The SBI Mudra loan is a financial initiative under the Pradhan Mantri Mudra Yojana (PMMY), which aims to support small and micro enterprises in India. The initiative facilitates the disbursement of loans to eligible businesses and entrepreneurs based on three categories; Shishu, Kishore, and Tarun. These categories represent the different stages of business development, Shishu covers startups, Kishore covers businesses in the growth phase and Tarun is designed for well-established enterprises.
Businesses and enterprises will get different loan amounts for the different categories, as well as different tenures. Here is a table showing the loan amounts for eMudra loan SBI:
|Up to ₹50,000
|₹50,001 - ₹5 lakhs
|₹5 lakhs - ₹10 lakhs
The State Bank of India offers Mudra loans to all existing and new enterprises that meet the eligibility criteria for the loan. These criteria are:
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The SBI Mudra loan interest rates offered are in accordance with the MCLR rate or the Marginal cost of fund-based lending rate. Understanding the different lending rates of other lenders can help you make a better decision when choosing the right lender for you. Below is a comparison between the interest rates of different banks and NBFCs:
|State Bank of India
|Linked to MCLR
|Union Bank of India
|10.55% p.a. onwards
|12.00% p.a. onwards
|PSB Loans in 59 Minutes
|8.50% p.a. onwards
|8.00% p.a. onwards
|City Union Bank
|12.00% p.a. onwards
|Punjab National Bank
|9.15% p.a. onwards
|12.00% p.a. onwards
|8.60% p.a. onwards
|Bank of Maharashtra
|9.30% p.a. onwards
|11.65% p.a. onwards
|Tamilnad Mercantile Bank
|9.45% p.a. onwards
Read LessNote: These rates are indicative and subject to change. Always check with the bank for the most up-to-date information before making any investment decisions.
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SBI eMudra loan offers many benefits for businesses to take advantage of and grow their business. These benefits aim to promote financial inclusion, empower small business owners and stimulate economic development at the grassroot level. These benefits are as follows:
The State Bank of India Mudra loan repayment plan is a crucial aspect of the borrowing process. Understanding the repayment structure is important for entrepreneurs and businesses while applying the SBI eMudra loan online. Here are the repayment plan offered by SBI for Mudra loans:
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While the SBI Mudra loan is a great option for businesses looking for financial assistance, it is always good to be aware of other alternative funding options available. Carefully assessing the terms, interest rates and repayment structures offered by different other financing options can help businesses determine the most suitable one for their business needs. Given below are the alternate financing options available for entrepreneurs and businesses:
SBI Mudra Loan offers government-backed support specifically designed for small businesses, at competitive interest rates and tailored repayment plans. Alternative financing options provide additional flexibility and quicker access to funds but may come with varying interest rates and terms. The choice will depend on the business’s specific needs, eligibility, and preferences.
The State Bank of India offers both offline and online options to apply for Mudra loans.
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SBI Mudra loan is a loan that supports small and micro enterprises who are starting or expanding their businesses. This loan falls under the Pradhan Mantri Mudra Yojana scheme.
The different categories of SBI Mudra loan are Shishu: for startups, Kishore: for medium enterprises and Tarun: for well established enterprises looking for expansion.
The interest rate for SBI Mudra loan is typically lower compared to other financing options.
The eligibility criteria includes new and existing businesses under the eligible sectors that have a current or savings account with SBI.
Yes, Mudra loans are specifically designed to help startups and small businesses.
The maximum loan amount available under the SBI Mudra scheme is 10 Lakhs.
Manufacturing, Trading, Service, Transport, Agro-based activities and artisan sectors are eligible for a Mudra loan.
The application process is simple and straightforward. You can apply both offline and online. You can visit the website or the bank branch to apply for the SBI eMudra loan.
The documents required are:
No, SBI Mudra loan interest rates are usually fixed rates.
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