Please Note: Bank of India is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
Bank of India (BOI) offers credit facilities under various loan categories of business loans, MSME loans, working capital loans, and Loans under Govt. schemes. Mudra loan under Pradhan Mantri Mudra Yojana (PMMY) is also one of the Government-initiated schemes offered by the Bank. The loan amount offered under Mudra Yojana is up to Rs. 10 lakh with a repayment tenure of up to 7 years. The interest rate offered by the Bank of India depends on the applicant’s profile and business requirements.
Click here to download Application form for Mudra Loan offered by Bank of India
Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs – 2023
|Axis Bank||14.95% - 19.20% p.a.||Apply Now|
|Bajaj Finserv||9.75% - 30% p.a.||Apply Now|
|Flexiloans||1% per month onwards||Apply Now|
|HDB Financial Services Ltd.||Up to 36% p.a.||Apply Now|
|HDFC Bank||10% - 22.50% p.a.||Apply Now|
|IDFC First Bank||10.50% p.a. onwards||Apply Now|
|Indifi||1.50% per month onwards||Apply Now|
|Kotak Mahindra Bank||16% - 26% p.a.||Apply Now|
|Lendingkart||12% - 27% p.a.||Apply Now|
|Mcapital||2% per month onwards||Apply Now|
|NeoGrowth Finance||19% - 24% p.a.||Apply Now|
|Tata Capital||12% p.a. onwards||Apply Now|
|UGRO Capital||9% - 36% p.a.||Apply Now|
Features of Bank of India Mudra Loan – 2023
- Purpose: For setting up New/Upgrading existing micro business enterprises serving the manufacturing, processing, trading, and service sectors, as well as carrying out specified allied agriculture activities.
- Interest Rates: As defined by the Bank for Micro accounts and activities allied to agriculture from time to time
- Nature of Loan: Term Loan/Working Capital
- Loan amount: Up to Rs. 10 lakh
- Repayment Tenure: Maximum up to 36 months for Demand Loans and 84 months for Term Loans, including the Moratorium period
- Processing Fee: As per Bank’s Guidelines
- Margin: Nil up to Rs. 50,000 & Minimum 15% of loan amount above Rs. 50,000
- Security: Primary
Asset create out by Bank Finance
Personal Guarantee of Promoters/Directors
- Collateral: Nil
Mudra Yojana is classified under 3 loan schemes, named 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
Best Term Loan offers with minimum documentation Apply Now
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
- Micro Enterprises engaged in Non-farm income-generating activities
- Eligible Entities: 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
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
- Age and Address Proofs: Passport, Voter ID, Aadhaar card, Telephone & Electricity Bills
- Income Proof: Last 2 years’ Income Tax Return (ITR), Last 12 months’ bank statement
- Business address and vintage proofs
- Proof of belonging to SC/ST/OBC category
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 up to 84 months.
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 mention 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’.