Bank of Baroda Mudra Loan

Bank of Baroda Mudra Loan Highlights
Interest Rate	For Digital Mudra Loan – 9.40%-11.75% p.a.
Loan Amount	Bank of Baroda Mudra Loan: Up to Rs 10 lakh in 3 categories (Shishu, Kishore and Tarun) Bank of Baroda Digital Mudra Loan: Rs 10 lakh in 3 categories (Shishu, Kishore and Tarun) (Up to Rs 20 lakhs under the Tarun Plus category as per Budget announcement and Official Gazette, 24 October 2024) Bank of Baroda Weaver Mudra Loan: Rs 5 lakh (inclusive of working capital finance and demand loan)
Loan Tenure	Mudra Loans: Up to 7 years for term/demand loan and 1 year for working capital loan Digital Mudra Loans: Up to 5 years for term loan and 1 year for working capital loan

Note: Data as of 5th February 2025

Bank of Baroda Mudra Loan Interest Rates

Bank of Baroda has not disclosed the interest rates of the Mudra loan. However, the bank has specified the interest rate for the Digital Mudra Loan starts at 9.40% p.a.

Interest Rates for Digital Mudra Loan for Micro Enterprises

Loan Amount	Interest Rates (p.a.)
Up to Rs. 50,000	9.40%
Above Rs. 50,000 up to Rs. 2 Lacs	11.40%
Above Rs. 2 Lacs to Rs. 10 Lacs	11.60%

Interest Rates for Digital Mudra Loan for Small Enterprises

Loan Amount	Interest Rates (p.a.)
Up to Rs. 50,000	11.40%
Above Rs. 50,000 up to Rs. 2 Lacs	11.60%
Above Rs. 2 Lacs to Rs. 10 Lacs	11.75%

Fees and Charges for Bank of Baroda Mudra Loan

The fees and charges for availing Bank of Baroda Mudra Loans are mentioned below:

Bank of Baroda Mudra Loan

Particulars	Charges
Processing fees	Nil
Prepayment charges	Nil

Bank of Baroda Weaver Mudra Loan

Particulars	Charges
Upfront/processing fees	As per the bank’s policy

Types of Bank of Baroda Mudra Loans

Bank of Baroda Pradhan Mantri Mudra Yojana

Purpose:

MSMEs in the non-farm sector and in allied agricultural activities like horticulture, fisheries, etc., who are engaged in trading, services, or manufacturing can avail the PM Mudra Yojna loan from the Bank of Baroda for raising funds for capacity expansion and modernisation.

Maximum Loan Amount:

• Shishu: Loans up to Rs 50,000
• Kishore: Loans from Rs 50,001 to Rs 5 lakh
• Tarun: Loans from Rs 5 lakh to Rs 10 lakh*

*However, as per the Budget announcement and the Official Gazette dated 24 October 2024, a new loan category, Tarun Plus, has been introduced, offering loans ranging from above Rs 10 lakhs to Rs 20 lakhs. The loan is offered to those eligible individuals who have previously availed and successfully repaid loans under the Tarun category.

Loan Tenure:

• For term/demand loan: The repayment tenure is up to 7 years with a suitable moratorium subject to annual review
• For working capital: The loan tenure is 1 year subject to annual review

Security:

Hypothecation of assets created by the bank’s finances. The bank does not ask for collateral security.

Insurance/Guarantee:

Bank of Baroda Mudra loan is covered under the CGTMSE coverage.

Bank of Baroda Digital Mudra Loan

Purpose:

Bank of Baroda Digital Mudra Loan is an online loan facility from the lender for the MSME units engaged in trading, manufacturing or services sectors. MSMEs can visit the Bank of Baroda website or BOB World application to avail this loan facility. This facility can be availed to arrange working capital loans or term loans for running business operations. However, business owner(s) cannot use the fund proceeds from this loan facility to fulfill their personal consumption needs.

Maximum Loan Amount:

• Shishu Mudra Loan: Rs 10,000 to Rs 50,000
• Kishore Mudra Loan: Above Rs 50,000 to Rs 5 lakh
• Tarun Mudra Loan: Above Rs 5 lakh to Rs 10 lakhs

Margin/Promoter’s contribution:

The margin or promoter’s contribution is decided based on the bank’s policy framework.

Moratorium (for term loan):

• Shishu Mudra Loans: No Moratorium
• Kishore Mudra Loans of up to Rs 2 lakh: Moratorium up to 3 months
• Kishore Mudra Loans of above Rs 2 lakhs: Moratorium up to 6 months
• Tarun Mudra Loans: Moratorium up to 6 months

Collateral security:

• The lender creates the first charge on all the assets out of the loan
• No collateral security is required

Bank of Baroda Weaver Mudra Loan

Purpose: Bank of Baroda Weaver Mudra Loan enables weavers, both in rural and urban areas, to avail working capital/demand loans for meeting their working capital needs along with purchasing looms or for other capex requirements. The beneficiaries of this scheme will get a Mudra Card with a daily withdrawal limit of Rs 5,000 per day.

Interest Rate: The interest rate for Bank of Baroda Weaver Mudra Loan is linked to the MCLR based on the prevailing rate applicable for the MSME segment, although the lender has not disclosed the interest rate range for this business loan scheme.

Maximum Loan Amount: Rs 5 lakh (inclusive of working capital finance and demand loan)

Margin: 20% of the project cost (working capital expenses and capital expenditure). The margin of up to Rs 10,000 or 20%, whichever is less, will be provided by the govt. of India

Limits:

• For demand loan: 80% of total cost of looms and other capital expenditure
• Working capital limit: Bank finance is 20% of the projected/estimated turnover less margin

Security: The security for this mudra loan scheme includes exclusive hypothecation charge on both stock and machinery.

Guarantee: This mudra loan is covered under the CGTMSE coverage.

Bank of Baroda Mudra Loan Eligibility Criteria

The business loan eligibility criteria set for availing Bank of Baroda Mudra Loans are as follows:

Bank of Baroda Mudra Loan

• The MSMEs eligible for availing this loan facility include non-farm enterprises, business units engaged in allied agricultural activities like horticulture, fisheries, etc., and entities under the MSME segment engaged in manufacturing, trading and services
• These enterprises must be engaged in income generating activities with credit needs of up to Rs 10 lakh.

Bank of Baroda Digital Mudra Loan

• Individuals, proprietorship, partnership firm, private or public ltd. companies are eligible for availing Bank of Baroda Digital Mudra Loans
• The loan applicant should not be a defaulter with any bank or financial institution along with having a satisfactory credit track record for availing this loan facility.
• The borrowers may be required to have the relevant skills, knowledge or experience to complete the proposed activity.

Bank of Baroda Weaver Mudra Loan

Existing/experienced handloom weavers involved in the weaving activity are eligible for availing the Bank of Baroda Weaver Mudra Loan.

Documents required for Bank of Baroda Mudra Loan

Bank of Baroda Mudra Loan

• ID proof (any one): Aadhaar, PAN, Driving License, Passport, Voter ID, govt. issued photo ID of all business loan applicants (for joint loans).
• Proof of residence (any one): Latest utility bill, Aadhaar, Voter ID, Passports, bank account statement of all business loan applicants (for joint loans).
• Documents for business ID and address proof (licenses, registration certificates/deed copy, etc.)
• Proof of minority, if any
• Latest photographs of loan applicant(s)
• Proof of requirement for loan like vendor details, equipment quotations, etc.
• Duly filled application form for mudra loan

Bank of Baroda Digital Mudra Loan

• Bank statement of last 12 months downloaded from the respective bank’s website/ received from banks mail ID along with details like account number and IFSC Code
• Details of business registration (if applicable) and KYC of business and business partner, promoter or proprietor
• Details of associate concern(s)
• Details of existing loans
• PAN, GSTN username (if the business unit is registered with GSTN), Mobile no registered with GSTN and email id
• Udyam registration certificate
• Quotation for purchase of machinery or equipment (for term loans above Rs 50,000)
• Civil engineer’s estimate for shed construction etc. (for term loans above Rs 50,000)
• GST filing credentials or e-copy (pdf) of GST returns for the last 12 months (for loans up to Rs 2 lakh)
• ITR filing credentials or e-copy (pdf) of GST returns for the latest year (for loans up to Rs 2 lakh)