Features and Benefits of Digital e-Mudra Loan

02 May 2022

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Setting up a business requires a lot of capital both for the initial investment and for operational costs. While a few people save their way to starting a business, many others take a business loan to meet these capital requirements. To boost entrepreneurship and help small businesses pursue their goals, Bank of Baroda offers a digital e-Mudra loan. This is a credit facility made available by Bank of Baroda for MSMEs that operate in the manufacturing, trading, and services sectors of the economy. One of the best features of the Bank of Baroda digital Mudra loan is that it is an unsecured form of debt. This means that you do not need to provide any collateral to procure funding. This is one of the best ways to finance the operations of your business. Read on to know more about this loan.

Digital Mudra Loan Bank Of Baroda

The BoB e-Mudra loan is a type of digital business loan that has been thoughtfully designed to cater to the MSME sector in India. Businessowners can procure credit of up to Rs 10 lakh through the digital Mudra loan. The loan is made available to the companies in three categories – Shishu, Kishore, and Tarun.

• The Shishu Mudra loan

Shishu in Sanskrit means a small child. True to the name, the Shishu Mudra loans are meant for companies requiring smaller investment. This loan offers a maximum loan amount of Rs 50,000. There is no minimum loan amount for the Shishu Mudra loan.

• The Kishore Mudra loan

Kishore, too, has a Sanskrit meaning. It means a young boy. As you may have guessed, these loans are meant for businesses that have crossed their younger years. However, they have not established themselves entirely in the market yet. Through the Kishore Mudra loan, business owners can procure credit of up to Rs 5 lakh.

• The Tarun Mudra loan

Tarun in Sanskrit means a young male. These loans offer a minimum loan amount of Rs 5 lakh and a maximum loan up to Rs 10 lakh.

The BoB Mudra loan interest rate is decided based on the applicant’s creditworthiness, business financials, and a few other evaluation policies that the bank follows. For security purposes, Bank of Baroda levies a first charge on all assets that the debtor creates with the help of the loan.

Who are eligible to apply for a BoB digital Mudra loan?

There are three criteria you need to meet in order to be eligible to apply for the Bank of Baroda digital mudra loan:

  • The loan is only available for individuals, partnership firms, private limited companies, proprietary concern, and public companies.
  • The applicant should not have a history of defaulting and should be creditworthy.
  • Depending on the business you wish to operate, you may be required to have the necessary skills. For example, if you are opening a business of modifying cars, you may need to have an automobile engineering degree to procure the Bank of Baroda digital Mudra loan.

What are the key benefits offered by the Bank of Baroda digital Mudra loan?

There are a lot of benefits offered by the Bank of the Baroda digital Mudra home loan, such as:

• Easy application

Setting up a business or scaling it requires a lot of work and planning. Thus, you may not have enough free time to get yourself a normal business loan. However, all you need to do is to apply for a digital Mudra loan in the Bank of Baroda website and get started with your loan application process. Hence, you do not need to take out time from your busy schedule and visit our branch physically. With just a few clicks, you can apply for the Bank of Baroda digital Mudra loan from anywhere and anytime which is convenient for you. Our website is inclusive of all the information you may need to smoothly complete your application process even if it is your first-time procuring credit online.

• Quick loan approvals

Digitising the loan application process has enabled Bank of Baroda to automate the collection and verification of the applicant’s information. Due to this, Bank of Baroda has efficiently reduced the turnaround time for digital mudra loans to 30 minutes! This means that your application is eligible for digital mudra loan, if you have all the required information and documents. You can get your credit requirement request approved in just half an hour. Consequently, procuring the Bank of Baroda digital Mudra loan is one of the fastest ways to fulfil your credit requirements.

• End-to-end paperless application process

One of the biggest advantages of applying for a digital Mudra loan is that you do not have to go through tedious paperwork to get your credit application approved. All you need to do is visit our website and upload the required documents to initiate the loan application process. You can easily find the list of required documents on our intuitively designed website and upload the same in either pdf format or the jpeg format. If you do not have the soft copy of your documents, you can scan and upload them; however, ensure that the document print is clearly visible.

• Collateral-free funding

Borrowers are not required to offer us collateral to procure a digital Mudra loan. Though you are not required to provide collateral, it is crucial for you to have a good credit history. Having a strong business plan along with a good credit history can help you procure the Bank of Baroda digital Mudra loan with ease. However, all the digital Mudra loan is guaranteed by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTSME) coverage.

• Funding for various types of MSMEs

The digital Mudra loan offered by the Bank of Baroda aims to assist MSMEs from various sectors of the economy like Manufacturing, Services and trading which includes agricultural-allied activities also.

To sum up

Bank of Baroda digital Mudra loan is a small business loans meant to provide financial assistance to micro and small enterprises from the various sectors of the economy, with a credit requirement up to Rs 10 lakh. The funds are allocated to companies in three categories, namely, Shishu, Kishore and Tarun. The digital Mudra loan is the best way to meet the seed capital as well as working capital requirements of your business as it does not require you to provide collateral for your loan.

Here you must remember that though it may be easy to procure the digital Mudra loan, it is very important to understand your business and personal finances before filling up the application. You can use the mudra loan EMI calculator available on the Bank of Baroda website to plan your loan repayments. For more information on the interest charged or for any queries, feel free to reach out to us at 1800 5700. You may also visit our Bank of Baroda branch close to you and get assistance from our staff.

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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