Are you interested to be a Micro or Small Entrepreneur in a hassle free credit system? Worried about collateral security? Here is the best solution to make your dreams come true as an entrepreneur! Bank of Baroda (BOB) offers collateral free, affordable credit to their customers who are in the business of Micro and Small enterprises through Pradhan Mantri Mudra Yojana or PMMY scheme. BOB PMMY scheme is supported by Government of India to extend affordable credit to micro and small enterprises across the country where BOB has serviceable branches.
Bank of Baroda (BOB) PMMY Bank Loan Scheme
PMMY bank loans or Mudra loans caters to find and support entrepreneur skills in you. It's a financial system developed to bring forward enthusiastic, skilled entrepreneurs into the formal financial system, that claims policy to “fund the unfunded”. Loans under PMMY scheme are available to non-farm micro or small enterprises engaged in income generation through manufacturing, trading and services. Enterprises involved in allied agricultural activities can also apply for Mudra loans.
Benefits of BOB PMMY Collateral Free Bank Loan
- The BOB PMMY loan scheme offers credit facilities to micro and small enterprises engaged in income generation.
- One of the key benefits of a BOB PMMY loan is that borrowers are not required to provide security or collateral.
- BOB PMMY does not charge you any processing fee.
- The credit facilities extended under the BOB PMMY can be for any type of fund or non-fund based requirements. Hence, borrowers can use the BOB PMMY loan scheme for a variety of purposes.
- The credit from BOB PMMY loans can be used for term loans and overdraft facilities, or to apply for letters of credit and bank guarantees.
- There is no minimum loan amount for BOB PMMY loans.
Features of BOB PMMY Collateral Free Bank Loan
- There are three types of Mudra loans depending on the loan amount:
- Shishu: Loans sanctioned under the BOB PMMY scheme up to Rs. 50,000/-
- Kishore: Loans sanctioned under the BOB PMMY scheme from Rs. 50,001 up to Rs. 5.00 lakhs
- Tarun: Loans sanctioned under the BOB PMMY scheme Rs. 5.00 lakhs up to Rs.10.00 lakhs
- Though, there is no minimum loan amount under the BOB PMMY loan scheme, the maximum loan amount that can be taken under the BOB PMMY is Rs. 10 lakhs.
- Borrowers don’t need to pay processing charges or offer collateral if they avail a BOB PMMY loan.
- As per the BOB PMMY scheme, the Mudra loan can not only be offered to enterprises in the non-farm sector but also can include those engaged in allied agricultural activities, such as horticulture and fisheries.
- The interest rate on BOB PMMY loans is determined by the Marginal Cost of Lending Rate or MCLR, which is calculated according to the RBI guidelines.
Eligibility of BOB PMMY Collateral Free Bank Loan
All Non farm enterprises that comes under Micro and Small Enterprises segment who engaged in income generating activities including manufacturing, trading, services, and allied agriculture activities whose credit needs are up to Rs. 10.00 lakhs.
Interest Rates and Charges nof BOB PMMY Collateral Free Bank Loan
BOB PMMY loan interest rates begin at 9.65% but calculated on the basis of MCLR
- Micro Enterprises upto Rs. 50,000 - MCLR + SP
- Micro Enterprises above Rs. 50,000 - to Rs. 2.00 lakhs - (MCLR + SP) + 0.50%
- Micro Enterprises above Rs. 2.00 lakhs to Rs. 10.00 lakhs - (MCLR + SP) + 0.70%
- Small Enterprises upto Rs. 50,000 - (MCLR + SP) + 0.50%
- Small Enterprises above Rs. 50,000 - to Rs. 2.00 lakhs - (MCLR + SP) + 0.70%
- Small Enterprises above Rs. 2.00 lakhs to Rs. 10.00 lakhs - (MCLR + SP) + 0.85%
Processing Charges for BOB PMMY Collateral Free Bank Loan
Tenure of BOB PMMY bank Loan
The maximum tenure is available for up to 7 years
Advantages of BOB PMMY bank Loan
- Ideal for micro and small enterprises engaged in income generation.
- No need to provide collateral.
- No processing charges are levied.
- The credit from BOB PMMY loans can be used for term loans and overdraft facilities.
- No minimum loan amount required to avail BOB PMM loans schemes.
How to Apply for BOB PMMY Collateral Free bank Loan?
Apply online: https://www.bankofbaroda.in/apply-for-mudra-loan.htm
Apply offline: Download application form here and take printout. Fill all required details, attach supporting documents and submit to the branch nearest to you.
Documents Required for Applying BOB PMMY Bank Loan
The supporting document list is only indicative and not exhaustive and depending upon the local requirements at different places addition could be made as per necessity.
- Proof of identity - Self certified copy of Voter’s ID card / Driving License / PAN Card / Aadhar Card / Passport.
- Proof of Residence - Recent telephone bill, electricity bill, property tax receipt (not older than 2 months), Voter’s ID card, Aadhar Card & Passport of Proprietor / Partners / Directors.
- Proof of SC / ST / OBC / Minority.
- Proof of Identity / Address of the Business Enterprise - Copies of relevant licenses / registration certificates / other documents pertaining to the ownership, identity and address of business unit.
- Applicant should not be defaulter in any Bank / Financial institution.
- Statement of accounts (for the last six months), from the existing banker, if any.
- Last two years balance sheets of the units along with income tax/sales tax return etc. (Applicable for all cases from Rs. 2 Lakhs and above).
- Projected balance sheets for one year in case of working capital limits and for the period of the loan in case of term loan (Applicable for all cases from Rs. 2 Lakhs and above).
- Sales achieved during the current financial year up to the date of submission of application.
- Project report (for the proposed project) containing details of technical & economic viability.
- Memorandum and articles of association of the company/Partnership Deed of Partners etc.
- In absence of third party guarantee, Asset & Liability statement from the borrower including Directors & Partners may be sought to know the net-worth.
- Photos (two copies) of Proprietor/ Partners/ Directors.