SBI Business Loan
State Bank of India (SBI) offers a wide range of secured as well as Unsecured Business Loans to SMEs at affordable interest rates of 11.20% p.a. onwards and maximum tenure of 15 years. You can get SBI Business Loan up to 500 Crores as loan amount, depending on the loan scheme applied for.
Interest Rates | 11.20% |
Loan Amount | Min RS. 5 Lakh and Max RS. 100 Cr |
Tenure | 1 Year to 5 Years |
Loan Processing Fee | 1% of the limit (Maximum: 10 lakh) |
CIBIL Score | 750+ |
Early Foreclosure, Charges | After 6 EMI's - 3% |
EMI | 2,184 Per Lakh |
Table of SBI Business Loan
State Bank of India (popularly known as SBI) is the largest public sector bank in India. It offers Business Loans to meet the needs of Large Business Houses as well as Micro, Small and Medium Enterprises (SMEs). The banking major offers highly customised and diversified Commercial Loans, as Secured and Unsecured Business Loans.
SBI also provides loans under Government schemes like PMEGP, Mudra Loan and loans under Stand-up-India. Another exclusive offering is SBI's Mid-Corporate Loans, i.e., loans above 50 Crores and up to 500 Crores. Funding is by way of working capital finance, project finance, corporate finance, dealer finance, etc. Whatever be your business credit need, you can undoubtedly realise the same with the State Bank of India.
SBI Business Loan Interest Rates
SBI Business Loan Interest Rates as on 01.01.2021 are mentioned below:
Asset Backed Loan |
10.10% onwards |
Asset Backed Loan - Commercial Real Estate |
10.05% onwards |
Cotton Ginning Plus |
7.90% onwards |
e Dealer Finance Scheme |
8.35% - 11.80% |
Fleet Finance |
9.10% - 9.95% |
Lease Rental Discounting |
10.10% onwards |
SME eBiz Loan |
9% onwards |
SME Credit Card |
9.50% onwards |
CGTMSE |
7.40% onwards |
Export Packing Credit |
3.35% - 8.35% |
Prime Minister Employment Generation Programme (PMEGP) |
11.05% |
Warehouse Receipt Finance |
8.80% - 11.05% |
Loans to Business Correspondents |
9.75% |
SBI OD Product |
9.10% - 9.60% |
SME Gold Loan |
7.25% |
SME Smart Score |
9.35% - 11.40% |
Finance to Food Processing Industry |
8.25% - 10.70% |
PM Mudra Yojana |
11.05% |
Stand Up India |
11.05% |
Other Schemes (NULM, Weaver's Credit Card, Artisan Credit Card) |
11.05% |
*The above-mentioned interest rates are subject to change at the sole discretion of the SBI and RBI. GST & service tax shall be levied additionally on the mentioned charges. SBI 1 year MCLR effective from 10 June 2020 is 7%.
SBI Business Loan Features and Benefits
Some of the striking features and benefits of SBI online Business Loan are:
- A host of Business Loans to match with diversified customer requirements.
- The interest rate offered is highly competitive and linked to MCLR.
- The need-based funding available for all types of business operations.
- Collateral-free loans available for MSMEs.
- The application process is simple, as well as easy to follow.
- SBI Business Loans are available for 10,000 to 500 Crores, according to the business profile and requirement.
- Repayment tenure can be up to 15 years, depending on the loan type.
- Business loan for womens in SBI comes at concessional interest rates.
SBI Business Loan Eligibility Criteria
SBI Business Loan Eligibility differs based on the type of loan to be availed.
Following are the criteria for each business loan offered by SBI:
Loans under Contactless Lending Platform |
Target group |
|
Collateral security |
As per SBI's extant norms for working capital (WC) & term loan (TL). |
|
Margin |
25% for WC component & 33% for TL component. |
|
Asset Backed Loan |
Target group |
|
Margin |
Minimum 25% cash margin for NFB facility. |
|
Who can apply |
|
|
Collateral security |
Immovable property in the form of Equitable or Registered Mortgage of land/building, by way of first charge. |
|
Asset Backed Loan - Commercial Real Estate |
Target group |
|
Margin |
25% both for WC & fixed assets |
|
Who can apply |
|
|
Collateral security |
Immovable property in the form of Equitable or Registered Mortgage of land/building, by way of first charge. |
|
Cash flow statement |
Cash flow statement required for Builder Finance on a quarterly basis in the month May/August/November/February to confirm the level of activity or status of the project/end-use of the funds. |
|
Cotton Ginning Plus |
Target group |
Existing/new profit-making units in the line of activity of cotton ginning. |
Margin |
|
|
Collateral security |
|
|
Export Packing Credit |
Target group |
Manufacturers and merchant exporters eligible to avail Rupee Packing Credit at concessional interest rates. |
Margin |
Depends on the nature of order, commodity, exporter's capability, and RBI guidelines. |
|
Collateral security |
As applicable for Cash Credit/ WC limits |
|
Who can apply |
|
|
Other criteria |
|
|
e Dealer Finance Scheme |
Target group |
All authorised dealers of Industry Majors with whom SBI has tie-up arrangement. |
Margin |
Nil |
|
Collateral security |
Nil or up to 50%, depends on each tie-up. |
|
Other criteria |
Transactions are done on SBI's Internet Banking Platform. |
|
e Vendor Finance Scheme |
Target group |
Vendors of reputed Industry Majors or Corporates with whom SBI has tie-up arrangement. |
Margin |
Nil |
|
Collateral security |
Nil |
|
Who can apply |
Existing borrowers of SBI who are continuously making profit for last 3 years. |
|
Minimum turnover size for Industry Majors |
500 Crores & above
|
|
Other criteria |
|
|
Fleet Finance |
Target group |
|
Margin |
|
|
Who can apply |
|
|
Collateral security |
|
|
Lease Rental Discounting |
Who can apply |
|
Collateral security |
|
|
Other criteria |
Standing Instructions have to be set up in CBS for transferring the EMI from the Escrow Account to Term Loan account. The loan will be disbursed only after:
|
|
PM Mudra Yojana |
Target group |
|
Margin |
|
|
Collateral security |
|
|
Other criteria |
|
|
SME eBiz Loan |
Who can apply |
Sellers registered on e-Commerce portal for selling products online, having at least 6 months track record on any of the major e-Commerce player. |
Limit assessment |
Based on turnover done in the last 12 months through all accounts maintained by the unit. |
|
Collateral security |
|
|
Simplified Small Business Loan |
Target group |
|
Margin |
10% (to be ensured through stocks & receivable statement) |
|
Other criteria |
|
|
Stand Up India |
Target group |
SC/ST & Women entrepreneurs |
Margin |
|
|
Collateral security |
Nil |
|
Other criteria |
All loans above 10 Lakhs & up to 1 Crore to SC/ST borrowers & women entrepreneurs for Greenfield projects only. |
|
SME Smart Score |
Target group |
|
Margin |
25% for WC component & 33% for TL component. |
|
Collateral security |
As per SBI's extant norms for WC & TLs. |
|
SME Credit Card |
Target group |
SSI units, tiny units, retail traders, village industries, professionals, self-employed, etc. |
Margin |
Nil for loan up to 25,000 & 20% for loan above 25,000. |
|
Who can apply |
Customers having satisfactory record for last 2 years in the following segments:
|
|
Collateral security |
|
|
Warehouse Receipt Finance |
Target group |
|
Margin |
25% to 35% of Market Price, depending on facility & tie-up or without tie-up. |
|
Collateral security |
|
|
Finance to Food Processing Industry |
Who can apply |
|
Loans to Business Correspondents |
Who can apply |
|
Margin |
Nil |
|
Collateral security |
Nil |
|
SBI OD Product |
Target group |
All National or State level Business Correspondents having valid agreement & satisfactory business relationship with SBI for at least 2 years. |
Collateral security |
|
|
SBI Exporters? Gold Card Scheme |
Target group |
Creditworthy exporters with good track record |
Other criteria |
|
|
SME Gold Loan |
Who can apply |
|
PMEGP |
Who can apply |
|
PMMY |
Target group |
Existing & new Business enterprises engaged in Manufacturing, Trading, & Services sector (including allied agricultural activities). |
Margin |
Nil for loan up to 50,000 and 10% for loan above 50,001 to 10 Lakhs. |
|
Stand-Up India |
Who can apply |
|
Guaranteed Emergency Credit Line |
Target group |
GECL facility is for BEs/MSMEs to help them augment their net working capital, meet operational liabilities, and restart their businesses during COVID-19 crisis. |
Margin |
Nil |
SBI Business Loan EMI Calculator
It is crucial to know your SBI Business Loan EMI amount that you have to pay each month towards your loan repayment till the end of tenure. Now it is easy to calculate your EMI with SBI Business Loan EMI Calculator. It is a tool that helps in calculating the EMI payable each month against the loan taken. It's quick and easy to use. You only need to enter the loan amount, tenure, and the interest rate in the calculator to get the EMI amount along with the total repayment amount.
Here's an example:
An applicant avails a loan of 1 Crore for tenure of 15 years at an interest rate of 10% p.a. His EMI will be 1,07,461 and he the total repayment amount will be 1,93,42,892.
Loan Amount | Rate of Interest | Tenure | EMI Payable | Total Interest Amount | Total Repayment Amount (Principal + Interest) |
1,00,00,000 |
10% |
1 year |
8,79,159 |
5,49,906 |
1,05,49,906 |
1,00,00,000 |
10% |
3 year |
3,22,672 |
16,16,187 |
1,16,16,187 |
1,00,00,000 |
10% |
5 year |
2,12,470 |
27,48,227 |
1,27,48,227 |
1,00,00,000 |
10% |
10 year |
1,32,151 |
58,58,088 |
1,58,58,088 |
1,00,00,000 |
10% |
15 year |
1,07,461 |
93,42,892 |
1,93,42,892 |
SBI Business Loans Documents Required
Broadly, you will need the following SBI Business Loan documents when applying for the loan:
- Duly filled loan application form
- 2 photographs of the applicant in passport size
- Proof of identity (any one): Passport/ PAN Card/ Voter ID/ Driving License
- Proof of residential address (any one): Registered Rent Agreement/ Leave and License/ Utility Bill of at least 3 months/ Passport.
- Proof of business: GST/ Service Tax registration, Company's incorporation details including address proof of the business, P&L Account and Balance Sheet certified by a CA, the proof of the business's existence, a copy of the partnership deed and business profile.
- In case of companies, KYC documents of Directors.
- For partnership firms, KYC documents of Partners.
- Bank statements and Sanction Letters of existing loans.
- All the legal, property-related documents like past Title Chain. E.g. Conveyance Deed, Allotment Letter, Sales Deed, Latest Property Tax Receipt, Possession Letter, Copy of Approved Plan of construction or extension.
- The documentation requirement may greatly vary as per the loan product. MyMoneyMantra representative will guide you on the same.
How to Apply for SBI Business Loan?
A business owner can apply for SBI Business Loan in any of the ways suitable for them. There are no hassles involved, whatsoever. You can primarily opt for any of the following methods:
Online Application
If you are looking for quick processing of your SBI business loan, apply online by filling the online application form on their website. Their business loan representative will contact you and assist you with the documentation and further procedure.
You can also apply for the loan online on MyMoneyMantra.
Call Customer Care
You can request a call back by contacting the SBI customer care on their toll-free number.
Visit the Branch
Alternatively, you can visit the nearest SBI branch and submit the application physically. However, in this digital age, more and more customers are opting for the online route.
How to Track SBI Business Loan Application Status Online?
Follow the steps mentioned below to track your SBI Business Loan application status online:
- Enter your reference number received after submitting your loan application.
- Enter your registered mobile number along with ISD code.
- Click on the 'Track' tab to get the current status of your loan application.
Types of SBI Business Loans
Following are the Types of SBI Business Loans:
Type of SBI Business Loan | Loan Amount | Tenure | Margin | Interest Rate | Processing fee |
Loans under Contactless Lending Platform |
1 Lakh - 5 Crores |
Up to 7 years for TL & WC loan to be renewed every year |
25% for WC component & 33% for TL component |
Competitive rates linked to EBLR & MCLR |
As applicable to SSI/SBF/C&I units as per as per SBI's latest instruction. |
Asset Backed Loan |
10 Lakhs - 20 Crores |
12 - 180 months |
25% cash margin for NFB facility |
10.10% onwards |
1% of the limits (maximum 10 Lakhs) |
Asset Backed Loan - Commercial Real Estate |
10 Lakhs - 50 Crores (Tier I branch) & 20 Crores (Tier II branch) |
12 - 180 months |
25% for WC & fixed assets |
10.05% onwards |
1% of the limits (maximum 10 Lakhs) |
Cotton Ginning Plus |
Based on project outlay for TL & need based for WC |
5 - 7 years for term loan and repayable on demand for WC |
15%-25% for term loan, 15%-20% for WC Loan against Stock, & 25%-40% for WC Loan against Book Debt |
7.90% onwards |
As per card rates applicable from time to time |
Export Packing Credit |
Need based |
Up to 180 days |
Depends on the nature of order, commodity, capability of exporter, & RBI guidelines. |
3.35% - 8.35% |
As applicable to cash Credit Facility/WC limits |
e Dealer Finance Scheme |
Need based |
Credit period up to 90 days with early renewal |
Nil |
8.35% - 11.80% |
10,000 - 30,000 |
e Vendor Finance Scheme |
Need based |
According to tenure of the receivables |
Nil |
8.35% - 11.80% |
10,000 - 50,000 |
Fleet Finance |
50 Lakhs - 10 Crores (higher limit allowed as per SBI's discretion) |
Up to 66 months |
5% - 50% |
9.10% - 9.95% |
1% of the limit |
Lease Rental Discounting |
10 Lakhs - 50 Crores for NBG & 500 Crores for MCG |
Repayment of loan should be through EMI via escrow account with SBI. |
Nil |
10.10% onwards |
As per extant instructions |
PM Mudra Yojana |
Up to 10 Lakhs |
3 - 5 yrs for WC/TL. To be reviewed annually. |
Nil for loan up to 50,000 & 10% for loan between 50,001 to 10 Lakhs. |
11.05% |
0.50% of the loan amount + applicable taxes |
SME eBiz Loan |
50 Lakhs - 5 Crores |
Information not available (NA) |
NA |
9% onwards |
1% of limit sanctioned + applicable taxes for 1st year & 0.35% + applicable taxes for 2nd year onwards. |
Simplified Small Business Loan |
10 Lakhs - 25 Lakhs |
Up t 60 months |
10%, to be ensured through stocks & receivable statement |
Linked to MCLR |
7,500 |
Stand Up India |
10 Lakhs - 1 Crore |
Up to 7 years |
10% - 25% |
11.05% |
0.20% of loan amount + GST |
SME Smart Score |
5 Lakhs - 50 Lakhs for manufacturing units & 5 Lakhs - 25 Lakhs for trade & services. |
Up to 5 years for TL & to be renewed every 2 years for WC. |
25% for WC component & 33% for TL component |
9.35% - 11.40% |
As applicable to SSI/SBF/C&I units as per SBI's latest instruction. |
SME Credit Card |
Up to 10 Lakhs |
WC valid for 3 years with annual review & up to 5 years for TL. |
Nil for loan up to 25,000 & 20% for loan above 25,000 |
9.50% onwards |
As applicable to SSI/SBF units |
Warehouse Receipt Finance |
Need based |
Up to 12 months for WCDL, Cash Credit repayable on demand, & RDL should be liquidated after closure of the underlying loan & liquidation of SBI's dues. |
25% - 35% of Market Price |
8.80% - 11.05% |
Up to 3 Lakhs |
Finance to Food Processing Industry |
NA |
NA |
NA |
8.25% - 10.70% |
Nil - 0.40% of the loan amount (maximum 40 Lakhs) |
Loans to Business Correspondents |
25,000 - 2.50 Lakhs |
12 months with annual review for Overdraft, up to 36 EMIs for Demand Loan, & up to 60 EMIs Term Loan. |
Nil |
9.75% |
Nil - 0.50% of loan amount |
SBI OD Product |
25 Lakhs - 5 Crores |
Running account facility, to be renewed every year. |
NA |
9.10% - 9.60% |
1% of loan amount |
SME Gold Loan |
1 Lakh - 50 Lakhs |
Up to 12 months |
NA |
7.25% |
500 - 1,000 + applicable taxes |
CGTMSE |
Up to 1 Crore |
NA |
NA |
7.40% onwards |
NA |
PMEGP |
Up to 25 Lakhs |
NA |
NA |
11.05% |
NA |
PMMY |
Up to 10 Lakhs |
Nil - 10% |
3 - 5 years for WC/TL with annual review |
Competitive rates linked to MCLR |
Nil for Shishu & Kishore to MSE Units, 0.50% + applicable tax of loan amount for Tarun. |
Other Schemes (NULM, Weaver's Credit Card, Artisan Credit Card) |
NA |
NA |
NA |
11.05% |
NA |
SBI Business Loans under SME Government Schemes
Following are SBI Business Loans offered under SME government schemes:
- Prime Minister Employment Generation Programme (PMEGP): This scheme is implemented by Khadi & Village Industries Commission (KVIC) at the national level, and State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), & banks at the state level. Under this scheme, KVIC routes government subsidy via designated banks for eventual disbursal to the beneficiaries or entrepreneurs directly into their bank accounts. Any individual aged above 18 years & at least VIII standard pass can avail this facility for projects costing above 10 Lakhs (manufacturing sector) and above 5 Lakhs (business/ service sector).
- Pradhan Mantri MUDRA Yojana (PMMY): This scheme provides loans (classified as MUDRA loans) up to 10 Lakhs with 3 - 5 years tenure to the non-corporate & non-farm small/micro enterprises through Commercial Banks, RRBs, Cooperative Banks, Small Finance Banks, MFIs, & NBFCs.
- Stand-Up India: This scheme facilitates bank loans between 10 Lakhs & 1 Crore to at least one Scheduled Caste or Scheduled Tribe borrower, and at least one woman borrower per bank branch for setting up a greenfield enterprise in manufacturing/services/trading sector. For non-individual enterprises, at least 51% of the shareholding & controlling stake should be held by either an SC/ST or a woman entrepreneur.
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): Launched by the Ministry of MSME, the CGTMSE offers bank credit to SMEs without collateral or third-party guarantee to provide them funding on the primary security of the assets financed. The scheme covers the loss incurred by the lender (up to 50/75/80/85% of the credit facility) if an MSE unit fails to discharge its liabilities. The maximum credit cap is set at 2 Crores.
SBI Business Loan Charges
Charges associated with SBI Business Loans are as follows:
Type of SBI Business Loan | Charges |
Asset Backed Loan |
Processing fee: 1% of the limits (maximum 10 Lakhs) |
Asset Backed Loan - Commercial Real Estate |
Processing fee: 1% of the limits (maximum 10 Lakhs) |
e Dealer Finance Scheme |
Unified charges including processing fee & inspection charges: 10,000 - 30,000 |
e Vendor Finance Scheme |
Processing fee: 10,000 - 50,000 |
Fleet Finance |
Processing fee: 1% of the limit |
PM Mudra Yojana |
Processing fee: 0.50% + applicable tax loan amount for Tarun |
SME eBiz Loan |
Processing fee: 1% of limit sanctioned + applicable taxes for 1st year & 0.35% + applicable taxes for 2nd year onwards. |
Simplified Small Business Loan |
Unified charges including processing, documentation, EM, inspection, commitment, & remittance charges: 7,500 |
Stand Up India |
Processing fee: 0.20% of loan amount + GST |
Warehouse Receipt Finance |
Unified charges including processing, inspection, & facility charges: Nil - 3 Lakhs |
Finance to Food Processing Industry |
Processing fee:
|
Loans to Business Correspondents |
Processing fee: 0.50% for loans above 50,000 |
SBI OD Product |
Processing fee: 1% of loan amount |
SME Gold Loan |
Processing fee: 500 + applicable taxes for up to 10 Lakhs & 1,000 + applicable taxes for above 10 Lakhs. |
PMMY |
Processing fee: 0.50% + applicable tax of loan amount for Tarun |
Why Apply for SBI Business Loan on MyMoneyMantra?
It is safe, fast, and hassle-free to apply for Business Loan at MyMoneyMantra. With more than three decades of experience in the credit distribution sphere and integration of best Fintech practices, the business loan application and processing at MyMoneyMantra is just a few clicks away.
You just need to visit our official website and apply for the required loan from the convenience of your home. From loan query to loan application, to approval and disbursal, each step is carried out online.
There is no need to visit the bank at any stage. We also facilitate doorstep pickup of documents, followed by free customer service throughout the process.
SBI Business Loan Customer Care
You can call SBI Business Loan Customer Care at the following numbers:
- Toll-free numbers: 1800 11 2211 and 1800 425 3800
- Toll number: 080-26599990
SBI Business Loan Comparison with Other Banks and NBFCs
Below is the comparison between SBI Business Loan and business loans offered by leading 4 leaders in India:
Bank | Interest Rate (per annum) | Processing Fee | Maximum Loan Amount | Maximum Tenure |
SBI |
3.35% - 11.80% |
Up to 1% of the sanctioned limit (maximum 10 Lakhs) |
500 Crores |
15 years |
11.90% - 21.35% |
0.99% - 2.50% of the loan amount (minimum 1,000 & maximum 75,000) |
50 Lakhs |
4 years |
|
ICICI Bank |
Up to 11.10% |
Up to 2% of the loan amount + applicable taxes |
2 Crores |
7 years |
11% onwards |
Up to 1.25% + taxes applicable |
50 Lakhs |
5 years |
|
14.10% onwards |
Up to 2% |
50 Crores |
10 years |
FAQs
✅ How much can I borrow by way of SBI Business Loan?
SBI extends diversified Business Loans as Term Loans, Working Capital Loan, SME finance, and many more. You can get up to a maximum limit of 500 Crores from SBI. The approval depends on the stability of business, financial need, and business viability.
✅ Is SBI Business Loan a secured or unsecured loan?
SBI lends secured as well as unsecured business loans.
✅ How long does it take to get the approval of the SBI Business Loan application?
SBI is one of the choicest lenders for Business Loan. You get swift approval, provided the loan application entails complete documentation of business as well as collateral attached, besides the laid-out business plan.
✅ What is the offered tenure for SBI Business Loan?
You can borrow SBI Business Loan for up to 15 years according to your requirement. The bank extends a high degree of repayment flexibility to the borrowers.
✅ What factors determine SBI Business Loan eligibility?
The eligibility for Business Loan is decided as per your age, business type, business revenue, experience, credit score, and other factors.
✅ What are different types of SBI Loans available for SMEs?
SBI is the largest Public Sector Bank in India and offers highly customized loan options for the vastly diversified business needs of the country of over 1 billion. Broadly the SME loans and credit schemes are classified as:
- Asset Backed Loan
- Asset Backed Loan - Commercial Real Estate
- Cotton Ginning Plus
- e Dealer Finance Scheme
- Fleet Finance
- Lease Rental Discounting
- SME eBiz Loan
- SME Credit Card
- CGTMSE
- Export Packing Credit
- Prime Minister Employment Generation Programme (PMEGP)
- Warehouse Receipt Finance
- Loans to Business Correspondents
- SBI OD Product
- SME Gold Loan
- SME Smart Score
- Finance to Food Processing Industry
- PM Mudra Yojana
- Stand Up India
- Other Schemes (NULM, Weaver's Credit Card, Artisan Credit Card)
✅ How do I contact MyMoneyMantra for Business Loan query?
You can contact MyMoneyMantra in 3 ways:
- Filling a loan application form on the website.
- By calling toll free customer care number 1800 103 4004.
- By emailing us your requirement at contactus@mymoneymantra.com
Kindly make sure you clearly describe your contact details or else we would not be able to assist you for your loan requirement.
✅ How do I benefit from prepaying my SBI business Loan?
Prepaying a loan helps you save on interest component significantly. In order to calculate the prepayment benefit, you can make use of the Business Loan Prepayment Calculator. All you need to do is fill the loan details, and the calculator will instantly share the saving.
✅ How can I calculate SBI Business Loan EMI?
You can calculate your business loan EMI by using Business Loan EMI Calculator available on MyMoneyMantra.