Bank of Baroda Mudra Loan - Check Interest, Eligibility Criteria & How to Apply

The Pradhan Mantri Mudra Yojana, or PMMY, was launched by the Indian Government to provide affordable credit to small and micro non-farm business enterprises. This scheme was introduced to bring MSMEs into the formal funding system, with the aim of “funding the unfunded”. 

 

Bank of Baroda Mudra loan is available to micro and small businesses that generate income through engagement in manufacturing, trading and services. Under this scheme, you can obtain a loan amount of up to Rs. 10 Lakhs without providing any collateral. Furthermore, Bank of Baroda offers a fully digital platform for you to apply for this credit option.

 

Keep reading to get more details on the Mudra loan offered by Bank of Baroda.

Indeed, the Mudra loan scheme by the government is an attractive credit option for small and medium business operators. Find the key highlights of Bank of Baroda Mudra loan below:

*Note that Bank of Baroda Mudra loan interest rate depends on the type of credit and applicant’s business profile, among other eligibility parameters. 

Mudra loans offered by Bank of Baroda come with various features and benefits for prospective borrowers. Find about them below:

• No minimum limit

Under the Mudra loan scheme, there is no minimum loan amount that one can borrow. Thus, you may be able to meet your small ticket expenses through this financing. Additionally, you can obtain a high-value loan amount of up to Rs. 10 Lakhs under this scheme.

• No processing fees

One of the many benefits of obtaining a Bank of Baroda Mudra loan is that you do not have to pay any processing fees. Since the scheme is introduced by the government, the overall borrowing cost remains affordable.

• No collateral

You can obtain a high-loan value of up to Rs. 10 Lakhs without having to pledge any asset. This will help you reap the benefits of financing while retaining your assets. Further, since there is no collateral involved in the process, the loan approval can take place faster.

• Interest as per RBI guidelines

Bank of Baroda follows the interest rate as per the marginal cost of lending rate, or MCLR. This rate is fixed by the Reserve Bank of India. Thus, while applying for this credit, you can remain assured of obtaining credit at an affordable interest rate.

• Quick approval

With Bank of Baroda, you can apply for a Mudra loan digitally by filling out an online application. This allows for quick approval of term loans and working capital loans within 30 minutes. Additionally, you do not have to submit any physical documents, adding to your convenience.

As mentioned above, the interest rate on Mudra loans is set by the RBI on the MCLR. The prescribed rate of interest tends to be different for different types of Mudra loans. Find more details in the below table:

*Note that the Mudra loan from Bank of Baroda interest rate mentioned in the above table might change depending on your business profile and credit score. 

 

*Interest rate on Mudra loans extended by Scheduled Commercial Banks and Regional Rural Banks feature a capping of 3.5% over the refinancing rate. This capping stands at 6% for NBFCs.

Bank of Baroda offers Mudra loan with easy eligibility parameters to facilitate a quick application procedure. Find details about BOB Mudra loan eligibility below:

 

• All types of enterprises engaged in non-farm business activities may apply.

• The business should fall under the MSME sector.

• The business should be engaged in generating income through daily activities.

• Businesses with credit needs of up to Rs. 10 Lakhs may apply.

• Businesses engaged in allied agricultural activities, such as fisheries and horticulture, can also apply for this credit.

 

Apart from these, maintaining a healthy credit score is a must to obtain a Bank of Baroda Mudra loan. A good CIBIL score will also allow you to obtain financing at a lower rate of interest.

Bank of Baroda provides Mudra loan with minimal documentation. Further, with the digital loan facility, you do not need to furnish any physical documents. You can apply for a Bank of Baroda Mudra loan with these documents:

 

• Filled in Mudra loan application form

• Identity proof of the applicant, such as Aadhaar card, Voter ID card or Passport

• Proof of residence of latest utility bills

• Business ID and documents pertaining to business address proof

• Latest photograph of the applicants

• Minority proof, if any

• Loan requirement proof, such as vendor details, quotations or more

 

Note that the documents mentioned above are indicative. The bank may ask you for additional documents if required.

You can easily apply online for a BOB Mudra loan. The application process is simple and hassle-free. You just need to follow these steps:

 

• Step 1: Visit the official Bank of Baroda website and navigate to the Mudra loan page.
• Step 2: Click on ‘Apply Now’.
• Step 3: Fill in the application form with a few basic details, such as your name, contact details, state and more.
• Step 4: Enter the verification code and submit your application.

 

Upon following these steps, a bank representative will get in touch with you regarding further steps and document verification.

If you have any queries regarding Bank of Baroda Mudra loan, you can consider reaching out to 18002584455 or 18002584455.

 

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