The world is changing rapidly as the pandemic situation. It has accelerated digital growth, which was meant to happen in the next 10 years. Today, getting a business loan due to this transformation has become easy. And SBI e Mudra loan is one of the loans for this purpose.
In this short post, we will look at its details. What loan amount you could get the qualification criteria, etc. The mudra loan is an initiative by the GOI started in 2015 to make it easy to offer a business loan.
Basics of SBI e Mudra Loan
You can use the SBI e Mudra loan for various business purposes, such as meeting working capital requirements, buying plant & machinery, paying rent, or expanding the business. The business loan is offered to people in the trading, manufacturing or service sector.
The loan amount is offered up to Rs 10 lakhs.
The interest rate is 9.75 P.A onwards, depending upon your profile.
The new and existing business, both are allowed for the loan.
The processing fee is none for Shishu and Kishore. For Tarun, it is 0.50% of the loan amount.
The pre-payment charge will depend upon the income generation.
It does not require collateral to apply.
The loan tenure is up to 5 years.
Unique Features of SBI e Mudra Loan
The loan is mainly focuses on micro-entrepreneurs requiring financial help.
You could instant loan up to Rs 50,000 as per bank direction.
To get the loan amount above Rs 50,000, head to the nearest SBI branch.
What are the three categories in the loan?
SBI e Mudra loan has to offers three types of categories.
Shishu Mudra loan - The loan amount is offered up to Rs 50,000.
Kishore Mudra loan – The loan amount is offered from Rs 50,000 to Rs 5 lakhs.
Tarun loan – The loan amount is offered up to Rs 10 lakhs.
The Eligibility Criteria for SBI e Mudra Loan
The borrower should be a micro-entrepreneur.
The borrower age should be between 18 years and 65 years.
The borrower should have an active SBI account for at least 6 months.
The borrower should not have defaulted for any loan in the past.
The borrower should be living in the current residence for the past 2 years.
Required Documents for SBI e Mudra Loan
When you will apply, these are the documents you will need to submit for SBI e Mudra loan.
The branch details and saving/current bank account number
Proof of Business – Name, Address & start date
UIDAI – Aadhar card number associated with the account number
Community details – General/ SC/ST/ OBC/ Minority
Identity proof- Aadhar card, PAN Card, Driving license, Voter ID card
Address proof – Electricity bill, utility bill, telephone bill, water bill
Business registration & Proof of shop
Any other documents SBI may require
The loan application form
Passport size photographs
How to apply for SBI e Mudra loan?
The first step is to visit the SBI e Mudra loan official page. There click on proceed. Read out the instruction. Then fill out the loan application form and other details. Finally, upload the documents mentioned in the application.
Follow the steps. Soon you will complete the process. If you think it is a lengthy process, head to Afinoz.com to apply for SBI e Mudra Business loan. The whole process will take only few minutes.
Conclusion
SBI e Mudra loan is the right stepping-stone in the direction of getting a business loan. The norms are favourable with a low interest rate. overall a good deal for you.
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