How to Apply Mudra Loan?

Hi Buddy,

I have started a small sugar refinery firm. For this, I applied for a MUDRA loan in the State Bank of India. Hence, if you want to know how to apply MUDRA loan in SBI, I can assist you with the same. I learned about MUDRA or SBI-e MUDRA loans from one of my friends who is a bank employee. 

According to him, the Hon'ble Prime Minister announced the Pradhan Mantri MUDRA Yojana (PMMY) on April 8, 2015, to provide loans up to ten lakh to non-corporate, non-farm small/micro-enterprises. 

I was relieved and wanted to avail the loan. I was also curious about how to apply Mudra loan online? My friend told me that, under PMMY, loans are categorised as MUDRA loans. Commercial banks, RRBs, Small Finance Banks, MFIs, and NBFCs provide these loans. The borrower can go to any of the above-mentioned lending institutions or apply online at 

. 

MUDRA has developed three categories, 'Shishu,' 'Kishore,' and 'Tarun,' under the auspices of PMMY, to represent the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur, as well as to serve as a reference point for the next step of growth

When I told him that I am going to open a small sugar refinery, he told that I can also apply for the Mudra loan as small firms can apply for loans under the PMMY scheme for commercial purposes, as indicated below:

• Buying automobiles, vehicles, motorcycles, or any other type of vehicle

• Access to working capital

• For machines and equipment

• Renovating or repurposing office space

Finally I decided to apply for the Mudra loan in SBI. SBI provides e-Mudra loans. The features of this e- Mudra loan are as follows:

• You should be a microbusiness owner.

• Must have an existing SBI CA/SB account that is at least 6 months old.

• The maximum loan amount that can be obtained is Rs.1.00 lakh.

• Maximum Loan Term – Five Years

• Availability of a loan up to Rs.50,000/- immediately, subject to the bank's qualifying criteria

• For loans over Rs.50,000/-, the customer must visit the branch to complete the necessary paperwork

• Number of your savings or current account, as well as the location of your branch.

• Business Proof (Name, Start date & Address)

• Aadhar Number from UIDAI (should be updated in A/c Number).

• Information on the community (general/SC/ST/OBC/Minority)

• Additional information for uploading, such as

Aadhar GSTN & UDYOG

• Proof of Shop & Establishment or any other document proving business registration (if available)

• Visit the SBI official website of

and click on ‘Proceed’

• Now I selected and filled out the Pradhan Mantri Mudra Yojana application form from the drop-down menu

• I provided Aadhaar No. for e-KYC through UIDAI (User must ensure that his current Mobile Number is linked to Aadhar (For OTP reasons) since e-KYC and e-Sign must be completed through OTP authentication for processing and disbursement

• For amounts between Rs. 50,000 and Rs. 1 lac, the applicant must go to the branch where his SBI Savings/Current Account is held and complete the document signing procedures 

• Following the completion of the procedures, I received an SMS on my mobile phone advising me to proceed to the next step, which is account opening and disbursement, by returning to the e-MUDRA portal

• The procedure got completed within 30 days of receiving the loan sanction SMS

• The papers must be in PDF, JPEG, or PNG format, with a maximum file size of 2MB

I conclude my answer. I believe that this answer would help you with your concern of how to apply MUDRA loan.

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