SBI E Mudra Loan – Interest rate, Apply Online, Process, Eligibility

SBI E Mudra Loan: We are all aware that the Government of India never losses any chance to promote small enterprises and industries. The government launched Pradhan Mantri Mudra Yojana (PMMY) in 2015 under which small-scale industries, startups and companies will get loans at different loan interests. In 2022, the State Bank of India which is one the largest loan-providing public sector banks in India launched their E Mudra Loan under the Pradhan Mantri Mudra Yojana (PMMY). If you are planning to start a new company/business then you should know some details about the SBI E Mudra Loan explained in this article or you can also visit the SBI’s official website (sbi.co.in).

Contents

SBI E Mudra Loan

The SBI E Mudra loan yojana will give the owners of small enterprises a chance to expand their businesses and contribute to the GDP of the country. Private/ Public/RRBs (Gramin)/ Small Finance Banks/NBFCs & MFI’s will sign loans from ₹50,000 to ₹10,00,000 to the small, medium and large scale enterprises. Check more information about the SBI E Mudra Loan eligibility, interest rate and application process with the help of the sections given below.

SBI E MUDRA Loan

SBI E-Mudra Loan Yojana 2022: An Overview

Yojana Name SBI E-Mudra Loan
Bank Name State Bank of India
Initiated ByGovernment of India
Launch Year2022
Category Scheme
Beneficiariessmall scale enterprises/companies
Benefits providing loans to businesses
Application FormAvailable Soon
Submission Mode Online
Official Website sbi.co.in

Purpose of SBI E-Mudra Loan Yojana

The purpose of the SBI E-Mudra Loan Yojana are as follows:

  • Business Expansion: The scheme will provide financial help to businesses by signing loans for their startups, machinery updates and many more.
  • Type of Facility: Under this scheme, the bank will provide two types of loans to the enterprises: Term Loans (loans for machinery) or Working Capital (loans to meet up the regular expenses of the company).
  • Target: The main target of the SBI E-Mudra loan is to expand various business segments which includes: manufacturing, trading and services including allied agricultural activities.
  • Quantum of Loans: The maximum amount of loan is ₹10,00,000 which will be given under three different categories like SHISHU, KISHORE & TARUN.
  • Margin Rate: The margin money is the amount which the citizen has to contribute from their own pocket also. The margine rate for ₹50,000 is NIL, ₹50,001 to ₹10,00,00 is 10%.
  • Interest Rate: The interest rate for the loan will be calculated MCLR which will be decided by the bank.
  • Repayment Period: The repayment period for WC/TL is between 03-05 years including a moratorium of upto 06 months depending upon the activity/inome generation of the company.
  • Processing Fee: The processing fee for SHISHU & KISHORE loan is NIL but for TARUN loan the processing fee is 0.50% (plus applicable tax) of loan amount.

SBI MUDRA Vision & Misison

  • Vission: The main vision of the SBI E MUDRA is to be financial and support services provider with full excellence, benchmarked with global best practices and standards for the bottom of the pyramid universe for their comprehensive economic and social development.
  • Mission: SBI’s E MUDRA mission is to create an inclusive, sustainable entrepreneurial culture in collaboration with their partner institutions with the aim of achieving economic success and financial security.

SBI E Mudra Loan Yojana Benefits

SBI MUDRA Loan can overcome the financial hurdles of the micro, small and medium entrepreneurs who want to work in diverse sectors. The benefits which can be availed under the yojana are:

  • Overdraft facility: The entrepreneur can get the benefit of an overdraft with the mudra card. The mudra card is a card that offers cash credit services and also acts as a debit card.
  • Processing Fee: Banks don’t collect any processing fee for the Mudra loan. Also, if you don’t possess any collateral or security, these loans can be collateral free.
  • Purchasing Inventory: The SBI Mudra loan can be taken for the business expansion, modernization and purchasing equipment.
  • Lower Interest Rate: The interest rate on the Mudra loans is decided as per the RBI guidelines and is lower than regular business loans.
  • Special concession to women borrowers: Under this yojana, the government encourages women to start their enterprises and can avail mudra loans at a discounted rate.
  • Notal Agency: All the loans that are being offered under the MUDRA yojana are secured by the Credit Guarantee for Micro Units (CGMU) and National Credit Guarantee Trustee Company (NCGTC).

JN Tata Endowment Loan Scholarship

Eligibility for SBI E Mudra Loan

The eligibility criteria decided by the bank for the SBI E Mudra Loan are:

  • New & Existing Micro & Small Enterprises.
  • The age limit of the citizen should lie between 18-65 years old.
  • You shouldn’t be the defaulters of any bank.
  • The loan is available for both Urban & Rural areas.
  • Individuals, Proprietors, Partnership, Companies, Traders can apply for loan.

Schemes under Mudra Loan

There are three types of schemes that come under the Mudra Loan and those are:

  • SHISHU Mudra Loan: The bank provides loan of ₹50,000 to those enterprises who are entering into the market for the first time.
  • KISHORE Yojana: Once your businees is settled and you want to expand it then you can apply for KISHORE Yojana under which you’ll get the loan between ₹50,000 – ₹5,00,000.
  • TARUN Yojana: To diversify the business, you can get the loan under the TARUN Yojana whose amount is ₹5,00,000-10,00,000.

Documents required for SHISHU, KISHORE & TARUN loan

The documents required for the SHISHU Mudra loan are as follows:

  • Application Form.
  • Government IDs (Aadhaar Card, PAN Card, Voter ID).
  • Residence Proof.
  • Bank Passbook.
  • 2 recent coloured passport-size photographs.
  • Quotation of machinery/other things to be purchased.
  • Supplier name/details of machinery.
  • Business address proof & any registration or license.
  • Category certificate.

Documents required for KISHORE & TARUN loan yojana are given below:

  • Government Ids.
  • Bank Statement (06 months), ITR, STR.
  • Balance Sheet (Last 02 years).
  • Projected balance sheet.
  • Sales in last financial year.
  • Project Reports (Economic & Financial Liability).
  • Reg papers, Licenses, partnership deeds, Rent agreements.
  • 2 recent coloured passport-size photographs.
  • Residence proof.
  • Category certificate.

Documents required for SBI E Mudra Loan

The list of various documents that are required to apply for the SBI E Mudra loan are given below:

  • Aadhaar Card, PAN Card.
  • Business entity name.
  • Company address.
  • Services provided by the company.
  • Company details & papers.

How to apply online for SBI E MUDRA loan?

The State Bank of India always makes sure that its customers avail the services via online and offline methods. The process to apply for the business loan under the MUDRA yojana is hassle-free for which the bank has created a separate page where applicants can apply and submit the required documents accordingly. The steps to apply for a MUDRA loan are as follows:

  • Go to the official website of SBI (sbi.co.in).
  • Under the section of ‘Other Services’, tap on ‘E-Mudra loans’ and click on ‘Process’ box.
  • On the next page, read all the instructions and then select the ‘OK’ option.
  • Start the application process by entering your basic details such as Mobile No, SBI Savings/ Current Account Number and Required loan amount.
  • A new web page will be showing the SBI E Mudra application form, fill up the left-out spaces with the details asked.
  • Then upload the documents and select ‘I Agree’ for the Terms & Conditions followed by the e-Sign.
  • Proceed with e-Sign by entering your Aadhaar Card details and verifying the OTP.
  • After the successful verification of your Aadhaar No, your application form will be transferred to the loan department.

Reasons for rejection of SBI E Mudra application form

The various reasons on the basis of which the bank can reject the SBI E Mudra application form are:

  • If the business plan doesn’t have a proper vision, or strategy and couldn’t convince the bank to sign the loan.
  • The poor banking history of the applicant or the business i.e. not being able to clear the previous loan or the company is getting bankrupt.

Additional Benefits

The applicants can purchase the MUDRA RuPay debit card under the name of MUDRA Card for cash withdrawals and transactions at the point of sale. Its properties are determined in the following table:

LimitSHISHUKISHORE TARUN
Daily cash withdrawals limits ₹10,000₹15,000₹20,000
Daily POS limits ₹15,000₹25,000₹30,000

SBI E Mudra Loan Links

Official Website sbi.co.in
MUDRA page mudra.org.in
What is MUDRA?

MUDRA, which stands for Micro Units Development & Refinance Agency Ltd., is a financial institution set up by the Government of India for the development and refinancing of micro-unit enterprises.

Who are eligible for assistance from the MUDRA?

Non–Corporate Small Business Segment (NCSB) comprising of millions of individuals, proprietorship firms running as small manufacturing units, service sector units, shopkeepers, fruits/vegetable vendors, truck operators etc.

What schemes come under the PMMY?

There is a total of three schemes that come under the Pradhan Mantri Mudra Yojana (PMMY) and those are SHISHU, KISHORE & TARUN.

What is the rate of interest on MUDRA loans?

The interest rate is deregulated and the participating banks have been advised to charge reasonable interest rates within the RBI guidelines.

Photo of author

About Author

Leave a Comment

Join Telegram