SBI e-Mudra loan is a type of loan offered by State Bank of India (SBI) to help small businesses and entrepreneurs with financial assistance for various purposes. The loan can be used for working capital requirements, purchase of equipment, inventory, and other business-related expenses. Here are the terms and conditions for the SBI e-Mudra loan:
- Eligibility: The borrower must be a micro or small enterprise, engaged in manufacturing, trading, or services.
- Loan amount: The loan amount ranges from Rs. 50,000 to Rs. 10 lakh.
- Interest rate: The interest rate charged on SBI e-Mudra loan is linked to the base rate of SBI and varies from time to time. As of 2021, the interest rate ranges from 10.50% to 16.25% per annum.
- Repayment period: The repayment period for SBI e-Mudra loan is up to 5 years, including a moratorium period of 6 months.
- Security: The loan is given without any collateral, and a personal guarantee of the borrower is taken.
- Processing fee: SBI charges a processing fee of up to 1% of the loan amount, subject to a minimum of Rs. 500 and a maximum of Rs. 15,000.
- Documentation: The borrower needs to submit various documents, such as KYC documents, business registration documents, bank statements, etc., to avail of the loan.
- Disbursement: The loan amount is disbursed to the borrower’s bank account directly.
- Usage: The loan amount can only be used for business-related purposes and not for personal use.
These are the basic terms and conditions for SBI e-Mudra loan. However, it is always advisable to check with SBI for any updates or changes in these terms and conditions before applying for the loan.