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
 

Enquire

 

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

  • Individually managed proprietary/ partnership firm.
  • Closely held public/private limited companies in the small & medium industrial & trading sector under C&I & SIB segments.

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

  • All business units that want loan facility for manufacturing & services activities.
  • Self-employed & professionals covered by the MSMED Act 2006, wholesale/retail trade.

Margin

Minimum 25% cash margin for NFB facility.

Who can apply

  • Existing customers of SBI who already availed credit facilities from the bank.
  • New units that have marketable assets to offer as security.
  • Takeover of existing units from other banks or financial institutions with a satisfactory track record.

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

  • Proprietorship
  • Partnership
  • Company

Margin

25% both for WC & fixed assets

Who can apply

  • Existing customers of SBI who already availed credit facilities from the bank.
  • New units that have marketable assets to offer as security.
  • Takeover of existing units from other banks or financial institutions with a satisfactory track record.

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

  • Term Loan: 15%-25%
  • WC: 15%-20% against Stock & 25%-40% against Book Debt

Collateral security

  • Loans up to 10 Lakhs: Nil (covered under CGFMU)
  • Loans above 10 Lakhs and up to 1 Crore: To be covered under CGTMSE if the fee is borne by the borrower.

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

  • Existing SBI customers who already availed credit facilities from the bank.
  • New units
  • Takeover of existing units from other banks or financial institutions with a satisfactory track record.

Other criteria

  • Since packing credit loans are concessional & purpose-oriented, proper end-use of the disbursed amount must be explained by the exporters.
  • ECGC: Bank's export credit portfolio (pre-shipment/packing credit) is insured within Export Credit Insurance for Banks Guarantee Scheme. The premium cost will be borne by the bank for 'A' & above rated.

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

  • External Rating A & above or Internal Rating SB-7 & above required for SBI customer.
  • Industry Majors' total vendor base should be at least 50.
  • Outstanding Sundry Creditors should not exceed 3 months purchase.
  • Industry Scenario to be considered & RMD guidelines will be referred.
  • Transactions are done on SBI's Internet Banking Platform.

Fleet Finance

Target group

  • Existing Fleet Operators for Goods/Passenger transport.
  • Existing individuals/ firms/ companies/ trusts/ society/ institutions/ associations.

Margin

  • For cost of chasis: 5% for score between 35-60% & 0% for score above 60%.
  • For cost of body: 45% for score between 35-60% & 40% for score above 60%.
  • For fully buile model: 10% for score between 35-60% & 5% for score above 60%.
  • For other expenses: minimum 50%.

Who can apply

  • Existing Fleet Operators (Goods/Passenger) who have minimum 2 years of experience in the same line.
  • Fleet operator who has and existing fleet of minimum 10 vehicles.
  • Borrower must have a requirement of minimum 10 new vehicles or a minimum loan amount of 50 Lakhs.
  • Transport operators who have national/state route permit & other necessary permits/license/approval.

Collateral security

  • Up to 1 Crore: Nil
  • Above 1 Crore: Minimum 20% tangible

Lease Rental Discounting

Who can apply

  • All MSME units as well as Individuals who are owners of residential/commercial properties let out on rent.
  • Owners of residential buildings & commercial properties that are to be rented or have already been rented to MNCs/ Banks/ Large & Medium size corporates/ Government offices/ reputed public bodies (Municipal Corporations, etc.).

Collateral security

  • Equitable Mortgage on building against rentals or any other acceptable property of similar value.
  • Mortgaged property's realizable value should be at least 143% of the loan amount.

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:

  • The execution & registration of Lease Deed.
  • Noting of EM is mandatory in States where it is required.
  • Where EM cannot be created, Registered Mortgage should be done.
  • The occupation of premises by lessee or after the receipt of first lease rent, whichever is later.

PM Mudra Yojana

Target group

  • Business Enterprises involved in Manufacturing, Trading, & Services sector (including allied agricultural activities).
  • Existing and new units

Margin

  • Up to 50,000: Nil
  • 50,001 to 10 Lakhs: 10%

Collateral security

  • Nil
  • However, as Primary Security, Hypothecation of P&M for Term Loan & Hypothecation of Stocks & Receivables for CC to be done.

Other criteria

  • These loans are guaranteed by CGFMU, which is provided through NCGTC.
  • The guarantee cover is available for 5 years & hence for advances granted under Mudra Scheme, the maximum repayment period is 60 months.
  • All Branches to issue MUDRA RuPay Card for all the eligible CC accounts.

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

  • Primary security: Hypothecation of stocks & assignment of receivables.
  • Collateral security: Minimum 35% collateral (in the form of SARFAESI compliant land or building, liquid securities in the form of Bank Deposits/ LIC/ NSC/ KVP pledged or assigned to SBI).
  • Guarantee: Personal guarantee of all Directors/ Partners/ Promoters of the unit.

Simplified Small Business Loan

Target group

  • All business units involved in manufacturing & services activities
  • Self-employed & professional individuals
  • Wholesale/retail trade.

Margin

10% (to be ensured through stocks & receivable statement)

Other criteria

  • Applicant must have an existing business for at least 5 years in the same area/locality.
  • Applicant should be the owner of the premises or have valid tenant agreement with the shop's owner (in case of rented premises, a residual period of minimum 3 years).
  • Applicant should hold a current account at any bank for at least 2 years (proprietorship/ partnership/ corporate concerns).
  • Minimum average monthly balance should be more than 1 Lakh in last 12 months, with monthly threshold balance of 1,000.
  • Applicant must meet the Go/No Go Criteria.

Stand Up India

Target group

SC/ST & Women entrepreneurs

Margin

  • Minimum 10%
  • Maximum margin money on composite loan should be up to 25%, which is reduced through convergence with Central/State schemes.

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

  • Individually managed proprietary/partnership firm.
  • Closely held public/private limited companies in the small & medium industrial and trading sector under C&I, and SIB segments.
  • The chief promoter/chief executive should be aged between 18 to 65 years.

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:

  • Small retail traders, small industrial units, professionals, self-employed persons, small business enterprises, transport operators, units that do not enjoy credit limit with SBI/other banks at present with excellent performance & credentials can be considered.
  • Term loans may be sanctioned under SBCC for acquisition of shop under Small Business Enterprises.

Collateral security

  • SSI: Nil
  • SBF: For loans above 25,000, charge over movable/immovable property or third party guarantee.

Warehouse Receipt Finance

Target group

  • Finance traders/owners of goods
  • Manufacturers for own processing against warehouse receipts issued by Collateral Managers with whom SBI has tie-up.
  • WHR issued by CWC/SWC are also eligible.

Margin

25% to 35% of Market Price, depending on facility & tie-up or without tie-up.

Collateral security

  • Primary: Pledge/Hypothecation of underlying stocks for which WHR is issued by the Collateral Manager/CWC/SWC, with lien marked in favour of SBI.
  • Collateral: Personal Guarantee of partners/directors, wherever applicable.

Finance to Food Processing Industry

Who can apply

  • Units engaged in the following food processing industries:
  • Fruit & vegetable processing industry
  • Dairy products
  • Food grain milling industry
  • Processing of poultry, eggs, & meat products
  • Fish processing
  • Bread, oilseeds, breakfast foods, meals (edible), biscuits, confectionery, & other ready to eat food products.
  • Aerated water/soft drinks, & other processed foods
  • Special packaging for food processing industries

Loans to Business Correspondents

Who can apply

  • Kiosk operators/ Customer Service Providers engaged by Business Correspondents of the Bank for providing Banking Services under Financial Inclusion.
  • Aged between 18-60 years
  • Should be residing in their area of operations for more than 3 years.
  • BC/CSP should be attached with Bank for at least 1 year.

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

  • Assignment of commission to be received by the Business Correspondents.
  • 20% cash collateral, if collateral security is offered.
  • Personal guarantee of the promoter directors.

SBI Exporters? Gold Card Scheme

Target group

Creditworthy exporters with good track record

Other criteria

  • Existing customers/new connections of SBI who fulfil the following criteria are eligible:
  • Accounts classified as 'Standard Asset' continuously for at least last 3 years.
  • No irregularities/adverse features should have been observed in the conduct of the accounts.
  • The exporter should not have been blacklisted by ECGC or included in RBI defaulters'/caution list.
  • The unit should not have incurred losses during the past 3 years.
  • Overdue export bills of the unit should not be in excess of 10% of the previous year's turnover.

SME Gold Loan

Who can apply

  • Existing MSME Units (Proprietorship Firms only)
  • Both borrowing & non-borrowing units of SBI, who want to avail loan against Gold Ornaments or Jewellery.
  • Unit/Shop should be with running activity.
  • Account should not be in NPA status.

PMEGP

Who can apply

  • Individual above 18 years of age
  • At least VIII standard pass
  • Projects cost should be above 10 Lakhs in the manufacturing sector & above 5 Lakhs in the business/service sector.
  • Only new projects are considered
  • Self Help Groups & Institutions registered under Societies Registration Act, 1860
  • Production Co-operative Societies
  • Charitable Trusts

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

  • At least one Scheduled Caste or Scheduled Tribe borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise.
  • The enterprise may be in manufacturing, services or trading sector.
  • For non-individual enterprises, at least 51% of the shareholding & controlling stake should be held by either an SC/ST or woman entrepreneur.

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:

  • Up to 25000: Nil
  • Above 25,000 - 2 Lakhs: 550
  • Above 2 Lakhs - 10 Lakhs: 1,000
  • Above 10 Lakhs - 50 Lakhs: 0.40% of loan amount
  • Above 50 Lakhs: 0.20% - 0.40% of loan amount (maximum 40 Lakhs)

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

HDFC Bank

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

Axis Bank

11% onwards

Up to 1.25% + taxes applicable

50 Lakhs

5 years

Bank of Baroda

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.

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