Mudra Loan scheme was introduced by the Government of India in 2015 to facilitate micro and small enterprises engaged in Manufacturing, Trading and services sectors.
You can avail of this loan from any Public sector bank and some private bank in India, one such bank is the Bank of Baroda where you can apply for the mudra loan online.
In this column, we will discuss how to apply for a mudra loan in the Bank of Baroda? documents required, the application process, etc.
Types of Mudra Loan
The following are the different types of mudra loans for different requirements-
Shishu
The loan amount that will be sanctioned under this type of mudra loan is Rs.50,000/-. This loan is best suited for less fund requirement to set up a small outlet or to improve the business operations.
Kishor
This is a mid-level loan that is capped from Rs.50,000/- to Rs.5 Lakhs fund requirement. You can avail this loan if you are in requirement of the fund for business operations or service enhancements.
Tarun
The loan amount that can be sanctioned under this type of loan is capped at Rs.10 lakhs. If you are in requirement of more than Rs.5 Lakhs then you can avail this type of loan.
Purpose of Mudra Loan
Mudra Loan is specifically designed to fund new and established businesses to expand and grow their business activities. The loan is provided to some essential sectors and goes on for funding the basic requirement of the business establishment. The following are the areas that the Mudra Loan specifically targets-
- Business loan for Vendors, Traders, Shopkeepers and other Service Sector activities
- Working capital loan through MUDRA Cards
- Equipment Finance for Micro Units
- Transport Vehicle loans – for commercial use only
- Loans for Agri-allied non-farm income generating activities, e.g. pisciculture. bee keeping, poultry farming, etc.
- Tractors, tillers as well as two wheelers used for commercial purposes only.
How to Apply for Mudra Loan in Bank of Baroda?
The following are the step by step instructions on how to apply for Mudra Loan in Bank of Baroda–
- Visit the official website of Mudra Loan and navigate to the digital loan tab followed by clicking on the mudra loan button
- Now, a new page will appear with all the details on the Mudra Loan here, you’ll have to click on the apply button
- You’ll be redirected to the an mudra loan application form portal where you’ll have to enter your name, mobile number and OTP for registering
- After registration is successful, an application form will appear where you’ll have to fill provide your Aadhaar card number, PAN card details and UDYAM Number
- After providing these details, your application form will be automatically populated with details and you’ll have to provide additional details and confirm existing details in the form
- You’ll also have to provide the documents mentioned below by uploading them
- Now, choose the loan amount followed by EMI tenure and submit your application by clicking on the submit button
- Your application will be processed by the bank and you’ll be notified about the loan status via phone
- The bank employees might visit your resident for physical documents verification and after sanction the fund, you’ll be notified about the loan sanctioning
Documents Required for Applying for Mudra Loan
The following are the documents required for Mudra Loan-
- Duly filled application form with passport-sized photographs
- KYC documents of the Applicant: Voter’s ID card, Passport, Driver license, PAN Card, Aadhar card, Utility Bills (Water and Electricity)
- Bank Statement of last 12 months
- 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
