SBI Mudra Loan : Interest Rates Eligibility e-Mudra Online Application & Documents
For small business owners who need funding but cannot offer collateral the SBI Mudra Loan provides a practical route. Offered by the State Bank of India under the Pradhan Mantri Mudra Yojana (PMMY) it is a government-backed initiative designed to support micro and small enterprises with affordable collateral-free business finance.
The scheme covers a wide range of borrowers: entrepreneurs startups shopkeepers self-employed professionals manufacturers service providers and businesses in allied agricultural activities. Loan amounts range from up to ₹50000 for newer ventures to ₹20 lakh for established businesses with a strong repayment track record.
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What Can an SBI Mudra Loan Be Used For?
The Mudra loan is specifically for business-related purposes. Common uses include:
- Starting a new business
- Expanding an existing one
- Purchasing machinery and equipment
- Buying raw materials
- Working capital requirements
- Business modernization
- Service sector and trading activities
- Manufacturing units
- Allied agricultural activities
The scheme primarily benefits non-corporate non-farm enterprises that need financial support for business growth.
SBI Mudra Loan Categories: Shishu Kishore Tarun and Tarun Plus
SBI structures its Mudra loans around four categories based on the funding stage of the business.
| Category | Loan Amount | Suitable For |
| Shishu | Up to ₹50000 | New businesses and startups |
| Kishore | ₹50001 to ₹5 lakh | Growing businesses |
| Tarun | ₹5 lakh to ₹10 lakh | Established businesses seeking expansion |
| Tarun Plus | ₹10 lakh to ₹20 lakh | Existing Tarun borrowers with successful repayment history |
- Shishu suits street vendors small retailers home-based businesses tailors food stalls and first-time entrepreneurs.
- Kishore is for businesses planning expansion purchasing equipment or increasing inventory.
- Tarun covers well-established businesses requiring higher capital.
- Tarun Plus is available only to borrowers who have already repaid a Tarun loan and need further funding for growth.
SBI Mudra Loan Interest Rates
SBI links Mudra loan interest rates to its External Benchmark Lending Rate (EBLR). The applicable rate depends on the loan category the applicant’s credit profile business type and repayment capacity.
| Particular | Details |
| Interest Rate | Linked to SBI’s EBLR varies by borrower profile |
| Processing Fee | Nil for Shishu and Kishore; applicable for Tarun as per bank policy |
| Collateral | Not required under scheme guidelines for eligible loans |
| Prepayment Charges | Generally not applicable subject to bank policy |
Since rates are revised periodically always confirm the current rate at the time of application.
SBI e-Mudra Loan: Apply Online for Up to ₹50000
For smaller funding requirements the SBI e-Mudra facility allows eligible customers to apply for a Mudra loan of up to ₹50000 online without an initial branch visit.
Features of SBI e-Mudra Loan
- Loan up to ₹50000
- Digital application process
- Faster processing
- No collateral subject to PMMY guidelines
- Online status tracking
- Funds credited after approval and documentation
Applications can be initiated through SBI’s designated online channels or supported government platforms where applicable.
Eligibility for SBI e-Mudra
- Active SBI savings or current account
- Account maintained for at least 6 months
- Satisfactory transaction history
- Valid Aadhaar-linked mobile number
- Meets SBI’s credit assessment and PMMY eligibility norms
Meeting these conditions does not guarantee approval. Each application is evaluated individually.
Who Can Apply for an SBI Mudra Loan
SBI Mudra loans are available to eligible non-farm micro enterprises in manufacturing trading services and specified allied agricultural activities.
Eligible applicants include:
- Individual entrepreneurs and sole proprietorships
- Partnership firms
- Small manufacturers and shopkeepers
- Traders and service providers
- Repair workshops beauty salons tailors and food processing units
- Transport operators and small business owners
- MSMEs startups and women entrepreneurs
A viable business proposal and satisfactory credit profile are key requirements.
Documents Required for SBI Mudra Loan
Identity Proof: Aadhaar Card PAN Card Passport Voter ID or Driving Licence.
Address Proof: Aadhaar Card utility bill passport or rental agreement where applicable.
Business Documents: Business registration if applicable GST registration where applicable Udyam Registration if available business address proof machinery quotations and a business plan for larger loans.
Financial Documents: Bank statements income proof where required and existing loan details.
Passport-size photographs are also required. Additional documents may be requested based on the loan amount and business category.
How to Apply for an SBI Mudra Loan
Online Application Process
- Visit the SBI Mudra loan application portal or a designated government portal accepted by SBI
- Select the required Mudra category
- Fill in personal and business details
- Upload required documents
- Submit the application and complete verification if requested
- Wait for loan appraisal and approval
Offline Application at an SBI Branch
- Visit the nearest SBI branch and collect the Mudra loan application form
- Fill in applicant and business details and attach required documents
- Submit the completed application
- The bank evaluates the proposal
- On approval execute the loan documents
- Loan amount is disbursed to your account
Processing time depends on documentation quality and the bank’s appraisal timeline.
SBI Mudra Loan Repayment Tenure and EMI
| Loan Amount | Typical Maximum Tenure |
| Up to ₹5 lakh | Up to 5 years |
| Above ₹5 lakh | Up to 7 years |
Including any moratorium period permitted by the bank under the scheme.
Illustrative EMI examples:
| Loan Amount | Interest Rate | Tenure | Approximate EMI |
| ₹50000 | 12% p.a. | 5 years | ₹1110 |
| ₹5 lakh | 12% p.a. | 5 years | ₹11120 |
| ₹10 lakh | 12% p.a. | 7 years | ₹17670 |
Illustrative only. Actual EMI depends on the sanctioned rate tenure and repayment schedule.
Mudra Card CGFMU Cover and Subsidy
Mudra Card: Eligible borrowers may receive a Mudra RuPay Card providing access to the sanctioned working capital limit for business expenses.
Collateral-free loan: Eligible Mudra loans are sanctioned without collateral making credit more accessible for small businesses.
CGFMU cover: Eligible loans are covered under the Credit Guarantee Fund for Micro Units which provides guarantee support to lenders under the scheme.
Subsidy: There is no universal subsidy under the SBI Mudra Loan itself. Borrowers may benefit from separate government schemes if they independently meet those eligibility conditions.
Checking SBI Mudra Loan Status and Common Rejection Reasons
After applying track the application through:
- SBI branch
- Online application portal where available
- Customer care
- Relationship manager
Common reasons for rejection:
- Incomplete application form or missing documents
- Poor credit history or existing loan defaults
- Insufficient banking history
- Inadequate repayment capacity
- Mismatch in KYC information
- Unsatisfactory business viability assessment
Submitting complete and accurate documentation from the outset improves the chances of a straightforward approval.
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Reviewed ByLast Updated: 7th July 2026
Frequently Asked Questions (FAQs)
What is the SBI Mudra Loan and who can apply?
It is a business loan under PMMY offered to eligible micro and small enterprises in manufacturing trading services and specified allied agricultural activities. No collateral is required for eligible loans.
What is the maximum loan amount under SBI Mudra Loan?
Under the current PMMY framework loans range from up to ₹50000 under Shishu to ₹20 lakh under Tarun Plus for eligible borrowers.
What is the interest rate on an SBI e-Mudra loan?
SBI links the rate to its EBLR. The final rate depends on the applicant’s credit profile loan category and current bank policy. Confirm the applicable rate at the time of application.
How do I apply online for SBI Mudra Loan?
Through SBI’s online channels or a designated government platform. Complete the application form upload documents and undergo the bank’s verification process.
What documents are required while applying for SBI Mudra Loan?
Identity proof address proof PAN Aadhaar bank statements business documents passport-size photographs and any additional documents required for the specific loan category.
Is collateral needed in SBI Mudra Loan?
No. Eligible Mudra loans are sanctioned without collateral under PMMY guidelines.
What is the difference between Shishu Kishore Tarun and Tarun Plus
Shishu covers up to ₹50000 for new businesses. Kishore covers ₹50001 to ₹5 lakh for growing businesses. Tarun covers ₹5 lakh to ₹10 lakh for expansion. Tarun Plus covers ₹10 lakh to ₹20 lakh for borrowers who have successfully repaid a Tarun loan.
How do I check my application status?
Contact your SBI branch use the online portal where applicable or reach out through SBI customer support after submission.
