The State Bank of India (SBI) Mudra Loan refers to the loans given by the banks to Micro, Small & Medium Enterprises (MSMEs) under the guidance of the Micro-Units Development and Refinance Agency (MUDRA). Mudra scheme provides necessary finance to Small and Medium-sized Enterprises (SMEs) sector units. Mudra Loan by SBI is offered at competitive interest rates with the low processing fees and flexible repayment options.
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SBI Mudra Loan can be used to meet various business requirements, such as purchasing raw materials, to stock up inventory, to meet working capital needs, buying plant and machinery, paying rent, business expansion and other business related purposes. SBI Mudra loans are offered to business enterprises in services, manufacturing and trading sectors.
SBI MUDRA Loan – Interest Rate and Features – 2021 | |
Interest Rate | 9.75% onwards |
Loan Amount | Up to Rs. 10 lakh |
Eligibility Criteria | Existing and New Units |
Processing Fee & Charges | Nil for Shishu and Kishor to MSE Units For Tarun: 0.50%of the loan amount + taxes |
Pre-payment Charges | Between 3 – 5 years (moratorium of up to 6 months) depending on the activity / income generation |
Margin | Up to Rs. 50,000 Nil and From Rs. 50,001 to Rs. 10 lakh is 10% |
Residence Status | For last 2 years, residing in same society |
Collateral Security | Nil |
Nationality | Indian |
Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the company and RBI. GST and service tax shall be levied extra on the mentioned charges.

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How to Apply for SBI e-Mudra Loan?
Existing customers sharing relationship with SBI who are maintaining Saving Bank or Current Account (Individual) can apply for e-MUDRA loan of amount Up to Rs. 1,00,000.
Step 1: Please select from the drop down menu to fill in the Pradhan Mantri Mudra Yojana Application Form
Step 2: Visit https://emudra.sbi.co.in:8044/emudra and click on ‘Proceed’
Step 3: Please provide the applicant’s Aadhar card for e-KYC purposes through UIDAI, as the e-KYC and e-sign needs to be completed through OTP authentication for loan processing and disbursement
Step 4: Once the loan formalities are completed, the applicant shall receive an SMS that will state to initiate further process by revisiting e-MUDRA portal
Step 5: This process needs to be completed within 30 days after the receipt of SMS of loan sanction
Note: The applicant needs to upload the document in JPEG, PDF or PNG format only, with a maximum file size of 2MB.
SBI e-MUDRA Loan Eligibility
To avail a Mudra loan from SBI, you must meet the following eligibility criteria:
- Applicant should be a micro entrepreneur
- Must have maintained SBI’s current or savings account for at least 6 months
- Maximum loan amount offered is Rs. 1 lakh
- Maximum repayment period is up to 5 years
- Instant loan availability of Rs. 50,000 as per bank’s discretion
- For loan amount above Rs. 50,000, applicant needs to visit SBI’ nearest bank branch for loan formalities

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Documents required for SBI e Mudra Loan
To apply for a Mudra loan from SBI, you are required to submit the following documents, along with loan application form:
- Details of Savings/Current Account number and branch
- Proof of Business (Name, Start date & Address)
- UIDAI- Aadhar Number (should be updated in A/c Number)
- Community details (General/ SC/ ST/ OBC/ Minority)
- Other information for uploading like: GSTN & UDYOG Aadhar
- Proof of Shop & Establishment and business registration

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SBI Mudra Loan Eligibility
- Applicant must be engaged in a non-farm income generating activity, either in manufacturing or in the services sector
- The applicant should be residing at the same location for at least 2 years
- Applicant needs to submit a business plan and should have a credit requirement of not more than Rs. 10 lakh
- Applicant should not have defaulted on any loan availed earlier from any financial institution
Must Read: How to Apply for Mudra Loan Online?
MUDRA Yojana Loan Amount | |
Category | Loan Amount |
Shishu | Up to Rs. 50000 |
Kishor | Rs. 50000 – Rs. 5 lakh |
Tarun | Rs. 5 lakh – Rs. 10 lakh |
In addition to finance, MUDRA also offers credit guarantee for Mudra loans, acts as a technology enabler and provides developmental and promotional support. The financing is provided through four avenues:
- Through a Micro Credit Scheme (MCS) for loans up to Rs. 1 lakh, where the financing comes through micro finance institutions.
- Using a refinance scheme for commercial banks, regional rural banks and scheduled co-operative banks
- Through a women enterprise program
- By securitization of loan portfolio
The bank provides the SBI Mudra loan for working capital needs and as a term loan for various business needs. The maximum amount of loan that a micro or small business can apply for is Rs. 10 lakh. Businesses engaged in manufacturing or provisions of services are eligible for a CGTMSE guarantee, though the same is not provided to businesses engaged in retail trade. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantees the loans given under the Mudra scheme to eligible applicants up to a certain specific amount

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Documents Required for SBI Mudra Loan
The following documents have to be submitted for a Kishor or a Tarun loan:
ID Proof: The borrowers have to provide a self-certified copy of any one of the following documents: Voter’s ID card, Driving License, PAN Card, Aadhaar Card, Passport or Photo IDs issued by a Government authority.
Residence Proof: These may include any one of the following documents: recent telephone or electricity bill, property tax receipt, Voter’s ID card, Aadhaar Card, Passport, and Certificate issued by a government authority, local Panchayat or municipality, among others.
Bank Statement: The SBI Mudra loan borrower has to provide the last 6 months’ bank statement from their existing bank, if any.
Price Quotations: The application should be accompanied by the quotation for the machinery and other items that have to be bought for the business.
Photograph: Applicants have to provide two copies of their recent photograph. The photo must not be older than 6 months.
Category of Person: The borrowers must also submit proof of them being part of an SC, ST, OBC, or minority group, if applicable.
Business ID and Address: These may include copies of relevant licenses, registration certificates, and lease or rent agreements, or other documents that are establish the ownership, identity and address of the business unit. Businesses with Udyog Aadhaar Memorandum can submit the same also.
Sales Documents: Existing units have to provide details of sales for the current financial year. The data should be up to date (i.e. up to the date of submission of the application).
Financial Documents:
Historical Balance Sheet and Tax Returns: The applicant must submit the last 2years unaudited balance sheets of the existing units along with the income tax or sales tax returns, among others.
Projected Balance Sheet: The borrowers also need to submit the projected balance sheet of start-ups or existing units for 1 year for working capital requirements or for the period of the loan in case of a term loan.
Quotations: The application should be accompanied by the proforma invoices or quotations for the assets that have to be bought. Estimates for any civil works, if any are to be undertaken, are also required. In addition, technical feasibility and economic viability aspects may be discussed by State Bank with the applicant, if deemed necessary.
Asset and Liability Statements: The asset and liability statements of the borrower including directors or partners in case of a company or a firm, respectively, have to be submitted along with the application.
Memorandum and Articles / Partnership Deed: The memorandum of association and the articles of association in case of a company or the partnership deed in case of partners are also needed with the application.
Photograph: Applicants (whether proprietors, directors or partners) have to provide two copies of their recent photograph. The photo must not be older than 6 months.

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Also Read: Is there any Subsidy for a Mudra Loan?
Additional Benefits
Borrowers financed under Mudra loan are provided with RUPAY Debit Cards named as MUDRA Card for cash withdrawals & PoS transactions under 3 categories named as Shishu, Kishor & Tarun
Limit | Shishu | Kishor | Tarun |
Daily Cash withdrawal limits | 10,000 | 15,000 | 20,000 |
Daily POS Limit | 15,000 | 25,000 | 30,000 |
FAQs
Ques. Who can apply for an SBI Mudra loan?
Ans. Any micro or small business owner can apply for an SBI Mudra loan. The owners can be proprietors, partners or directors in the business.
Ques. What is the repayment timeline for an SBI Mudra loan?
Ans. The funds for working capital are payable on demand while that for term loans have a 3 to 5 years repayment tenure. The moratorium period of up to 6 months is covered under the period of 3 to 5 years.
Ques. Can people in urban areas apply for an SBI Mudra loan?
Ans. Yes. People in urban areas can apply for an SBI Mudra loan.
Ques. What is a Mudra Loan Card?
Ans. Mudra Loan Card, more commonly known as a Mudra Card, is a credit card that has a credit limit up to the working capital portion of the SBI Mudra loan. It can be used as a debit-cum-ATM card and also at POS terminals to make purchases for the business.
Ques. Is there any subsidy provided under Mudra loan scheme?
Ans. No, there is no subsidy provided under Mudra loan scheme.
Ques. What is the maximum loan amount offered under Mudra loan scheme?
Ans. The maximum loan amount offered under Mudra loan scheme is Rs. 10 lakh.
Q. Under Mudra Scheme, is the overdraft facility of up to Rs 5000 covered?
Ans. Yes, Overdraft facility of amount Rs. 5000 sanctioned under Pradhan Mantri Jan Dhan Yojana (PMJDY) is covered under Mudra Loan.
Ques. Does NBFCs also provide Mudra loans?
Ans. No, only banks are authorized to provide Mudra loans. Government of India does not provide permission to NBFCs to provide Mudra loans. However, they can provide SME and MSME loans.