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March 9, 2024
SBI Business Loans are provided to individuals who wish to expand their businesses. SBI provides funds to both small and large enterprises at a predetermined interest rate and repayment tenure.
For entities engaged in service and manufacturing activities, self-employed individuals, and wholesale and retail trade, SBI offers Simplified Small Business Loans (SSBL). The loan amount ranges from INR 10 to 25 lakhs, with a repayment tenure of 5 years. It is offered as a dropline overdraft facility, with a margin requirement of 10% and minimum collateral of 40%.
Simplified Small Business Loan (SSBL)
| Particulars/Features | Details |
| Target audience | Business units engaged in services and manufacturing along with self-employed professionals and individuals retail trade /wholesale |
| Amount availed | Minimum above Rs 10 lakhsMaximum Rs 25 lakhs |
| Pricing | Competitive pricing linked EBLR |
| Margin | 10% that will be ensured through stocks and receivable statement |
| Collateral security | Minimum 40% in the form of charge on building, assets and cash equivalent like a mutual fund, charge on fixed deposit etc. |
| Repayment period | Cash credit is repayable on demand or renewed annuallyDropline overdraft ranging from 12 to 60 months (reducing dropline), including a moratorium of 3 months. |
| Unified charges | Rs 7500/- plus taxes applicable -Comprising of the processing fee, EM charges, documentation charges, inspection, commitment charges, and remittance charges (1 remittance per day free) |
Eligibility needed for SSBL
- Businesses lasted for atleast 3 consecutive years in the same locality
- The current account holder for the past 2 years in the same bank
- Good credit score and repayment history. Check Your Credit Score Here.
- Must own the place or should have a rent agreement (in case of rented property)
- 1 lakh as the monthly average balance in the last 12 months (with 10,000 as the monthly threshold balance)
- Some bank criteria needed to be followed to prove eligibility.
Types of business loans offered by SBI
| Loan | Features offered |
| Simplified small business loan (SSBL) | Availed for a particular time periodAmount is upto 25 lakhsProcessing fee- INR 7500Repayment duration is upto 5 years |
| Loan secured by Assets | Overdraft on the droplineUpto 20 croreProcessing fee -1 %Repayment duration 1-15 years |
| E-dealer financing scheme | Credit given for working capitalLoan given is a requirement basedProcessing fee, not more than 30 thousandRepayment duration – upto 90 days |
| Commercial real estate asset-backed loan | Overdraft on the droplineAmount is not more than 20 croreProcessing fee – 1% of limitationRepayment duration is 1 -6 years |
| Credit for export packing | Financing for pre-shipmnetLoan amount derived is need basedProcessing fee – relates with cash credit (CC) limitRepayment duration -not more than 180 days |
| Finance for fleets | Credit for a specific periodMaximum amount is INR 10 croreProcessing fee 1 %Repayment duration – 5 years and above |
| Credit card for small businesses | Loan taken for working capital requirementMaximum amount is INR 50 lakhsProcessing fee- As per bank instructionsRepaymnet tenure – upto 5 years |
| SBI overdraft product | Operating of an A/c OD facilityLoan amount is upto Rs 5 croreProcessing fee- 1% of sanction amountRepayment tenure – 1 year |
| E-vendor financing scheme | Loan taken for working capital requirementAmount is given on requirement basisProcessing fee- upto 50,000Repayment time is depending on duration of payables |
SBI loan against property (LAP)
State bank offers loan against property to employees, professionals and self employed individuals including NRIs who own commercial and residential properties in their names or their relatives name
| LAP benefits | Scheme |
| Fully transparentLow processing feeWide network of branchesInterest rate as per daily reducing balance methodZero prepayment penaltyRental income is also considered for loan eligibility | Loan is availed against residential/commercial propertyMinimum amount – INR 10 lakhsMaximum amount -INR 7.5 croreProcessing fee -1% + service tax, maximum INR 50,000 + service tax |
| LTV ratio | Loan tenure |
| Amount upto INR 1 crore – 65% LTVAmount INR 1 crore and upto INR 7.5 crore – 60% LTV | Minimum – 5 yearsMaximum -15 years |
State Bank of India -Small and medium enterprises(SME) financial products
- Surya Shakti solar finance
- Asset-backed loan
- Asset-backed loan – commercial real estate
- E- dealer finance scheme
- E-vendor finance scheme
- Export packing credit
- Fleet finance
- Loans under the contactless lending platform
- PM mudra yojana
- Standup India
- Lease rental discounting
- SME smart score
- Finance to the food processing industry
- SME credit card
- SME gold loan
- SME marble plus
- Loan to business correspondents
- Warehouse receipt finance
- SME car loan
- Rinn Suraksha for micro and small enterprises
- Arthiyas plus
- SME open-term loan
- SME finance for CA firms
- Healthcare business loan
- Commercial vehicle loan
- SBI fleet finance under tie-up with Tata motors finance ltd
- Dall mill plus
- Compressed Biogas under the SATAT scheme
- Small commercial vehicle finance under tie-up with Tata motors ltd
- Small commercial vehicle finance under tie-up with Mahindra and Mahindra
- Finance to Biofuel products SBI exporters gold card scheme
SBI business loan benefits
| Feature | Details |
| Collateral free loan | MSMEs can avail easy business loans with no collateralEasy EMIs on amount upto Rs 1 crore |
| Low-interest rate | Interest rate on SBI business loan is derived from Marginal cost of funds based lending rate (MCLR) |
| Convenient process | Simple, quick and hassle-free, processed in few minutes |
| Flexible in repayment | SBI offers enhanced repayment period One year for working capitalFifteen years for monetary loans |
| Distinct types offered | Amount ranging from INR 10,000 to INR 500 crore are offered |
| Loans for women | Women entrepreneurs avails the benefit of 0.05% rate reduction for amounts ranging from INR 2 lakhs to INR 50 lakhs.50% of company shares must be owned by women industrialists. |
SBI business loan Interest rate & Processing fee
| Loan amount | Minimum INR 10,000 and Maximum INR 500 crore |
| Processing fee charged | Processing amount generally ranges from 1% to 5% of the endorsed amount |
| Interest rate | Vary from loan to loan, applicant’s profile and business needs |
| Repayment duration | 1 to 5 years can be extended depending on business necessities |
| Security | Unsecured business loans don’t require a credit check |
Eligibility for SBI Business loan
- Self-employed individuals, private companies, partnership firms, LLPs involved in manufacturing, trading and service
- Minimum turnover of INR 40 lakhs
- Minimum experience of 3 years in current business and 5 years total experience
- The firm has made a profit in last 2 years
- Minimum annual income (ITR) of INR 1.5 lakhs per month
- The applicant is of 21 years of age and should not be older than 65 years at the time of loan maturity.
SBI Business Loan EMI Calculator
Documents Required
Documents required for SBI business loans are
- Identity proof
- Address proof
- Bank statement of last 6 months
- 12 months GST statement for income computation
- Last 2 years balance sheet, income tax return, and other financial statements like Profit & loss.
- SBI may ask for additional documents
FAQs
What factors determine SBI business loan eligibility
There are certain factors determine SBI business loan eligibility
- Age
- Business Type
- Revenue
- Credit score
- Previous business experience
What is the margin money for a business loan in SBI?
The minimum margin requirement is 10%, whereas the maximum is 25%
What is the interest rate for an SBI loan in 2023?
SBI business loan interest rate starts from 11.49% and above.
What is the limit of MSME in SBI?
- The limit for Micro enterprises investment does not exceed 1 crore and turnover to be 5 crores as the maximum
- Medium enterprises investment does not exceed 20 crores and turnover be 100 crores as the maximum
How much money can I save in the SBI account?
There is no ceiling on the maximum balance in a savings account, except for minors and a BSBDA-small account.
*Disclaimer*
The information contained in this website is according to information available on different means on internet and does not guarantees complete accuracy. The given numbers, schemes and products offered may change.
It is an industrial financial service headquartered in Mumbai. Inaugurated by the union finance minister, Dr Manmohan Singh in April 1994.
