The State Bank of India Mudra Loan refers to the loans provided to people and Micro, Small & Medium Enterprises (MSMEs) under the guidance of the Micro-Units Development and Refinance Agency (MUDRA).
According to the Mudra scheme, SBI offers funding support of up to Rs. 10 lakh to people and Small and Medium-sized Enterprises (SMEs) sector units.
Mudra Loans from SBI are provided at competitive interest rates with No or less processing fees along with flexible EMI options.
SBI Mudra Loans can be used to accomplish various business requirements, like purchasing raw materials, stocking up inventory, meeting working capital needs, buying plant and machinery, paying rent, business expansion, and some business-related purposes. SBI Mudra loans are provided to people, MSMEs, businesses, and enterprises involve only in the services, manufacturing, and trading sectors.
How to Apply for SBI e-Mudra Loan?
Customers having relationships with SBI in the type of Savings Account or Current Account can apply for an e-MUDRA loan of amount Up to Rs. 1,00,000 from the SBI e-mudra portal by following some simple below given steps:
Step 1: click Pradhan Mantri Mudra Yojana Application Form given in the drop-down menu.
Step 2: Visit the SBI official website https://emudra.sbi.co.in:8044/emudra and click on ‘Proceed’.
Step 3: fill in the required details such as the applicant’s Aadhar card for e-KYC purposes through UIDAI, as the e-KYC and e-sign need to be completed by the OTP authentication for loan processing and disbursement.
Step 4: Once the SBI verification and loan process is completed, the applicant will going to receive an SMS that will help initiate the further process by revisiting the e-MUDRA portal.
Step 5: This process must be completed within 30 days after the receipt of the SMS of loan sanction.
Important Information: The applying person needs to upload the document in JPEG, PDF, or PNG format only, with a maximum file size of 2MB.
SBI e-MUDRA Loan Features
- The maximum loan amount sanction is Rs. 1 lakh.
- The maximum repaying period is allowed up to 5 years.
- Instant loan availability of Rs. 50,000 as per the bank’s formalities.
- If the loan amount is above Rs. 50,000, then the applicant require to visit SBI’s nearest bank branch for the loan process.
SBI e-MUDRA Loan Eligibility Criteria
To avail of Mudra loan from SBI, the applicant needs to meet the below eligibility criteria:
- Applicant must maintain SBI’s current or savings account for at least 6 months.
- Applicant must be involved in a non-farm income-generating activity, it may be in manufacturing or the services sector.
- The applicant must be living at the same location for at least 2 years.
- Moreover, the MUDRA also offers a credit guarantee for Mudra loans, acts as a technology link, and offers developmental and promotional support.
Documents required for SBI e-Mudra Loan
- To apply for a Mudra loan from SBI, the applicant is required to submit the following documents:
- Complete the filled application form with passport-sized photographs.
- KYC documents required of the applicant: Passport, Voter’s ID card, Aadhar Card, Driving License, PAN card.
- Details of Savings/Current Account number and branch.
- Proof of Business
- UIDAI- Aadhar Number
- Community Details
- Other information for uploading like GSTN & UDYOG Aadhar
- Proof of Shop & Establishment and business registration
- Any other document required by SBI
The funding is provided from the four ways:
- Micro Credit Scheme (MCS) for loans up to Rs. 1 lakh, here the financing comes through microfinance institutions.
- Refinance Scheme for Commercial Banks, Regional Rural Banks (RRBs), and Scheduled Co-operative Banks (SCBs).
- The next option is through the women’s enterprise program.
- The last one is By securitization of the loan profile.
Bottom line
The bank offers the SBI Mudra loan for working capital needs and as a term loan to accomplish various business needs. The maximum amount of loan offered by SBI under Mudra Yojana is Rs. 10 lakh.
Businesses involved in manufacturing or of services are eligible for a CGTMSE guarantee, with the same is not provided to businesses engaged in retail trade.
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) ensures the loans given under the Mudra scheme for the eligible applicants up to a fixed amount.
FAQs
Ques. Who are eligible to apply for an SBI Mudra loan?
Any micro or small business owner is eligible to apply for an SBI Mudra loan.
Ques. How can a person get Rs- 50,000 loans from SBI?
Applicants can apply for a direct loan from SBI or can take a Mudra/e-Mudra loan from SBI to avail loan amount up to Rs. 50,000.
Ques. What is the repayment time given for an SBI Mudra loan?
The funds for working capital are having payable time up to3 to 5 years repayment tenure.
Ques. Can people living in urban areas apply for an SBI Mudra loan?
Yes, those living in urban areas can apply for an SBI Mudra loan.
Ques. What is a Mudra Card?
Mudra Card is a type of debit card that can be used to withdraw money in portions from the total sanctioned loan.
Ques. Is there any kind of subsidy available under the Mudra loan scheme?
No, there is no subsidy offered under the Mudra loan scheme.
Ques. What is the maximum loan amount provided under the Mudra loan scheme?
The maximum loan amount provided under the Mudra loan scheme is Rs. 10 lakh.
Ques. What is the processing time taken by banks in approving the Mudra loan application?
The Mudra loan processing time is in between 7-10 working days for approval and verification from the date of loan application form submission.
Ques. In SBI E-Mudra Scheme, an overdraft facility is there for up to Rs 5000?
Yes, Overdraft facility of amount Rs. 5000 sanctioned under Pradhan Mantri Jan Dhan Yojana (PMJDY) is included under Mudra Loan.
Ques. How can I download online the SBI Mudra loan application form?
- To apply for an SBI Mudra loan, the applicant requires to download the loan application form in PDF format from the official website.
- The downloaded form needs to be filled and needs to submit all the required documents at the nearest bank branch.
Ques. Is NBFCs also provide Mudra loans?
No, only banks are authorized to provide Mudra loans. The Government of India does not allow to NBFCs to offer Mudra loans. But they are allowed to provide MSME loans.
Ques. Who does need to file a complaint, if the bank manager rejects the Mudra loan application form?
If Applicant thinks that loan application has been rejected for false reasons, they can complain to the higher bank authority if the loan application is rejected.
But it depends on the sole decision of the particular bank to accept or reject Mudra loan applications by considering the applicant’s creditworthiness, repayment history, or financial stability.
