Are you an aspiring entrepreneur on the way to achieving your dreams? Have you been looking for a loan without heavy interest rates and complex procedures? Look no further! The SBI has announced a dedicated loan scheme for aspiring entrepreneurs called the SBI e-Mudra Loan.
This online loan scheme is tailored to meet all kinds of requirements related to setting up, running, and growing a business. With minimal paperwork, a fast and easy application procedure, quick approval and disbursal, and no need for collateral or guarantors – SBI e-Mudra Loan is your gateway to financial freedom.
So if you’re ready to take that leap of faith into the world of entrepreneurship with a convenient and affordable loan – read on. In this blog post, we’ll be discussing all the features, eligibility criteria, steps to apply, documents needed etc., required to apply for SBI e-Mudra Loan. So let’s get started!
Also Read: Required Documents For Home Loans
Introduction to SBI E-Mudra Loan
SBI e-Mudra Loan is a loan facility offered by the State Bank of India (SBI) under the guidance of MUDRA (the Micro-Units Development and Refinance Agency) to promote and encourage entrepreneurship in India. It funds small businesses and entrepreneurs seeking to initiate and expand their business (non-agriculture). SBI e-Mudra Loan is designed to meet small business owners’ specific needs, such as purchasing raw materials, inventory, or machinery. With this loan, you can easily get the finance for your business needs without any hassle. It has great features and flexible repayment options that make it attractive for entrepreneurs.
Features and Eligibility Criteria of SBI E-Mudra Loan
When it comes to small businesses, SBI e-Mudra loan is here to help. This loan enables businesses to get the capital they need for their operations. Here are a few features and eligibility criteria you should know about before applying for an SBI e-Mudra loan:
- The most that can be borrowed is Rs. 1 lakh for 5-year repayment and 10 lakhs.
- Repayment terms can last up to five years.
- An Rs. 50,000 instant loan is available at the bank’s discretion.
- An applicant must complete loan paperwork at the nearest SBI bank branch for loans greater than Rs. 50,000.
- The MCLR is 8.40%, effective from 15th January 2023.
- The candidate must be a micro-entrepreneur.
- The applicant must have held a CA/SB account with SBI for at least six months.
Steps to Apply for SBI E-Mudra Loan
Applying for SBI E-Mudra Loan is a simple process that can be done online or through branches. To start, you must fill in an online application form and submit it with your documents. Once approved, the loan amount will be disbursed to the applicant’s bank account. Here are the general steps to apply for SBI E-Mudra Loan:
Step 1: Choose Pradhan Mantri Mudra Yojana Application Form from the drop-down option.
Step 2: Go to https://emudra.sbi.co.in:8044/emudra, the official SBI website, and select “Proceed.”
Step 3: Provide the necessary information through UIDAI, such as the applicant’s Aadhar card for e-KYC purposes. This is necessary since e-KYC and e-sign require OTP authentication to process and disburse loans.
Step 4: The applicant will receive an SMS directing them to begin the next step by returning to the e-MUDRA portal after completing the SBI procedures and loan process.
Step 5: This procedure must be finished within 30 days of receiving the SMS sanctioning the loan.
Documents Required for Applying for SBI E-Mudra Loan
Applying for an SBI e-Mudra loan is straightforward, and all you need are some basic documents to get started. While the specific documents required depend on your financial situation, here’s a list of the most commonly needed documents:
- Proof of Identity – This can be any government-issued ID such as a valid passport, PAN card, Aadhaar card, or driving license.
- Proof of Residence – This can be any document that shows your current address, such as an electricity bill or bank statement.
- Proof of Business – This can include registration papers and other legal documents related to your business. Evidence of Business (Name, Start date & Address).
- Income Certificates may include bank statements showing your income for the last three months.
- Bank Statements – You will need to submit 6 months’ worth of bank statements to prove your financial history.
- Properly completed application form and two passport-sized photos
- Information about the branch and current account number
- Aadhar Number from UIDAI (should be updated in Account Number)
- Information about your community (general/SC/ST/OBC/minority)
- Other data for uploading, such as GSTN and UDYOG Aadhar
- Any additional document required by SBI is proof of shop & establishment, business registration, or both.
Loan according to categories
Maximum- Up to Rs. 10 lakh
- Loans up to Rs. 50,000 under the SHISHU category
- Loans – Rs.500,001 to Rs. 10 lakh under the TARUN category
- Loans – Rs.50,001 to Rs. 5 lakh under the KISHORE category
- Nil for Shishu and Kishor to MSE Units
- For Tarun: 0.50% of the sanctioned loan amount + applicable taxes
Repayment Terms of SBI E-Mudra Loan
When it comes to repayment terms, the SBI e-Mudra Loan offers flexible repayment options. You can repay your loan in either EMIs or lump sum payments. Depending on the amount of loan you have taken, your repayment tenure can be from three months to five years. It is vital to note that you will be required to pay an interest rate on your loan, which is calculated based on the amount and tenure of your loan. Additionally, you can pre-pay your loan without penalty, which can help you save money on interest payments.
FAQs on SBI E-Mudra Loan
If you have any questions about the SBI e-Mudra loan, look no further! Here it is-
- What is the eligibility for an e- mudra loan SBI?
This loan is open to any individual or business entity who wants to start or expand an existing micro business. The applicant also needs to be an Indian citizen between 18 and 60 years old with a valid income source.
- How much money can I borrow under an e-mudra loan SBI?
The maximum amount which can be borrowed through this loan is Rs 10 lakhs.
- How do I go for an SBI e mudra loan apply online?
Applying for an SBI e-Mudra loan is simple and easy. All you need to do is fill the online application form and submit it with the necessary documents. You will receive the money within 24 hours when your application being approved.