SBI (State Bank of India) offers E-Mudra loan as part of the government’s Pradhan Mantri Mudra Yojana (PMMY) scheme. Under this scheme, SBI offers loans to small and micro-enterprises under the three different categories – Shishu, Kishore and Tarun.
The interest rate for SBI E-Mudra loan is based on the Marginal Cost of Funds based Lending Rate (MCLR) which is subject to change from time to time. As of 2021, the interest rate for E-Mudra loan ranges from 8.50% p.a to 9.50% p.a.
The process of applying for SBI E-Mudra loan is simple, and can be done online through the SBI website or by visiting the nearest SBI branch. To apply for the loan, the applicant needs to submit the required documents such as PAN card, Aadhar card, proof of business, and bank statement. The loan amount will be disbursed directly to the applicant’s bank account after the loan is approved.
It’s worth noting that the terms and conditions, and the interest rate of SBI E-Mudra loan may change over time, so it’s important to check with the bank for the latest information.
E-Mudra Loan Interest Rate
The interest rate for E-Mudra loan varies depending on the type of loan and the lending institution. The Mudra loan scheme has three different categories Shishu, Kishore, and Tarun for different types of businesses and loan amount.
- Shishu: Loans up to Rs. 50,000. Interest rates for this category can vary from bank to bank, but they are generally lower than the rates for other types of loans.
- Kishore: Loans between Rs. 50,000 and Rs. 5 lakhs. Interest rates for this category are typically higher than the rates for Shishu loans, but still relatively low.
- Tarun: Loans between Rs. 5 lakhs and Rs. 10 lakhs. Interest rates for this category are generally higher than the rates for Kishore loans.
It’s worth noting that interest rates may fluctuate and change over time, so it’s important to check with the lending institution for the current interest rate for E-Mudra loan. Additionally, interest rates may vary based on the creditworthiness and repayment capacity of the borrower.
It’s important to note that E-Mudra loans are offered by various banks and NBFCs and the interest rate may vary depending on the lending institution, so it’s advisable to check with the specific bank for the current interest rate.
Disclaimer: These details are subjected to changes. Please double check before taking a call.
How to Apply for an e-Mudra Loan
The process of applying for an E-Mudra loan can vary depending on the lending institution, but generally, it involves the following steps:
- Visit the website of the lending institution or the nearest branch to know about the details of the loan and the documents required.
- Gather the required documents such as PAN card, Aadhar card, proof of business, and bank statement.
- Fill out the online application form on the lending institution’s website or visit the nearest branch to fill the form
- Submit the required documents along with the application form.
- Wait for the loan to be approved. The lending institution will conduct a credit check and evaluate the viability of the business plan before approving the loan.
- Once the loan is approved, the loan amount will be disbursed directly to the applicant’s bank account.
- Start your business or use the loan amount to expand your existing business.
It is important to note that different banks have different criteria and documents requirement, so it is best to check with the specific bank for the latest information on E-Mudra loan application process.
Eligibility Criteria and Documents Required
The eligibility criteria and documents required for an SBI E-Mudra loan vary depending on the type of loan and the category of the borrower. However, generally, the following criteria and documents are required:
- Age Limit: 18 years to 65 years
- Who can Apply: Both new and existing businesses
- Where to Apply: Private Sector Banks, Public Sector Banks, , Small Finance Banks, Regional Rural Banks, and Micro Finance Institutions
- Collateral: No need for collateral
- PAN card
- Aadhar card
- Business registration proof (such as GST registration certificate, trade license, etc.)
- Bank statement of the applicant for the last 6 months
- Business profile and project report
- Income tax returns of the applicant for the last 2 years (if applicable)
It’s worth noting that these are the general criteria and documents required, and the specific requirements may vary depending on the type of loan and the category of the borrower.
It’s advisable to check with the specific bank for the latest information on the E-Mudra loan eligibility criteria and documents required.
Benefits of Availing an e-Mudra Loan
Availing an E-Mudra loan can provide several benefits to small and micro-enterprise owners, some of which include:
- Easy access to finance: E-Mudra loans are designed to provide easy access to finance for small and micro-enterprises, which may not have access to traditional forms of credit.
- Low-interest rates: E-Mudra loans are offered at relatively low-interest rates compared to other types of loans, making them more affordable for small and micro-enterprises.
- No collateral required: E-Mudra loans are generally collateral-free, which means that small and micro-enterprise owners do not need to pledge any assets to secure the loan.
- Flexibility: E-Mudra loans are available in different categories, such as Shishu, Kishore, and Tarun, which cater to the specific needs of different types of small and micro-enterprises.
- Online application process: E-Mudra loans can be applied online, which makes the process of applying for the loan more convenient and less time-consuming.
- Subsidy: Government also provide subsidy on the interest rates of E-Mudra loans in certain cases.
- No end-use restrictions: The funds obtained through E-Mudra loan can be used for various purposes, such as working capital, purchase of equipment, and expansion of the business.
- Easy Repayment: E-Mudra loan repayment can be done through ECS or PDC.
It’s worth noting that the specific benefits of availing an E-Mudra loan may vary depending on the lending institution and the type of loan, so it’s important to check with the specific bank for the latest information.
Offering e-Mudra Loans
- State Bank of India (SBI)
- Canara Bank
- Punjab National Bank (PNB)
Who Can Apply for an E-Mudra Loan
E-Mudra loans are designed to provide easy access to finance for small and micro-enterprises. Therefore, the following types of individuals or entities are eligible to apply for an E-Mudra loan:
- Small business owners: This includes proprietors, partnership firms, and self-help groups (SHGs) engaged in manufacturing, trading, and service sectors.
- Micro-entrepreneurs: This includes individuals engaged in small-scale industries, agri-business activities, and service enterprises such as street vendors, food processors, artisans, and other micro-entrepreneurs.
- Start-ups: This includes individuals or entities engaged in new ventures or business ideas that have the potential to generate employment and income.
- Non-corporate small businesses: This includes individuals or entities that have an annual turnover of less than Rs. 2 crore.
It’s worth noting that the specific eligibility criteria for an E-Mudra loan may vary depending on the lending institution and the type of loan, so it’s important to check with the specific bank for the latest information.