What is the common challenge that a small business owner can face? After reading or researching so much about the challenges today small businesses face, we conclude that most banks or the schemes are providing benefits to the MSMEs and SMEs. Actually, NBFCs or other kinds of financial institutions do not focus on the small business groups like small. Either they are providing loans to the big corporates, or a medium-scale business owner. The small business entity or solo entrepreneur, managing their business from the grass-root don’t get even thousands when they require.
In our banking system, the availability of funds to the small business owner, or the micro small business owner is a big problem. Because they can’t get access to a personal loan or business loan to keep their businesses running, they have to borrow money from private lenders at a higher rate of interest. That’s why the businesses get stuck because they don’t find it relevant to pay heavy interest on the incurred debt. And, once they get into such kind of situation, they get stuck because there is no way out. However, this was a problem earlier before the introduction of the MUDRA loan. When the prime minister introduced the MUDRA loan, the shortcomings of such a micro-level business entity seems to come to an end. Now, they are part of the booming economy. But here is a big segment of such a micro-level entrepreneur who don’t know about it. So, in this blog we will talk about as an SBI e-MUDRA loan and its eligibility criteria to get loans under this scheme. So, if you are a small business owner, then keep reading this blog.
What Is SBI e-MUDRA Loan?
Since the launch of the Mudra loan scheme, the process was complex because an applicant had to visit the bank and submit the documents physically which is a tiring and time-consuming process. Due to this SBI has created a platform called SBI e-MUDRA loan. Now, instead of going to the SBI branch, you can go to the SBI e-MUDRA loan portal and then you can apply for a MUDRA loan conveniently. But if you’re new to the technology, or if you’re new to such kind of loan processing method, then you need to know about this portal. You need to know that how this portal works, or how can it help you to get a MUDRA loan.
So first of all, you need to understand how its interface looks.
When you go to the SBI e-MUDRA loan, you will see two categories, one is for the Hindi language and the other one is for the English language. According to your language preference, you can choose between these two options. After making your choice, you can press on the proceed button to know or go deep into the process. Now you will find the interface of the SBI e-MUDRA loan portal. Once you go to the next page you can see some essential information that will be helpful for you to proceed with your MUDRA loan application. Usually, it contains guidelines that applicants need to follow.
SBI e-MUDRA Loan Eligibility Criteria
Before applying for the MUDRA loan, you need to understand the Mudra loan eligibility criteria and the process to submit your loan application.
- The SBI e-MUDRA loan is given to the micro-entrepreneur.
- The applicant should have a saving or current in the SBI.
- The account needs to be 6 months old.
- The applicant can avail up to Rs 1 lakh from the SBI e-MUDRA loan portal.
- The applicant will be given a repayment tenure of up to 1 year to repay the loan.
- If the applicant requires an amount of more than Rs 1 lakh, he has to visit the SBI branch.
Documents Required to Get SBI e-MUDRA Loan
- The applicant needs to submit the bank details to the SBI. The account details include the type of bank account, account number, and the date of its opening.
- The applicant has to submit the proof of the business including the name, the starting date and the address of the business.
- The applicant should present the Aadhar card linked to the savings or current account.
- The bank may ask the applicant to submit GSTN or Udyog Aadhar details with your MUDRA loan application.
- The bank may ask an applicant to present the additional proof such as the registration copy of the Shop and Establishment Act or any other businesses related document.
How Do I Apply for An SBI e-MUDRA Loan?
After reading the SBI e-MUDRA loan and the benefits of the MUDRA loan, the applicant can go to the next page. This page has three different columns to fill the details such as mobile number, details of the account number and the required loan amount. After entering the mobile number, the person will get OTP on his phone. Once he verifies it, he will need to enter the bank account number and the required loan amount. After successfully entering all these details, you can upload your documents in the PDF, JPG or PNG form.
If you follow the steps carefully, you will definitely get MUDRA loan from the SBI e-MUDRA portal. The postal gives you the freedom to apply for a loan by sitting at your home. However, the amount is small but it is far better than borrowing from the local markets. So, get a MUDRA loan today and give wings even to your small business.