Bank Of India Mudra Loans Scheme

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 depends on the profile and business requirements of the applicant.

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

Eligibility Criteria PMMY BOI

Eligibility Criteria

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

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

  • Minimum age of applicant is 18 and maximum 65 years.
  • Units engaged in non-agricultural business activities.
  • Applicant must be an Indian citizen with a no criminal track record.
  • Small business owner 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
SHISHUKISHORETARUN
upto Rs.50,000above Rs.50,000 up to Rs.5.00 lakhabove Rs.5.00 lakh up to Rs.10.00 lakh
NIL15%15%
Security for Bank of India Mudra Loan

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 ‘Guarantee Cover of CGFMU’ Credit Guarantee Fund for Micro Units.

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

Documents Required for BOI MUDRA

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 and 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 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, net-worth.
  13. Pictures of Partners / Proprietors / Directors (two copies).
Facilities BOI PMMY

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 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:

CategoryLoan Amount
ShishuLoans up to Rs. 50,000
KishoreLoans between Rs. 50,000 and Rs. 5 lacs
TarunLoans between Rs. 5 lacs and Rs. 10 lacs
  • Repayment of loan: The loan can be sought for a maximum period of 36 months and 84 months for term loans.
  • 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 this loan.
  • Bank of India Mudra loan interest rate is linked to MCLR.
Bank of India Mudra Loan Customer Care no.
Toll-free number (24*7)1800 103 1906
Toll-free – Covid Support1800 220 229
Telephone Number (Chargeable)(022) – 40919191

Also, read Project report on Mudra Loan

 FAQsFrequently Asked Questions
What is a Bank of India Mudra loan?

Bank of India Mudra loan helps small and micro business enterprises to meet their business needs. This product also helps these scattered units get into the formal banking fold.

What are the eligibility criteria to apply for a Bank of India Mudra loan?

Bank of India Mudra loans can be applied by anyone including women, proprietary concerns, partnership firms and private limited companies.

What are the processing fees and documentation charges for Mudra loans in Bank of India?

There is no processing fee or documentation fee for Mudra loans offered by Bank of India.

How to track BOI Mudra loan application status?

You may either visit the official bank’s website or personally visit the nearest bank branch to monitor your Mudra loan application.

What are demand loans?

Demand loan is a type of short-term loan that is given by financial institutions to meet working capital requirements.

What is the repayment of Mudra loan in Bank of India?

Repayment of loan is from 12 months to 5 years.

Is it really possible to get a PMMY loan without collateral security / third party guarantee?

Yes, the Mudra loan given by Bank of India is collateral free and no third party guarantee is required.

Does a Bank of India Mudra loan require a guarantor?

No collateral security or any guarantor is required to avail a loan under the Mudra scheme.

Is the BOI Mudra loan eligible for a subsidy?

According to the Mudra Loan Policy, it does not mention any subsidy applicable as of now.

Can I take a Mudra loan from two different banks?

 Yes, you can avail loan from different bank under this scheme at one time, as long as it does not exceed the total amount of your applicable loan amount.

How can I get a BOI PMMY loan for business?

Go online to bank or financial institution or provide the facility of Mudra Yojana and apply accordingly. Ask any officer in the branch to provide you with further guidance.

Is there any special offer under the Mudra Loan for women entrepreneurs?

Yes, you can apply under the Special Refinance Scheme for Women Entrepreneurs-  Mahila Uddyami Scheme. Support will be provided under all three groups, ‘Kishore’, ‘Shishu’, and ‘Tarun’.

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