What is E-Mudra loan by SBI? - Types, Key Features and Application Process

Launching a startup or growing your business? SBI e-Mudra Loan under PMMY offers hassle-free funding. Get up to ₹10 lakh for expansion, modernisation, or equipment purchases, with minimal paperwork and a quick digital process.

According to a 2023 survey, 49.5% of beneficiaries reported satisfaction with the interest rates and benefits offered by SBI under the MUDRA scheme, making it a trusted choice for small business owners across India.

Keep reading to learn how the SBI e-Mudra Loan works, who is eligible, what documents you need, and why it is ideal for your business.

Quick Synopsis

• Eligibility: Indian citizen (18+), small business owner, SBI account (6+ months) 
• Repayment period of 3 to 5 years
• Tarun Plus offers loans ranging from over ₹10 lakh to up to ₹20 lakh.

What is the e Mudra Loan SBI?

SBI e-Mudra Loan is a digital scheme launched to offer financial support to small business owners, women entrepreneurs, existing enterprises, startups, and individuals from the SC/ST category. 

This scheme is introduced to promote new and small businesses by offering easy access to credit to individuals engaged in various sectors, including allied agricultural services, manufacturing, trading and services.

Key Features of e Mudra Loan SBI

Here are some of the key features of the SBI e-Mudra loan scheme:

• Serves as both a term loan and working capital.
• The maximum loan amount is ₹10 lakh, divided into 4 categories: Tarun Plus (₹10 lakh to ₹20 lakh), Tarun (₹5,00,001 to ₹10 lakh), Kishore (₹50,001 to ₹5 lakh) and Shishu (up to ₹50,000).
• The repayment tenure is 3 to 5 years.
• The processing fee is nil for the Shishu and Kishore categories. However, 0.5% of the loan amount is charged as a processing fee for the Tarun category.
• Down payment is nil for loans up to ₹50,000 and 20% for amounts between ₹50,001 and ₹20 lakh.
• Interest rates are linked to the Marginal Cost of Funds-based Lending Rate or MCLR.

Eligibility Criteria for the SBI e Mudra Loan

To be eligible to apply for the SBI e-Mudra loan, the applicant: 

• Should be an Indian citizen with a starting eligibility age of 18.
• Must have a small business.
• Must have an existing savings or current account with SBI that is at least 6 months old.

Note, no collateral is required for the SBI Mudra Loan as this scheme is backed by the Credit Guarantee Fund for Micro Units (CGFMU). 

How to Apply for e Mudra Loan SBI?

Here is a step-by-step guide to make the application process seamless. 

1. Visit the official SBI portal.
2. Click on the 'SBI Loans' option. The screen will appear with a drop-down menu. Click on the 'e-Mudra' button. Press the 'Proceed for e-Mudra' button to go to the next page.
3. Read the details given in Hindi or English and select 'Ok' to proceed. 
4. Enter your 10-digit mobile number, captcha, SBI savings/current account number, and required loan amount. Click on 'Proceed'.
5. Enter all the necessary details in the application form. You can also utilise the dropdown menu to submit relevant data.
6. Upload the required documents.
7. Accept the terms and conditions with an e-signature.
8. To proceed, enter your Aadhaar number and select the consent box.
9. Receive a One Time Password (OTP) to the mobile number registered with your Aadhaar.
10. Enter the OTP and complete the process.

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Documents Required for e Mudra Loan SBI

When applying for an SBI e-Mudra loan, it is necessary to submit the following documents. These include:

• Savings or current account details and branch details
• Proof of business name, address, and establishment date
• GST registration certificate
• UDYOG Aadhar
• UIDAI- Aadhar Number (should be linked to the SBI account).
• Proof of community (General/SC/ST/ OBC/ Minority)

Note: Ensure all documents are in JPEG, PNG, or PDF format and under 2MB in size.  

The SBI e-Mudra Loan is a great option for small business owners and entrepreneurs looking for quick, affordable funding with minimal hassle. Backed by the government, it is designed to support your growth journey.

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