Do you need a Mudra loan? Check out SBI e Mudra Loan

When you want to start a business, what is your concern? It is not about how to get material, how to get employees. The concern is how to get the money? If you have saved funds, then there is no worry. You can invest your own money. However, for those who do not have any kinds of savings and looking a way to arrange funds, Mudra Loan is an excellent choice. 

Many lenders provide who provide Mudra loan. However, among them, the SBI e Mudra loan is the most popular. So, we are going to tell you everything about SBI e mudra loan. What are its features? The eligibility criteria, what documents you will need to submit, and how to apply. So, now, let’s get started. Keep reading to know everything. 

What is SBI e mudra Loan? 

We will begin the basics. What exactly is SBI e Mudra loan? Well, Mudra loan is an initiative by the government of India to provide loan to Micro, Small and Medium Enterprises. Various financial institutions provide the loan. SBI is one of them. Thus it is named SBI e Mudra Loan. 

It is an economical business loan without any need to submit collateral and minimal processing fee. Any person who is running a business ( Micro, Small & Medium) can borrow the loan. The process is straightforward with minimal documentation. 

What are the features of SBI e Mudra Loan? 

Here is the list of critical features you need to know. 

• First, there are three categories under which the loan is provided. Those three categories are

For Shishu – Up to ₹ 50,000

For Kishore – From ₹ 50,000 to ₹ 5,00,000

For Tarun – From ₹ 5,00,000 to ₹ 10,00,000

• The rate of interest is 8.40% Onwards. 

• Anyone can apply, who wants to start a new business or have an existing one( Micro & Small Enterprises) 

• The processing fee for Shishu and Kishore is NIL. For Tarun, it is 0.5% of the loan amount. It does not include GST. 

• The repayment tenure ranges from 12 Months to 60 Months. 

• The margin amount is nothing up to Rs 50,000. From Rs 50,000 to Rs 10,00,000, it is 10%. 

What is the eligibility criteria? 

When you apply for any loan, you need to fulfil a certain kind of eligibility criteria. For SBI, it begins with having an SBI Account. Anyone who has a Savings or Current account in SBI can apply for the Mudra Scheme. 

As an existing customer, you can instantly apply for a business loan of Rs 50,000. Here is the eligibility criteria. 

• The applicant should be an Indian resident. 

• The applicant age should be between 18 Years and 60 Years. 

• The business should be old at least 6 Months. 

• The applicant should be in Non-farm and Non- Corporate activities. 

• The applicant should be living at current residence for more than 2 Years. 

What are the documents required for SBI e Mudra loan? 

As you can see, there are 3 Categories under mudra loan. So, here we will mention the required documents as per the category. 

For Shishu Category 

• SBI Account Details

• Udyog Aadhar Details

• Certificate of Shop & Establishment

• Registration Certificate of GST

For Kishore and Tarun Category 

• 2 Passport Size Photographs

• Identity proof ((PAN, Aadhar Card, Voter ID, Passport etc.)

• Proof of Residence (Utility bills, Property Tax receipt, Passport etc.)

• Bank Statements For the last 6 months)

• Price Quotations In case of machinery or equipment purchase)

• Business ID (Aadhar & proof of establishment)

• Profit & Loss statement for the last 2 years (Majorly for revenue from sales activity)

• Balance Sheet statement For the last 2 years and Projections for the next year)

• Partnership Deed and Legal Arrangement documents

How to apply for SBI e Mudra Loan? 

Now, comes the question of how to apply for SBI e Mudra. Here is the step by step process to follow. We will tell you about the online process. However, if it is nearby SBI branch, you can visit it for further process. 

• First, go to the official website of SBI e Mudra page. To find it, search it on Google. 

• On the page, you will see the option of Proceed. Click on it. 

• On the next page, you will see instructions in Hindi and English. We recommend you read it very carefully to understand everything. 

• When you are done, click on ‘Ok’. 

• On the next page, Enter your mobile Number, SBI account Number and the required loan amount. 

• Click on proceed. On the next page, an application form will appear. Fill it. 

• On the next, upload the required documents. 

• Provide an E- Sign on the next page. Give your Aadhar details and Get the OTP number. 

• Once it has done, your application will be forwarded to Mudra loan department. 

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Digital12345 Joined: January 19th, 2020