Apply for Business Loan Starting From 14.99%* 
Please Note: Bank of India is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
Bank of India (BOI) is one of the most reputed banks in India, which offers several categories of business loans and MSME loans to its customers. Mudra loan under Pradhan Mantri Mudra Yojana (PMMY) is one of the government-initiated schemes that the Bank of India offers to its customers. The loan amount and interest rate offered by the Bank of India depend on the applicant’s profile and business requirements.
Click here to download Application form for Mudra Loan offered by Bank of India
Mudra Yojana is classified under 3 loan schemes, named as Shishu, Kishor and Tarun. The loan amount offered under these schemes is mentioned below:
- Shishu: covering loan up to Rs. 50,000
- Kishor: covering loans above Rs. 50,000 and up to 5 lakh
- Tarun: covering loans above Rs. 5 lakh and up to 10 lakh
Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs
| Bank/NBFCs | Interest Rate | |
| HDFC Bank | 10.00% – 22.50% p.a. | Apply Now |
| FlexiLoans | 1% per month onwards | Apply Now |
| ZipLoan | 1% – 1.5% per month (Flat ROI) | |
| Axis Bank | 14.25% – 18.50% p.a. | Apply Now |
| IDFC First Bank | 14.50% onwards | |
| Kotak Mahindra Bank | 16% – 19.99% | Apply Now |
| Fullerton Finance | 17% – 21% | |
| Bajaj Finserv | 17% p.a. onwards | Apply Now |
| RBL Bank | 17.50% – 25% p.a. | |
| ICICI Bank | 17% onwards | |
| Indifi Finance | 1.5% per month onwards | Apply Now |
| Lendingkart Finance | 1.5% – 2% per month | Apply Now |
| Tata Capital Finance | 19% p.a. onwards | |
| NeoGrowth Finance | 19% – 24% p.a. | |
| Hero FinCorp | Up to 26% p.a. | Apply Now |
Note: Business loan interest rates are updated as on September 2022.
Features of Bank of India e-Mudra Loan – 2022
Promotes Startups and Micro, Small, and Medium Enterprises (MSMEs) engaged only in services, trading, and manufacturing sectors.
- Competitive Interest Rates
- Loan amount: Minimum amount has no limit and the maximum is up to Rs. 10 lakh
- Repayment Tenure: Maximum up to 36 months for demand loans and 84 months for term loans
- No processing charges Borrowers would not charge any processing fee which ideally range from 1% to 2% of the loan amount
- Nil foreclosure or pre-payment charges
- Collateral/Security – Hypothecation of all assets is required, along with the personal guarantee of directors/promoters
- Margin: Nil for Shishu Category and 15% for Tarun and Kishor category
Best Term Loan offers with minimum documentation Apply Now
Eligibility for Bank of India Mudra Loan
The loans offered under the Mudra Yojana are available for multiple purposes like commercial purposes, purchasing plant or machinery, renovating the infrastructure, hiring staff, training employees, etc. The basic criteria to avail this loan are:
- Minimum age: 18 years and maximum up to 65 years
- Enterprises engaged in Non-farm income-generating activities
- The applicant should be an Indian citizen with no criminal records
- Small business owners like vegetable vendors, truck operators, fruit vendors, shopkeepers, repair shops, paper/food processing units, artisans, etc. are eligible for loans under Mudra Yojana
- No previous defaults with any financial institutions by the applicant
Also Read: What is the process and requirement of taking a loan from Mudra Bank?
Documents Required for Loan Application
To avail Bank of India Mudra loan, applicants need to provide the below-mentioned documents:
- Duly filled application form with passport-sized photographs
- Photo Identity Proof: Voter ID card, passport, driving license, Aadhaar card, PAN card
- Address Proof: Passport, Voter ID, Aadhaar card, Telephone & Electricity Bills
- Income Proof: Last 2 years’ Income Tax Return (ITR), Last 12 months’ bank statement
- Age proof
- Ownership proof of office or resident
- Business existence proof
- Proof of belonging to SC/ST/OBC category
Also Know: What is the difference between a term loan and a demand loan?
Bank of India Mudra Loan Customer Care Numbers
| Toll-free number (24*7) | 1800 103 1906 |
| Toll-free – Covid Support | 1800 220 229 |
| Telephone Number (Chargeable) | (022) – 40919191 |
FAQs
Q. What are processing fees & documentation charges for the Mudra loan in the Bank of India?
Ans. There are no processing fees or documentation charges for Mudra loans offered by the Bank of India.
Q. How to track the Bank of India Mudra Loan application status?
Ans. To track your Mudra loan application, you can either visit the official bank’s website or personally visit the nearest bank branch.
Q. What are demand loans?
Ans. Demand loans are a type of short-term loan offered by financial institutions to meet the working capital requirements.
Q. What is the repayment tenure of a mudra loan in the Bank of India?
Ans. The repayment tenure of Mudra is from 12 months to 5 years.
Q. Is it really possible to get a mudra loan without collateral security/third-party guarantee?
Ans. Yes, the Mudra loan offered by the Bank of India is collateral-free and no third-party guarantee is required.
Q. 1: Is a guarantor required for the Bank of India Mudra Loan?
Ans: No. There is no need for Collateral security or any guarantor for availing loan under Mudra Scheme.
Q: Is there any subsidy for the Bank of India Mudra Loan?
Ans: According to the Mudra Loan policy, there is no mentioning of any kind of subsidy applicable to it yet.
Q: Can I take Mudra Loan from two different banks?
Ans: Yes. You can take a loan from a different bank at a time under this scheme, until or unless it exceeds the total amount of your applicable loan amount.
Q: How can I get a Bank of India Mudra loan for Business?
Ans: Go online or approach any bank or financial institute that facilitates Mudra Scheme and apply according. Ask any officials at the branch to provide you with further guidance.
Also Know: How to get a loan from MSME?
Q: Is there any special offer existing under Mudra Loan for women entrepreneurs?
Ans: Yes. You can apply under a special refinance scheme for women entrepreneurs— Mahila Uddyami Scheme. Assistance will be provided under all three groups, ‘Shishu’, ‘Kishore’ as well as ‘Tarun’.