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SBI Mudra Loan

What is SBI Mudra Loan?

The SBI Mudra Loan is a new product of the State Bank of India that offers low-interest loans to small businesses. The Mudra Loan is available in two variants – the Standard Mudra Loan and the Flexi Mudra Loan.

The Standard Mudra Loan offers a rate of 9.5% per annum, while the Flexi Mudra Loan offers a rate of 9.25% per annum. Both loans have a tenure of 12 months, and the interest is compounded annually. The minimum eligibility requirement for the Standard Mudra Loan is a total bank balance of Rs 1 crore.

What is Mudra Yojana?

The Pradhan Mantri Mudra Yojana scheme is designed to provide working capital facilities to account holders in the form of cash credit.

The goal of this scheme is to encourage sustainable growth by supporting partner institutions and promoting the micro-enterprise sector.

The Mudra card can be used to make multiple withdrawals and avail credits, making it easier to manage the working capital limit.

Features of SBI Mudra Loans

Anyone who is a micro-entrepreneur and has a minimum of 6 months old CA/SB account of SBI, is eligible for a maximum loan of 1 Lakh for a period of up to 5 years.

One can also get an Instant loan of 50,000 based on the Bank’s eligibility norms. For loans above Rs.50,000/-, the customer to visit Branch for completing formalities.

The good part is that no collateral required. However, as Primary Security, hypothecation of P&M for TL and hypothecation of stocks and receivables for CC are to be done.

Required Documents for SBI Mudra Loan

  • Savings/Current Account number and branch details.
  • Proof of Business (Name, Start date & Address)
  • UIDAI- Aadhar Number (should be updated in A/c Number).
  • Community details (General/SC/ST/ OBC/ Minority)
  • Other information for uploading like:
  • GSTN & UDYOG Aadhar
  • Proof of Shop & Establishment or Any other Business Registration document (if available).

Procedures to Apply for SBI Mudra Loans

  1. First of all,
  2. you need to head to this link
  3. Enter your mobile number, and verify it
  4. After that enter your SBI savings/current account number, and required loan amount
  5. Fill in the details required in the online application form. You can also select the relevant data through the dropdown menu.
  6. Upload the necessary documents.
  7. Accept the SBI e-Mudra Terms and Conditions with an e-Sign. To do this:
  8. Input your Aadhaar number.
  9. Tick on the consent check box for using your Aadhaar for purposes of the e-Sign.
  10. You will receive an OTP to your mobile number registered with your Aadhaar.
  11. Enter the OTP in the required field to complete your application.

FAQs on SBI Mudra Loan

What is Mudra RupayCard?

The MUDRA card is a debit card on a Rupay payment platform issued to Micro entrepreneurs who have availed the working capital loan from the Bank under Pradhan Mantri Mudra Yojana.

The card can be used for cash withdrawal at ATMs and also for merchant banking. The limit fixed to the card is valid up to the due date of the OD limit and the validity of the Card is 5 years.

What are the other ways to apply for SBI Mudra Loan?

If you are not comfortable applying for a Mudra loan online, you can always opt for the offline process. You will find the step-by-step process of applying for a Mudra Loan offline below.

  • Visit a PMMY-authorised bank or NBFC of your choice.
  • Ensure you have a self-written business plan.
  • Ask for the Mudra loan application form and fill in the required details.
  • Submit the application form along with passport-size photographs and documents. 
  • Once all of the documents have been verified successfully, the loan will get approved and the desired amount will be credited to the mentioned bank account.