The SBI e Mudra PM Svanidhi Loan and scheme, supported by the State Bank of India (SBI), is a valuable aid for small business owners and small business vendors. It's designed to strengthen microenterprises by offering working capital loans from Rs 10,000 to Rs 50,000.
The loan is offered by the State Bank of India (SBI) and is part of the Pradhan Mantri Street Vendor's AtmaNirbhar Nidhi (PM Svanidhi) scheme. Hence, to know more about SBI e Mudra P.M Svanidhi Loan read the page further.
Interest Rates of SBI e Mudra PM Svanidhi Loan
The SBI e Mudra PM Svanidhi Loan, facilitated by the State Bank of India (SBI), offers competitive interest rates to support small business proprietors and street vendors. Read the table further to have a better understanding with interest rate associated with these types of loan:
| Loan Amount | (1st term)Rs 10,000 - Rs 20,000(2nd term) |
| Loan Type | SBI e Mudra PM Svanidhi loan |
| Interest Rate | EBLR + 3.25%: 9.90% |
| Processing fee | Nil for Kishore and Shishu loans; 0.50% plus tax for Tarun |
Eligibility Criteria for SBI e-Mudra PM Svanidhi Loan
The scheme is designed to provide small loans to street vendors to help them restart their businesses and recover from the economic impact from the pandemic.The eligibility criteria for the SBI e-Mudra PM Svanidhi scheme typically encompass the following aspects:
Applicant Category:
- Small business owners engaged in street vending or micro-enterprises.
- Street vendors and individuals involved in small businesses like food service units, artisans, shopkeepers, fruit and vegetable vendors, repair shops, etc.
Age - Individuals aged between 18 to 65 years are eligible to apply for the loan.
Business Operations - Applicants must be actively involved in their business for a certain period, meeting the specified criteria set by the scheme.
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Business Loan EMI Calculator
Using a mudra loan EMI calculator helps small street vendors compare different loan options and choose the one that best fits their financial situation, as it provides them with a realistic understanding of their repayment obligations, calculate through the loan amount, tenure, and interest rate you enter.
Documents Required For PM Svanidhi Loan
To apply for the PM Svanidhi scheme, ensure you have the following documents ready:
- Proof of Vending: Provide either a Vendor ID card (VID) or a Certificate of Vending (CoV), or a Letter of Recommendation from TVC.
- KYC Documents: For KYC, any of these documents are acceptable: Aadhaar Card, Voter’s ID, Driving License, MNREGA Card, or PAN Card.
- Aadhaar Linked Bank Account: Ensure your bank account is linked with Aadhaar.
- Mobile Number Linked to Aadhaar: Your mobile number must be linked to your Aadhaar for e-KYC validation and potential future scheme benefits.
Features of SBI e Mudra PM Svanidhi Loan
These features of the SBI e Mudra PM Svanidhi Loan encompass specific details regarding the loan amount, tenure, interest rate, and collateral:
1. Loan Amount:
- 1st term: Maximum loan amount of Rs. 10,000.
- 2nd term: Maximum loan amount increases to Rs. 20,000.
2. Tenure of Loan:
- For the 1st term, the maximum repayment period is 12 months.
- During the 2nd term, the repayment tenure extends to a maximum of 18 months.
3. Interest Rate: known as EBLR (External Benchmark Lending Rate) plus 3.25%, totaling an interest rate of 9.90%.This interest rate is competitive and facilitates affordable repayment options for borrowers.
4. Collateral-Free Loan: The SBI e Mudra PM Svanidhi Loan is offered with no collateral or security. The feature makes the loan more accessible to small business owners and street vendors who might not have substantial assets to pledge as security
Steps to Apply For SBI e Mudra PM Svanidhi Loan
Properly to understand the information documents required to fill out the Loan application form (LAF) for the Scheme. Keep all the information ready before you start the application process.
Step 1- Access the SBI official website or the dedicated portal for the PM Svanidhi Loan scheme.
Step 2- Ensure your mobile number is linked to your Aadhaar number. It will also help you avail future benefits under government welfare schemes.
Step 3 - Check your eligibility status as per scheme rules and keep it ready. As you might.fall into one of the following 4 categories of street vendors. Check your status and keep the needed documents/ information handy.
Step 4 - Complete the application form with accurate and relevant details, providing information about yourself, your business, and the loan amount needed.
Step 5 - Attach Documents: Upload scanned copies of the required documents as mentioned in the application form.
Step 6 - After verifying all the information and attached documents, submit your loan application through the online portal.
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Frequently Asked Questions
The SBI e-Mudra PM Svanidhi Loan is a government-supported financial scheme facilitated by the State Bank of India (SBI). It aims to provide working capital loans to street vendors and small business proprietors, supporting their businesses' growth and sustenance.
Street vendors engaged in vending activities before March 24, 2020, and possessing a Certificate of Vending/Identity Card issued by the urban local bodies are eligible for the SBI e-Mudra PM Svanidhi Loan.
Street vendors can avail the working capital loans ranging from Rs. 10,000 to Rs. 50,000 under the SBI e-Mudra PM Svanidhi Loan, depending on their specific financial requirements and provided they qualify of the same
The interest rate for the SBI e-Mudra PM Svanidhi Loan is EBLR (External Benchmark Lending Rate) plus 3.25%, which translates to an interest rate of 9.90%.
Street vendors can apply for the SBI e-Mudra PM Svanidhi Loan by visiting designated SBI branches or applying through specified online portals linked to the scheme.
Yes, street vendors can apply for the SBI e-Mudra PM Svanidhi Loan online through the official portals designated by the State Bank of India (SBI) for this scheme.
Yes, there is a provision for a monthly cashback or incentive for timely repayment of the loan. Under the PM SVANidhi scheme, street vendors can receive a monthly cashback amount as an incentive for prompt repayment of the loan.
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