SBI e-Mudra Loan for individuals
Do you know the difference between SBI E Mudra Loans and regular bank loans? If you are a borrower who has bad credit, or you have defaulted on your repayments in the past, SBI E Mudra Loans are specifically meant for you. In fact, these loans are meant for those borrowers who have bad or no credit at all!
At present, the repayment terms and conditions are fixed. Usually, borrowers have to pay the loan amount in regular installments, which range between six to eight months. However, the maximum loan amount per annum that the borrower is allowed to borrow is about 10 thousand Rupees. The repayment tenure is also dependent on the amount that you have borrowed.
Features of SBI e-Mudra Loan
- Type of facility offered as Working Capital and Term Loan.
- Purpose of the loan: Business purpose, capacity extension, and modernization.
- Target group: User must be working in business enterprises of manufacturing, trading, and services sector including allied agricultural activities.
- The loan amount should be a maximum of Rs. 10 lakhs.
- For Shishu, the Loan amount is a maximum of Rs. 50,000, For Kishore Loan, is a maximum of Rs. 5,00,000, and the Tarun Loan amount is a maximum of 10 lakhs.
- Margin up to Rs. 50,000 is Nil and from Rs. 50,000 up to 10 lakhs is 10%.
- The repayment period is 3-5 years including a moratorium of up to 6 months.
- The processing fee is Nil for Shishu Kishore to MSE Units and Tarun: 0.5% + applicable tax of loan amount.
The interest rate of SBI e-Mudra Loan
The interest rate applicable on SBI E Mortgage Loans depends upon the details of the borrower as well as his current credit history. Those with poor credit history have to pay higher interest rates than those with good credit records. In addition, those with bad credit may be charged higher fees by lenders. If you have CCJ, IVA, or bankruptcy registered against your name, then you will have to pay extra charges on SBI E Mortgage Loans.
On the other hand, if you have been a permanent resident of India for the past five years and you have not received any credit cards or loans from any financial institutions in the last two years, then you will also find it difficult to qualify for SBI E Mortgage Loans.
|SBI MUDRA Loan Interest Rate and Features – 2021|
|Interest Rate||9.75% onwards|
|Loan Amount||Up to Rs. 10 lakh|
|Eligibility Criteria||Existing and New Units|
|Processing Fee & Charges||For Shishu and Kishor is Nil to MSE Units For Tarun: 0.50%of the loan amount inclusive taxes|
|Pre-payment Charges||Ranges from 3 – 5 years (moratorium of up to 6 months) depending on the activity/income generation.|
|Margin||Offered up to Rs. 50,000 Nil and From Rs. 50,001 to Rs. 10 lakh is 10%.|
|Residential Status||Must be eligible when the applicant is staying for the last 2 years|
Simple ways to apply for SBI e-Mudra Loan?
As an existing customer sharing relationship with SBI who are maintaining Saving Bank or Current Account (Individual) can apply for an e-MUDRA loan of amount Up to Rs. 1,00,000.
Step 1: First, you need to select from the drop-down menu to fill in the Pradhan Mantri Mudra Yojana Application Form.
Step 2: Then, visit https://emudra.sbi.co.in:8044/emudra and click on ‘Proceed’.
Step 3: Then, provide the applicant’s Aadhar card for e-KYC purposes through UIDAI, as the e-KYC and e-sign need to be completed through OTP authentication for loan processing and disbursement.
Step 4: After the loan formalities are completed, the applicant shall receive an SMS that will state to initiate the further process by revisiting the e-MUDRA portal.
Step 5: The entire process needs to be completed within 30 days after the receipt of the SMS of loan sanction.
SBI E-Mudra Loan Repayment Tenure
As far as the timings of the repayment of the loan are concerned, you can decide the same as per your convenience. SBI E Loans are available to you in two forms: secured and unsecured. For your security, you will be asked to open an escrow account with SBI while applying for SBI E Mortgage Loans. This account will be opened with the help of the lender and once you have made all the requisite payments in due time, you will be eligible to receive the loan amount. If any outstanding loan amount is forgiven, it will come under the borrower’s security.
In spite of all these, if you satisfy the lenders enough, you will get the required amount in lesser than the required time. You will receive the benefits in two ways –
- The rate of interest
- The tenure will be less than the borrower.
The main benefit is that you can improve your bad credit rating by availing of SBI E Mudra Loans. However, this facility cannot be availed unless you have something like collateral to pledge the loan amount. It is only after you have pledged the required collateral that you will be able to obtain the loans.
Credit score for SBI e-Mudra Loan
But the good news is that you do not need to have a perfect credit score to avail of SBI E Mudra Loans. Moreover, even people with marginal or bad credit ratings can also go for SBI E Loans. These loans are designed for those people who would otherwise find it difficult to afford even a simple mortgage loan. So, SBI E Loans are aimed at helping people who are in need but do not have the credit score or credit history to qualify for a regular bank loan. However, in case you have had an unblemished credit history in the past (or currently), SBI E Mortgage Loans can offer you competitive rates.
If the borrower has anything to claim on the loan amount, then the interest rate will automatically come down. On the other hand, if there is nothing for the lender to claim, then the interest rate will be higher. Thus, it is beneficial for bad credit holders as well as those without collateral to go for SBI E Mortgage Loans. You can choose Mudra Loan for your financial needs with the above credit score, eligibility criteria, and tenure period, documents required for the loan amount.