanction by Branch
  • No manual documentation – e-stamping and digital document execution through e-signing
  • No manual account opening and disbursement
  • Instant sanction & disbursement without branch intervention.

 Pre-requisites / Documents:

The applicant to have the following details before applying for Online Shishu Mudra Loan:

  • PAN Card
  • Aadhar Card
  • Udyam Registration Certificate (Linked mobile number should be same as in CBS)
  • Valid e-mail ID
  • Active Mobile number which is linked to the SB/CA account, Aadhar Card and Udyam Registration Certificate (URC). OTP will be triggered to the registered mobile number with respective site

Scheme Guidelines – Online Shishu Mudra loan

Target Group Individuals & Proprietary Firms other than staff  & Goverment Salaried class
  • Indian resident individual/proprietor age must be more than 18 years and should be up to 60 Years.
  • Individuals other than Staff and Govt Salaried
  • Proprietorship firms
  • Should be an existing customer of our Bank for minimum of 12 months.
  • The Business Account either SB or CA should be in Open status and the mode of operation of applicant is single.
  • The customer account must be already C-KYC/E-KYC complied.
  • Asset status is “NOT NPA” presently and in the past 2 years.
  •  The CIF should not have any other business loan from our Bank on date of application.
Purpose Any Bonafied Business purpose including New Business (Manufacturing/Service/Trading activities) 
Age Limit Minimum : 18 years            Maximum : 60 years.
CIBIL Score Minimum CIBIL score of 700 or more OR -1 with no credit history
Eligible Loan amount Minimum:  Rs. 10,000/-      Maximum: Rs. 50,000/-
Facility Term Loan only
Margin NIL
Repayment Minimum : 24 EMIs             Maximum: 60 EMIs
Pre-Payment / Foreclosure
  • The loan may be pre-paid / foreclosed at any point of time.
  • No prepayment/foreclosure charges.
Rate of interest Repo + Spread (4.40%) p.a.

Whenever there is a change in Repo Rate, Rate of Interest will change accordingly and revised EMI is to be calculated and to be recovered accordingly.
Service charges Nil Processing fee, Nil Documentation Fees and Nil Inspection charges
Other charges
  • E-Stamp charges and E-Signing Charges as applicable to the State to be borne by the borrower
  • CIBIL Charges as per Bank’s extant Guidelines to be borne by the borrower
  • CGTMSE Premium and annual service fee for CGTMSE coverage to be borne by the Borrower.


  1. How can I apply for Online Shishu Mudra Loan?
  • The applicant can apply for Online Shishu Mudra Loan through any of the following mode :
  • Indian Bank Website
  • IndOASIS Mobile App
  • Internet Banking
  1. Are there any age criteria for applying Online Shishu MUDRA Loan?
  • Yes, a pre-selected individual older than 18 years and younger than 60 years can apply for this loan.
  1. Do I need to have any account in Indian Bank for applying Online Shishu Mudra Loan?
  • Yes, an applicant should have a Saving Bank Account or Current Account to apply for this loan. The account should be maintained for more than 1 year having regular transactions.
  1. Do I need to visit the branch for applying Online Shishu Mudra Loan?
  • No, not at all.The Online Shishu Mudra Loan is straight through process & the customer can avail the facility online, but in case of assistance he/she may contact the home branch.
  1. I already have a Loan account, can I apply again for Online Shishu Mudra Loan?
  • The applicant should not have any Business Loan before applying for Online Shishu Mudra Loan.
  1. Whether my CIBIL Score will be a criterion for applying Online Shishu Mudra Loan?
  • Yes
  1. Whether my PAN and Aadhar card need to be updated in my Bank Account for applying Online Shishu Mudra Loan?
  • Yes, one has to update the PAN and Aadhar Card in Bank account for applying Online Shishu Mudra Loan. It is advisable to update latest mobile number in Aadhar card and Bank account, before applying for the loan.
  1. Whether any Business Proof document is required for applying for Online Shishu Mudra Loan?
  • Yes, the applicant to have a valid Udyam Registration Certificate (URC). The mobile number registered with URC should be same as mobile number in Bank CBS records.If URC is not available, the applicant can generate URC in the link provided instantly at free of cost
  1. Whether any other proof for unit or business address required other than URC?
  • No other document required, but the applicant to click a selfie at the business location.
  1. What is the Interest Rate for Online Shishu Mudra Loan?
  • Indian Bank’s online Shishu Mudra Loan interst rate is Repo + 4.40 % presently, subjected to change as per change in Repo rate.
  1. How much can I apply for under Online Shishu Mudra Loan?
  • Maximum Loan amount up to Rs.50,000/- can be applied online in this scheme.
  1. What is the Repayment Period for this loan?
  • You can repay in maximum of 60 Months.
  1. What are the processing charges I have to pay for Online Shishu Mudra Loan?
  • There are no processing charges for this loan, but you have to pay the CIBIL and e-stamping and e-signing charges as applicable.
  1. Whether any collateral or security required for this Online Shishu Mudra Loan?
  • Yes
  1. How Loan eligibility will be calculated by the Bank?
  • Bank will arrive the eligibility based on CIBIL score,account transaction history, credit history, age etc.
  1. How can I pay the EMI?
  • The EMI will be auto-debited from your Saving Bank Account or Current Account on the due date.

( Last modified on Dec 01, 2022 at 07:12:45 PM )