Blog

How to get an instant SBI E-Mudra Loan of Rs 50000?

Submitted by admin on August 21st, 2024

Pradhan Mantri Mudra Yojana, also known as PMMY, is a scheme created for borrowers who are in need to immediate financial aid. The SBI operates this scheme on behalf of the government, so it is commonly known as the SBI Mudra Loan. This scheme was started in 2015 and offers credit to MSME or Micro, Small, and Medium scale enterprises, however, these enterprises should not be corporations or associated with any farms.

Is the SBI Mudra Loan really instantaneous?

Yes, the PMMY loan offers the sum instantaneously, when the right documents are provided properly. The reason why it is offered instantly is because there is no collateral required for this loan. Therefore, if a small business is looking to expand its existing unit, setting up a new unit or simply upgrading they are provided support through this scheme.

Since, these loans are designed exclusively for smaller industries which do not have much working capital, the funds are meant to act as a working capital or term loan. Furthermore, the rate of interest is significantly lower than what banks would generally offer these organizations.

Additionally, these businesses are given a duration of 3 to 5 years to pay back these loans. Therefore, they are not under any pressure to immediately pay back the amount or face loss of collateral.

Eligibility criteria for E Mudra Loan

A wide array of small, established businesses are eligible for this loan. Be it fruit or vegetable vendors, repair shops, food processing units or small manufacturing units, all are eligible for this loan. In some cases, start-ups are also granted these funds, when they have a clear business model which is viable. If they can predict their profits, they are assigned loans of up to Rs 50000, which is the minimum starting amount for loans under this scheme.

Only if you are an existing customer of SBI, can you apply for a E-Mudra Loan and have it approved instantly if the sum you are borrowing is up to Rs 50000. However, if you are not a customer of SBI, you need to first go to your nearest branch and fill out the application and submit the remaining documents. Also, if you want to apply for an E-Mudra loan you need to have an active account in SBI for at least 60 months. Minors and senior citizens cannot avail for this loan.

Documents required for applying for a Mudra loan

ID: A government issued photo id, including, a PAN card, Aadhar card, Driver’s license or voter Id card can be used as proof of identity.

Address proof: Proof of residence like water, electricity or any other utilities bill can be used for this purpose.

Bank statement: If there is an existing bank account, the last six months’ statement is required.

Photos: 2 recent photographs of passport size.

Proof of business: If you have obtained any legal documents, licenses, permits or any other agreements for lease or rent, they can be used as a proof for how long your business has been running.

Other important documents are Caste Certificate, if the applicant belongs to any minority cost, IT returns statements for individuals operating the business or if the business entity has its own IT returns statements.

Therefore, if you think your business is going to need a loan soon, get started on accumulating your documents and applying for this loan today.