SBI MUDRA Loan: Features, Interest Rates, Eligibility & Repayment Details

The Pradhan Mantri MUDRA Yojana (PMMY), launched on April 8, 2015, aims to provide financial support to small and micro enterprises with loans of up to ₹10 lakh. Under this scheme, State Bank of India (SBI) offers MUDRA loans to help businesses grow, expand, and meet their working capital requirements.

SBI Mudra Loan

SBI provides MUDRA loans to both new and existing businesses operating in manufacturing, trading, services, and allied agricultural sectors. These loans can be used for business expansion, modernization, and other operational needs.

Loan Categories:

Category	Loan Amount
Shishu	Up to ₹50,000
Kishore	₹50,001 to ₹5 lakh
Tarun	₹5 lakh to ₹10 lakh*

*As per Budget 2024, the loan limit may be increased up to ₹20 lakh for eligible borrowers under the Tarun category who have successfully repaid previous loans.

SBI Mudra Loan Interest Rate

The exact interest rates for SBI MUDRA loans are not publicly fixed and may vary based on the applicant’s profile and loan category. These rates are generally linked to the MCLR (Marginal Cost of Funds Based Lending Rate).

Repayment Tenure of SBI Mudra Loan

• Shishu: 3 to 5 years
• Kishore: 5 to 7 years
• Tarun: 7 to 10 years

The final tenure is decided based on the borrower’s repayment capacity and business requirements.

Fee and Charges for SBI Mudra Loan Yojna

Loan Type	Processing Fees
Shishu & Kishore	Nil
Tarun	0.50% of loan amount

Eligibility Criteria of SBI Mudra Loan

• Available for new and existing micro and small business units
• Businesses must be engaged in manufacturing, trading, or services
• Allied agricultural activities are also eligible

Margin Requirements:

Loan Amount	Margin
Up to ₹50,000	Nil
Above ₹50,000 up to ₹10 lakh	10%

Collateral:

No collateral is required as loans are covered under the Credit Guarantee Fund for Micro Units (CGFMU). However, primary security such as hypothecation of assets may be required.

Documents Required:

• Identity Proof: Aadhaar, PAN, Voter ID, Passport, Driving License
• Address Proof: Utility bills, Aadhaar, rental agreement, etc.
• Income Proof: ITR, financial statements, bank statements, GST certificate
• Business Documents: Business plan (for loans above ₹50,000), registration proof
• Others: Photographs and additional documents as required

Note: Document requirements may vary depending on the loan category and applicant profile. It is advisable to confirm details with SBI before applying.