Bank of Baroda Mudra Loan

Last Updated : Nov. 22, 2024, 1:21 p.m.

The Pradhan Mantri Mudra Yojana (PMMY) is a flagship Government of India scheme offering micro and small enterprises affordable credit. It aims to bring businesses into the formal financial system and "fund the unfunded." Bank of Baroda Mudra Loan Mudra Loan is available for non-farm micro and small manufacturing, trading, and services enterprises.

Bank of Baroda Mudra Loan Highlights

Baroda Mudra Loan Features

The Mudra Loan under the Pradhan Mantri Mudra Yojana (PMMY) is available in three categories based on the loan amount:

• Shishu : Up to ₹50,000 - Designed for startups and new entrepreneurs who need small capital for initial business setup like purchasing equipment, raw materials, or other minor expenses.
• Kishore : ₹50,001 to ₹5 lakh - Targets small businesses that have already launched and require additional funds to stabilize or expand operations, such as inventory purchases or minor business upgrades.
• Tarun : ₹5,00,001 to ₹10 lakh - For established businesses needing substantial funding for major expansions, machinery purchases, or new project launches.
• Processing Charges : Bank of Baroda and many other participating banks do not levy any processing fees on Mudra loans, making it cost-effective for small business owners.
• Security/Collateral : No collateral or third-party guarantee is required. The assets created using the loan may be considered as security by the bank, ensuring ease of access for micro and small enterprises.

There is no minimum loan amount, and the maximum is ₹10 lakh. Borrowers benefit from no processing charges and no collateral requirements. The Mudra Loan is available to non-farm micro and small enterprises, including those engaged in allied agricultural activities like horticulture and fisheries, as applicable to the MSME sector.

Bank of Baroda Mudra Card

The Bank of Baroda launched the “MUDRA Card” which is a debit card linked to the MUDRA loan account, specifically for managing the working capital portion of the loan. Borrowers can use the MUDRA Card for multiple withdrawals and deposits, allowing them to efficiently manage their working capital and minimize interest costs. This provides a flexible and cost-effective way to handle the loan funds.

You can read more about the Bank of Baroda Mudra Card, here .

Calculate Your Bank of Baroda Mudra Loan EMI

You can calculate the Bank of Baroda Mudra Loan EMI with the help of the EMI Calculator where the EMI Interest Rate is up to 15% approx.

Note: The value provided is approximate and may vary in the final calculation.

Bank of Baroda Mudra Loan Benefits

Here are some benefits of the Bank of Baroda Mudra Loan -

• Credit facilities to micro and small enterprises
• No security or collateral required
• No processing charges
• For fund or non-fund based requirements
• It can be used for a variety of purposes
• No minimum loan amount.

Bank of Baroda Mudra Loan Eligibility

Here are the Mudra loan (PMMY scheme) eligibility criteria -

• All non-farm enterprises
• Micro and small enterprises
• Engaged in income-generating activities
• Involved in manufacturing, trading, and services
• With credit requirements up to ₹10 lakh
• As of 01/04/2016, allied agricultural activities, such as horticulture and fisheries, have also been included under the PMMY scheme.

Bank of Baroda Mudra Loan Interest Rates

• Interest Rates & Charges : Interest rates are determined based on the bank’s policy.
• Upfront Fee/Processing Charges : As per the bank’s policy.
• There is no minimum loan amount for Mudra loans.

Documents Required For Bank of Baroda Mudra Loan

Here are the required documents for the Bank of Baroda Mudra loan -

• Duly filled Mudra Loan application form
• Identity proof: Aadhaar, PAN, Driving License, Passport, Voter ID, or any government-issued photo ID for all applicants (in case of joint loans)
• Residence proof : Latest utility bill, Aadhaar, Voter ID, Passport, or bank account statement for all applicants (in case of joint loans)
• Business ID and Address proof : Udyog Aadhaar, licenses, registration certificates, or deed copy
• Latest photographs of the applicant(s)
• SC/ST/OBC/Minority certificate , if applicable
• Proof of loan requirement: Equipment quotations, vendor details, etc.
• Any other documents as per the bank's sanction terms.

Important Terms and Conditions Of Bank of Baroda Mudra Loan

These are the most important terms and conditions of the Bank of Baroda Mudra Loan, have a look at them while applying for the Mudra Loan -

• Maximum Limit - Rs. 10 lakhs
  
• Repayment Period - The loan tenure can be up to 84 months, with an appropriate moratorium period, subject to annual review.
  
• Working Capital – For 12 months, subject to annual review.

• Margin - As per the bank guidelines
• • Processing Fee - Nil for every category
  • Security - No Collateral
    
• Insurance / Guarantee - Mudra loans are eligible for coverage under the CGTMSE scheme.
  
• Pre-closure charges - Nil

Process for Applying for Bank of Baroda Mudra Loan

Here are the steps for applying online for a Mudra loan under the Bank of Baroda and using the Mudra EMI calculator to plan your business growth.

• Check Eligibility - You have to answer some of the questions and get matched with the suitable schemes.

• Apply Online - You have to provide some basic details and documents and then with the help of advanced technology the required details will be filled automatically through smart analytics.

• Get Digital Approval - You can view the offered offers from 200+ lenders and then you can get digital approval from the selected bank.

• Track Your Application - You can easily check the real-time status of your application.

By clicking on this link , you can view the offers and can apply online.

Documents Required for Bank of Baroda Digital Mudra Loan

Documents required for Digital Mudra Loan application:

• Bank statement for the last 12 months, downloaded from the bank’s website or received via official bank email, including account number and IFSC code
• Business registration details (if applicable) and KYC documents for the business, business partner, promoter, or proprietor
• Details of associate concerns (if any)
• Details of existing loans
• PAN, GSTN username (if registered with GSTN), mobile number, and email ID registered with GSTN
• Udyam Registration Certificate
• Quotation for machinery or equipment purchase (for term loans above ₹50,000)
• Civil engineer’s estimate for shed construction, etc. (for term loans above ₹50,000)
• GST filing credentials or e-copy (PDF) of GST returns for the last 12 months (for loans up to ₹2 lakh)
• ITR filing credentials or e-copy (PDF) of income tax returns for the latest year (for loans up to ₹2 lakh)

Bank of Baroda Weaver Mudra Loan

The scheme aims to provide timely and adequate financial assistance to weavers, catering to both their investment needs and working capital requirements flexibly and cost-effectively. It is designed to support weavers in enhancing their production capacity and business operations. The implementation of the scheme covers both rural and urban areas, ensuring broad access to financial resources for artisans across different regions.

Bank of Baroda Weaver Mudra Scheme: Terms and Conditions

• Eligibility

Applicable to existing or experienced handloom weavers actively engaged in weaving activities.

• Purpose

To provide funding for the purchase of looms and related capital expenditures (CAPEX). To meet working capital (WC) requirements as needed for ongoing operations.

• Facilities Offered

Includes both demand loans and working capital finance.

• Maximum Limit

The total loan amount (including demand loans and working capital finance) is capped at ₹5 lakhs.

• Margin Requirement

The borrower must contribute 20% of the total project cost (CAPEX and WC). For smaller projects, a margin up to ₹10,000 or 20% (whichever is lower) is provided by the Government of India (GoI).

• Assessment of Limits
  

Demand Loan: Provides 80% of the cost for looms and other capital expenditures. Working Capital: The bank finances 20% of the estimated or projected turnover, minus the margin requirement.

• Subsidies Provided by Government
  

Interest Subsidy: Aims to offer working capital loans at an interest rate of 6% to the handloom sector. The Government of India covers the difference between the bank's actual interest rate and the 6% rate paid by the borrower, with a maximum subsidy cap of 7%.

Margin Money Assistance: The government provides margin money assistance equal to 20% of the project cost, up to a maximum of ₹10,000 per weaver.

• Securities Required

Exclusive Hypothecation: Charge over machinery and stock as security.

Credit Guarantee: Coverage provided under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.

• Mudra Card Issuance

Beneficiaries receive a Mudra Card with a daily withdrawal limit of ₹5,000, allowing easy access to working capital.

This comprehensive scheme helps handloom weavers access necessary funds while minimizing financial burdens through government subsidies and guarantees, facilitating business sustainability and growth.

BOB Weaver Mudra Loan: Interest Rates & Charges

• Rate of Interest (ROI) : The interest rate will be as per the prevailing rates applicable to the MSME segment, based on a competitive rate linked to MCLR/BRLLR (Benchmark Lending Rate).
• Interest Subsidy : The Government of India provides an interest subsidy equivalent to the difference between the bank's lending rate and the effective rate (currently calculated at 4.35% below the prevailing rate).
• The subsidy amount is adjusted in the borrower’s account every quarter.
• The interest subsidy is available for a maximum period of 3 years from the date of the first loan disbursement..
• This structure ensures competitive financing for MSMEs by reducing the effective interest rate through government support.

Bank of Baroda Mudra Loan Customer Care Number

To learn more about the Bank of Baroda MUDRA Loan scheme, you can visit your nearest Bank of Baroda branch or contact their customer service at -

• 1800 5700 12

Summary!

The Bank of Baroda Mudra Loan is a financial product under the Pradhan Mantri Mudra Yojana (PMMY) aimed at supporting micro and small enterprises in India. The loan is accessible to both new and existing businesses with a simple application process and minimal documentation.