SBI e-Mudra Loan

Please Note: SBI is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.

SBI Mudra Loan refers to the collateral-free business loans, MSME loans, term loans, and working capital loans offered to individuals, self-employed professionals, startups, business owners, Micro, Small & Medium Enterprises (MSMEs) and other business entities under the guidance of the Micro-Units Development and Refinance Agency (MUDRA). Under the Mudra loan scheme, SBI offers business loans and MSME loans of amounts up to Rs. 10 lakh. SBI e Mudra loan can be applied for and availed online for amounts up to Rs. 1 lakh with repayment tenure of up to 5 years.

 

SBI Mudra Loans are mainly used to start a new business and to meet various working capital requirements, such as enhancing cash flow, purchasing raw materials, stocking up inventory, paying rent, for business expansion, and other business-related purposes. SBI Mudra loans and e Mudra loans are offered to businesses and enterprises engaged only in the services, manufacturing, and trading sectors. Below mentioned are the salient features of the SBI Mudra Loan and SBI e Mudra Loan:

SBI MUDRA Loan – Highlights – 2023
Interest Rate	Competitive Pricing Linked to MCLR
Purpose	To start a new business; For Business and capacity expansion, and modernization purposes
Eligible Entities	Existing and New Business Units
Loan Amount	Maximum up to Rs. 10 lakh Loans up to Rs. 50,000 under SHISHU category Loans from Rs.50,001 to Rs. 5 lakh under KISHORE category Loans from Rs.500,001 to Rs. 10 lakh under TARUN category
Loan Type	Term Loan & Working Capital Loan
Target Group	Business Enterprises engaged in the Manufacturing, Trading, and Services sectors, including allied agricultural activities
Repayment Tenure	From 3 years – 5 years, including a moratorium of up to 6 months depending on the activity/ income generation Review of WC/TL to be done annually
Processing Fee	Nil for Shishu and Kishor to MSE Units For Tarun: 0.50% of the sanctioned loan amount + applicable taxes
Margin	Up to Rs. 50,000 Nil and From Rs. 50,001 to Rs. 10 lakh is 10%
Collateral/Security	Nil to be covered under Credit Guarantee Fund for Micro Units (CGFMU) However, as Primary Security, Hypothecation of P&M for TL and Hypothecation of Stocks & Receivables for CC to be done

SBI e-MUDRA Loan – Features & Eligibility Criteria

Features 

• Loan Type: Term Loan
• Maximum loan amount offered is up to Rs. 1 lakh
• Repayment tenure is up to 5 years, including a Moratorium period of 3 months
• Processing Fee & Margin: Nil
• Term Loan Review: Reviewed Annually
• Inspection: Half Yearly
• Documentation: Acceptance of the Terms and conditions by e-Sign using Aadhar-based OTP
• Insurance: Waived
• Security: Primary: Charge on the stock and receivables & Collateral: Nil. To be covered under CGFMU
• Utilization Certificate: Within 1 month from the date of disbursal, To be obtained from Borrower

Eligibility Criteria

• Applicant should be a micro-entrepreneur
• Applicant should be an existing SBI’s CA/SB Account holder for minimum of 6 months

Steps to Apply for SBI e-Mudra Loan

Existing customers sharing relationships with SBI in the form of a Savings Account or Current Account (Individual) can apply for an e-MUDRA loan of amount Up to Rs. 1,00,000 by visiting the SBI e-mudra portal and following the below-mentioned steps:

Step 1: Select Pradhan Mantri Mudra Yojana Application Form from the drop-down menu.

Step 2: Visit the SBI official website https://emudra.sbi.co.in:8044/emudra and click on ‘Proceed’.

Step 3: Provide the required details like the applicant’s Aadhar card for e-KYC purposes through UIDAI, as the e-KYC and e-sign need to be completed through OTP authentication for loan processing and disbursement.

Step 4: Once the SBI formalities and loan process is completed, the applicant shall receive an SMS that will state to initiate the further process by revisiting the e-MUDRA portal.

Step 5: This process needs to be completed within 30 days after the receipt of the 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 2 MB.

Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs – 2023

Bank/NBFCs	Interest Rate
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	14.90% p.a.	Apply Now

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 the loan application form:

• Duly filled application form with passport-sized photographs
• KYC documents of the applicant: Passport, Voter’s ID card, Aadhar Card, Driving License, PAN card
• Details of Savings/Current Account number and branch
• Proof of Business (Name, Start date & Address)
• UIDAI- Aadhar Number (should be updated in Account Number)
• Community details (General/ SC/ ST/ OBC/ Minority)
• Other information for uploading like GSTN & UDYOG Aadhar
• Proof of Shop & Establishment and business registration
• Any other document required by SBI

SBI Mudra Loan Eligibility Criteria

• 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

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 a credit guarantee for Mudra loans, acts as a technology enabler, and provides developmental and promotional support. The funding support is offered through four avenues:

• Through a Micro Credit Scheme (MCS) for loans up to Rs. 1 lakh, where the financing comes through microfinance institutions
• Using a refinance scheme for Commercial Banks, Regional Rural Banks (RRBs), and Scheduled Co-operative Banks (SCBs)
• Through the women’s enterprise program
• By securitization of the loan portfolio 

The bank provides the SBI Mudra loan for working capital needs and as a term loan to meet various business needs. The maximum amount of loan offered by SBI under Mudra Yojana is Rs. 10 lakhs. 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 specific amount.

Documents Required for SBI Mudra Loan

The following documents have to be submitted for Shishu, Kishor, or Tarun loan scheme:

• Duly filled application form with passport-sized photographs
• ID Proof: Passport, voter’s ID card, driving license, PAN Card, Aadhaar Card
• Residence Proof: Recent telephone or electricity bill, Voter’s ID card, Aadhaar Card, Passport
• Income Proof: Last 6 months’ bank statement
• Proof of belonging to SC/ST, OBC, or any minority group, if applicable
• Any other document required by SBI

Also Read: Is there any Subsidy for a Mudra Loan?

Additional Benefit

Borrowers financed under Mudra loans are provided with RUPAY Debit Cards named MUDRA Card for cash withdrawals & Point-of-Sale (POS) transactions under three loan categories, named Shishu, Kishor & Tarun.

FAQs

Ques. Who can apply for an SBI Mudra loan?

Ans. Business enterprises engaged in the manufacturing, trading, and services sectors, including allied agricultural activities can apply for a Mudra loan from SBI.

Ques. How can I get a loan amount of Rs. 50,000 or more from SBI?

Ans. You can either apply for a direct loan from SBI or can avail Mudra/e-Mudra loan from SBI to avail loan of an amount of Rs. 50,000 or more.

Ques. What is the repayment timeline for an SBI Mudra loan?

Ans. The funds for working capital are payable on demand while term loans have a 3 to 5 years repayment tenure, including a moratorium period of up to 6 months.

Ques. Can people living in urban areas apply for an SBI Mudra loan?

Ans. Yes, people living in urban areas, as well as rural areas can apply for an SBI Mudra loan.

Ques. What is a Mudra Card?

Ans. Mudra Card is a debit card that can be used to withdraw money in portions from the total sanctioned loan. It shall be used as a debit-cum-ATM card to withdraw amounts to make business purchases.

Ques. Is there any subsidy provided under the Mudra loan scheme?

Ans. No, there is no subsidy provided under the Mudra loan scheme.

Ques. What is the processing time taken by banks in the Mudra loan application approval?

Ans. The Mudra loan processing time is approximately 7-10 working days for approval and disbursal from the date of loan application form submission. However, it varies from case to case and depends on the loan amount, applicant’s profile, and nature of the business.

Ques. Under Mudra Scheme, is the overdraft facility of up to Rs 5000 covered?

Ans. Yes, the Overdraft facility of the amount of Rs. 5000 sanctioned under Pradhan Mantri Jan Dhan Yojana (PMJDY) is covered under Mudra Loan.

Ques. How can I get/download the SBI Mudra loan application form online?

Ans. To apply for an SBI Mudra loan, the applicant needs to download the loan application form in PDF format from its official website or click here. The downloaded form needs to be duly filled and all the required documents are to be gathered and submitted at the nearest bank branch.

Ques. Who do I complain to, if the bank manager denies my Mudra loan application form?

Ans. If you think your loan application has been rejected on false grounds, you can complain to the higher bank authority if your loan application is rejected. However, it depends on the sole discretion of the respective bank to accept or reject Mudra loan applications considering the applicant’s creditworthiness, repayment history, or financial stability.