Bank of Baroda Mudra Loan Interest Rate 2021
|Interest Rate||Based on your Business’s Profile|
|Maximum Loan Amount||Rs. 10.00 Lakh|
|Tenure||Max. of 5 Years|
|Collateral / Security||Not required|
The interest rate charged on Bank of Baroda Mudra Loan depends on business profile; applicants’ credit score, nature of business and so on. The applicable interest rate will be communicated by the loan officer to the customer after the loan application submission and verification process.
Click here to download Bank of Baroda mudra loan application form in PDF format.
Eligibility Criteria for Mudra Loan in BOB Bank
All non-farm income generating enterprises which fall under the Micro Small Medium Enterprises (MSMEs) category are eligible for loans under this scheme. The additional requirements to apply for Mudra Loan from Bank of Baroda include the following:
- Businesses applying for the loan should be in either manufacturing, trading or service providers
- Businesses requiring capital up to Rs. 10 lakh only can apply for this loan
- Those involved in allied agricultural activities can also apply for mudra loan
Related Post: what is the eligibility criteria for a business loan?
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Categories of Mudra Loan
Bank of Baroda Mudra Loan is divided in 3 categories on the basis of stages of growth in business. The loan amounts that can be borrowed under the schemes are:
|Mudra Loan Scheme||Amount|
|Shishu||Up to Rs. 50,000|
|Kishore||Between Rs. 50,000 & Rs. 5.00 Lakh|
|Tarun||Between Rs. 5.00 Lakh & 10.00 Lakh|
The smallest category of Bank of Baroda Mudra Loan is the Shishu scheme. This scheme is most beneficial to small businesses that need seed money only. This loan scheme charges the least interest rate as well.
Kishore scheme of Bank of Baroda Mudra Loan is meant for businesses that have been established and need a loan for further expansion. Under this scheme the amount between Rs. 50,000 to Rs. 5 lakh can be availed.
Tarun scheme is the biggest category of Bank of Baroda Mudra Loan. Under this scheme loan amount greater than Rs. 5 Lakh but less than Rs. 10 Lakh can be availed. This can be used to buy expensive machinery or further expand the business
The repayment time period of Mudra Loan may extend to 3 years. An additional 2 years may be granted by the bank at its own discretion.
Documents Required for Loan Application
The following documents are required to apply for Bank of Baroda Mudra Loan:
- Application form for Bank of Baroda Mudra Loan
- Applicant must have a business plan
- Proof of SC/ST, OBC if applicable
- Account statement for the last 6 months
- Quotation of equipment that needs to be purchased
- Passport sized Photographs
- Unaudited balance sheets of the last two years
- Memorandum and Article of Association
- Asset and Liability statements
Aside from this, the following documents are also required:
|Identity Proof||Passport, PAN Card, Aadhaar Card, Voter’s ID Card, Driving Licence, Photo Credit Card, Central and State Govt. issued Photo ID Proof, Defence ID Card, etc.|
|Residence Proof||Aadhaar Card, Ration Card, Passport, Bank Account Statement, Voter’s ID Card, Letter from any recognized public authority, Telephone Bill, Electricity Bill, Water Bill (not more than 3 months old), etc.|
How to Apply for Mudra loan from Bank of Baroda?
To apply for Mudra loan from Bank of Baroda, you need to download the loan application form online. Fill in and submit the loan form by visiting the nearest bank branch. Bank shall proceed with the loan formalities and after documents are verified, the loan shall get approved.
Bank of Baroda Mudra Loan Customer Care Number
24*7 Toll-Free Number for Bank of Baroda are 1800 258 4455 and 1800 102 4455.
FAQs on BOB Mudra Loan
Q. Who can apply for Bank of Baroda Mudra Loan?
Ans. Indian citizens can apply for Bank of Baroda Mudra Loan. Additionally, applicants must be in the non-agricultural non-corporate sector to successfully avail the loan. However, applicants can be in agricultural allied activities also to successfully apply for a loan.
Q. Is there any subsidy provided on Mudra Loan schemes?
Ans. No, currently there is no subsidy provided on loans under Pradhan Mantri Mudra Yojana. Nevertheless, if the loan proposal falls under any Government scheme where the Government provides capital subsidy then it will be eligible under Mudra Yojana as well.
Q. Can handicapped people also apply for Bank of Baroda Mudra Loan?
Ans. Yes, handicapped people can also apply for Bank of Baroda Mudra Loan
Q. How to calculate Mudra loan EMI on Bank of Baroda?
Ans. To calculate Mudra loan EMI, you need to fill in the details in the Business Loan EMI calculator, such as loan amount, repayment tenure and interest rate.
The formula that’s used is –
E = P * r * (1+r)^n / ((1+r)^n-1)
Where ‘E’ is EMI
‘P’ is the Principal Loan Amount
‘r’ is the rate of interest calculated on a monthly basis
‘n’ is the tenor or duration of the loan
Q. How can I check my Mudra loan status?
Ans. To check the Mudra loan status, you need to personally visit the nearest bank branch or call the Toll Free number of the bank.
Q. What would happen if you don’t repay the Mudra loan or the CGTMSE?
Ans. If you do not repay the loan or loan under CGTMSE scheme, the bank shall follow up for payment, your credit score will decrease and it will not be possible for you to avail any loan or credit card from any financial institution.