State Bank of India Mudra Loan
State Bank of India (SBI) originated by the formation of Bank of Calcutta has its head office in Mumbai. From the year 1969 to the year 2009, SBI took over several banks in the country and expanded its branches. As of March 2017, SBI group has 59,291 ATM. Since November 2017 SBI is also offering an integrated digital banking platform named YONO.
SBI caters to large borrowers in the mid-corporate sector and also small borrowers in the SME sector. The loans are both secured and unsecured. SBI has been actively participating in implementing all the schemes sponsored by the Government and has been consistently meeting the targets set out by the Government for these schemes. The schemes are Mudra Loan, PMEGP and Stand-up India. Both working capital and term loan are being provided. The loans to the mid-corporate sector range between 50 Crores to 500 Crores.
SBI has been actively participating in implementing the government-sponsored scheme and has been lending extensively under the Mudra Loan Scheme.
What is Mudra Loan?
Mudra Loan is the outcome of the Pradhan Mantri Mudra Yojana (PMMY) which was launched in the year 2015 with the prime objective to encourage entrepreneurship by providing loans to business units involved in trading, services, and manufacturing activities. Funding is provided for agricultural activities as well. Funding up to 10 Lakhs will be provided.
Types of Mudra Loan
There are three types of Mudra Loan. They are:
- Shishu Loan
- Kishor Loan
- Tarun Loan
Features and Benefits of Mudra Loan
The following are the features of Mudra Loan:
- Purpose: The funding is extended to existing and new business establishments to set up a new unit or for improvement or expansion of the existing business.
- Eligibility: The applicant should be a resident of the present address for the past 2 years. The applicant should not be in the defaulter list of any bank/financial institution. The applicant should have undergone any skill training, preferably RESETI.
- Up to 50,000 under SHISHU
- 50,001 to 5,00,000 under KISHORE
- 5,00,001 to 10,00,000 under TARUN
- Margin: There is no margin for a loan up to 50,000. For a loan above 50,000 and up to 10 Lakhs margin is stipulated at 10%.
- Repayment: 3 - 5 years, including a moratorium period of up to 6 months.
- Collateral security: Nil. It is covered under CGFMU. However, hypothecation of P&M for term loan and hypothecation of Stocks & Receivables for working capital to be done.
- Processing fee:
- Shishu and Kishore to MSE Units: Nil
- Tarun: 0.50% plus applicable taxes of loan amount
Eligibility for SBI Mudra Loan
The following are the eligibility criteria for SBI Mudra Loan:
- Existing and new business units are eligible
- Business Enterprises which are involved in Manufacturing, Trading, and Services, including allied agricultural activities, are eligible.
- Loan can be availed for business purposes, capacity expansion, and modernisation
- The applicant should be a resident of the present address for the past 2 years
- The applicant should not be in the defaulter list of any bank/financial institution
- The applicant should have undergone any skill training, preferably RESETI
Documents Required for SBI Mudra Loan
The following are the documents required for SBI Mudra Loan:
- Application form for Mudra Loan
- Photo identity proof
- Proof of current residence
- Latest ITR and financial income documents
- Last 6 months' bank statements
- Residence/office ownership proof
- Business continuity proof
- Trade references
Why Apply for SBI Mudra Loan from MyMoneyMantra?
It is required to do thorough market research before you decide to go for a Business Loan to look for the various offers available in the market. Gathering data of different banks/financial institutions will be a tedious task if it has to be done all by yourself. MyMoneyMantra, which is a one-stop solution for all financial requirements, will undertake the task of collecting data and collating on a single screen.
You can compare the data available on the MyMoneyMantra website, choose the suitable lender and apply for the Business Loan through MyMoneyMantra to make the whole process seamless and easy. On filling the application, the representatives of MyMoneyMantra will take care of all the process that is required after filling the application online and will take you through the process of documentation till the approval of the loan.
How to Apply for SBI Mudra Loan through MyMoneyMantra?
To apply for LendingKart Business Loan through MyMoneyMantra you should follow the steps mentioned below:
- Log in to the MyMoneyMantra website and choose the Business Loan from the Loans dropdown list. Select the lender you intend to apply for the loan from.
- Fill in all the relevant information required for applying for the Business Loan
- Once the filling of the application is complete and the process initiated, MyMoneyMantra's representatives will contact you to guide you through the process of documentation, etc., till the approval.
How to Calculate SBI Mudra Loan EMI?
EMI is Equated Monthly Instalments that consists of both principal and interest components of your loan. You can easily compute the EMI using MyMoneyMantra's EMI Calculator. You just need to open the EMI Calculator given under Financial Tools tab and enter the required information concerning the loan, i.e., loan quantum, interest rate, and, repayment tenure.
SBI Mudra Loan - Processing Fees and Other Charges
The processing fees and charges for SBI Mudra are as follows:
- Interest at 11.15% will be charged
- A one-time processing fee of 0.50% of the loan amount plus applicable taxes will be charged for Tarun Loan. No processing fee levied on Shishu and Kishor Loans.
SBI Mudra Loan - Customer Care Numbers
The following are the SBI Mudra Loan Customer Care Numbers:
- 1800-11-2211 (toll-free)
- 1800-425-3800 (toll-free)
SBI Mudra Loan - Frequently Asked Questions
Why was Mudra Set Up?
Mudra was set up to overcome the bottleneck to the growth of business in the non-corporate small business sector by providing funding for setting up and expansion of business in these sectors.
What is the target group for Mudra Loan?
Non-Corporate small business sectors undertaking manufacturing and service activities, shopkeepers, truck operators, food-service units, vegetable and fruit vendors, automobile service units, artisans, food processors, etc., in urban and rural areas.
Is funding available for setting up the business under the franchise model?
Yes, funding is available for setting up of the business under the franchise model. A loan can be availed under the refinance scheme meant for trade and shopkeepers from any bank/financial institution.
Does the scheme provide overdraft facility of 5,000?
The overdraft facility provided under the Prime Minister's Jan Dhan Yojana is also considered as Mudra Loan under the Pradhan Mantri Mudra Yojana.
Is CGFMU Cover available for all the loans under PMMY?
Yes, all loans under PMMY are covered under the Credit Guarantee Scheme, CGFMU. All the loans provided for MSE Manufacturing and Service units, including retail trade and allied agricultural activities can be covered under CGFMU Scheme.
Is the Mudra Card issued to all the borrowers under PMMY?
Yes, Mudra Card is issued to all the borrowers under PMMY.
Are candidates from the urban areas eligible for the SBI Mudra Loan?
Yes, candidates from the urban areas are also eligible for the SBI Mudra Loan.
What is a Mudra Card?
Borrowers under the Mudra Loan will be provided with a co-branded debit card with daily cash withdrawal and POS limits as per the category of the loan. The debit card can be used at the ATM and POS.
The daily cash withdrawal limit for Shishu loan stipulated is 10,000 and the POS limit stipulated is 15,000. The daily cash withdrawal limit for Kishore Loan is 15,000 and the POS limit is 25,000. The daily cash withdrawal limit for Tarun Loan is 20,000 and the POS limit is 30,000.
How to Apply for the SBI Mudra Loan?
The prescribed loan application for Pradhan Mantri Mudra Yojana (PMMY) has to be submitted along with the required documents to the nearest branch of SBI.
What are the repayment terms for SBI Mudra Loan?
The working capital limits have to be repaid on demand and the Term Loans have to be repaid within 60 months, including a moratorium period of 2, 3 or 6 months depending on the business activities.