Every business needs cash to expand and enhance its expansion or operations. You can either save money or lend it to fulfill the demand for the cash.
Often the best choice that comes out of this is seeking a loan. One such loan is a Mudra Loan which is a scheme launched by the Government of India to strengthen the MSME sector by providing financial access.
This loan scheme is specifically designed for new businesses and businesses that want to expand its operation. You can apply for Mudra Loan in various banks including the public sector banks in India. Indian Overseas Bank is one such bank that provides you with the Mudra loan.
In this article, we will discuss how to apply for Mudra Loan in Indian Overseas Bank, Documents Required, types of Mudra loans, etc.
Table of Contents
Types of Mudra Loan
The following are the three types of Mudra Loan that you can apply for in Indian Overseas Bank-
| Types | Loan Amount |
| Shishu | Rs.50,000/- |
| Kishor | Rs.50,000/- to Rs.5 Lakhs |
| Tarun | Rs. 5 Lakhs- to Rs. 10 Lakhs |
Eligibility for Mudra Loan
The following are the eligibility criteria that you have to meet to apply for Mudra Loan in Indian Overseas Bank–
- The applicant must be a citizen of India
- The applicant must be in between 18 years of age to 65 years of age
- A new business or an existing establishment can apply for the loan with proper documentation
How to Apply for Mudra Loan in Indian Overseas Bank?
You can follow these steps to apply for Mudra Loan in the Indian Overseas Bank–
- Visit the nearest Indian Overseas Bank and ask the bank representative for a loan application form
- Now, fill the form with details like name, address, loan purpose, amount, PAN card details, business name, industry, business plan, etc.
- After filling out the form, attach all the documents mentioned below and submit it to the bank representative
- The bank representative will review your documents and application form and further forwards your request to the loan department of the bank
- Now, your application will be processed and your background checking process will be initiated in this regard, you might get a visit at your residence from the bank officials as well.
- Now, based on the internal methodology of the bank your loan application will be approved or rejected
- You’ll be notified if your loan has been approved and if the loan is sanctioned then the loan amount will be debited to your account
Documents Required for Mudra Loan in Indian Overseas Bank
The following are the documents required for the Mudra Loan in the Indian Overseas Bank–
- Duly filled Indian Overseas Bank Mudra application form with passport-sized photographs attached
- KYC documents of the Applicant: Voter’s ID card, Passport, Driver’s license, PAN Card, Aadhar card, Utility Bills (Water and Electricity)
- Bank Statement of the last 12 months
- Canceled cheque of your bank account
- Company establishment certificate
- Udayam Certification Number
- Proof of belonging to SC/ST, OBC, or any minority group, if applicable
- Any other document required by the bank
FAQ
The approval of a loan can take 10-15 days however, the mudra loan is sanctioned a little faster and can take anywhere from 7 days to 10 days depending on how good your documents are.
The minimum amount of loan you can take under the Mudra Loan is Rs.50,000/- and the maximum limit of loan you can get from this loan is Rs.10,00,000/- which is called Tarun Mudra Loan Scheme.
Yes, the Mudra Loan scheme is specifically designed for people who are getting started with a business or straight out of college students. Also, Street vendors who never had official loans sanctioned against them can apply for the Mudra Loan. This scheme is for people with low or no CIBIL score.
Yes, a new business or startup can easily apply for a mudra loan in Indian Overseas Bank. The mudra Loan is specifically designed for startups and you just have to submit your business plan while applying for the loan and based on that plan you will receive the loan.
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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