SBI MUDRA Loan – Shishu
About This Loan
SBI's MUDRA Shishu loan provides up to 50,000 rupees for new and budding entrepreneurs starting small businesses across manufacturing, trading, and service sectors. No collateral is required, documentation is minimal, and processing typically happens within 7 to 14 working days. This loan is ideal for street vendors, home-based businesses, artisans, tiffin services, tailoring units, small kirana shops, and first-time entrepreneurs who need modest working capital to launch. As India's largest public sector bank, SBI processes a significant share of MUDRA Shishu loans nationwide, and applicants can approach any SBI branch to initiate the process.
Maximum Amount
₹50,000
Interest Rate
As per RBI guidelines (typically 10-12% p.a.)
Tenure
Up to 5 years
Collateral
Nil
Processing Fee
Nil for Shishu category
Eligibility
Indian citizen with a viable business plan for non-farm income generating activity; KYC compliant; not a defaulter with any bank.
Application Process
- 1Visit nearest SBI branch or apply online via onlinesbi.sbi
- 2Fill MUDRA loan application form
- 3Submit KYC documents and business plan
- 4Branch manager evaluates the application
- 5Loan sanctioned within 7-14 working days
Documents Required
- MUDRA loan application form
- Passport-size photos (2)
- Identity proof (Aadhaar/PAN/Voter ID)
- Address proof (Aadhaar/utility bill)
- Business proof or activity description
- Quotation of machinery/equipment (if applicable)
Official Links
Related Government Schemes
Disclaimer
This information is sourced from publicly available bank and financial institution websites. EduMetrics is not a financial advisor or lending institution and does not guarantee the accuracy of interest rates, eligibility criteria, or loan terms. Please verify all details with the respective bank before applying.