The State Bank of India has put in place various government programs to provide financial assistance to borrowers in need. The SBI E Mudra Loan Department has several programs aimed at both emerging and established businesses. The Pradhan Mantri Mudra Yojana (PMMY) is one such scheme operated by SBI.
SBI E Mudra Loan
Pradhan Mantri Mudra Yojana (PMMY) is a program launched by the Prime Minister on April 8, 2015, to provide credit facilities to non-corporate and non-agricultural MSME units with loans of up to Rs 10 lakh.
Pradhan Mantri Mudra Yojana is an unsecured loan that can be used by people who need funds for business purposes, expansion purposes, company formation or branch upgrading, etc. This credit can be used to set up a new business unit or to expand an existing one.
MUDRA stands for Micro Units Development and Refinance Agency Ltd. It is a financial institution founded by the Indian government to develop and refinance micro-businesses.
MUDRA has registered 27 public sector banks, 17 private sector banks, 27 rural regional banks, and 25 MFIs as partner institutions in order to channel the support of deserving borrowers based on the eligibility criteria.
State Bank of India offers a variety of loans to SMEs, including Pradhan Mantri Mudra Yojana (PMMY).
The characteristics of the SBI E Mudra Loan
MUDRA loans are basically divided into 3 categories. Applicants can apply in the appropriate category as required.
- Shishu – Loans up to Rs 50,000, with a minimum interest rate of 1% per month or 12% per year. With 15 years payback period.
- Kishore: Loans from Rs. 50,001 to Rs. 5 lakhs. The interest rate depends on the lender, taking into account the applicant’s credit history as per the guidelines of the plan. The repayment duration is at the discretion of the bank, but should not exceed 5 years.
- Tarun: Loans from Rs. 5 Lakhs to Rs. 10 Lakhs. The interest rate depends on the lender, taking into account the applicant’s credit history as per the guidelines of the program. The repayment duration is at the discretion of the bank, but should not exceed 5 years.
The loan you will receive under the Mudra Program is covered by the Credit Guarantee Fund for Micro Units (CGFMU) and is provided by the National Credit Guarantee Trustee Company (NCGTC) and therefore does not require any collateral.
The maximum term of the loan is 5 years including a moratorium of up to 6 months, depending on the activity and income generation of the unit. An annual review is carried out.
Cash account holders receive a Mudra RuPay card for instant access to funds. Funding needs are based on the growth and development stage of the micro-unit and the entrepreneur’s earnings. Competitive interest rates in the market based on the applicant’s credit profile.
MUDRA Loans can be used by entrepreneurs looking to start a new business or by established profit companies looking to expand their business. This segment comprises millions of own or associated companies that function as small production units, service units, dealers, fruit and vegetable sellers, truck operators, catering, repair shops, machine operators, Small industries, craftsmen, food processors, and others.
Start-up applicants must present a viable business model, which describes the profitability of the business model to qualify for this loan.
Established business units, already in gainful activities, can apply in the Kishor and Tarun categories for credit for business expansion or modernization of machinery and equipment.
These applicants must show proof of benefits and also justify the need to upgrade machinery and equipment. The applicant must be between 18 and 60 years old. The depot must have been active for at least 6 months.
Online application procedure
Existing SBI customers who have a savings bank or checking account (individual) can apply an e-MUDRA loan amount up to Rs. 50,000 online on their official website or by clicking on the link: SBI eMudra Loan. Others can apply to the nearest SBI branch.
- Visit the SBI e-Mudra portal.
- Click the “Continue” button on the home page.
- Read the instructions provided in Hindi or English and click “Ok” to go to the next page.
- Enter your mobile number, your SBI current/savings account number, and the amount of credit requested.
- Click on “Continue”.
- Fill in the data requested in the online application form. You can also select the relevant data via the drop-down menu.
- Download the necessary documents.
- Accept the terms and conditions of SBI e-Mudra with an e-Sign.
- Enter your Aadhaar number.
- Check the consent box for the use of your Aadhaar for electronic signature purposes.
- You will receive an OTP on your mobile number registered with your Aadhaar.
- Enter the OTP in the required field to complete your request.
Points to Consider
Loans issued under the Pradhan Mantri Mudra Yojana Program are guaranteed by the CGFMU. The same guarantee is also provided by the NCGTC or the National Credit Guarantee Trustee Company.
The guarantee offered by the CGFMU and the NCGTC is valid for a maximum period of five years, therefore the maximum repayment rule for the Pradhan Mantri Mudra Yojana program is 60 months. MUDRA RuPay cards are offered to all authorized accounts.
Benefits of the Pradhan Mantri Mudra Yojana program
The Pradhan Mantri Mudra Yojana Plan is an ideal option for those who need funds to fund their various business needs. Below are some reasons why you should apply for the Pradhan Mantri Mudra Yojana Plan:
- The PMMY program gives the country’s micro-businesses better access to funds.
- Individuals in need of funds for business purposes are eligible for loans under the PMMY program at an affordable rate.
- The PMMY program contributes to job creation and GDP growth.
- The processing fee charged by Pradhan Mantri Mudra Yojana is comparatively low. For the Kishore and Shishu programs, the MPE units drawing the loan pay a zero processing fee, while for the Tarun program, a nominal interest rate of 0.50% plus tax is charged.
Documents Required for the SBI E Mudra Loan
- Identity Proof: Voter ID, Driver’s License, PAN Card, Aadhaar Card, Passport, or Government-issued Photo ID.
- Proof of residence: recent phone or electricity bill, property tax receipt, voter ID, aadhaar card, passport, and certificate from a government agency, local Panchayat, or local authority, among others.
- Bank Statement – Bank statements from the last 6 months from your current bank, if applicable.
- Offers for the purchase of equipment or machines: The request must be accompanied by the offer for the machines and other items that must be purchased for operation.
- Photograph: 2 recent passport-size photographs of the applicant.
- Caste certificate in case of SC, ST, OBC, or minority group, if applicable.
- Proof of business: may include copies of licenses, registration certificates, and lease or rental agreements, or other documents that establish the ownership, identity, and address of the business unit. Companies with the Udyog Aadhaar memorandum can also submit the same.
- Tax documents: IT declarations for the last 2 years must be filed for individuals and companies.
Borrowers can purchase RUPAY debit cards under the name MUDRA Card for cash withdrawals and transactions at points of sale. Next, its properties will be detailed in each of the 3 categories
|Daily cash withdrawal limits||10,000||15,000||20,000|
|Daily POS Limit||15,000||25,000||30,000|
The Pradhan Mantri Mudra Yojana Plan is an ideal option for people who need funds to fund their various business needs. This plan gives the country’s MSMEs better access to funds.
People who need funds for their business needs can avail themselves the loans. under the PMMY program at an affordable rate. It has helped create jobs and GDP growth.
With no security requirements and competitive interest rates, the SBI E Mudra Loan is the most effective way to get a loan to make your business dream come true.