Under the PM MUDRA Yojana (PMMY), SBI provides business loans up to 7 years (up to 10 lakh rupees, extended to 20 lakh rupees as per Budget announcement and Official Gazette dated 24 October 2024) at a repayment tenure of up to 7 years. This is a program initiated by the Government of India which assists in development and refinancing of micro and small enterprises. The SBI e Mudra loan can be availed by businesses involved in manufacturing, trading, services and agri-allied sectors to finance activities such as capacity expansion, modernization and other business growth requirements. Moreover, SBI also offers an instant loan up to 50,000 through its SBI e Mudra loan facility, where an entrepreneur can apply online and get instant loan without going to the branch.
SBI e Mudra Loan Highlights
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- Flexible Loan Facility: Provides Term Loan as well as Working Capital solutions to suit all business requirements.
- Loan Amount: Get up to 1 lakh under SBI e-Mudra Loan, and up to 10 lakh for normal Mudra loans (now increased to 20 lakh as per the Budget announcement dated 24 October 2024).
- Competitive Interest Rate: The interest is pegged on the EBLR (External Benchmark Lending Rate). In the case of PMMY loans in respect of agriculture the interest rate is 11.75% p.a.
- Loan Tenure
- Loan amount (up to 5 lakh): 5 years
- Loans amount ( 5-10 lakh): Up to 7 years
- Low Processing Fee: The processing fees are limited to 0.50 percent of the loan size, which is affordable to small businesses.
- Digital Access: SBI e Mudra Loan can be applied online, and this provides ease to the entrepreneurs as they can get funds without going to the bank branch.
- Government-Backed Security: It is provided as part of the PM MUDRA Yojana and does not need any collateral, offering secure and easy financing to micro and small businesses.
SBI PM MUDRA Yojana Interest Rates
SBI connects the interest rates for the SBI PM MUDRA Yojana to the External Benchmark Lending Rate (EBLR). They don’t share the exact rates, but for agriculture-related loans under this scheme, SBI offers an interest rate of 11.75% per year.
Loan Amount & Repayment Tenure of SBI PM MUDRA Yojana
SBI’s Pradhan Mantri MUDRA Yojana (PMMY) provides loans up to Rs 10 lakh for up to 7 years. If the loan is less than Rs 5 lakh, the repayment period is up to 5 years. The scheme splits loans into categories based on the borrower’s business stage and funding needs:
| Categorisation | Loan Amount |
|---|---|
| Shishu | Up to Rs 50,000 |
| Kishor | Above Rs 50,000 to Rs 5 lakh |
| Tarun | Above Rs 5 lakh to Rs 10 lakh |
Note: As announced in the Budget and Official Gazette on 24 October 2024, a new category called Tarun Plus offers loans from above Rs 10 lakh to Rs 20 lakh. Only people who took and repaid Tarun category loans can apply for this.
SBI e-Mudra Loan: Loan Amount & Repayment Tenure
SBI’s e-Mudra Loan gives up to Rs 1 lakh with a repayment period of up to 5 years. You can get an instant loan of up to Rs 50,000 if you meet SBI’s eligibility rules. For loans above Rs 50,000, you must visit an SBI branch to complete the required steps.
Fees & Charges for SBI PM MUDRA Yojana
| Particulars | Processing Fees |
|---|---|
| For Shishu and Kishore to MSE Units | None |
| For Tarun | 0.50% of the loan amount per year |
SBI PM MUDRA Yojana Eligibility Criteria
SBI offers PM MUDRA Yojana loans to new and existing businesses in manufacturing, trading, or service sectors. Businesses in allied agricultural activities also qualify. SBI provides MUDRA RuPay Cards for all eligible cash credit accounts at its branches.
Margin
| Loan Amount | Margin |
|---|---|
| Up to Rs 50,000 | None |
| Above Rs 50,000 to Rs 10 lakh | 20% |
Collateral
You don’t need collateral because the Credit Guarantee Fund for Micro Units (CGFMU) covers the loan. However, for term loans, you must hypothecate (pledge) plant and machinery. For cash credit, you must hypothecate stocks and receivables as primary security.
SBI e-Mudra Loan Eligibility Criteria
To get an SBI e-Mudra Loan, you must:
- Be a micro-entrepreneur.
- Have an SBI current or savings account for at least 6 months.
Documents Required for SBI PM MUDRA Yojana
SBI doesn’t list specific documents for the PM MUDRA Yojana. If you want a business loan, visit an SBI branch for details.
For the SBI e-Mudra Loan, you need:
- Your SBI current or savings account number and branch details.
- Proof of your business (name, start date, and address).
- Your Aadhaar number (linked to your account).
- Community details (General, ST, OBC, SC, or Minority).
- Optional documents: GSTN, Udyog Aadhaar, or proof of shop and establishment (if you have them).
You must provide your Aadhaar number for e-KYC through UIDAI. Link your Aadhaar to your current mobile number to receive an OTP for e-Sign during loan processing and disbursement.
If you apply for an SBI e-Mudra Loan between Rs 50,000 and Rs 1 lakh, visit the SBI branch where you have your savings or current account to sign documents. After approval, SBI sends an SMS to your mobile number. Follow the steps in the SMS to open an account and get the loan through the e-MUDRA portal. Complete this process within 30 days of receiving the SMS.
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