Jun. 07, 2022 at 6:00 pm

Know 5 Important Steps to Apply for SBI Mudra Loan!

Deep Techy4 years agoJune 7, 2022No tags

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SBI mudra loan is the business loan provided to individuals and the micro, small and medium enterprises as per the guidance of micro units’ development & refinance agency, also called MUDRA. As per the MUDRA scheme, SBI provides business and SME loans of proceeds of as high as Rs 10 lakh to individuals, self-employed experts and MSMEs. SBI Mudra loan can easily be applied and availed for the loan amount of as high as Rs 1 lakh with a tenure of as high as 5 years.

SBI Mudra loan can simply be used for meeting different working capital needs like enhancing cash flow, buying raw materials, paying rent, stocking up inventory, business expansion and other crucial business linked purposes. SBI Mudra loan or the e Mudra loan is provided to MSMEs, individuals, companies, and enterprises engaged just in manufacturing services and trading sectors. Listed below are SBI Mudra loan features:

SBI Mudra Loan – Major Highlights
Rate of interest	Competitive interest rates linked with the MCLR
Major purpose	Capacity expansion, business purpose, modernization
Loan proceeds	Up to Rs 10 lakh
Kind of loan	Working capital loan and term loan
Target Audience	Business enterprise in the field of manufacturing, services sector, and trading, including agricultural activities
Processing charges and fees	Nil for Kishor and Shishu to MSE unitsIn the case of Tarun: 0.50 percent of the sanctioned proceed + taxes
Prepayment fees	Anywhere between 3 and 5 years and a moratorium period of as high as 6 months based on the income generation and activity. Review of term loan and working capital to be performed annually.
Margin	For a loan amount of as high as Rs 50,000 = Nil and for loan proceed between Rs 50000 and Rs 10 lakh = 10 percent.
Security or collateral requirement	NIL

The stepwise process to apply for an SBI Mudra loan.

The existing bank customers sharing relations with SBI in the form of savings account or current bank account can place an application for e MUDRA loan for an amount as high as Rs 1 lakh by approaching the SBI e mudra portal and following the basic steps mentioned below:

SBI Mudra loan eligibility and features

Important eligibility criteria

To get the SBI Mudra loan, you should meet the listed eligibility parameters:

∙ Must maintain SBI’s savings or current account for a period of at least six months.

Crucial features

∙ Maximum loan proceeds offered equals Rs 1 lakh.

∙ Maximum repayment period can go up to five years.

∙ Instant loans of Rs 50,000 may be available according to the bank’s discretion.

∙ For loan proceeds of over Rs 50,000, applicants must approach the nearest bank branch of the State Bank of India for basic loan formalities.

Crucial documents required for the SBI Mudra loan

To place the application for the SBI Mudra loan, you must submit the listed documents along with the application form. These include:

∙ Duly filled up the loan application form with a passport size photo

∙ Applicant’s KYC documents: Voter ID card, passport, Aadhaar card, PAN card, driving license

∙ Important details of current or savings account branch and number

∙ Business proof. This includes business name, address etc.

∙ UIDAI – Aadhaar number (must be updated in the account number)

∙ Community info (SC, ST, General, minority or OBC)

∙ Other important details for uploading such as UDYOG Aadhaar & GSTN

∙ Shop and establishment proof and business registration

∙ Other important documents

Eligibility for SBI Mudra loan

∙ Applicants should be engaged in the non-farm income yielding activities, either services or manufacturing sectors.

∙ Applicants must reside at the same location for nearly 2 years.

SBI Mudra loan details
Category	Loan proceeds
Tarun	Rs 5 lakh to Rs 10 lakh
Kishor	Rs 50,000 to Rs 5 lakh
Shishu	Up to Rs 50,000

Additionally, to fund, Mudra also provides a credit guarantee on loans, which serves as a type of technology enabler which offers promotional and developmental support. Funding support is provided via 4 avenues:

∙ Via MCS (micro-credit scheme) for loans of as high as Rs 1 lakh, where funding comes via microfinance institutions.

∙ Using the refinance scheme for RRBs (regional rural banks), commercial banks and SCBs (scheduled co-operative banks).

∙ Via women’s enterprise program

∙ By the securitization of the loan portfolio

Bank offers SBI Mudra loan for the working capital requirements and as the repayment loan term to mitigate different business requirements. The maximum loan amount provided by the State Bank of India as per Mudra Yojana equals Rs 10 lakh. Enterprises engaged in provisions or manufacturing of services are often eligible for a CGTMSE guarantee, while the same is not offered to companies engaged in the retail trade. CGTMSE (credit guarantee fund trust for micro & small enterprises) assures loans under the SBI Mudra scheme to the eligible applicants for up to a particular loan amount.

Important documents required for processing of the SBI Mudra loan:

Listed documents must be submitted for Tarun, Kishor or Shishu loan scheme:

∙ A filled-up application form with the passport-sized photo

∙ Identity proof: Voter ID, passport, PAN card, driving license, and Aadhaar card

∙ Residence proof: Current electricity or telephone bill, Aadhaar card, voter ID card and passport.

∙ Income proof: Past six months’ bank statement

∙ Proof of belonging to OBC, SC or ST or any minority section, if applicable.

∙ Other crucial documents

Additional advantages

Borrowers funded as per Mudra loan are given a RUPAY debit card called Mudra card for POS transactions and withdrawals under 3 crucial loan categories, namely Tarun, Kishor and Shishu.