BOB Mudra Loan 2024: Bank of Baroda provides business loans tailored for both self-employed individuals and corporate entities. Among the various business loan products available are term loans and working capital loans. The bank’s loan offerings include the Bank of Baroda Digital Mudra Loans, the Bank of Baroda Pradhan Mantri Mudra Yojana Loan, and the Bank of Baroda Weaver Mudra Loan. Individuals interested in launching their own businesses and seeking financial support can apply for a BOB Mudra Loan 2024 under the Pradhan Mantri Mudra Yojana.
Before the introduction of this initiative in our country, aspiring entrepreneurs often faced numerous challenges when approaching banks for loans, frequently encountering difficulties in securing funding without collateral. In 2024, Bank of Baroda (BOB) remains committed to supporting entrepreneurs and small business owners through the Mudra Loan Scheme, a crucial program designed to empower both new and growing enterprises. A key component of this scheme is the BOB 5 Lakh Mudra Loan, which aims to provide essential financial support to enable businesses to expand and succeed. This detailed guide will outline the eligibility requirements, necessary documentation, and the step-by-step process for applying for the BOB 5 Lakh Mudra Loan 2024.
Current News regarding BOB Mudra Loan 2024
In the context of the Budget 2024 announcement, Finance Minister Nirmala Sitharaman revealed on July 23, 2024, that the maximum amount for Mudra loans will be increased. The revised budget stipulates that the ceiling for Mudra loans will rise to Rs 20 lakh, up from the existing Rs 10 lakh, specifically for entrepreneurs who have previously taken loans under the ‘Tarun‘ category and have successfully repaid them.
Types of Mudra Loan
- The Bank of Baroda offers the Pradhan Mantri Mudra Yojana Loan in three distinct categories: Shishu, Kishore, and Tarun, with loan amounts ranging from Rs. 50,000 to Rs. 10 lakh, and a proposed increase to Rs. 20 lakh in the 2024 budget.
- The Shishu category provides financial assistance of up to Rs. 50,000, specifically designed for very small enterprises or startups seeking initial capital.
- The Kishore category accommodates businesses in a growth phase, offering loans from Rs. 50,001 to Rs. 5 lakh to support their expansion needs.
- The Tarun category is aimed at established businesses requiring larger funding, with loan amounts available from Rs. 5 lakh to Rs. 10 lakh.
- Also the Bank of Baroda provides a Digital Mudra Loan, which encompasses all three categories, allowing for a maximum loan amount of Rs. 10 lakh, and the Weaver Mudra Loan, which offers up to Rs. 5 lakh, inclusive of working capital and demand loans.
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Benefits of taking the BOB Mudra Loan 2024
- This initiative supports entrepreneurs in the country by offering banks low-interest loans to start their own ventures.
- No collateral is needed to secure a loan through this Mudra Loan program.
- Funds can be utilized for multiple purposes, including working capital, business expansion, equipment purchase, and renovations.
- Also the PMMY includes the Mahila Udyam Scheme specifically for women entrepreneurs.
Mudra Loan Tenure
The loan tenure for the Bank of Baroda’s Pradhan Mantri Mudra Yojana is structured as follows: a duration of 7 years for term or demand loans, and a period of 1 year for working capital loans.
BOB Mudra Loan Interest rate
- MUDRA does not determine the interest rates for PMMY loans; lending institutions set their own rates.
- Prospective borrowers should contact their chosen bank, NBFC, or MFI for details on MUDRA loan interest rates.
- Each lending institution has the flexibility to establish its own interest rates for MUDRA loans.
- The interest rates for Bank of Baroda’s Mudra Loan schemes are connected to the MCLR (marginal cost of funds based lending rate).
- It is essential for individuals to inquire directly with lenders to understand the specific rates applicable to their MUDRA loans.
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BOB Mudra Loan Eligibility
- To qualify, you need to be an Indian citizen.
- Existing customers of Bank of Baroda can apply.
- The loan is open to businesses in manufacturing, services, or trading. Companies categorized as Micro, Small, and Medium Enterprises (MSME) are also eligible.
- A solid banking history with Bank of Baroda is necessary.
- Interest rates are variable and are influenced by the loan amount and other bank-specific conditions.
Documents Required for BOB Mudra Loan 2024
To apply for a Bank of Baroda Mudra Loan, you need the following documents:
- Aadhaar, PAN, Driving License, Passport, Voter ID, or any government-issued photo ID for all applicants (in case of joint loans).
- Recent utility bill, Aadhaar, Voter ID, Passport, and bank account statement for all applicants (for joint loans).
- Business identification and address proof documents (such as licenses, registration certificates, or deed copies).
- Proof of minority status, if applicable.
- Recent photographs of all loan applicants.
- Evidence of loan necessity, including vendor details and equipment quotations.
- Completed application form for the Mudra loan.
How to apply for the BOB Mudra Loan 2024?
To apply for mudra loan the applicants must have to follow the listed steps. As like:
- Visit the Bank of Baroda’s website. Locate the loan section and choose the Mudra loan option.
- Click on the “Apply Now” link for the BOB 5 Lakh Mudra Loan 2024.
- Fill in your personal details, such as your name, contact information, and address, then submit the form.
- A bank representative will reach out to you within a few hours to discuss your loan needs and assist you with the application process.
- They will also schedule a visit to the nearest branch for further verification.
- After your application is processed and confirmed, the loan amount will be released to help your business grow and develop.
