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Learn more about SBI Mudra loan, how to apply, eligibility, documents required, and eligibility criteria.
State Bank of India (SBI) offers MUDRA loans under the brand name “SBI MUDRA loans”. It is a product offered through Pradhan Mantri MUDRA Yojana (PMMY). Non-corporate, non-farm small/micro startups and businesses are eligible to get loans through this scheme.
These loans are specifically curated to financially support small and micro businesses. You can get a loan of up to ₹10 Lakhs through this scheme.
As a part of the PMMY scheme, SBI provides MUDRA loans under 3 categories:
Shishu - Loans of up to ₹50,000 for startups
Kishor - Loans from ₹50,001 to ₹5,00,000 for businesses looking to expand
Tarun - Loans from ₹5,00,001 to ₹10,00,000 for established businesses
Micro-entrepreneurs, small business owners, startups, existing enterprises, women entrepreneurs, and individuals from SC/ST category are eligible for these loans. The loans come with reasonable interest rates that are decided according to the SBIs' marginal cost of funds based lending rate(MCLR). In addition, the repayment tenure extends up to 5 years, with up to 6 months moratorium period, making it easier for you to repay the amount.
Here are some of the key highlights of the SBI MUDRA loan:
Credit Nature |
|
Purpose |
|
Eligible Borrowers |
Entrepreneurs and business owners looking to set up a new venture or expand/modernise their existing venture(s) |
Maximum Loan Amount |
Up to ₹10 Lakhs, in accordance with the loan category;
|
Repayment Tenure |
5 to 7 years |
Processing Fee |
|
Margin |
|
Interest rates |
Linked to MCLR rates (12.15% rate effective as of 2025) |
SBI e-MUDRA loan has been launched to facilitate customers seeking smaller amounts with quick, digital access to apply for the MUDRA loans.
Here are some of the features of the SBI e-MUDRA loan scheme:
Interest rates of MUDRA loans are linked to the MCLR and are generally lower than traditional loans
For Shishu and Kishor loans, there are no processing fees, whereas, a 0.50% fee applies for Tarun loans
There is no margin for loans up to ₹50,000, however, a 10% margin applies for larger amounts
For loan amounts less than ₹5 Lakhs, you get a loan tenure of up to 5 years. For larger amounts the loan tenure goes up to 7 years
You can get a collateral-free loan for amounts up to ₹5 Lakhs, whereas, you might require hypothecation of assets for higher amounts
The interest rates for SBI MUDRA loans are linked to the Marginal Cost of Funds-based Lending Rate (MCLR). The bank cannot lend below the minimum interest rates established by SBI. When the MCLR rises, the bank increases its lending rates, making loans more expensive and resulting in higher EMIs. Conversely, a decrease in MCLR lowers loan interest rates, reducing EMI amounts.
The table below outlines the specific interest rates and related details for each category of the SBI MUDRA loan:
| Mudra Loan Type | UFR (EBLR/Base Rate) | Spread (%) | Effective ROI (%) |
|---|---|---|---|
Linked to EBLR |
Not Specified (Zero or low margin) |
Approx. 11.75% |
|
Linked to EBLR |
20% margin (approx) |
Approx. 12.15% |
|
Linked to EBLR |
20% margin + 0.5% processing fee |
Around 12.15% |
This linkage aims to create more flexible and fair interest rates for all customers, as MCLR is regarded as a transparent and efficient benchmark.
SBI’s e-MUDRA Loan under the Pradhan Mantri Mudra Yojana is intended to support both new and existing micro and small businesses in manufacturing, trading, services and allied agricultural sectors. Applicants must meet certain conditions such as age, business activity, and banking relationship with SBI before becoming eligible.
Below are the specific eligibility criteria broken down by the Shishu, Kishor, and Tarun categories:
The following table outlines the eligibility requirements for applicants seeking the Shishu Mudra Loan from SBI:
| Eligibility Criteria | Details |
|---|---|
Loan Amount |
Up to Rs. 50,000
|
Age of Applicant |
18 to 65 years |
Business Type |
Micro units engaged in manufacturing, trading, services, or allied agricultural activity |
Business Vintage |
No specific minimum period required |
Annual Turnover |
Generally, low or in startup phase |
Collateral |
No collateral required (secured by Credit Guarantee Fund for Micro Units) |
Credit Score |
Typically, credit score requirement is flexible but good credit history preferred |
Existing SBI Account Holder |
Not mandatory but having an SBI account may facilitate loan processing |
Other Conditions |
Loan is unsecured; repayment period up to 5 years |
Documents |
Application form, KYC docs (ID, address proof), business proof, photographs |
Disclaimer: The eligibility criteria mentioned are subject to SBI’s policies and guidelines. Applicants are advised to check with the bank for the most updated requirements before applying.
The following table outlines the eligibility requirements for applicants seeking the Kishor Mudra Loan from SBI:
| Eligibility Criteria | Details |
|---|---|
Loan Amount |
Above Rs. 50,000 up to Rs. 5,00,000 |
Age of Applicant |
18 to 65 years |
Business Type |
Micro and small enterprises in manufacturing, trading, services, agricultural allied |
Business Vintage |
Typically, at least 1-2 years in operation |
Annual Turnover |
Moderate scale business annual turnover |
Collateral |
No collateral required, may require third-party guarantee |
Credit Score |
Generally requires a good credit score (650+ preferred) |
Existing SBI Account Holder |
Preferable for seamless loan processing |
Other Conditions |
Loan repayment tenure up to 5 years |
Documents |
Detailed KYC, business registration/proof, financial statements, bank statements |
Disclaimer: The information provided in this table is for reference purposes only. SBI may revise the eligibility norms at its discretion, and final approval depends on the bank’s assessment.
The following table outlines the eligibility requirements for applicants seeking the Tarun Mudra Loan from SBI:
| Eligibility Criteria | Details |
|---|---|
Loan Amount |
Above Rs. 5,00,000 up to Rs. 10,00,000 |
Age of Applicant |
18 to 65 years |
Business Type |
Well-established micro and small enterprises in manufacturing, trading, services, agriculture allied |
Business Vintage |
Minimum 3 years of business operation (approximate) |
Annual Turnover |
Higher turnover, medium scale business |
Collateral |
No collateral required; hypothecation of plant & machinery or stocks/receivables as primary security may be required |
Credit Score |
Strong credit history required |
Existing SBI Account Holder |
Mandatory for loan processing and disbursement |
Other Conditions |
Processing fee 0.50% p.a. on loan amount; loan tenure up to 5 years |
Documents |
Comprehensive KYC, business financials, balance sheet, profit & loss statement, proof of assets |
Disclaimer: The eligibility conditions listed are indicative and may vary as per SBI’s internal rules. Please confirm the exact criteria with the bank at the time of application.
Here is a list of the documents necessary for you when applying for an SBI MUDRA loan:
Disclaimer: The documents listed are based on publicly available sources and may vary based on SBI’s policies, branch location, applicant profile, loan amount (Shishu/Kishor/Tarun), or regulatory changes. Submission of documents does not ensure loan approval. The final decision rests with SBI after verification and due diligence.
The repayment tenure is flexible and the customers can get 5 years tenure including maximum moratorium period of up to 6 months below for below ₹5 Lakhs. However, from ₹5 Lakhs to ₹10 Lakhs, a maximum of 7 years tenure including maximum moratorium period of up to 12 months is allowed.
You may apply for the SBI MUDRA Loan following these steps:
Go to the State Bank of India’s official e-MUDRA portal to start your application.
Choose the appropriate MUDRA loan category, namely Shishu, Kishor, or Tarun. Select based on your business stage and funding needs.
Provide your personal, business, and financial details accurately in the application form.
Attach scanned copies of identity proof, address proof, income proof, business proof, and any other necessary documents.
Review all entered details carefully and submit your application for processing.
After submission, you will receive an acknowledgment or reference number to track the status of your loan application.
The bank will verify your documents and details. Once approved, the loan amount will be disbursed as per the terms.
Here are some ways to contact SBI customer service in case of any queries.
Toll free number(s):
1800 11 2211
022 22741216
Email:
gm.customer@sbi.co.in
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Individuals, proprietorships, partnerships, and small businesses engaged in non-farm income-generating activities are eligible. Applicants must meet the age and business criteria set by SBI and fall under the Shishu, Kishor, or Tarun loan categories. Proper documentation and proof of business are mandatory for eligibility.
Visit the official SBI e-MUDRA portal and navigate to the loan application section. Select your loan type, either Shishu, Kishor, or Tarun, and download the PDF form. You can also fill and submit the form online after uploading the necessary documents and personal/business details.
No, SBI MUDRA loans are designed to support small businesses without requiring collateral. These loans are unsecured and aim to provide easy access to funding. However, borrowers must submit the necessary identity, address, income, and business documents for verification and loan approval.
If your application is rejected, first request a detailed reason from the bank. You may correct discrepancies, provide additional documentation, or appeal through SBI grievance channels. Alternatively, consider applying through other banks or financial institutions offering MUDRA loans with similar terms and eligibility criteria.
It is a debit card linked to a Mudra loan account that provides an overdraft facility for working capital, allowing borrowers to make multiple withdrawals.
Yes, people living in urban areas can apply for the SBI MUDRA loan, provided that the funds are intended to be used for business purposes.
If you need ₹50,000 or more to start or expand your business, you may apply for the Kishor category loan under the SBI Mudra loans scheme.
