What is SBI e Mudra Loan?
The Micro-Units Development and Refinance Agency (MUDRA) approve banks to offer SBI e Mudra loan to Micro, Small and Medium Enterprises (MSMEs). The Small and Medium Enterprises (SMEs) can apply for this loan to get the necessary finance under E Mudra Yojana. The SBI e Mudra is available at the lowest interest rates with easy repayment plans and low processing fees.
You can use SBI e Mudra for various business needs, including stocking up inventory, ordering raw materials, acquiring machinery and plants, arranging working capital, business expansion, and other purposes. Business enterprises in manufacturing, services, and trading industries can apply for E Mudra Loan SBI.
E Mudra Loan Details
- Amount – Available up to Rs. 10 Lakh
- E Mudra Loan Interest Rate – Starting from 9.75%
- E Mudra Loan Eligibility – New and existing businesses can apply.
- Processing Fee – Free for Kishor and Shishu applied by MSEs and 0.5% for Tarun + taxes.
- Margin – Nil for getting loan up to Rs. 50,000 and 10% from Rs. 50,001 to Rs. 10 Lacs
- Pre-payment charges – As per the income/activity, these charges are applicable from 3 to 5 years.
- Collateral – Nil
- Nationality – Indian
- Residence Requirements – The applicant must be living in the same society for at least 2 years.
Note – The fees, rates of interest, and changes mentioned above may change in future by RBI and other banks. The service tax and GST shall be charged extra.
How to Apply for E Mudra Loan?
Current customers with Current account or Savings account with SBI can fill the E Mudra Loan Application Form to apply for a loan up to Rs. 1,00,000.
- Select from the drop-down and fill in the form to apply for eMudra loan.
- Click this link https://emudra.sbi.co.in:8044/emudra and hit the blue button “Proceed for e-Mudra”
- Read the essential details and click “OK”
- For loan processing, you will need to provide Aadhar details for verification through UIDAI. You need to complete the e-sign and e-KYC with OTP and wait for disbursement.
- After completing the formalities, you will get an SMS to proceed to the next process and visit e-Mudra portal again.
- After receiving an SMS that your loan has been sanctioned, you will need to wait 30 days to finish the process.
Note – Please upload the required documents in PDF, JPEG, PNG format, and file size shouldn’t exceed 2 MB.
Who is Eligible for SBI e-Mudra Loan Scheme?
- A micro-entrepreneur can apply for eMudra loan
- Savings account or current account must be maintained with SBI for minimum 6 months.
- The maximum amount for getting a loan is Rs. 1 Lakh
- One can repay the loan within 5 years.
- Bank may provide an instant loan of up to Rs. 50,000
- Applicant has to visit the nearest branch of SBI to complete the formalities if the requirement is above Rs. 50000.
SBI eMudra Loan is available on the following conditions:
- Applicants shouldn’t have any income from farming activity, either in the form of services or manufacturing.
- Applicants must be living in the same society for minimum 2 years.
- Applicant’s requirement must not exceed Rs. 10,00,000, and they should have a business plan.
- Applicant should have a clear credit history and not defaulted on any loan from any bank or financial institution
What are The e-Mudra Yojana Categories and Loan Amount?
- Shishu – Loan available up to Rs. 50,000
- Kishor – From Rs. 50,000 to Rs. 5 Lakh
- Tarun – From Rs. 5 Lakh to Rs. 10 Lakh
Along with finance, you can also avail credit guarantee from MUDRA for its loans and it provides promotional and developmental support and technology enabler. Here are the avenues for financing –
- Securing loan portfolio
- Micro Credit Scheme when the requirement is up to Rs. 1 Lakh, where finances come from microfinance organizations.
- Refinance scheme for rural banks, commercial banks, and co-operative scheduled banks
- Women enterprise program
The SBI Mudra loan is provided by the bank to meet the needs for working capital and as term loan for business expenditures. The Micro and Small Enterprises (MSEs) can avail up to Rs. 10 Lakh. Service providers and manufacturers can get a guarantee from the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). But retail businesses cannot get the same. With CGTMSE guarantee, eligible candidates can avail loans of a certain amount under E Mudra scheme.
What Documents Required for SBI e-Mudara?
- Bank Statement – Bank statement of the previous 6 months from the current bank is required.
- Photographs – Two recent copies of photograph, i.e. not older than six months.
- Price quotes – AppFor Kishor and Tarun loan schemes, here are the documents required –
- Identity proof – The candidates should have a self-attested copy of these documents:
- PAN Card
- Driving License
- Voter’s ID
- Government-issued Photo ID
- Address Proof – Candidates may submit one of these documents as address proof:
- Property tax receipt
- Electricity/telephone bill
- Voter’s ID
- Government-issued Certificate or issued by municipality or local panchayat
- lication should be submitted with the price quote of the machinery or anything that a business is buying.
- Category – Proof or certificate of being the part of Minority, SC, ST, or OBC, if any.
- Business Address and ID – You may need to submit the copies of registration certificates, licenses, rent/lease agreements, or other documents related to ownership, address and identity of the unit. It is also required for enterprises having Udyog Aadhar Memorandum.
Sales details – Businesses also need to provide sales documents for the existing financial year. The data must be up-to-date for submitting applications.
What Kind of Financial Documents Requried?
- Tax Returns and Balance Sheet – The applicant has to submit the unaudited balance sheet for the last two years of the current units with the sales tax or income tax returns.
- Balance Sheet – The existing units or startups need to submit the balance sheet for working capital needs for one year.
- Statements of Liability and Asset – It is required from the partners or directors of the firm or company and it must be attached to the application form.
- Quotations – The borrower needs to submit an application with quotation or proforma invoices for the assets. If you have any estimates for civil works, it must be submitted. In addition, you need to discuss the aspects of economic viability and technical feasibility with the bank, when needed.
- Photograph – Be it directors, proprietors, or partners, applicants need to provide two recent photographs.
What are The Other Benefits of SBI e-Mudra Loan?
As per E Mudra loan scheme, borrowers will be issued with RuPay debit cards as “MUDRA Card” for POS transactions and withdrawals under Shishu, Kishor, and Tarun categories.
Here are the limits for all three categories:
Frequently Asked Questions
For working capital, the funds must be paid on demand. But in case of term loans, you have repayment time of up to 5 years. In this period, 6 months of moratorium period is covered.
Any small or micro business owner, including partner, proprietor, or director, is eligible for this loan.
Yes, SBI Mudra Loan is available for businesses in urban areas.
No, there is no provision of any subsidy in this scheme.
Mudra Card or Mudra Loan card is actually a credit card with a limit of up to a part of working capital of SBI Mudra Loan. You can also use it at POS terminals or as ATM-cum-debit card for the business.
The businesses can avail the maximum amount of Rs. 10 Lakh under this scheme.
Yes, this scheme covers Overdraft facility of Rs. 5000 under Mudra Loan sanctioned as per PMJDY.
No, you can get Mudra loans only from banks. NBFCs are not permitted by the government to provide such loans. You can get only MSME and SME loans from NBFCs.