BOI Mudra loan

BOI Mudra loan
BOI Mudra loan

Bank of India Mudra Loan (BOI)

Bank of India (BOI) is the small but powerful bank of India and has branches across India. It is also offering PMMY Mudra loan to the name of the PM Mudra loan scheme.  Please check the other details below.

Objective

To fund the unfunded and to bring the millions of units which are existing outside the formal banking fold and are unable to sustain or grow due to lack of finance or relying on informal channels, which are expensive or unreliable by bringing such enterprises to the formal financial system and extending affordable credit to them.

Eligibility

Any individual including women, proprietary concern, partnership firm, private limited company or any other entity is an eligible applicant under PMMY loans.

Purpose

For setting up of new/upgrading existing Micro business enterprises in the manufacturing, processing, trading and service sector and carrying out activities allied to agriculture, financing to weavers and artisans (income-generating activity).

Nature of Facility

Term Loan and/or Working Capital up to maximum Rs.10 lakhs under 3 categories

  • Shishu : covering loans up to 50,000/-
  • Kishore : covering loans above 50,000/- and up to 5 lakh
  • Tarun : covering loans above 5 lakh to 10 lakh

Repayment

Maximum – 36 months for Demand Loan and 84 months for term loan including moratorium. Interest to be serviced as and when charged.

Margin

Bank of India is charging margins for mudra loans accordingly…

  •  Up to 50,000 No Charges.
  • Above 50,000 to 5 Lakh     15% Margin requires.
  • Above 5,00,00 to 10 Lakh   15% Margin requires.

Security

Primary Security-

  • Hypothecation of all assets acquired out of bank finance.
  • Personal guarantee of promoters/directors.

Collateral Security

  • Collateral Security

All eligible activity would be covered under the guarantee cover of NCGTC under ‘Credit Guarantee Fund for Micro Units’.

[No collateral security/third party guarantee to be obtained].

Rate of Interest

As prescribed by the Bank from time to time linked to MCLR

Processing Fees and Documentation Charges

As per extant guidelines of the Bank.

Click here to download Form in English or हिंदी

Source:- Bank of India.