Mudra Loan Scheme

Mudra Loan or Mudra Loan Scheme in State Bank Of India, Eligibility, Document Required, Interest Rate & How to apply?: Government of India has launched Pradhan Mantri Mudra Yojana (PMMY) on 8th April 2015 with a concept of 'funding the unfunded' micro enterprises in the country. It is government's finance scheme to provide business loan to new or existing micro or small scales businesses from rural areas in India.

Mudra Loan Purpose State Bank Of India

To provide hassle-free finance to small and medium enterprises to facilitate funding for working capital requirements and other non-farm income generating activities.

Mudra Loan Eligibility State Bank Of India

Companies, societies, partnership firms and individuals involved in non-farming income generating activities falling under services or manufacturing sectors are eligible to avail a Mudra loan. The Mudra loan scheme can be taken only for activities that have CGTMSE cover.

Mudra Loan Amount State Bank Of India

1. Shishu: Loans up to Rs.50,000 provided to only startup businesses
2. Kishore: Loans above Rs.50,000 and up to Rs.5 lakh provided to only those businesses that have already started up but need financial aid for establishing
3. Tarun: Loans above 5 lakh and up to Rs.10 lakh provided to only those business that are already established but require funds for expansion

Credit Facility

1. Cash Credit - For meeting the Working Capital Requirement of the Business Unit
2. Term Loan - For meeting different purposes that require longer loan tenure

Mudra Loan Margin

Margin will be taken is based on the policy framework of the bank, depending upon overall guidelines of RBI in this regard. Banks may not insist for margin for Shishu loans.

Further, margin depends upon activity of finance. Please contact your nearest bank branch for more details.

Mudra Loan Interest Rate State Bank Of India

12.50% to 17.80%

Security for Mudra Loan

• Primary Security:
  1. Assets created out of the Bank's finance.
  2. Personal guarantee of promoters/directors.
• Collateral Security: No collateral security.

Mudra Loan Tenure State Bank Of India

Maximum of 84 months

Guarantee

No requirement of third party guarantee.

Mudra Loan Processing Charges

Banks may consider charging of upfront fee as per their internal guidelines. The upfront fee/ processing charges for Shishu loans are waived by most banks.

Please contact your nearest branch for getting more details.

Mudra Loan Documents Required State Bank Of India

Mudra Loan Documents Required in State Bank Of India are mentioned below infull detail.

CHECK LIST: (The check list is only indicative and not exhaustive and depending upon the local requirements at different places addition could be made as per necessity)

• Proof of Identity: Self certified copy of Voter's ID card / Driving License / PAN Card / Aadhar Card/Passport.
• Proof of Address: Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter's ID card, Aadhar Card & Passport of Proprietor/Partners/Directors.
• Proof of SC/ST/OBC/Minority.
• Proof of Identity/ Address of the Business Enterprise: Copies of relevant licenses/registration certificates/other documents pertaining to the ownership, identity and address of business unit.
• Applicant should not be defaulter in any Bank/Financial institution.
• Statement of accounts (for the last six months), from the existing banker, if any.
• Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs.2 Lacs and above).
• Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs.2 Lacs and above).
• Sales achieved during the current financial year up to the date of submission of application.
• Project report (for the proposed project) containing details of technical & economic viability.
• Memorandum and articles of association of the company/Partnership Deed of Partners etc.
• In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.
• Photos (two copies) of Proprietor/ Partners/ Directors.