Bank Of India Mudra Loans Scheme

Bank of India (BOI) is one of the most reputed banks in India, offering a range of business loans and MSME loans to its customers.

Mudra loan under the Pradhan Mantri Mudra Yojana (PMMY) is one of the government-initiated schemes that the Bank of India offers to its customers.  The loan amount and interest rate offered by BOI depend on the profile and business requirements of the applicant.

Click here to download the application form for the Mudra loan given by the Bank of India.

Eligibility Criteria

Any enterprises, including any Pvt. Ltd. Company, partnership firms, self-proprietary concern, women are eligible applicants under the BOI Mudra loan.

Loans under the Mudra scheme are available for many purposes such as commercial purposes, purchase of plant or machinery, renovation of infrastructure, hiring of employees, training employees, etc. The basic criteria to avail of this loan are:

• The minimum age of the applicant is 18 and the maximum is 65 years.
• Units engaged in non-agricultural business activities.
• Applicant must be an Indian citizen with no criminal track record.
• Small business owners such as truck operators, fruit sellers, vegetable sellers, repair shops, paper/food processing units, artisans, shopkeepers, etc. are eligible for loans under the BOI PMMY Loan scheme.
• There are no previous non-payment by the applicant with any financial institutions.

Purpose

Financing (income generating activity) to weavers and artisans, to establish new/advanced micro business ventures in the processing, manufacturing, trade and services sector and to pursue allied activities for agriculture.

Maximum Repayment Period  

Maximum – 36 months for a demand loan and 84 months for a term loan, including the moratorium period. Pay interest when charged.

Also read article on Bank of Baroda Mudra Loan Scheme

Also read article on Mudra Loan Scheme

Margin

Security

Primary Security –

a) Hypothecation of all assets derived from bank finance.

b) Personal guarantee of promoters/directors.

Collateral  Security 

All eligible activities will be covered under the ‘Guarantee Cover of CGFMU’ Credit Guarantee Fund for Micro Units.

[No collateral security / third party guarantee to obtain].

The following documents are required for Bank of India Mudra Loans:

1. Proof of Identity – Self-attested copy of Driving License / Voter ID / Aadhaar Card / PAN Card / Passport.
2. Proof of Residence – Recent telephone bill, property tax receipt, electricity bill, (not more than 2 months old), Aadhaar card, voter ID card, and passport of proprietors/partners/directors.
3.  SC / ST / OBC / Proof of Minority.
4.  Proof of business enterprise identity / address-related license/registration certificate / other documents related to the ownership, identity and address of the business entity.
5. The candidate should not be a defaulter in any loan from a bank or other institution.
6. Statement of accounts (for the last six months), if any, from the existing banker.
7. The last two years’ balance sheet of the units as well as income tax/sales tax return etc. (Applicable for Rs. 2 lakhs and above in all cases of existing units).
8. Projected Balance sheet for one year in case of working capital limit and for the term of the loan in case of term loan. 
9. Sales received up to the date of submission of applications during the current financial year.
10. Project report (for the proposed project) which details the technical and economic feasibility.
11. Article and Memorandum of association of the company and partnership deed of partnership firm etc.
12. In the absence of a third-party guarantee, the borrower, including directors and partners, may be asked to know the asset and liability statement, worth.
13. Pictures of Partners / Proprietors / Directors (two copies).

Bank Of India Mudra Loans – Facilities

Bank of India Mudra Loans provides financial assistance to small and micro business units to establish or expand their business. Some of the features of this product are:

• Bank of India Mudra Loans can be availed by businesses in processing, trading, manufacturing, and services. It also includes allied agricultural activities, financing weavers and artisans.
•  Three types of loans are available:

Mudra Yojana is classified under 3 loan schemes namely Kishore, Shishu, and Tarun.  The loan amount given under these schemes is as follows:

• Repayment of loan: The loan can be sought for a maximum period of 36 months and 84 months for term loans.
• The loan has a margin of 0% in the Shishu Loan, while in the Kishore Loan and Tarun category there is a margin of 15%.
• Bank of India requires the division of all assets that have been acquired from bank finance. Personal guarantees of directors/promoters are also required.
• Collateral security is not required while availing of this loan.
• Bank of India Mudra loan interest rate is linked to MCLR.

Bank of India Mudra Loan Customer Care no.

Also, read Project report on Mudra Loan

 FAQs – Frequently Asked Questions

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