Bank of Baroda Mudra Loan

April 03, 2023


The Indian government established the Pradhan Mantri Mudra Yojana, or PMMY, to offer small and micro non-farm business firms reasonably priced finance. To “finance the underfunded,” this programme was created to include MSMEs in the formal financial system.

Micro and small enterprises can apply for a Bank of Baroda Mudra loan if they make money from manufacturing, trade, or providing services. Under this programme, you are eligible to borrow up to Rs. 10 lakhs without putting up any security. You can apply for this financing option using a fully digital platform provided by the Bank of Baroda.

How to apply for Bank of Baroda Mudra Loan

A BOB Mudra loan application is simple to submit online. The application procedure is easy and straightforward. Just adhere to these simple instructions:

Step 1: Go to the Mudra loan page on the official Bank of Baroda website.

BOB Mudra Loan Page

Step 2: Choose “Apply Now” from the menu.

BOB Mudra Loan apply

Step 3: Name, contact information, state, and other essential information should be included into the application form.

Fill the form

Step 4: Submit your application after entering the verification code.

A bank representative will contact you once you complete these steps to discuss next steps and document verification.

Comparison of Bank of Baroda Mudra Loan with other loans

There are other institutions which offer Mudra Loans, given below is the comparison table:

Bank/NBFCs Interest Rate
Axis Bank 14.95% – 19.20% p.a.
Bajaj Finserv 9.75% – 30% p.a.
Flexiloans 1% per month onwards
HDB Financial Services Ltd. Up to 36% p.a.
HDFC Bank 10% – 22.50% p.a.
IDFC First Bank 15% p.a. onwards
Indifi 1.50% per month onwards
Kotak Mahindra Bank 16% – 19.99% p.a.
Lendingkart 1% – 2% per month
Mcapital 2% per month onwards

Types of Bank of Baroda Mudra Loan

Mudra Bank of Baroda According to the stages of a company’s growth, loans are split into three groups. The following loan amounts are available under the schemes:

Loan Scheme – Mudra Amount
Shishu Mudra Yojna Upto Rs. 50,000
Kishore Mudra Yojna Between Rs. 50,000 & Rs. 5 Lakh
Tarun Mudra Yojna Between Rs. 5 Lakhs & Rs. 10 Lakhs

Shishu Mudra Yojna

If your business has not yet been established or is still in the planning stages, you may be eligible for a Mudra loan under this programme. The maximum loan amount under this programme is Rs. 50,000, with a maximum loan term of 5 years. Businesses in the following categories are eligible to apply for the Shishu Mudra Yojana:

  • Business services
  • Partnerships and sole proprietorships
  • Micro Businesses and manufacturing firms
  • Repair businesses, suppliers, and truck owners
  • Organisations that provide food services

Depending on the sort of business you own and your credit history, the interest rate for this loan might increase from 1% to 12%. Furthermore, if you promptly repay the Shishu Mudra Yojana, you can also be eligible for a 2% interest subsidy.

Kishore Mudra Loan

This particular Bank of Baroda Mudra loan programme is provided to aid business owner in maintaining their enterprise. This programme offered loans in amounts between Rs. 50,000 and Rs. 5 lakhs. The interest rate for this plan ranges from 8.60% to 11.15%. If your credit score continues to be low, you might have to pay a higher interest rate.

Tarun Mudra Yojna

You can get a Mudra loan of this kind if you want to grow your company. You can get a high-value loan under this programme for a sum between Rs. 5 and Rs. 10 lakhs. Also, the interest rate for this kind of financing is often higher, ranging from 11.15% to 20%. Nonetheless, your loan requirement and credit history will determine the interest rate you must pay.

By examining the features of these programmes, you can use Bajaj Markets to apply for the one that best fits your company’s needs. This diverse industry offers a variety of loans that are issued by top banks and NBFCs. You can review these deals and compare your overall borrowing costs. You can use this to make wise borrowing choices.

Eligibility for Bank of Baroda Mudra Loan

Loans under this programme are available to all Micro Small Medium Businesses (MSMEs)—enterprises that generate non-farm revenue. The following extra conditions must be met in order to apply for a Mudra Loan from Bank of Baroda:

  • Companies should be in the manufacturing, trading, or service provider industries to qualify for the loan.
  • Only businesses needing up to Rs. 10 lakh in capital may qualify for this loan.
  • Also, those engaged in related agricultural operations are eligible to apply for mudra loans.

Features and Benefits of Bank of Baroda Mudra Loan

The mudra loans provided by the Bank of Baroda hold some amazing features and benefits. Some of the major features are as follows:

  • The highest loan amount available under this programme is Rs. 10 lacs.
  • Businesses engaged in farming are not eligible for Bank of Baroda Mudra loans, however they are eligible for loans for related agricultural pursuits like horticulture and fishing.
  • The Marginal Cost of Lending Rate determines the interest rate for this loan
  • On its official website, Bank of Baroda provides the option of applying for a Mudra Loan online.

Required Documents

While applying for a Bank of Baroda Mudra Loan, the following documentation must be submitted:

  • Evidence of identity

Voter ID card, driver’s licence, Aadhar card, PAN card, and passport self-certified copies.

  • Evidence of Residency

Current utility bills, property tax receipts (not older than two months), Aadhar cards, voter identification cards, and the passport of the proprietor, partners, or directors.

  • Evidence of SC/ST/OBC/minority.
  • Evidence of the identity and address of the business enterprise.

Copies of pertinent licences, registration certificates, and other papers pertaining to the ownership, identity, and address of the business unit

  • Applicants should not have a history of a financial institutions or bank defaults.
  • Accounts statement from the current banker, if any, for the previous six months.
  • Unit balance sheets from the previous two years, along with with income tax returns and sales tax returns, etc (Applicable for all cases from Rs.2 Lacs and above).
  • Projected balance sheets for the period of the loan if availing a term loan and for the year in the case of working capital limits (Applicable for all cases from Rs.2 Lacs and above).
  • Sales done until the application’s deadline during the current fiscal year.
  • Report on the proposed project that includes information regarding the technical and financial viability.
  • The company’s memorandum and articles of association, the partners’ partnership deed, etc.
  • If there is no third-party guarantee, the borrower’s asset and liability statement, which includes the directors and partners, may be requested to determine net value.
  • Photographs of the proprietor, directors and partners (two copies).

Bank of Baroda Mudra Loan Customer Care

Call 18002584455 or 18002584455 if you have any questions about the Bank of Baroda Mudra loan.

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What is the repayment period for Mudra Loan from Bank of Baroda?

Depending on eligibility, Bank of Baroda offers payback terms of up to 7 years with moratoria. Borrowers of working capital loans are eligible for a 1-year repayment period.

Can a Mudra Loan be used to finance a home loan from Bank of Baroda?

No, a Mudra Loan cannot be used to finance a home loan from Bank of Baroda.

What are the types of Mudra Loan available from Bank of Baroda?

There are three types of Mudra Loan available from Bankd of Baroda like Shishu Mudra Yojna, Kishore Mudra Yojna and Tarun Mudra Yojna.

What is the interest rate charged on Bank of Baroda Mudra Loan?

The interest rate charged on Bank of Baroda’s Mudra Loan starts from 0.050% and ranges to 1.25%.

An author in the making who loves psychological thrillers and worships Marquez, Coelho, Donne, and Atwood. Mansi dabbled with different topics before she finally discovered her finance expertise. She quenches her thirst for the same by writing expert pieces on Urban Money. Her sarcasm is a bit too much, but her lame jokes compensate for everything. An entrepreneur and a writer who loves to binge-eat choco-truffle cake.

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