In this column, find out how to apply for Mudra Loan in Bank of Baroda, Documents required, Eligibility, Interest rate, etc.
Pradhan Mantri Mudra Yojana is a flagship scheme launched by the Government of India back in 2015. The scheme aims to empower small and medium-scale enterprises by offering them a loan at low-interest rates.
The maximum amount which an applicant can apply for a loan is Rs.10 Lakhs for a tenure of 60 months.
Bank of Boroda is a Public sector bank that provides mudra loans to applicants. There are other vendors as well where you can get mudra loans like SBI Mudra Loans, PNB Mudra Loans, etc.
This scheme specifically targets those individuals who want to start a small business or wanted to expand their business. Mudra loans provide these individuals with the necessary funds to do so.
You can easily apply for a Mudra Loan using various mediums provided by the Bank of Baroda. You can apply for a loan offline and online both which makes it very convenient.
Before, getting into how to apply for a Mudra loan in Bank of Baroda, let’s first find out what are the different types of Mudra Loans
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To facilitate the individuals, mudra loan is divided into three different types
Shishu loans are for those individuals who have very less requirement of funds i.e. up to Rs.50,000/-. Typically these types of loans are usually taken by street vendors, roadside stalls, etc.
If you require a low amount loan under Rs.50,000/-, you can apply for a Shishu loan easily without any requirement of collateral.
Kishore Mudra loan is for those individuals who have funds requirement which is more than Rs.50,000/- and less than Rs.5 Lakhs. If you want funds that lie between this range then you have to apply for Kishore Mudra Loans.
Tarun Mudra loan is a loan best suitable for individuals with funds requirement of more than 5 Lakhs and less than 10 lakhs.
The following are the eligibility for applying for Mudra Loan-
The following are the documents required for Mudra Loan-
Bank of Boroda offers a very nominal interest rate of 9.65% onwards. This interest rate varies depending on your credit score and a variety of other factors like a business plan, credit history, etc.
You can apply for Mudra Loan online as well as offline.
For offline Mudra Loan applications, you can visit the Bank of Baroda branch directly with a filled mudra loan form along with the above-mentioned documents. An executive will attend you and your request for the loan will be reviewed.
After review, your documents will be collected and further processing will be done. If your loan gets approved, you’ll be notified about the loan grant and your bank account associated with the loan will be credited with the loan amount.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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