SBI E Mudra Loan 2023
The SBI e-Mudra Loan is a unique loan product offered by the State Bank of India (SBI) to help small businesses and entrepreneurs. The e-Mudra SBI loan 2023 product is available under the government scheme, i.e. Pradhan Mantri Mudra Yojana, to support the MSMEs. It is a type of loan that offers credit to small businesses, micro-enterprises, and individuals who either need access to credit or need more credit to meet their business needs. The loan amount is typically between Rs. 50,000 and Rs. 10 lakh and is available for up to 5 years. The loan aims to help small businesses and entrepreneurs access funds to purchase equipment, expand operations, or finance other business needs.
Highlights of the SBI e-Mudra Loan 2023
Here are the key highlights of the SBI e-Mudra loan:
- Loan Amount: e-Mudra loan consists of three categories, i.e. ‘SHISHU', 'KISHOR' and 'TARUN', through which an applicant can get a maximum loan amount of Rs. 10 lakhs.
- Interest Rates: The interest rate applicable on an SBI e-Mudra loan starts from 8.40% p.a.
- Tenure: At a maximum, the bank offers a loan repayment tenure of five years on an e-Mudra loan.
- Collateral: No collateral or security is required to avail of the loan.
- Prepayment: No prepayment charges are applicable on e-Mudra Loans.
- Easy Availability: The loan can be availed through any SBI branch or SBI website.
- Quick Approval: The approval and disbursal process is fast and hassle-free.
- Flexible Repayment: The borrower can customise the monthly instalments at their convenience.
- Benefits: The loan helps meet small entrepreneurs' business needs and provides them with financial security.
These key highlights make it clear how e-Mudra SBI loan is the foremost financial product to cater to your distinct business needs in one go.
SBI Mudra Loan Interest Rate 2023
The interest rate for an SBI Mudra loan starts from 8.40% and can vary from one applicant to another. Additionally, the offered SBI e-Mudra loan interest rate is based on the risk profile of the borrower, the loan amount, business performance, the project, and the tenure.
Features of SBI e-Mudra Loan
SBI e-Mudra loan offers several features to loan applicants. Here's what you can expect from this scheme:
Flexible Repayment Options:
SBI e-Mudra loan offers flexible repayment options. The borrower can repay the loan in monthly instalments or lump sum at the end of the loan tenure. At maximum, the bank offers five years of repayment tenure.
No Collateral Required:
SBI e-Mudra loan falls in the category of collateral-free loans. One of the biggest advantages is you don't need to provide any collateral or security for loan approval. It makes it easier for small businesses and entrepreneurs to access funds without putting up any collateral.
Lower Interest Rates:
The interest rate for an SBI e-Mudra loan is among the lowest in the market. The presence of competitive rates makes it an affordable option for small businesses and entrepreneurs.
The SBI e-Mudra loan eligibility criteria are quite simple and easy to comprehend. The minimal eligibility criteria make it easier for small businesses and entrepreneurs to access loans online and offline.
The State Bank of India quickly disburses the loan amount to borrowers once they submit the document. This makes it an ideal option for entrepreneurs who need access to quick funds.
Minimum Processing Charges:
SBI e-Mudra loan does not require processing or hidden charges for Sishu and Kishor. However, for the Tarun category, the borrower must pay 0.50% of the loan amount as processing charges. Lower processing charges make it an affordable option for small businesses and entrepreneurs.
e-Mudra Loan Eligibility Criteria for SBI Bank
Before applying for an e-Mudra loan, the applicant must know the eligibility criteria of the SBI e-Mudra loan. It will clarify whether you are eligible for the Mudra loan.
- The applicant must be between 18 and 65 years of age.
- The applicant must be engaged in a non-agricultural activity or business for at least three years.
- The borrower must have a minimum annual turnover of Rs. 2 lahks for the last financial year.
- Such a loan is available only for the applicant who has never received an MSME loan.
- Having a good credit score of 650 or above is a must.
- The loan is unsecured, so there is no need to provide any collateral. However, the bank may ask for a third-party guarantee.
- You need to provide documents such as identity proof, address proof, business registration certificate, income proof and bank statement.
- The applicant must be an existing SBI account holder for at least six months.
How to Apply for Mudra Loans from SBI Bank?
To apply for a Mudra loan from SBI, you can opt for online and offline processes based on your convenience. When you opt for the online process, you can carry out the entire procedure from the home of your comfort, and for offline processing, you will have to visit the nearest bank branch.
Online Application Process: SBI e-Mudra Loan
Follow the given steps to apply for an SBI e-Mudra loan online:
- Visit the official portal of the State Bank of India.
- On the homepage, look for the ‘SBI Loans' section in the top left corner.
- From the dropdown menu, choose 'e-Mudra'. You will be redirected to another page.
- On this page, click on the 'Process for e-Mudra' button present at the bottom of the page.
- Next to this, an instruction pop-up will appear on the screen; go through it. Once you have read it completely, tap on the 'OK' button.
- After this, you will be redirected to another web page, where you can choose the language.
- Provide the asked details on this page, including mobile number, captcha code, account details, and loan amount.
- After entering information in the fields, click the 'Proceed' button.
- After this, you must fill out the SBI e-Mudra loan application form.
- Upload asked documents to back your provided information for the evaluation process.
- Go through the Terms & Conditions and accept the same.
- Provide Aadhaar details to give consent to the bank to use the Aadhaar information for e-signing purposes.
- Next, you will receive an OTP on your registered mobile number. Enter the same in the designated field, and you are done with your part.
Designated personnel will evaluate your application and get back to you once your loan is approved.
Offline Application Process: SBI e-Mudra Loan
You can rely on the offline procedure to avoid applying online for an e-Mudra loan. All you need is to determine which nearest SBI Bank branch offers an SBI e-Mudra loan and visit the bank executive.
- Visit the nearest SBI Bank branch and get the application form for MUDRA loans.
- Fill in the form and attach the required documents such as identity, address, and business proof, bank statements, etc.
- Submit the application form and documents to the bank executive.
- The bank executive will review the documents and verify them.
- Once the documents are verified, the bank will sanction the loan amount.
- The loan amount will be credited to the applicant's account.
Documents Required for SBI e-Mudra Loan
Documentation is the key to unlocking every financial product and service, and the same applies to the SBI e-Mudra loan. To secure an e-Mudra SBI loan, you must provide the required documents. Here's the list of documents you must prepare beforehand to get easy approval:
Documents required for Shishu Mudra Loan under SBI e-Mudra Loan:
- GST Registration Certificate
- Details associated with Udyog Aadhaar
- SBI Account details through which you are applying for the loan
- Shop and Establishment Certificate
Documents required for Kishore and Tarun Mudra Loan under SBI e-Mudra Loan:
- Latest passport-size photographs
- Identity proof including Voter ID, PAN Card, Aadhaar Card, Driving License, and Passport.
- Residence proof, including Passport, Utility Bills, and Property Tax receipts.
- Latest SBI bank statement (last six months)
- Price quotation for equipment purchase
- Aadhaar Card along with the business establishment proof
- Balance Sheet (previous two years)
- Profit & Loss statement (last two years)
- Partnership deed along with the legal arrangement documents
Things to Keep in Mind while Applying for State Bank e-Mudra Loan in 2023
When applying for an SBI e-Mudra loan, consider the following pointers. It will help expedite the entire process:
Know Your Eligibility:
Before applying for an SBI e-Mudra loan, you must understand the eligibility criteria and make sure you meet the requirements.
Know the Loan Amount:
It is essential to understand the loan amount you can avail of through this scheme. The loan amount is determined by your business's turnover and your repayment capacity.
Understand the Interest Rate:
Interest rate plays a vital role in determining the amount you will have to pay back. To decode this, you must get acquainted with SBI e-Mudra interest rate.
Check the List of Required Documents:
Before applying for an e-Mudra loan, ensure you have all the necessary documents. These documents include identity proof, address proof, bank statement, and income proof.
Go through the Fine Print:
It is essential to read and understand the terms and conditions of the loan before signing the loan agreement.
Prepare a Business Plan:
A business plan is essential for easy loan approval from the SBI Bank. A business plan outlines the goals of the business and how it will operate.
Maintain a Good Credit Score:
A good credit score is essential for an SBI e-Mudra loan, as it reflects your repayment history and financial stability.
Additional Benefits of SBI e-Mudra Loan
The SBI e-Mudra loan benefits can be classified under three sections, i.e. 'SHISHU', 'KISHOR' and 'TARUN'. The loan amount that the bank can sanction is different for each category. Here's what amount you can avail of a maximum under an e-Mudra loan through the Pradhan Mantri MUDRA Yojana (PMMY):
Shishu: This category covers loans amounting up to INR 50,000/-
Kishor: This category covers loan amounts in the range of INR 50,001 to INR 5,00,000/-
Tarun: This category covers loan amounts in the range of INR 5,00,001 to INR 10,00,000/-
Moreover, Mudra loan borrowers get a MUDRA Card to make cash withdrawals and Point-of-Sale (POS) transactions. The card works for all three Mudra loan categories.
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FAQ's About SBI Mudra loan 2023
Who can apply for an SBI Mudra loan?
Small businesses, micro-enterprises, and individuals who either do not have access to credit or have insufficient funds to meet their business needs can apply for an SBI Mudra loan.
What is the repayment timeline for an SBI Mudra loan?
The repayment timeline for the SBI Mudra loan is five years at maximum.
Can people living in urban areas apply for an SBI Mudra loan?
Yes, people living in urban areas are eligible for an SBI Mudra loan.
What is a Mudra Card?
A Mudra card is a RuPay debit card that the borrower can use to withdraw a sanctioned amount in portions.
Is there any subsidy provided under the Mudra loan scheme?
The banks don’t provide any subsidy under the Mudra loan scheme.
What is the processing time taken by banks in the Mudra loan application approval?
The processing time taken by banks to process the Mudra loan application is 7 to 10 days. The bank usually wraps application valuation to loan disbursal in this time frame.