SBI E Mudra Loan is one of the simplest & fastest ways if you want a collateral-free business loan upto Rs. 10 lacs.
But, in 2022, SBI Bank completely changed its system of E Mudra Loan. Don’t worry, in this article, we will guide you with all the steps to follow to apply for the SBI E Mudra loan easily on your own. Share the tricks and tips that will help you make your mudra loan application strong and worthy of approval
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In this article, you will learn:
- SBI E Mudra Loan How to Apply Online in 2022
- How to fill the SBI Loan Application Form
- What Documents are to be submitted
- How to make Project Report & Balance Sheet
- What are the Eligibility Criteria for Mudra Loan
- Other Important Details of SBI E Mudra Loan
SBI offers Mudra Loan under the Pradhan Mantri Mudra Yojana to new and existing Businesses. You can avail loan from Rs. 50,000/- to Rs. 10,00,000/- depending upon your business stage.
You can apply for both, Term Loan and a Working Capital under SBI E Mudra Loan. If you want a loan to buy Machinery, Equipment, Commercial Vehicle, etc., choose a Term Loan. You should select a Working Capital Loan if you need a loan to purchase stock and pay for day-to-day expenses.
To apply online for emudra loan, go to the SBI website. (sbi.co.in > business > SME > PM mudra yojana) and click the ‘Apply Now’ button as shown in the below image
2. How to fill the Loan Application Form
After clicking the ‘Apply Now’ button, the SBI E mudra application form will open. You need to fill up basic details such as the Owner’s name, Business Name, Address, etc. Based on your address, you will also get an option to choose the nearest SBI branch.
The two form fields that you need to take care of are:
- Purpose: For this field, choose the option – setup small business under Mudra,
- Product Name: For this field, choose the option – Pradhan Mantri MUDRA Yojana
Then enter the loan amount you want to apply for in the Applied Amount field and click submit.
If you want to apply for the SBI E Mudra loan for Rs. 50,000/- i.e., under the Shishu category, submitting this online application form is sufficient for SBI Bank to process your loan.
After submitting this online application form for an emudra loan under Kishore or Tarun category (Rs. 50,001 to Rs. 10,00,000/-), the SBI bank branch you selected will ask you to submit additional documents like ID Proof, Project Report, Bank statements, etc.
3. What Documents are to be submitted
We have divided the documents needed for a mudra loan into 3 categories:
KYC Documents: You need to submit self-signed documents such as Pan Card, Aadhar Card, address proof like electricity bill, bank statements of last 6 months, business registration documents like MSME, GST, etc.
Mudra Loan related: You will need to submit a Project Report and a projected Balance Sheet. These documents serve the purpose of showing how you are going to use the loan amount and whether you will be able to repay the loan or not. Bank will study the Project Report carefully. In the next point, we have explained how can easily make a professional-level mudra loan project report online
Business related: These documents are mainly to support your past Business performance. Documents such as IT return copy, details of previous 2 years sales, previous 2 years Balance Sheet, etc. are needed.
4. How to make Project Report & Balance Sheet
To make your project report for the E Mudra loan, go to Fortrisk Consulting’s Project Report Software. Here enter basic details such as:
- Mudra Loan amount with repayment period upto 5 years
- How will you use the loan amount, such as to buy machinery, computers, working capital, etc. and
- The breakup of monthly business expenses
Click download, and you will get a complete Project Report, Projected Balance Sheet, EMI schedule, etc. This Project Report you can submit to the SBI branch for your E Mudra Loan application.
Click here to know more on how to make a Project Report.
5. What are the Eligibility Criteria for Mudra Loan
That’s it! You are now ready to submit these documents to the selected SBI branch to complete your E mudra loan processing. Also, check the current mudra loan interest rates and enter that interest rate value in our Project Report Software while making your Project Report.
You can refer to this easy checklist to check your eligibility for the E Mudra loan 2022
| Criteria for SBI E Mudra Loan | Eligible |
| Business Type | Existing & New units |
| Who can apply | Any individual including women, proprietary concern, partnership firm, private limited company, or any other entity running as small manufacturing units, service sector units, shopkeepers, fruits/vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas |
| Loan Amount | For new and small businesses – Loans upto Rs.50,000 under SHISHU Loans For businesses wanting to expand or modernize: Loans from Rs.50,001 to Rs.500,000 under KISHORE Loans Loans from Rs.500,001/- to Rs.10,00,000/- under TARUN Loans |
| Margin Money | Upto Rs. 50,000/- Nil Rs. 50,001 to Rs. 10 lacs: 10% |
| Repayment Period | 3 – 5 yrs, including a moratorium of upto 6 months |
| Collateral | Nil. However, as Primary Security, Hypothecation of P&M for Term Loan and Hypothecation of Stocks & Receivables for working capital loan to be done. |
| Processing Fee | Nil for Shishu and Kishore to MSE Units For Tarun: 0.50%(plus applicable tax) of the Loan amount |
6. Other Important Details of SBI E Mudra Loan
SBI E Mudra Loan Interest Rate 2022
the SBI E Mudra Loan interest rate is linked with the MCLR rate. In simple terms, the interest rate is a base rate (MCLR) + an additional margin rate charged by the bank depending upon your credit standing. At present, the E Mudra loan interest rate ranges from 8.40% to 12.35%. The bank will review your loan documents and determine the best interest rate for you.
Is Mudra Loan available for women?
Yes, of course. In fact, to encourage women entrepreneurs, the banks may consider interest reduction on their loans. Mudra yojana reduces 25bps in its interest rates to MFIs / NBFCs, who provide loans to women entrepreneurs. So, as a woman, do discuss this facility with SBI bank when applying for a mudra loan.
Can I get an E Mudra loan for a new business?
If you have not started your business at all, then it isn’t easy to get a mudra loan. It is advisable that you first start your business and run it for some time, and then you can apply for a Shishu loan. It is better to apply for Kishore and Tarun Mudra loans after running your business for at least a year or so.
Follow the above guide step by step, and the SBI E Mudra Loan online apply process will be smooth and easy for you. If you have any questions regarding the SBI E Mudra Loan application, let us know in the comment section, and we will get back to you as soon as possible.
Important Links:
| SBI E Mudra Loan Official Website | Click Here |
| Mudra Yojana Official Website | Click Here |
| To make Project Report for Mudra Loan | Click Here |
| Project Report Tutorial Video | Click Here |
