SBI Mudra Loan Details – Required documents and Eligibility

Updated on: October 9, 2024

SBI Mudra Loan: The Pradhan Mantri MUDRA Yojana (PMMY), launched by the Prime Minister of India on April 8, 2015, is a pivotal scheme designed to support small and micro enterprises. Offered by major financial institutions including the State Bank of India (SBI), this initiative provides loans of up to ₹10 lakh to non-corporate, non-farm businesses. By enhancing access to capital, PMMY aims to fuel the growth of small businesses, drive economic development, and create employment opportunities across the country.

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Loan Categories and Amounts

Under the PMMY, SBI offers loans categorized into three distinct types based on the amount and stage of business development:

Shishu Loans: Up to ₹50,000, tailored for startups and new enterprises requiring initial funding.
Kishore Loans: Ranging from ₹50,001 to ₹5,00,000, these loans cater to businesses seeking expansion or improvement.
Tarun Loans: From ₹5,00,001 to ₹10,00,000, designed for more mature businesses aiming for significant growth or modernization.

These classifications align financial assistance with the specific needs of businesses at various growth stages, helping them utilize the funds more effectively.

Key Features and Financial of SBI Mudra Loan

SBI’s offerings under PMMY are designed with borrower-friendly terms. For Shishu loans, no margin is required, making it easier for smaller enterprises to secure funding. For amounts between ₹50,001 and ₹10 lakh, a margin of 20% is applicable. The loans feature competitive interest rates linked to the External Benchmark Lending Rate (EBLR), ensuring favorable borrowing costs.

You can repay loans up to ₹5 lakh over a maximum of 5 years, and you have the option to include a 6-month moratorium. For loans between ₹5 lakh and ₹10 lakh, you can extend the repayment period to up to 7 years and include a 12-month moratorium. SBI waives processing fees for Shishu and Kishore loans, but charges a processing fee of 0.50% plus applicable taxes for Tarun loans.

Eligibility and Guarantees

SBI offers PMMY loans to both new and established businesses in sectors like manufacturing, trading, and services. These loans come with a Credit Guarantee for Micro Units (CGFMU) provided by the National Credit Guarantee Trustee Company (NCGTC), covering the loan for up to five years. Businesses can also find loan opportunities through the Udyami Mitra Portal, and eligible accounts receive MUDRA RuPay Cards.

SBI Mudra Loan Application: Click Here

Conclusion

The Pradhan Mantri MUDRA Yojana, supported by institutions like the State Bank of India, plays a crucial role in nurturing the growth of small and micro enterprises. By offering accessible and affordable financing options, PMMY helps businesses at various stages of development, contributing significantly to economic progress and job creation in India.

Author: Sanjeev

Sanjeev is a content writer specializing in education, job notifications, and government schemes. With a passion for delivering accurate and timely information, Sanjeev helps readers stay informed about opportunities and resources for personal and career growth.