SBI Business Loan : State Bank of India (SBI) is the largest bank in the country. It provides many types of banking services to its customers – such as: Savings Account, Current Account, Insurance, Trading Account, many such facilities are provided by this bank. Along with this, the bank also provides many types of loans to its customers such as home loan, business loan, car loan, etc. This bank provides this facility at good interest rate.
Let us tell you that State Bank of India (SBI) provides business loan / business loan to meet the financial needs of big business companies as well as small business and Govt. Under this also this bank provides business loan. For example – Pradhan Mantri Mudra Yojana, PMEGP, CGTMSE and Standup-India etc. Any person who wants to start his own business can take business loan / business loan from SBI.
SBI Business Loan: SBI business loan can be a backbone to grow your small or large scale company. SBI Bank offers its customers a host of business loan benefits to suit the needs of all categories. With competitive interest rates and quick loan processing, SBI business loan can be the best option to achieve success in your business.
SBI Business Loan Interest Rates & Features :
|Interest Rate||The interest rate depends on the profile and business requirements of the applicant.|
|Processing fee||1% to 5% of the loan amount|
|Loan amount||Minimum ₹ 10,000 Maximum ₹ 500 Crore|
|Guaranteed||Not required for Non-Secured Business Loan|
|Repayment||Repayment tenure from 12 months – 5 years, may increase as per business requirements.|
|Loan disbursal||Loan disbursal period depends on the case.|
Note: The interest rates, charges mentioned are at the sole discretion of the Bank, NBFC and RBI, and are subject to change at any time. GST and Service Tax will be levied extra on the mentioned charges.
- Loans are offered up to Rs.500 crore to Mid-Corporate Group (MCG) for lease rental discounting.
SBI Business Loan Eligibility Conditions:
|Age||Minimum 18 years and Maximum 65 years|
|Business Existence||Minimum 2 years|
|Yearly Turnover||Depends on the volume and requirements of the business|
|Professional Experience||Minimum 2 Years|
|ITR||Last 1 Year|
|Profitability||Last 2 Years Profit|
|Citizenship||Citizenship Indian Citizen with no previous default in any bank or loan institution.|
Documents Required for SBI Business Loan
The document requirements for SBI business loan vary depending on the type of loan. Here we have compiled a list of some common documents that may be required at the time of application.
- Business plan.
- Duly filled application form with passport size photograph.
- Applicant’s KYC documents including PAN Card, Passport, Aadhar Card, Driving License, Voter ID Card, Utility Bill.
- Bank statement of last 1 year.
- Any additional documents required by the Institute.
As of 16 June 2020, SBI had disbursed around Rs 8,700 crore from the Rs 3 lakh crore fund under the Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector.
Under SME Business Loan, SBI also provides financial services to Mid-Corporate Groups, Mid-Corporate Groups are those businesses with a turnover of Rs 50 crores to Rs 500 crores. Loans are provided to these mid-corporate groups in the form of Working Capital Finance, Project Finance, Machinery Loan, Corporate Term Loan, Structured Finance, Dealer Financing, Loan Syndication, Construction Equipment Loan etc.
How to Apply for Business Loan from SBI
To apply for SBI SME Loan, Business Loan or SBI Term Loan, you need to follow the following steps:
Step 1: First, check your eligibility before applying for a business loan with SBI.
Step 2: Enter your basic information like age, required loan amount, type of business, business vintage, annual turnover, profit and other related information to check your eligibility.
Step 3: Fill the loan application form and submit all the required documents, as defined by SBI.
Step 4: After submitting the form, SBI agent will contact you for loan formalities.
Step 5: Once the documents are verified and the loan is approved, the loan amount will be disbursed to the bank account within the stipulated time period or working days How to Track SBI Business Loan Application Online.
How to Track SBI Loan Application Status?
Step 1: Enter your reference number that you would have received after submitting the loan application.
Step 2: Enter your registered mobile number along with ISD code.
Step 3: Click on the tab ‘Track’ given below to track your loan application.
SBI Saral Small Business Loan
This is again a drop-line overdraft facility offered to businesses in the manufacturing or service sector. The important aspects of this loan are:
|Minimum Loan Amount||₹ 10 Lakh|
|Maximum Loan Amount||₹ 25 Lakh|
|Repayment Tenure||Upto 5 Years|
|Processing Fee||₹ 7,500|
|Margin||10% Will be ensured through stock and inputs received|
1. SBI Asset Backed Loan
This business loan can be taken for the purpose of building up the existing and fixed assets of a business. These assets may include business modernisation, expansion, provision of short term working capital, etc. It is a drop-line overdraft facility where you can withdraw a certain amount from your current account. Some of the salient features of this loan are given below:
|Minimum Loan Amount||₹ 10 Lakh|
|Maximum Loan Amount||₹ 20 Cr|
|Re: Repayment Tenure||₹ Up to 15 Years|
|Margin||Minimum 25% Cash Margin for NFB Facility|
- Applicant must be a State Bank of India (SBI) customer availing credit facility from them.
- The business must have assets to pledge against the loan.
- Information about the existing business loan / business loan in other banks of the applicant can also be taken.
2. SBI Loan for Commercial Real Estate
Business companies can take a loan from the State Bank of India (SBI) to buy commercial property, such as warehouse, restaurant, hotel, gym or office building etc. This loan is also given in the form of drop-line overdraft. Following are the salient features of this business loan from State Bank of India (SBI):
|Minimum Loan Amount||₹ 10 Lakh|
|Maximum Loan Amount||For Tier II and Tier III branches – ₹ 20 crore|
For Tier I branches – ₹ 50 crore
|Re: Repayment Tenure||₹ Up to 06 Years|
- Applicant must be a State Bank of India (SBI) customer availing credit facility from them
- The business must have assets to pledge against the loan
- Information about the existing business loan / business loan in other banks of the applicant can also be taken
SME Government Scheme
1- Prime Minister Employment Generation Program (PMEGP):
This scheme implemented by the Khadi and Village Industries Commission (KVIC) provides financial help to those individuals who want to set up new industries. The maximum cost of the project in the manufacturing sector is Rs.25 lakh. And 10 lakh in business / service sector.
Any person above 18 years of age is eligible for this financial help. Applicants from the manufacturing sector whose project cost is more than Rs 10 lakh. or more, service sector applicants whose project cost is more than Rs 5 lakh. Or more they should have passed 8th class. Societies, self-help groups, production cooperative societies and charitable trusts are also eligible, provided they have not taken financial assistance under any other government scheme.
Applicants can fill the online form and take a printout of the same along with project report and other required documents and submit to the concerned office.
2 – Credit Guarantee Fund Trust for Ultra-Small and Small Businesses (CGTMSE) :
The Ministry of Micro, Small and Medium Enterprises (MSME) has launched CGTMSE to provide loans to SMEs without bank loan security or third party guarantee. is. The main objective of this scheme is that the bank / finance institution should pay attention to the project of the applicant and provide funds.
Credit Guarantee Scheme (CGS) assures the applicant bank that if the MSE fails to repay the loan taken, the guarantee trust will cover losses up to 50/75/80/85 per cent of the loan facility to the applicant. Maximum loan limit is Rs 2 crore. is.
3 – Stand Up India :
Under the Stand-up India scheme, Rs.10 lakh per bank branch. 1 crore from Rs. The loan will be given to Scheduled Tribe (ST) and Scheduled Caste (SC) applicants and one woman applicant. This loan is for starting new business in the manufacturing, trading or service sector.
Applicants can fill an online form. Apart from this, they can also apply directly by visiting the bank branch.
4 – Pradhan Mantri Mudra Yojana
Launched by Prime Minister PM Modi in the year 2015, Pradhan Mantri Mudra Yojana helps to provide financial help to non-corporate, non-farm small businesses. Loans can be taken from commercial banks, regional rural banks, co-operative banks, small finance banks, MFIs as well as non-banking corporations. Loans up to Rs 10 lakh can be availed under the scheme. There are three types of this loan, Shishu, Kishor and Tarun.
- Shishu: In this, the applicant has to pay up to Rs.50,000. Loan can be availed.
- Kishor: In this, the applicant has to pay Rs.50,000. to up to Rs. 5lakh Loan can be availed.
- Tarun: In this, the applicant will get Rs 5 lakh to up to Rs.10 lakh to Rs. You can get loan.
SBI SME Loan Interest Rates (for NRIs) The table below shows the State Bank of India (SBI) business loan interest rates:
SBI Business Loan / Business Loan / SME Loan Interest Rate – 2021
|Supply Chain Finance||Starting from 8.00%|
|CGTMSE||Starting from 7.40%|
|Doctore Plus||Starting at 09.00%|
|PMEGP/ KYIC||Starting from 10.45%|
|SBI Asset Backed Loan||Starting from 09.30%|
|SBI Asset Backed Loan for Commercial Real Estate||Starting from 10.05%|
|Electronic Dealer Finance Scheme||starting from 7.55%|
|SME Construction Equipment Loan||starting from 8.50%|
|SBI Fleet Finance Scheme||Starting from %7.75|
|Warehouse Receipt Financing||Starting from 8.00%|
|Lease Rent Discounting||From 10.10%|
|Earthias Plus Scheme||Starting from 8.00%|
|Mill Plus SME||Starting at 7.90%|
|Cotton Ginning Plus||Starting from 7.90%|
|SME Credit Cards||Starting from 09.50%|
|Weaver Credit Card||Starting from 09.75%|
|Handicraftman Credit Cards||Starting from 09.75%Schemes|
|Medical Machinery Finance||Starting at 09.50%|
|SBI E-Smart SME E-Commerce Loans||Starting at 9.000%|
Note: The interest rates, and charges given above are completely dependent on the banks, NBFCs and RBI. At the same time, GST and Service Tax will also be applicable on the above mentioned charges.
Note: SBI MCLR is 7% effective from June 10, 2020.