SBI e-MUDRA Loan

Description

What is the SBI e-MUDRA Loan scheme?

The State Bank of India is the largest public sector bank in the country and one of the largest loan providers in the business loan segment. Under the MUDRA loan category, the bank offers its low-cost business loan to prospective business owners falling under the micro and small enterprise category as defined by the Ministry of Micro, Small and Medium Enterprises.The business loan which is offered under the MUDRA yojana is an economical business loan with minimal processing fees and no additional costs attached to it.

The business loan which is offered under the MUDRA yojana is an economical business loan with minimal processing fees and no other miscellaneous cost or charges attached to it. Any person who is willing to borrow a certain amount of money in order to fuel their ongoing working capital inadequacy or to establish a new business venture (small scale manufacturing unit or a shop/stall). The proceedings from the loan can only be used for business purposes and the documents proposing a capital requirement are to be furnished with the personal loan application. 
 

Features of the SBI e-MUDRA Loan

Here are some of the key features of the SBI e-MUDRA Loan:

SBI e-MUDRA Loan

For all applicants who are currently holding their savings or current account with the State Bank of India, can apply for a business loan under the MUDRA scheme with the SBI’s e-MUDRA portal.

With the help of this portal, an existing SBI customer can apply for a business loan of up to ₹ 50,000 instantly. 

Before applying for MUDRA loan through SBI, one must go through the basic eligibility requirements for a successful application as well as the documents required by the bank for the loan approval.

The eligibility criteria for the SBI customers only requires;

• The applicant should be aged between 18 to 60 years
• The deposit account must be active for the last 6 months or more
• The business must be in non-corporate & non-farm activities
• The applicant must be a resident at their current location for the last 2 years

Documentation required for SBI e-MUDRA

As we all are aware that there are 3 major categories under the MUDRA yojana, therefore the requirement of documents might vary from one category to another. In this case, the documents required for the ‘Shishu’ category are as follows;

• Registration certificate of GST
• Shop & Establishment Certificate
• Udyog Aadhar details
• SBI account details

For Kishore and Tarun category;

• Identity Documents (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
• Passport size Photographs of individuals applying for the loan

How to apply for the SBI e-MUDRA Loan

The State Bank of India ensures that its customers can utilize and avail all major services with ease and by both online and offline sources. The process involved in applying for a business loan under the MUDRA yojana is equally hassle-free. The bank has established a separate page where an applicant can apply and submit the required documents accordingly. The steps to apply for a MUDRA Loan through SBI are:

• Visit the SBI’s e-MUDRA portal through your mobile or computer
• On the first page, click ‘Proceed’ to start the process

• On the next page, read the instructions to use the e-MUDRA application and proceed with ‘OK’

• To start the application, enter your basic details; Registered Mobile Number and SBI Savings/Current account number, followed by the desired loan amount

• Once you proceed, the next page displays the detailed application form. Fill in the details and choose using drop-down menu
• Upload the documents as directed on the page
• Click on ‘I Accept’ for Terms & Conditions followed by the e-Sign
• To proceed with e-Sign; Enter your Aadhar details and verify using OTP (One Time Password)
• Upon successful Aadhar verification, the application is duly forwarded to the MUDRA loan department

Noteworthy points regarding the SBI e-MUDRA Loan

1. All the loans that are being offered under the MUDRA yojana are secured by the Credit Guarantee for Micro Units (CGFMU) and also guaranteed by the National Credit Guarantee Trustee Company (NCGTC)
2. The guarantee provided by the CGFMU & NCGTC are limited to a repayment tenor of under 5 years/60 months
3. SBI offers MUDRA RuPay Cards to all the customers who have taken a loan under the MUDRA Yojana

MUDRA RuPay Cards

All the beneficiaries of the MUDRA Yojana are entitled to receive a MUDRA debit card to be provided by their respective bank from where they have availed the business loan facility. This card can be used to withdraw funds at the time of need like any other ATM cum Debit card. However, the withdrawal limit of these cards is different as per the loan category. As shown in the table below;

Types of SBI e-MUDRA Loan

The SBI e-MUDRA loan is generally categorized between 3 different types based on the amount of funds required and the nature of business. For providing MUDRA Loans starting from ₹ 10,000 and up to ₹ 10 Lakh, loans are categorized according to the amount required by the borrower for a specific activity.

The three major categories are:

1. Shishu Loan
2. Kishore Loan
3. Tarun Loan

Shishu Loan

Generally known as the basic category, the loans of smallest amount are processed as the Shishu Loans, starting from ₹ 10,000 up to ₹ 50,000.

Kishore Loan

Mostly termed as the loan for working capital requirements of a medium or small-scale business unit. Under this category, SBI offers loans starting from ₹ 50,000 up to ₹ 5 Lakh.

Tarun Loan

Under this category of loan, SBI offers loans starting from ₹ 5 Lakh up to ₹ 10 Lakh. The proceedings from the loan can be utilized for expanding the existing business or to buy equipment as a part of expansion.

Who can apply for SBI e-MUDRA Loan?

As the loans offered under the MUDRA yojana are business loans, which makes it very easy for the Non–Corporate Small Business Segment (NCSB) to avail these loans. It might include millions of proprietorship (Individual)/partnership firms running as small manufacturing units, service units, shop or may be stalls. Anyone who is a shopkeeper, fruits/vegetable vendor, truck operator, food-service units, repair shop, food processors and others, both in rural and urban areas.