In this column, find out how to apply for Mudra Loan in Bank of Baroda, Documents required, Eligibility, Interest rate, etc.
Pradhan Mantri Mudra Yojana is a flagship scheme launched by the Government of India back in 2015. The scheme aims to empower small and medium-scale enterprises by offering them a loan at low-interest rates.
The maximum amount which an applicant can apply for a loan is Rs.10 Lakhs for a tenure of 60 months.
Bank of Boroda is a Public sector bank that provides mudra loans to applicants. There are other vendors as well where you can get mudra loans like SBI Mudra Loans, PNB Mudra Loans, etc.
This scheme specifically targets those individuals who want to start a small business or wanted to expand their business. Mudra loans provide these individuals with the necessary funds to do so.
You can easily apply for a Mudra Loan using various mediums provided by the Bank of Baroda. You can apply for a loan offline and online both which makes it very convenient.
Before, getting into how to apply for a Mudra loan in Bank of Baroda, let’s first find out what are the different types of Mudra Loans
Table of Contents
Types of Mudra Loan
To facilitate the individuals, mudra loan is divided into three different types
Shishu
Shishu loans are for those individuals who have very less requirement of funds i.e. up to Rs.50,000/-. Typically these types of loans are usually taken by street vendors, roadside stalls, etc.
If you require a low amount loan under Rs.50,000/-, you can apply for a Shishu loan easily without any requirement of collateral.
Kishore
Kishore Mudra loan is for those individuals who have funds requirement which is more than Rs.50,000/- and less than Rs.5 Lakhs. If you want funds that lie between this range then you have to apply for Kishore Mudra Loans.
Tarun
Tarun Mudra loan is a loan best suitable for individuals with funds requirement of more than 5 Lakhs and less than 10 lakhs.
Eligibility For Applying for Mudra Loan
The following are the eligibility for applying for Mudra Loan-
- The applicant must be a citizen of India
- The individual applying for a Mudra loan must have a valid business plan in non-farming sectors such as manufacturing, processing, trading, or service sector
- The maximum credit amount must be Rs.10 Lakhs/- or less
- The age of the applicant must be more than 18 years of age and less than 65 years of age
Documents Required for Mudra Loan
The following are the documents required for Mudra Loan-
Vehicle Loans (For Business Related to Transportation)
- Mudra application form
- Vehicle loan application form
- 2 passport size color photographs
- Photo Identity proof
- Address proof
- Income proof
- Bank statement (last 6 months)
Business Installment Loan (Business Expansion and Startup Loan)
- Mudra application form
- BIL application form
- Photo identity proof
- Address proof
- Establishment proof
- Bank statement (last 6 months)
- Ownership proof of residence/office
- Proof of continuity of business
- Proof of qualification
- Trade references
- 2 years ITR
- CA certified financials
Business Loans Group and Rural Business Credit (Working Capital Loan)
- Mudra application Form
- BIL/RBC application form
- Photo identity and age proof
- Address proof
- Ownership proof of residence/office
- Business vintage proof
- Bank statement (last 12 months)
- Income tax return (last 2 years)
Interest Rate for Mudra Loan
Bank of Boroda offers a very nominal interest rate of 9.65% onwards. This interest rate varies depending on your credit score and a variety of other factors like a business plan, credit history, etc.
How to Apply for Mudra Loan?
You can apply for Mudra Loan online as well as offline.
- Visit the official website of Bank of Baroda and navigate to the Mudra Loan tab or you can follow this link to apply for a Mudra loan- https://www.bankofbaroda.in/personal-banking/loans/pradhan-mantri-mudra-yojana
- Click on the apply now button
- Now, a request form will appear which you have to fill with name, mobile number, email ID, city, etc.
- Now, tick the agreement checkbox followed by clicking on the submit button
- Your request for Mudra Loan is registered with the Bank of Baroda. An executive will contact you and ask you for a meetup appointment
- In the appointment, you’ll have to provide all the above-mentioned documents to the representative and confirm your loan application
- After the loan application is processed, your bank account will be credited with the Loan amount
Offline Mudra Loan Application
For offline Mudra Loan applications, you can visit the Bank of Baroda branch directly with a filled mudra loan form along with the above-mentioned documents. An executive will attend you and your request for the loan will be reviewed.
After review, your documents will be collected and further processing will be done. If your loan gets approved, you’ll be notified about the loan grant and your bank account associated with the loan will be credited with the loan amount.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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