SBI e-Mudra Loan: Features, eligibility, how to apply

All leading banks in the country encourage MSMEs with various schemes and loans. Similarly, the State Banks of India (SBI) also offers a bouquet of loan schemes for business owners, which can be utilisid as working capital, expansion or modernisation. One such scheme is SBI eMudra loans. The scheme falls under Pradhan Mantri Mudra Yojana (PMMY) scheme is one such scheme introduced for the growth of the MSME sector. This article explains the features, eligibility criteria and application process for obtaining the SBI e-Mudra loan.

Features of the SBI –Mudra loan

• Loan amount: Max loan amount for the SBI Mudra loan is ₹1 lakh. However, applicants can apply online to avail of instant loans of up to ₹50,000. For applying for an SBI Mudra loan above ₹50,000, applicants can visit the nearest SBI branch.
• Note: It is important to note that the instant availability of loans up to ₹50,000 is based on the bank’s eligibility norms.
• Repayment period: Repayment of SBI e-Mudra loan is up to 5 years.
• Interest rate: The rate of interest is determined by the marginal cost of lending rate (MCLR), which is regulated by the Reserve Bank of India (RBI). Therefore, it is best to check the rate of interest with SBI before applying for the e-Mudra loan.
• Collateral: You do not need to promise any collateral while obtaining the SBI e-Mudra loan.

Eligibility criteria for SBI e-Mudra loan

• Only micro and small enterprises are eligible for the Mudra scheme. Medium and large enterprises can not
• New and existing businesses engaged in manufacturing, service or trading activities can apply for an SBI e-Mudra loan. Businesses in the segment of allied agriculture are also eligible for an SBI e-Mudra loan. However, businesses engaged in agricultural activities are not eligible.
• Applicant should be an existing current account holder or saving account holder of SBI for a minimum last 6 months.

Also Read: Mudra loan Eligibility

Documents required for applying for the SBI e-Mudra loan

• Aadhaar card (your SBI account should be linked with the same UIDAI number)
• Proof of Business (Name, Start date & Address)
• GSTN
• Udyam registration certificate
• Savings/Current Account number and branch details
• Community details (SC/ST/ OBC/ Minority certificate if applicable)
• Proof of shop or any other business registration document (if available).

Moreover, it is best to keep other KYC documents handy such as PAN card, income tax returns, etc.

Note: It is best to get in touch with the bank to get an exhaustive list of documents required for the SBI e-Mudra loan.

How to apply for the SBI e-Medra loan?

There are two ways to apply for the e-Mudra loan – online process for loans up to ₹50,000 and offline process for loan amounts between ₹50,000 to ₹1 lakh.

The application process for SBI e-Mudra loan of up to ₹50,000

You can apply online for the SBI e-Mudra loan for the loan amount of up to ₹50,000. Here are the step to apply.

• Visit the SBI e-Mudra website. Click on ‘Proceed to e-Mudra’.
• Click on ‘Ok’ once you read the instructions.
• Then, you will need to select the preferred language for the application form. Click on your preferred language and then ‘Proceed’.
• Enter details such as your mobile number, SBI account number, the required loan amount. Enter the captcha and click on ‘Proceed’.
• Fill in the application form and attach the required documents.
• Accept the terms and conditions.
• Then, you will need to enter your Aadhaar card number to give consent for using Aadhar for e-Signing.
• Next, you will receive an SMS with OTP. Enter OTP to complete the application process.
• Now your loan application is complete and SBI will process the same before disbursement.

Note: Scanned copy of the documents that you plan to upload should be in PDF. JPEG or PNG format with a maximum size of 2MB.

The application process for the SBI e-Mudra loan of from ₹50,000 to ₹1 lakh

For applying for the SBI e-Mudra loan amounting to more than ₹50,000, you need to visit the SBI branch wherein you maintain your current or savings account. Carry the documents required for the loan along with you. Fill in the application form and submit it along with the necessary documents.

Once your loan is processed, you will receive an SMS advising you to initiate further process. This may include account opening and disbursement. For disbursement, you will need to visit the e-Mudra portal.

Frequently asked questions about SMI e-Mudra loan

Here are answers to some frequently asked questions about the SBI e-Mudra loan.