The Bank of Baroda Mudra Loan Scheme was launched following a government order to provide funds to non-agricultural MSME enterprises. Under this scheme, applicants can avail loans up to Rs. 10.00 lakhs without any security. The funds can be used to establish a new business or to expand an existing one.
Bank of Baroda Mudra Loan Interest Rate 2021
|Interest Rate||Based on your Business’s Profile|
|Maximum Loan Amount||Rs. 10.00 Lakh|
|Tenure||Max. of 5 Years|
|Collateral / Security||Not required|
The interest rate charged on a Bank of Baroda Mudra loan depends on the business profile; nature of business, Credit score of applicants, etc. After submitting the loan application and the verification process, the loan officer will inform the interest rate applicable to the customer.
Click here to download the Bank of Baroda Mudra Loan Application Form in PDF format.
Bank Of Baroda Mudra Loan – Eligibility
Bank of Baroda has recorded the accompanying qualification rules for Mudra advances:
1) Any non-agricultural enterprise can apply for this loan.
2) Business needs to be classified as micro enterprise or small enterprise
3) Income in business should be one.
4) The enterprise must engage in trade, manufacturing, or services.
5) The credit requirement of the business should not exceed Rs. 10 lakhs.
Currency Of Mudra Loan
Bank of Baroda Mudra Loans are divided into 3 categories based on the stages of growth in business. The loan amount that can be borrowed under the schemes are:
|Mudra Loan Scheme||Amount|
|Shishu||Up to Rs. 50,000|
|Kishore||Between Rs. 50,000 & Rs. 5.00 Lakh|
|Tarun||Between Rs. 5.00 Lakh & 10.00 Lakh|
The smallest category of Bank of Baroda Mudra Loans is Shishu Yojana. This scheme is most beneficial for small businesses that need only seed money. This loan scheme also charges a minimum interest rate.
The Kishore Scheme of Bank of Baroda Mudra Loan is for businesses that have been set up and require loans for further expansion. Under this scheme, Rs. 50,000 to Rs. 5 lakhs can be availed.
Tarun Yojana is the largest category of Bank of Baroda Mudra Loans. The loan amount under this scheme is more than Rs. 5 lakhs but less than Rs. 10 lakh can be availed. It can be used to buy expensive machinery or to carry on the business.
The repayment time period of Mudra loan can extend up to 3 years. The bank may give an additional 2 years at its discretion.
Documents required for Application form
1) Applicant must have a project report
2) Proof of SC / ST, OBC if applicable
3) Last 6 months bank account statement
4) Quotes for devices that need to be purchased
5) Passport size photograph
6) Balance sheet for the last two years in the case of existing business
7) Memorandum and Articles of Association in the case of company
In addition, the following documents are also required:
PAN Card, Passport, Voter’s ID Card, Aadhaar Card, Driving Licence, Central and State Govt. issued Photo ID Proof, Photo Credit Card, Defense ID Card, etc.
Ration Card, Passport, Aadhaar Card, Voter’s ID Card, Letter from any recognized public authority, Bank Account Statement, Electricity Bill, Telephone Bill, Water Bill (not more than 3 months old), etc.
Bank Of Baroda Mudra Loan – Benefits
Some of the major benefits of Bank of Baroda Mudra Loans are:
- As a small and micro enterprise, this loan is available if income generation occurs.
- Security or collateral is not required to apply for a Mudra loan.
- Bank does not charge loan processing fees for this loan.
- Extended credit under this scheme can be used for many purposes in business. For example, credit can be used for term loans, overdraft facilities, letters of credit and bank guarantees.
- BOB Mudra loan does not have a minimum amount of loan sanction.
Bank Of Baroda Mudra Loan – Facilities
The main features of Bank of Baroda Mudra Loans are:
There are three types of Mudra loans offered by Bank of Baroda:
|Shishu||Loans up to Rs. 50,000|
|Kishore||Loans between Rs. 50,000 and Rs. 5 lacs|
|Tarun||Loans between Rs. 5 lacs and Rs. 10 lacs|
- The maximum amount of loan to be taken under this scheme is Rs. 10 lakhs.
- BOB Mudra loan scheme cannot be extended to units involved in farming activities, but may be widened to allied business such as horticulture and fisheries.
- The interest rate on these credit facilities is set on by the marginal cost of lending rate.
- Bank of Baroda offers an option to apply online for Mudra loan on its official website.
Also Read our Article on Mudra Loan Scheme Purpose, Features, and Offerings
Frequently Asked Questions on MUDRA Loan Scheme
How to apply for Mudra loan from Bank of Baroda?
You can apply online or offline for Mudra Yojana loan. Check both online and offline methods.
To apply through an online method, all you have to do is go to the official website of Bank of Baroda and go to the Mudra Loan section. There you will see the application Now button. On clicking that button, you will have to fill a form with details like mobile number, name, email ID, state, city and branch from which you want to take a loan. After filling out these details and submitting the form, the representative will contact you regarding your loan application.
For this method, you just need to visit the nearest Bank of Baroda branch with the necessary documents. All you have to do is fill a form and submit it at the bank counter along with a hard copy of the documents. After authentication, the bank will assess your application and approve your loan.
What is Bank of Baroda Mudra Loan?
Bank of Baroda Mudra Loans provides financial assistance to small and micro enterprises in the non-agricultural sector and is engaged in manufacturing, trade or service sector.
Who can apply for BOB Mudra Loan?
North Indian citizens can apply for a Bank of Baroda Mudra loan. Additionally, applicants must be in the non-agricultural non-corporate sector to successfully avail of the loan. However, applicants can also be involved in agriculture related activities so that they can apply successfully for the loan.
Is any subsidy provided on Mudra loan schemes?
No, at present there is no subsidy on loans under Pradhan Mantri Mudra Yojana. However, if the loan request covers any other government scheme, where the government provides capital subsidy, it will also be eligible under the PMMY.
Can disabled persons also apply for Bank of Baroda Mudra loan?
Yes, disabled people can also apply for Bank of Baroda Mudra Loan.
How to calculate equated monthly installment of Mudra loan on BOB?
To calculate the Currency Loan EMI, you need to fill in the details in the business loan EMI calculator, such as loan amount, repayment period and interest rate.
The formula used is –
E(EMI) = P * R * (1 + R) ^ N / ((1 + R) ^ N – 1)
Where E is equated monthly installment
‘P’ is the principal loan amount.
‘R’ is the rate of interest.
‘N’ is the term or duration of the loan.
How to use Bank of Baroda Mudra Loan Calculator?
If you are thinking about how much EMI you can pay every month to repay the loan, then you should not worry about using the Bank of Baroda Mudra Loan Calculator. This amazing tool will help you make an accurate estimate of EMI amount.
All you need to do is fill in some details such as required loan amount, interest rate and tenure. As soon as you feed all these details into the calculator, you will get the EMI amount along with the total interest amount paid in the tenure you have chosen.
How can I check my PMMY Loan Status?
To check the status of Answer Mudra loan, you have to personally visit the nearest bank branch or call the bank’s toll free number.
What happens if you do not repay Mudra loan or CGTMSE?
If you do not repay the loan or loan under CGTMSE scheme, the bank will follow up for payment, your credit score will decrease and it will not be possible for you to get a loan or credit card from any financial institution.
What is Mudra Loan?
Mudra loan is a financial initiative undertaken by the Government of India to assist micro units and provide them sufficient funds to develop their business. At times, MSMEs (micro, small and medium enterprises) find it impossible to obtain financial support from banks due to lack of security or inability to repay loans. In the interest of developing the country’s economy, supporting these units will lead to overall progress.
Mudra loans can be used for the following purposes:
- Car loan
- Commercial vehicle loan
- working capital
- Loan for plant and machinery
- Business expansion
The scheme focuses on giving priority to women, backward classes, minorities, Dalits and tribals who have traditionally struggled for such finances. All businesses involved in non-agricultural income generating activity whose loan requirement is less than Rs. 10 lakhs can use this loan. There is no need for collateral with Mudra loan. Under PMMY, currency loans are provided by 27 public sector banks, 31 regional rural banks, 17 private sector banks, 36 microfinance institutions, 25 non-banking financial institutions and 4 cooperative banks.
How can you contact Bank of Baroda Customer Care?
In such a situation when you have any question or concern about Mudra loan, you can directly contact the customer care representatives of Bank of Baroda. For this, all you need to do is dial 1800-258-4455 or 1800-102-4455 from your mobile number. Your concern will be resolved by them in the shortest possible time.
MUDRA Project Report₹3,499