5 mins read

How to Apply For E Mudra Loan in 2023

Rate this post

How to Apply For E Mudra Loan in 2023, What is e mudra loan, Can mudra loan be applied online, How to Apply For E Mudra Loan, Who can apply for mudra loan, Who are eligible for mudra loan, Is mudra loan interest free, Can I apply mudra loan without ITR, Which banks provide mudra loan facility

What is e mudra loan?

Micro Units Development and Refinance Agency Bank or MUDRA bank is a public sector financial institution by the Indian government. The bank supports by giving low-interest rate loans to non-banking Financial institutions and microfinance institutions so that they can provide credit to MSMEs. The bank was launched by prime minister Narendra Modi on April 8, 2015. 

How to Apply For E Mudra Loan in 2023
How to Apply For E Mudra Loan in 2023

MUDRA bank is created under Pradhan Mantri Mudra Yojana (PMMY) scheme. The objective of the same is to provide services to small entrepreneurs outside the service region of banks. According to the survey conducted by NSSO in 2013, there were around 57.6 million small businesses expected to be the target clients. 

MUDRA is a wholly owned subsidiary of SIDBI (Small Industries Development Bank of India). The loan applicants are classified in three categories.

  • Shishu mudra loan: the allowed loan amount is up to Rs 50,000
  • Kishore mudra loan: the allowed loan amount is up to Rs 5,00,000
  • Tarun mudra loan: the allowed loan amount is up to Rs 10,00,000

The loan allocation is 

  • 40% to Shishu mudra loan
  • 35% to Kishore mudra loan
  • 25% to Tarun mudra loan

Can mudra loan be applied online

Yes, anyone can apply for mudra loan under Pradhan Mantri Mudra Yojana from nearby bank branch, non banking financial company, MFIs, etc. The borrowers can apply online on Udyamimitra portal (www.udyamimitra.in). 

How to Apply For E Mudra Loan

1. Visit the official website of SBI and click on proceed

2. Then provide the necessary information like Aadhar card of the applicant for e KYC through Aadhar number. The e-sign as well as e-KYC needs to be completed with the help of OTP authentication for processing loan and disbursement.

3. After completing the formalities for the bank as well as loan process, the loan applicant will receive an SMS which will indicate the state to initiate the additional process by revisiting the portal.

4. This process must be completed within 30 days after getting receipt of loan sanction on SMS.

Who can apply for mudra loan 

  • The applicant must be 18 years and the maximum age limit for the loan is 65 years.
  • The maximum loan requirement that can be fulfilled is Rs 10,00,000.
  • The entities must be involved in the allied agriculture sector since April 1, 2016.

Who are eligible for mudra loan

Those who are eligible for mudra loan are

  • Small manufacturing unit
  • Food production sector: Fruit and vegetable vendors
  • Agriculture activities
  • Shopkeepers
  • Artisans and textile industry
  • Apart from the above list, any Indian citizen who has a business plan for income generating activity can apply for mudra loan.

What is the interest of 50000 in mudra loan

The interest rate on the mudra loan of 50000 ranges from 1% per annum to 12% per annum.

Is mudra loan interest free

No, mudra loan is not interest free. The interest may vary depending on the time taken to repay the loan amount. 

Can I apply mudra loan without ITR

ITR is a necessary document if you want to apply for mudra loan. If you are eligible, then you are required to provide ITR of 2 years as a proof because loan approval and amount will depend on the current income of the business or applicant.

Which banks provide mudra loan facility?

  • Oriental Bank of Commerce
  • HDFC Bank
  • Indian Bank
  • State Bank of Patiala
  • Vijaya Bank
  • Central Bank of India
  • IDBI Bank
  • Dena Bank
  • Citibank
  • Indusind Bank
  • Canara Bank
  • State Bank of Bikaner and Jaipur
  • State Bank of Travancore
  • Bank of India
  • Allahabad Bank
  • Kotak Mahindra Bank
  • Karur Vysya Bank
  • UCO Bank
  • Bank of Baroda
  • Union Bank of India
  • Indian Overseas Bank
  • South Indian Bank
  • State Bank of Hyderabad
  • HDFC Bank
  • State Bank of India

Frequently asked questions

1.Is there any subsidy provided under SBI mudra loan?

No, there is no subsidy provided under SBI mudra loan

2. Is SBI e mudra loan available now?

Yes, SBI e mudra loan is available now

3. Can I get 50000 loan from SBI?

Yes, mudra loan of Rs 50,000 can be obtained from SBI or several banks

Related searches

Is Credit Card Limit Based on Income?

Can HDFC Credit Card be Linked To Google Pay?

Do You Have To Keep Investing In The Stock Market in 2023?

Why You Should Not Buy An Electric Vehicle In India Right Now in 2023?

Why credit or debit cards have expiry date?

10 money lessons you should know

5 reasons mutual funds are better than stocks

10 things to manage your finances before you turn 30