Mudra Loan is a loan offered by the bank to individuals who wants to start a business or want to fund for business expansion.
This scheme will cover all those individuals who used to take loans from informal sources, which are expensive and unsecured.
This loan can be availed by individuals in small manufacturing units, shopkeepers, artisans, fruits and vegetable vendors, etc.
In this article, we will discuss how to apply for Mudra Loan in the Bank of India? documents required, interest rate, eligibility, etc.
Types of Mudra Loan
The mudra loans are divided into three types, which are as follows-
- Shishu- Rs.50,000/-
- Kishor- Up to Rs.5 Lakhs
- Tarun- Up to Rs.10 Lakhs
How to Apply for Mudra Loan in Bank of India
The following are the step by step instructions on how to apply for a mudra loan in the Bank of India–
- Visit Bank Branch
Visit the Bank of India branch and ask the bank official for the mudra loan
- Fill out the loan application
The bank officials will inquire you about the loan requirement and ask you to fill out the loan application form
- Attach the documents mentioned below
After filling out the loan application form, you’ll have to provide the documents mentioned below to the bank official and attach the documents to your application form
- Wait for the processing of your loan
After completing the process, you’ll have to wait for the bank to process your fund request
- You will be updated with the loan status followed by debiting the loan amount into your account
Now, after a few days, you’ll be notified about the loan requirement status and if it is approved, your bank account of which you’ve provided the canceled cheque will be credited with the loan amount.
Documents Required for applying for Muda loan in Bank of India
The following are the documents required for applying for mudra loan in Bank of India-
- Duly filled loan application form with passport-sized photographs
- Business Plan
- Cancelled cheque of a bank account
- Aadhar card, Voter ID, Driving license, Passport
- Address proof (Water bills / Tax bills / Telephone bills / Electricity bills / Aadhar card / PAN card)
- Last 6 months’ account statement
- Unaudited balance sheets
- Income Tax Return (ITR) statement
- All papers that validate the name and address of the business establishment
- If person belongs to SC/ST/OBC then associated documents presented
- Documents of all owners or business partners
FAQ
The rate of interest charged under the Mudra loan can range anywhere from 5% to 15 % depending on the business. You’ll have to contact your bank agent for the verification of the mudra loan.
The repayment tenure can be 36 months to 5 years for the repayment of the loan.
Yes, you can seek a mudra loan with the requirement of income proof using which you can start your business.
No, CIBIL score is not required for the Mudra Loan as this loan is offered to the individual with no to the low financial background, however, CIBIL score can be used to find the loan amount and interest rate offered by the bank.
Not generally, however, in some cases, the bank might ask for the ITR for evaluation. This will be totally based on the lending institution’s internal guidelines.
