Loans are the most effective way to get the liquidity required to start a business or to fund the business for growth.
Mudra Loan Scheme is a scheme started by the Government of India to provide funding in an easier way without the requirement of collateral.
This loan scheme can be used by small manufacturing units, shopkeepers, artisans, roadside vendors, etc.
Bank of India is one such bank that provides mudra loans to individuals. You can apply for a mudra loan in the Bank of India.
In this article, we will discuss how to apply for Mudra Loan in the Bank of India? documents required, interest rate, eligibility, etc.
Table of Contents
Types of Mudra Loan
The loan can be divided into three types of loans based on the loan amount. The following are the types of Mudra Loan offered-
- Shishu loan is a loan for the amount less than Rs.50,000/-
- Kishor Loan is a loan for the amount up to Rs.5 Lakhs
- Tarun Loan is a loan for the amount up to Rs.10 Lakhs
How to Apply for Mudra Loan in Bank of India?
You can apply for Mudra Loan in Bank of Indian by following these steps-
- Visit the bank premises
Visit the Bank of India premises and ask the bank official for the mudra loan application form
- Fill the form
The bank officials will ask you about the requirement and ask you to fill the form
- Show documents
After filling out the application form, show your documents to the bank official and attach the documents along with the application form
- The loan will be processed
Now, your loan will be processed by the bank and after the completion of the loan processing, you’ll be communicated with the information on your loan
The bank official will also visit your place to confirm your location and other verification processes - If the loan is approved, you’ll be provided with the loan
After verification is complete, if the loan is approved, your bank account will be credited with the amount
Documents Required for Applying for Mudra Loan in Bank of India
The following are the documents required for applying for Mudra Loan in Bank of India-
- Duly filled loan application form with passport-sized photographs
- Business Plan
- Cancelled cheque of a bank account
- Aadhar card, Voter ID, Driving license, Passport
- Address proof (Water bills / Tax bills / Telephone bills / Electricity bills / Aadhar card / PAN card)
- Last 6 months’ account statement
- Unaudited balance sheets
- Income Tax Return (ITR) statement
- All papers that validate the name and address of the business establishment
- If person belongs to SC/ST/OBC then associated documents presented
- Documents of all owners or business partners
FAQ
The Mudra Loan interest offered is anywhere from 5% to 15% depending on the business. You can negotiate the interest rate with the bank.
Yes, you can seek a mudra loan without the requirement of income proof however, you’ll have to provide a solid business plan that can guarantee the bank for the funds.
The repayment tenure can be anywhere from 36 months to 5 years however, you can negotiate the tenure for your loan amount.
No, CIBIL score is not required for the mudra loan and this loan is offered to the individual with no to the low financial background, but, there are other factors as well.
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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