Sbi Mudra Loan is a financial product offered by the State Bank of India. The product is an unsecured personal loan product. The loan can be availed by borrowers who have an active account with the State Bank of India. The loan can be availed in two different repayment schemes – fixed and floating. The loan can be availed up to Rs 1 lakh. The interest rate on the loan is fixed at 9.9%. The loan can be repaid in two installments.
SBI MUDRA Loan – Highlights – January 2023
SBI MUDRA Loan Highlights January 2023
1. What is SBI MUDRA Loan ?
SBI MUDRA loan is a specialized loan product offered by the State Bank of India to small businesses and entrepreneurs. The loan is designed to help them finance their business activities and expand their operations.
2. What are the main features of the SBI MUDRA Loan?
Some of the main features of the SBI MUDRA loan are :
– The loan amount can be used for a variety of purposes such as working capital, equipment purchase, business expansion, etc.
– The loan tenure is up to 5 years.
– The interest rate is competitive and is linked to the base rate of the bank.
– No collateral is required for availing the loan.
3. Who can apply for SBI MUDRA Loan?
SBI MUDRA loan can be availed by small businesses and entrepreneurs who are engaged in manufacturing, trading, or service activities.
4. How to apply for SBI MUDRA Loan?
The loan can be applied for by visiting the nearest SBI branch. The required documents have to be submitted along with the loan application form.
5. What are the repayment options for SBI MUDRA Loan?
The loan can be repaid through EMIs or through a lump sum payment at the end of the loan tenure.
6. What is the maximum loan amount that can be availed under SBI MUDRA Loan?
The maximum loan amount that can be availed under the SBI MUDRA loan is Rs. 10 lakhs.
7. What is the interest rate charged on SBI MUDRA Loan?
The interest rate charged on the SBI MUDRA loan is linked to the base rate of the bank. The current base rate is 10.25% p.a.
8. What are the processing fees charged on SBI MUDRA Loan?
The processing fee charged on the SBI MUDRA loan is 0.50% of the loan amount + GST.
Steps to Apply for SBI e-Mudra Loan
Small and medium enterprises (SMEs) are the backbone of any economy as they contribute significantly to the economic development of the country. In India, SMEs account for about 45% of the industrial output, 40% of the exports, and employ nearly 60 million people.
The Government of India has launched several schemes to promote the growth of SMEs in the country. One such scheme is the Pradhan Mantri Mudra Yojana (PMMY), which was launched in 2015. Under the PMMY, SMEs can apply for loans of up to Rs. 10 lakhs from banks and financial institutions to fund their business activities.
The State Bank of India (SBI) is one of the leading banks in India and offers Mudra loans to eligible SMEs. In this article, we will look at the steps involved in applying for an SBI Mudra loan.
The first step is to visit the SBI website and click on the ‘Apply Now’ button under the ‘Mudra Loan’ section.
This will take you to the online application form which you will need to fill in with the required details.
Once you have submitted the form, you will be given a unique application number.
You will then need to take a printout of the form and submit it to your nearest SBI branch along with the required documents.
The documents required are:
1) Proof of identity (PAN card, Aadhar card, passport, etc.)
2) Proof of address (Aadhar card, passport, ration card, utility bills, etc.)
4) Bank account statement for the last six months
5) Business registration certificate
6) Business continuity proof (IT returns, Partnership deed, Memorandum of Association, etc.)
7) Project report
Once your application is received, the bank will verify your documents and eligibility.
If you are eligible, the bank will sanction the loan amount and disburse it to your account within 10-15 days.
The repayment tenure for an SBI Mudra loan is 5 years.
SBI e-MUDRA Loan – Features & Eligibility Criteria
The SBI eMUDRA Loan is a special loan scheme offered by the State Bank of India for small and medium enterprises. This loan scheme provides financial assistance to eligible enterprises for their business activities. The main objective of this loan scheme is to promote entrepreneurship and create employment opportunities.
Features of SBI eMUDRA Loan
1. The loan amount under this scheme is up to Rs. 10 lakhs.
2. The loan tenure is up to 5 years.
3. The interest rate is competitive and is linked to the base rate of the bank.
4. There is no collateral security required for availing of this loan.
5. The loan can be used for various business purposes such as working capital, purchase of machinery, equipment, etc.
Eligibility Criteria for SBI eMUDRA Loan
1. The enterprise should be a small or medium enterprise as defined by the Ministry of Micro, Small, and Medium Enterprises.
2. The enterprise should be engaged in manufacturing, trading, or service sector activities.
3. The enterprise should have a minimum turnover of Rs. 2 crores.
4. The enterprise should have a good track record of financial performance.
5. The promoters of the enterprise should have a good credit history.
6. The enterprise should be located in India.
7. The enterprise should be registered with the Mudra Yojana portal.
Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs – January 2023
The Indian banking and finance sector has always been a key pillar of support for small businesses and startups in the country. In recent years, several innovative schemes like the Pradhan Mantri Mudra Yojana (PMMY) have been launched by the government to further ease the process of accessing credit for small businesses. Under the PMMY scheme, small businesses can avail of collateral-free loans of up to Rs. 10 lakhs from participating banks and financial institutions.
While the interest rates on business loans from banks have been steadily declining over the past few years, the rates offered by NBFCs (Non-Banking Financial Companies) have been relatively higher. However, with the recent RBI (Reserve Bank of India) guidelines on capping interest rates for NBFCs, the rates offered by NBFCs have also started to come down.
The table below compares the interest rates offered by some of the top banks and NBFCs on business loans for the month of January 2023.
SBI (Small Industries Development Bank of India)
NBFCs like Bajaj Finserv and Fullerton India offer business loans at competitive interest rates, starting from 11.99% p.a. SBI, HDFC Bank and ICICI Bank are some of the leading banks in India that offer business loans at interest rates starting from 9.60% p.a., 11.25% p.a. and 11.49% p.a. respectively.
Documents required for SBI e-Mudra Loan
The Mudra loan is a government-backed scheme that provides financing to small businesses in India. The loan is provided by the Small Industries Development Bank of India (SIDBI) and the National Bank for Agriculture and Rural Development (NABARD). The loan can be used for a variety of purposes, including working capital, business expansion, and equipment purchase.
To apply for a Mudra loan, you will need to submit the following documents:
1) Your business registration certificate
2) Your business license
3) Your GST registration certificate
4) Your bank statements for the last 6 months
5) Your income tax returns for the last 2 years
6) Your business plan
7) A collateral-free loan application form
The Mudra loan is a great financing option for small businesses in India. It is important to note that the loan should only be used for business purposes and not for personal use. If you have any questions about the loan or the application process, please contact the SIDBI or NABARD.
The SBI Mudra loan scheme is a government-backed scheme that provides small loans to entrepreneurs who want to start or expand their businesses. The scheme is available to individuals and businesses who are not able to get traditional bank loans. The Mudra loan scheme is administered by the Small Industries Development Bank of India (SIDBI) and is available to businesses that are engaged in manufacturing, trading, and service sectors. The Mudra loan scheme is available in three categories: 1. Shishu: Loans up to Rs. 50,000 2. Kishor: Loans from Rs. 50,000 to Rs. 500,000 3. Tarun: Loans from Rs. 500,000 to Rs. 10,00,000 The interest rates on Mudra loans are lower than the interest rates on traditional bank loans. The repayment terms on Mudra loans are also more flexible than the repayment terms on traditional bank loans. The Mudra loan scheme is a great option for entrepreneurs who are unable to get traditional bank loans. The interest rates are lower, and the repayment terms are more flexible.