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All you need to know about SBI e mudra loan

[ecis2016.org] State Bank of India has set up a number of government programmes to provide financial assistance to worthy creditors. The MSME loan section offers a variety of programmes for both new and established business owners. SBI operates one such scheme— the Pradhan Mantri Mudra Yojana (PMMY).

What is SBI Mudra Loan?

The State Bank of India has been instrumental in carrying out a number of initiatives on behalf of the Indian government in order to provide financial assistance to consumers who are eligible for it. The Micro, Small, and Medium-Sized Enterprise Loan Division offers a variety of different programmes, some of which are geared toward aspiring business owners who already have an established company. One of these programmes, known as the Pradhan Mantri Mudra Yojana (PMMY), is managed by the State Bank of India.

 The Pradhan Mantri MUDRA Yojana (PMMY) was launched on April 8, 2015 to offer financial assistance to Non-Corporate, Non-Farm MSME entities with loans up to Rs 10 lakh. People who require capital for business operations or growth, firm set-up or upgrading, etc. may utilise the Pradhan Mantri Mudra Yojana. 

 The acronym MUDRA refers to Micro Units Development and Refinance Agency Ltd. According to MUDRA, it has partnered with a total of 27 public banks, 17 private banks, 27 rural banks, and 25 micro-finance agencies to help those who are eligible.

Does SBI need collateral for Mudra loan?

The State Bank does not need any kind of security from the borrower since the RBI has stipulated that all loans to the MSE sector up to Rs. 10 lakh would not require any form of collateral. However, the borrower is required by the bank to hypothecate (pledge) to the bank any securities, machinery, movables, or any other assets that were purchased with funding from the SBI Mudra loan for the duration of the loan.

 

SBI’s E-MUDRA loan features

Particulars Specifications
Credit’s Characteristics Available as a term loan or working capital
Goal Capital for new ventures, modernisation of current units, unit growth, and the acquisition of equipment and gear
Eligibility Entrepreneurs wishing to start a new firm or established, profitable organisations looking to expand their operations.
Duration of repayment 3 –5 years
Fee for processing Shishu and Kishore loans are invalid. Tarun loans cost 0.5% of the loan amount.
Margin Zero for loan up to Rs.50,000

10% for loan amounts ranging from Rs.50,001 to Rs.10 lakh

Rates of interest Associated with MCLR rates
Collateral protection No security is required. However, for Term loans, P&M must be hypothecated, and stocks and receivables must be hypothecated for Cash credit.

 

 

SBI’s E-MUDRA loan categories

Limit Shishu (in Rs) Kishore (in Rs) Tarun (in Rs)
Daily withdrawal limit  10,000 15,000 20,000
Daily POS limit  15,000 25,000 30,000

 

The e MUDRA Loan SBI may generally be broken down into three types. Applicants may submit their SBI e Mudra loan applications in the category that best fits their requirements.

  • Shishu

Loans of up to Rs.50 thousand at an interest rate of at least 1% per month, or 12% per year, regardless of how long the loan term is. Repayment terms range from one to five years.

  • Kishore

Loans starting at 50001 rupees and going up to 500,000 rupees.  In accordance with the parameters of the programme, the lending institution would determine the interest rate, taking into consideration the applicant’s creditworthiness. The length of time allowed for recovery is at the bank’s prerogative, but it cannot be more than five years.

  • Tarun

Loan amounts ranging from 5 to 10 lakhs of rupees. In accordance with the parameters of the programme, the lending institution would determine the lending rate, taking into consideration the applicant’s creditworthiness. The length of time allowed for recovery is at the bank’s prerogative but cannot be more than five years.

 

You don’t need to put up any security to get a loan under the Mudra Scheme, which is backed by the National Credit Guarantee Trustee Company (NCGTC) and Credit Guarantee for Micro Units (CGFMU).

 The maximum amount of time you have to pay back the loan is five years, and there is a grace period of between one and six months included in the terms of the agreement. This depends on the activity level and the ability of the unit to generate money. There is to be an annual evaluation carried out.

 Borrowers have the option of obtaining RUPAY Debit Cards, also known as MUDRA Cards, which may be used for cash withdrawals and point-of-sale purchases. The following is a list of their characteristics according to each of the three categories:

See about: Indian overseas bank IFSC code

SBI Bank eMUDRA loan eligibility requirements

Entrepreneurs interested in setting up a new company or existing organisations that are already earning a profit and are seeking to expand their operations are both eligible to apply for MUDRA Loans.

 The following individuals who are actively involved in the Non–Corporate Small Business Segment (NCSB) and are residents of either rural or urban regions are eligible to apply for the loan. This sector is made up of millions of sole proprietorships and relationship businesses that operate as small production plants, service industry units, store owners, fruit and vegetable distributors, food-service units, service centers, assembly line workers, truck operators, micro enterprises, craftsmen, processing plants, and other types of businesses.

 In order to qualify for this loan, candidates working on a new venture need to exhibit a business strategy that is both realistic and capable of generating a profit. In most cases, new businesses fall under the umbrella of the Shishu plan, which entitles them to a loan sum of up to Rs.50000.

 Kishor and Tarun credit categories are available to established businesses that have previously made a profit and are looking to expand or upgrade their equipment and machinery. Aside from proving their profitability, these candidates must also demonstrate a pressing need for new machinery and equipment. In order for them to justify this expansion or upgrade, they must demonstrate how it will improve their bottom line and generate additional job options.

SBI E MUDRA loan: Required documents

  • Confirmation of Identity
  • Residence proof 
  • Financial Statements
  • Requests for bids on the planned acquisition of equipment and machinery
  • Photograph
  • Caste certificate for SC, ST, OBC, or minority group candidates.
  • Business Evidence
  • Income Tax Records

SBI Bank’s MUDRA loans: How can I apply?

In order to apply for an e-MUDRA loan of up to Rs. 50,000 from SBI, you must be an existing client of the bank and have a Savings or Current Account (Individual). Candidates must be between the ages of 18 and 60 at the time of application. There must have been a minimum of six months of activity in the deposit account. Others may submit their applications by going to the SBI branch that is most conveniently located to them.

Step by Step SBI e-Mudra loan application online process 

  1. Go to the SBI e-Mudra website. 
  2. On the homepage, click the ‘Apply Now’ option. 
  3. Read the guidelines in Hindi or English, and then click “Ok” to move on to the next page. 
  4. Enter your phone number, SBI savings/current bank account, and loan amount. 
  5. Click the ‘Proceed’ button. 
  6. Fill out the online application with the necessary information. You can also use the dropdown menu to pick the relevant data. 
  7. Upload the required documents. 
  8. Agree to the SBI e-Mudra Terms & Conditions by signing electronically. To accomplish this: 
  •         Enter your Aadhaar card number. 
  •         Tick the agreement check box to use your Aadhaar for e-Sign purposes. 
  1.     An OTP will be sent to the mobile number associated with your Aadhaar.
  2.     To finish your SBI e-Mudra loan application online, input the OTP in the relevant space. 

Benefits of eMudra loan SBI

 All of the advantages of a Mudra Loan from SBI under the PM Mudra Yojana are stated below: 

  • This Yojana gives you funds to help you expand your business to new heights. 
  • This Yojana provides loans up to Rs 10 lakh with no guarantee. 
  • This Yojana is now backed by the National Credit Guarantee Trustee Company (NCGTC) and the Credit Guarantee for Micro Units (CGFMU). 
  • You can take out a loan and repay it over a five-year period. 
  • PM E Mudra Yojana 2022 charges a low interest rate. 
  • A good CIBIL score is not required to obtain a loan under this Yojana. 
  • For credit-based Mudra Yojana, a Rupay Card is provided.
    Check out: Know about SBI IFSC code 

 

FAQs

Are rural people exclusively eligible for SBI Mudra loans or can urban residents also apply?

Entrepreneurs from both rural and urban regions may apply for a MUDRA loan. SBI Mudra loans are available to residents in urban regions as well.

Who can get this loan from MUDRA? Is the MUDRA programme open to all borrowers?

This plan concentrates its attention primarily on the Non-Corporate Small Business Segment (NCSBS), which is composed primarily of proprietorships firms that operate as small production plants, service industry entities, storekeepers, fruit as well as vegetable distributors, truck drivers, food-service units, service centres, warehouse workers, micro enterprises, craftsmen, food manufacturers, and other types of businesses in rural and urban areas.

What is a Mudra Credit Card?

This kind of credit card is generally referred to as a Mudra Card. As both a debit and an ATM card, as well as a card that can be used at point-of-sale terminals, it may be put to use for making transactions on behalf of the company.

What type of help is available for food processing plants?

One of the MUDRA programmes includes major coverage for the food processing industry. For further information about the applicable programme, please get in touch with the SBI branch that is most convenient for you. You may obtain help through MUDRA initiatives as per your needs.

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Debora Berti

Università degli Studi di Firenze, IT

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