🚀 Empowering Small Businesses: An Overview of the Bank of India (BOI) MUDRA Loan

The Pradhan Mantri MUDRA Yojana (PMMY) is a flagship scheme of the Government of India designed to fund the “unfunded” and promote entrepreneurship among micro and small enterprises.¹ Bank of India (BOI), as a major public sector bank, is a leading provider of these loans, offering financial assistance for businesses across the manufacturing, trading, service, and allied agriculture sectors.²

Here is a comprehensive look at the Bank of India MUDRA Loan, its features, eligibility, and application process.

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What is the BOI MUDRA Loan?

The Bank of India MUDRA Loan falls under the ambit of the PMMY scheme, providing credit facilities up to ₹10 Lakh (and up to ₹20 Lakh under the proposed Tarun Plus category for eligible businesses).³ The primary goal is to support micro-units in generating income and transitioning into the formal credit system.⁴

Key Features of the Loan

Feature	Details
Maximum Loan Amount	Up to ₹10 Lakh (Shishu, Kishor, and Tarun combined). Up to ₹20 Lakh under the Tarun Plus category (for businesses that successfully repaid Tarun loans).
Collateral	Nil (The loans are collateral-free). Security is typically the hypothecation of assets created with the bank finance.
Purpose	Setting up new micro-enterprises or upgrading existing ones in manufacturing, processing, trading, service, and specified allied agriculture activities.
Nature of Facility	Term Loan, Working Capital (Cash Credit/Overdraft), or Composite Loans.
Repayment Tenure	Up to 36 months for Demand Loan and up to 84 months (7 years) for Term Loan, including a moratorium period (subject to change as per bank policy).
Margin	Nil for Shishu loans (up to ₹50,000). Minimum 15% for loans above ₹50,000.

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Loan Categories: Tailored to Your Business Stage

The MUDRA scheme is structured into three categories based on the business’s funding needs and stage of development:⁵

Category	Loan Amount	Target Group
1. Shishu	Up to ₹50,000	New enterprises or early-stage businesses requiring startup capital.
2. Kishor	Above ₹50,000 up to ₹5 Lakh	Businesses that have already commenced operations and require funds for expansion, equipment, or working capital.
3. Tarun	Above ₹5 Lakh up to ₹10 Lakh	Established businesses seeking to expand and grow their operations significantly.

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Eligibility and Application

👤 Who Can Apply?

The MUDRA loan is available to Indian citizens who are micro-entrepreneurs and non-corporate, non-farm small businesses.⁶ Eligible applicants include:

• Individuals
• Proprietary Concerns
• Partnership Firms⁷
• Private Limited Companies⁸
• Any other legal entity engaged in the eligible sectors.⁹

Important Note: The applicant should not have defaulted on any previous loan with any bank or financial institution.¹⁰

📝 Key Documents Required (General)

While the exact documents may vary based on the loan amount and category, applicants generally need to submit the following:

• Duly filled MUDRA Loan Application Form (available at the BOI branch or on their website).¹¹
• Identity Proof: Voter ID, Aadhaar Card, PAN Card, Passport, Driving License, etc.¹²
• Residence Proof: Recent Utility Bills (Electricity/Telephone), Aadhaar Card, Voter ID, Passport, etc.¹³
• Applicant’s Photograph (2 copies).¹⁴
• Proof of Business: Relevant Licenses, Registration Certificates, or other documents proving the business’s existence and address.¹⁵
• Financial Documents (Especially for loans > ₹2 Lakh): Last 6-12 months’ Bank Statement, Income Tax Returns (ITR) for the last two years, and unaudited/audited Balance Sheets (if applicable).¹⁶
• Quotation/Proforma Invoice for machinery or equipment to be purchased.¹⁷

https://bankofindia.bank.in/govt-schemes

💻 How to Apply for BOI MUDRA Loan

1. Offline Application: The most direct method is to visit your nearest Bank of India branch. Consult with the MSME or Loan Officer, fill out the specific MUDRA loan application form, and submit it along with all necessary documents.
2. Online Application (JanSamarth Portal): Applicants can also apply digitally via the JanSamarth Portal, a national digital platform that links various Credit-Linked Government Schemes.¹⁸ Here, you can check eligibility, apply online, and select Bank of India as the preferred lender.
3. PSB Loans in 59 Minutes Portal: Some applicants may also use the PSB Loans in 59 Minutes portal for quick, digital in-principle approval, which is then processed by the chosen bank, including BOI.¹⁹

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📞 For More Information

For the most accurate and up-to-date details on interest rates, specific documentation requirements, and processing charges, prospective borrowers are strongly advised to:

• Visit the official Bank of India website or their nearest branch.
• Give a missed call on BOI’s dedicated number: 8010968334 or send a text message ‘SME’ to 7669021290 for more information.²⁰

The Bank of India MUDRA Loan is a crucial instrument in promoting inclusive economic growth by offering seamless access to credit for small business owners and enabling them to realize their entrepreneurial dreams.²¹

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