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SBI e-Mudra Loan

SBI Mudra Loan

Last Updated 03rd Dec 2020

Interest Rate 8.40% to 12.35%
Loan Amount Up to ₹ 1 Lakh
Types of SBI Mudra Loan Shishu, Kishor & Tarun
Processing Fee & Charges Shishu and Kishor- Nil
Tarun: 0.50% of the loan amount + taxes
Collateral Security Nil
Nature of Credit Working Capital & Term Loan
Repayment Period 3 to 5 years
Apply for Business Loan @ 13.50%* Get upto ₹ 1,000* Cashback

SBI e-Mudra

To promote the small enterprises in India, the government of India introduced Prime Minister Mudra Yojna in the year 2015. Under this scheme, the business loans can be availed up to ₹ 10 Lakh by non-corporate,non-farm and micro-enterprises. These loans are known as mudra loans and can be availed through any banks; rural banks, small banks, commercial banks or non- banking finance institutions.

State Bank of India, which is one of the largest public sector banks in India, also provides Mudra Loan to Micro, Small & Medium Enterprises (MSMEs). These loans can be availed to meet various business requirements, such as business expansion, modernization, buying machinery, and other business-related purposes. Mudra Loan can be availed by Non-Corporate Small Business Segment comprising small manufacturing units, service sector units, shopkeepers, vendors, repair shops, artisans etc.through SBI Bank. If you have an SBI Savings and Current accounts you can also apply for the SBI Mudra loan upto ₹ 1 Lakh online through SBI e-Mudra portal - https://emudra.sbi.co.in:8044/emudra .

How to Apply for State Bank of India e-Mudra Loan Online?

To apply for SBI e-Mudra Loan follow the below-mentioned steps.

Step 1: Visit SBI e-mudra portal and then click on 'Proceed'.

Step 2: Now, read the instructions given in Hindi or English and click on the "Ok" button.

Step 3: You will now be redirected to a new page. Enter details such as your Mobile Number, SBI Savings/Current Account Number, Required Loan Amount and click on Proceed.

Step 4: Now, fill the online application form for Mudra Loan and upload the necessary documents.

Step 5: Next, accept the terms and conditions with an e-sign. You also need to provide your Aadhaar number to provide consent for using Aadhaar for e-Sign.

Step 6: Finally, you will receive an OTP on the mobile number registered with Aadhar. Enter this OTP to complete your application.

e- Mudra Loan Eligibility

You can apply for SBI Mudra Loan online if you meet the following eligibility criteria.

  • Individuals applying for SBI e-Mudra Loan should be a micro-entrepreneur.
  • You can apply for an e-Mudra Loan if you have an existing SBI's current or savings account for at least six months.
  • You can get a maximum loan amount of ₹ 1 Lakh with e-Mudra Loan. Further, there is Instant loan availability of ₹ 50,000 as per Bank's discretion.
  • The maximum repayment period for SBI e-Mudra Loan is up to 5 years.

SBI Mudra Loan Eligibility

Before applying for SBI Mudra Loan, you must check the following eligibility criteria for the successful approval of loan application.

  • SBI Mudra Loan can be availed by any Indian Citizen who has a business plan for a non-farm income-generating activity. These include activities such as manufacturing, processing, trading or service sector.
  • Micro, Small and Medium enterprises can get credit up to ₹ 10 Lakh for business expansion, buying equipment etc. through a Bank, MFI or NBFC.
  • To avail SBI Mudra Loan, you must be a resident at your current location for the last two years.
  • The minimum age of the applicant must be 18 years, and the maximum age limit for SBI Mudra Loan is 65 years.

Documents Required for Mudra Loan from SBI

To avail SBI Mudra Loan, you require specific documents for each Loan product.

    These are the documents that you require for Shishu Mudra Loan:

  • Registration certificate of GST
  • Udyog Aadhar details
  • SBI account details
  • Shop & Establishment Certificate

Documents required for Kishore and Tarun Mudra Loan

  • Proof of Identity such as PAN, Voter ID,
  • Aadhar Card, Passport etc.
  • Proof of Residence such as Utility bills, Passport
  • Property Tax receipt, etc.
  • Bank Statements for the last 6 months.
  • Price Quotations for buying equipment or machinery.
  • Aadhar & proof of establishment for Business ID.
  • Profit & Loss statement for the previous 2 years
  • Balance Sheet statement for the last 2 years.
  • Partnership Deed and Legal Arrangement documents
  • Passport size Photographs of the applicant.

Benefits of SBI Mudra Loan

SBI Mudra Loan can overcome the financial hurdles of micro, small and medium entrepreneurs who want to work in diverse sectors. They can avail the following benefits.

  • Overdraft facility: You can also get the benefit of an Overdraft facility with Mudra Card. It is a card that offers cash credit services and also acts as a debit card. Mudra Cards can be swiped at Points of Sale (PoS) with merchants or to withdraw cash from an ATM.
  • Processing fees: Banks don't charge any processing fees for a Mudra loan. Also, if you don't possess any collateral or security, these loans are collateral-free.
  • Purchasing inventory: SBI Mudra Loan can be taken for business expansion, modernization of business, purchasing equipment etc. Also, as part of the scheme, there is a separate provision for purchasing the inventory for expanding their business.
  • Lower Interest Rates: The rate of Interest on Mudra Loans is determined as per the RBI guidelines are thus lower than regular business loans.
  • Special concession to women borrowers: Under Mahila Uddyami Yojana, the government encourages women to start their enterprises. Therefore, she can avail SBI Mudra loan at a discounted rate.

FAQs

How can I get an SBI Mudra loan?

Non-Corporate Small Business Segment (NCSBS) comprising small manufacturing units, service sector units, shopkeepers, vendors, repair shops, artisans etc. in rural and urban areas can get an SBI Mudra Loan by visiting the SBI Bank. If you have already had an existing Savings or Current account in SBI, you can also get Mudra Loan online upto ₹ 1 Lakh through SBI e-Mudra portal -https://emudra.sbi.co.in:8044/emudra.

What is e Mudra loan?

Mudra or Micro Units Development and Refinance Agency provides refinance to Banks / MFIs / NBFCs for lending to support the business needs of micro-units with loan requirements upto ₹ 10 Lakh . These business loans provided under Mudra Yojana are known as Mudra Loans. Mudra Loan can also be taken by enterprises online through a Bank website and is known as e Mudra Loan.

Is there a need to provide a security or collateral against the SBI Mudra loans from the SBI?

No, as per the guidelines of RBI, you do not need to provide a security or collateral against the Mudra Loans from the SBI if you are eligible for Mudra Loans.

Can people in urban areas apply for an SBI Mudra loan?

Yes, firms operating as small manufacturing units or in service sector units, shops and stalls etc. in both Urban and Rural areas can apply for an SBI Mudra Loan.

What is the interest rate for Mudra loan in SBI?

The lending institution determines the interest rate on Mudra Loan as per the guidelines of RBI. SBI Mudra Loan interest rate ranges between 8.40% to 12.35% per annum and changes as per MCLR rates.


Business Loan News - Dec 2020
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    DHFL reported a consolidated net loss of ₹2,122.65 crores in the second quarter of the fiscal against a net loss of ₹6,640.62 crores in the same period a year ago. DHFL reported a total income of ₹2,205.90 crores backed by retail loans like home, personal, car, two-wheeler and gold loans along with mudra and business loan.
  • 2020-11-27 : ESAF Bank opens 500th branch in Ahmadabad
    ESAF Bank opens 500th branch in Ahmadabad. The bank is aiming to offers equal opportunity for the whole society through universal access. It offers retail loans like home, personal, car, two-wheeler and gold loans along with mudra and business loan.
  • 2020-11-26 : Credit growth slows to 5.8% in the September quarter
    RBI reported that the credit growth which includes retail loans like home, personal, gold, two-wheeler and car loan along with business and mudra loan decelerated to 5.8% in the September quarter from 8.9% in the year-ago period. Further, deposits which include FD and RD increased by11% year-on-year in the July-September period as compared to 10.1% growth a year ago. The share of current account and saving account (CASA) in total deposits stood at 42.3% in September 2020 compared to 41.2% a year ago.
  • 2020-11-26 : HDFC Bank, ICCI join hands to support SMEs, start-ups
    Inventivepreneur Chamber of Commerce and Industries or ICCI has signed an MoU with HDFC Bank to support SMEs and start-ups. ICCI will engage, enrol, and bolster various start-ups, SMEs, MSMEs to facilitate inter-alia financial and other facilities to and from HDFC Bank.
  • 2020-11-25 : RIL has set to refinance overseas loans worth ₹10,500 Cr to reduce borrowing costs
    Reliance Industries plans to refinance ₹10,500 Cr worth of overseas loans to slash borrowing costs. The new debt will cost up to 70 basis points less, helping save on interest costs. Standard Chartered Bank, Citigroup, State Bank of India, MUFG, HSBC, and DBS Bank are in talks with the RIL.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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