SBI Business Loan
State Bank of India (popularly known as SBI) is the largest public sector bank in India. The SBI group has more than 13000 bank branches and over 59,291 ATMs spread across the remotest parts of the country. Since November 2017, SBI offers an integrated digital banking platform named YONO.
Undoubtedly SBI is a leader in offering banking and financial services, be it Personal Loan, Business Loan, or a commercial Line of Credit, Home Loan or Credit Card facility. The bank caters to the largest diversified customer-base across the country.
Headquartered in Mumbai, the roots of the State Bank of India lies in the establishment of Bank of Calcutta later named as State Bank of Bengal in 1806. The State Bank of Bengal was one of the three Presidency Banks; the other two were Bank of Bombay and Bank of Madras. The three Presidency Banks were amalgamated in the year 1921 and the entity was coined as The Imperial Bank of India.
According to the provisions of State Bank of India Act of 1955, the Reserve Bank of India acquired a controlling stake in the Imperial Bank of India. In 1955 Imperial Bank of India became the State Bank of India and in 2008, the Government of India acquired the RBI stake in the SBI to remove any conflict of interest. For, RBI is the country's central banking regulatory body.
In 1959 eight banks that belonged to princely states became subsidiaries of SBI, according to the State Bank of India (Subsidiary Banks) Act passed by the Government. This was done to expand rural outreach. In 1963, SBI merged Stage Bank of Jaipur and State Bank of Bikaner.
SBI acquired distressed Bank of Bihar in 1969. In 1970 it acquired National Bank of Lahore, and in 1975 it acquired Krishnaram Baldeo Bank. SBI acquired Bank of Cochin which had 120 branches. In 2008 State Bank of Saurashtra was acquired by SBI reducing the number of associate banks from seven to six. SBI acquired State Bank of Indore in 2009. The six major banks including State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Hyderabad, State Bank of Patiala, State Bank of Travancore and Bharatiya Mahila Bank were merged with State Bank of India w.e.f. 1 April 2017.
About SBI Business Loan
SBI 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/- Crore. 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.
Why Choose SBI Business Loan?
By choosing SBI Business Loan, your business enjoys the following benefits/ advantages:
- A highly customized choice - from a host of Business Loan offers, designed to suit varied business requirements.
- Competitive interest rates - With SBI, you always enjoy the price advantage.
- Quick and easy approval - The industry major ensures efficient processing for excellent customer experience.
- Simple documentation - The bank promotes transparency and ease of user experience.
- No hidden charges - The processing fee is inclusive of many other charges*, ensuring no hidden cost is attached for the customer.
- Affordable processing - The bank assures ease of borrowing to SMEs, and thus, processing cost is minimized. There are no additional administrative charges involved.
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.
You can apply for SBI Business Loan by filling an online SBI Business loan application form. A loan representative will contact you and assist you with the documentation and further procedure.
- Call Customer Care.
You can request a call back by contacting the SBI customer care on a 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.
Documents required for SBI Business Loan
MyMoneyMantra representative will guide you thoroughly about the documents required for a business loan from SBI.
Broadly, the following documents are required to apply for SBI Business Loan:
- Duly filled the application form for SBI Business Loan. The application form can successfully be filled via MyMoneyMantra online platform.
- Two photographs of the applicant in passport size.
- Proof of identity (Anyone): Passport/ PAN Card/ Voter ID/ Driving License
- Proof of Residential Address (Anyone): Registered Rent Agreement/ Leave and License/ Utility Bill of at least three 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; and for partnership firms, KYC documents of partners.
- Bank Statement 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.
SBI Business Loan: Features & Benefits
SBI offers a host of Business Loans to match with diversified customer requirements. Whether you seek a loan for a Startup or looking for Working Capital finance or need funds to support your digital operations or to expand your business outreach, SBI offers more than dozen Business Loans to cater to the maximum base of customers.
The Interest rate offered is highly competitive and linked to MCLR. The 1 year MCLR as on 10th May 2019 is 8.45%.
Some of the striking features of SBI Business Loans can be listed as:
- 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.
- The Business Loan funds are available for 10 lakh to 20 crore, according to the business' profile and requirement. Exclusive funding beyond the ceiling available case basis.
- Finance is available at a highly attractive interest rate.
- Special rates available for women entrepreneurs and micro units.
Types of SBI Business Loans
|S. No.||Type of Business Loan|
|1||SBI Asset-Backed Loan|
|2||SBI Asset-Backed Loan for Commercial Real Estate|
|3||SBI Electronic Dealer Finance Scheme|
|4||SBI Doctor Plus|
|5||SBI SME Construction Equipment Loan|
|6||SBI Fleet Finance Scheme|
|7||SBI Warehouse Receipt Financing|
|8||SBI Lease Rental Discounting|
|9||SBI Arthias Plus Scheme|
|10||SBI Dal Mill Plus|
|11||SBI Cotton Ginning Plus|
|12||SBI Pradhan Mantri Mudra Yojana|
|13||SBI Medical Equipment Finance Scheme|
|14||SBI e-Smart SME e-Commerce Loans|
SBI Business Loan- Asset-Backed Loan
|Nature of facility||Dropline Overdraft facility
Both fund-based and non-fund-based, to the extent of 50% of the value of the marketable asset.
|Purpose of loan||*For building current assets and fixed assets needed for the business
*Expansion and modernization of business
*Short term working capital requirement
|Quantum of loan||
|Margin||Minimum 25% cash margin for non-fund-based limits.|
|Collateral security||Equitable/ Registered mortgage of land and building.|
|Repayment||Dropline Overdraft facility will be sanctioned for a period of 12 months to 180 months with either Equated Monthly Instalments (EMI) or customized reduction in limit depending on the cash accruals.
Moratorium period up to 18 months will be given depending on the activity. Interest should be serviced during the moratorium period.
The drawing power will be reduced on a monthly basis to have the overdraft liquidated within the stipulated period.
|Interest||MCLR + 2.30% p.a.
*10.75% as on 10 May, 2019
|Processing fee||1% of the limit (Maximum: 10 lakh)|
SBI Business Loan- Asset-Backed Commercial and Real Estate Loan
|Nature of facility||Dropline overdraft facility, both fund-based and non-fund-based to the extent of 50% of the realizable value of the immovable property|
|Purpose of loan||Creation/ acquisition of real estate such as retail space, industrial or warehouse space, multiplex, hotels, restaurants, gymnasium, amusement park, etc., where the repayment prospect would be a lease or rental payment or sale of the asset.
Loan for working capital (including pre-operative expenses) and fixed assets.
|Quantum of loan||
|Margin||25% for both working capital and fixed assets|
|Collateral security||Equitable/ registered land or building, by way of the first charge|
|Repayment||Dropline Overdraft will be sanctioned for 12 months to 180 months, including moratorium period either equated reduction in limit of customized reduction in limit depending on the cash accruals.
The drawing limit will be reduced every month to liquidate the limit within the stipulated period
|Interest||MCLR + 3.05% p.a.
*11.5% as on May 10, 2019
|Processing fees||1% of the limit (maximum: 10 lakh)|
|Other conditions||For builder finance, Cash flow statement for each quarter should be submitted.
Loan drawing power is not linked to quarterly cash flow statement.
However, the cash flow statement is required to confirm the level of activity/ status of the project and the end use of the funds.
SBI Business Loan- Cotton Ginning Plus loan
|Nature of facility||Cash Credit and Term Loan|
|Purpose of loan||For working capital and acquisition of machinery, factory building for modernization/ expansion of business, etc.|
|Quantum of loan||Term loan, based on the project and need based working capital limits|
|Margin||For Term loan: 15% to 25%
For working capital:
15% to 20% for stock and 25% to 40% for book debts
|Repayment||For term loan, repayment period of 5 to 7 years
Working capital: Repayable on demand
|Collateral Security||Not required, for loans up to 10 lakhFor loans above 10 lakh & up to 1 crore: Covered under CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES (CGTMSE), if the borrower pays the fee|
|Interest||MCLR + 0.90% p.a. to 2.30% p.a.
*9.35% to 10.75% p.a as on May 10, 2019
|Processing fee||As per card rate|
SBI Doctor Plus
|Eligibility||Individuals/ partnership/ Corporate/ Trusts (with powers to borrow) can apply for the loan.
Allopathic medical practitioners, promoters of allopathic hospitals/ nursing homes, pathological clinics, polyclinics, x-ray labs, or any allopathic activity.
Individuals and promoters should be in the age group of 21 years to 65 years
|Nature of facility||Regular Term Loan|
|Purpose of loan||Purchase of equipment and implants, including:*dental implants for dentists
*various implants or replacements for knee, shoulder, spine, hip, etc. for orthopedists*for setting up a nursing home, clinic, pathology lab, drug store.
*for purchase of a vehicle, equipment like ambulance, computers, etc.
|Quantum of loan||10 lakh to 5 Crore|
|Repayment||Term Loan to be repaid in 3 to 7 years. The tenor is inclusive of Moratorium Period of 6 months.
Repayment to be made in equated monthly instalments or customized instalment plan, as per the cash accrual of the unit.
|Collateral/ Security||No collateral security required for loans up to 2 crore.
Above 2 crore, 25% tangible collateral security and personal guarantee of promoters is required.
|Interest||MCLR + 2.00% p.a. to 2.50% p.a.
*10.45% to 10.95% p.a. as on May 10, 2019
|Processing fee||50% concession offer|
|Other conditions||Cash flow generated through the equipment financed should be routed through an SBI account.|
SBI Business Loan- Export Packing Credit
|Eligibility||Existing SBI customers using credit facilities. New units with a marketable asset to offer as loan security.Take over of units from other financial institutions/ banks with good track record. Manufacturers, as well as merchant exporters, can avail Rupee Packing Credit at a concessional rate.|
|Nature of facility||Pre-shipment finance extended as working capital limit|
|Purpose of loan||To fund the purchase of raw materials, processing, and packing, transportation, and warehousing of goods meant for export business.
Two essential features include. Existence of an export order and/ or letter of credit and. Liquidation of packing credit by submission of export documents within the stipulated period.
|Quantum of loan||Need-based finance|
|Repayment||Depends on the manufacturer/ trade cycle but in any case, not exceeding 180 days|
|Margin||Margin stipulated based on the nature of export order, commodity, the capability of exporter, etc.|
|Collateral Security||Loans up to 10 lakh: Not Required.Above 10 lakh and up to 1 Crore: Under CGTSME, fee borne by the borrower.|
|Interest||Competitive rate of interest|
|Processing fee||1% of the loan amount, Maximum: 10lacs|
|Other conditions||Bank to ensure end-use
ECGC cover should be available.
Premium will be borne by the bank to units rated 'A'
Electronic Dealer Finance
|Eligibility||All authorized dealers of Industry majors with whom the bank has a tie-up are eligible to apply|
|Nature of facility||Cash Credit|
|Purpose of loan||To provide hassle free finance to authorized/ exclusive dealers of Industry Majors for purchase of inventory.|
|Quantum of loan||Need-based.
Past performance or projected sales, whichever is higher or limit recommended by the Industry Majors whichever is lower.
|Margin||Nil. 100% finance available to dealers.|
|Repayment||Credit period up to 90 days. Yearly renewal.|
|Collateral Security||Nil or 50% depending upon the tie-up|
|Interest||MCLR + 0.55% to 3.00%
*9.00% to 11.45% as on May 10, 2019
|Processing fee||Processing charges ranging from 10000 to 30000|
|Other conditions||Transactions are done on an internet banking platform.No cheque book is required.Multiple channel repayment option such as cash, NEFT, funds transfer, RTGS is available.There are two ways of transaction. Pull method where the Industry Major requests for debit in the dealers account and push method where the dealer originates the transaction.|
SBI Business Loan: E-Vendor Finance
|Eligibility||Existing SBI customers who are making profit continuously for the past 3 years. Minimum turnover of Industry Major must be 500crore or above. For SBI Customers, external rating A or above and internal rating SB-7. Vendor base of Industry Major should be at least 50. Outstanding sundry creditors should not be more than three months of purchase. Industry scenario to be considered. Vendors of reputed Industry Majors/ Corporates with whom banks have tied-up can apply for the loan.|
|Nature of facility||Cash credit (Clean)|
|Purpose of loan||
Financing for recommended vendors of reputed Industry Majors/ Corporates.
Instant online credit facility for Vendor Accounts electronically. No need to visit the branch.
|Quantum of loan||Need-based finance|
100% finance available.
|Repayment||According to tenor|
|Collateral security||No collateral security insisted|
|Interest||Competitive Rate linked to MCLR|
|Processing fee||10000 to 50000|
|Other conditions||The transaction should be done on the Internet Banking Platform. No cheque book is required. Multiple repayment options available, such as cash, NEFT, funds transfer, and RTGS. There are two variants under E-Vendor Finance Scheme:Vendor Exposure: Financing is directly to the vendors on supplies made to corporates/ industry majors. Industry Major exposure: Financing for Industry Major/ corporates to make payment to the dealer for the supplies made.|
SBI Fleet Finance
|Nature of facility||Term Loan|
|Purpose of loan||To purchase transport vehicles (small light vehicle, heavy vehicle like trucks, tankers, trailers or passenger vehicles like buses/ luxury buses, etc.)|
|Quantum of loan||A Minimum of 50 lakh and the maximum of 10 Crore|
|Margin||5% margin for the cost of chassis
45% for bodybuilding
10% margin for a fully built model
and for other expenses, a minimum margin of 50%
|Repayment||Repayment within 66 months. Equated monthly instalments or customized monthly instalments depending on the cash accruals|
|Collateral security||No security up to 1 crore.
Loan to be covered under CGTSME, above 1/- crore minimum 20% tangible security.
|Interest||MCLR + 0.75% p.a. to 3.25% p.a.
*9.20% to 11.70% p.a as on May 10, 2019
|Processing fees||1% of the limit|
SBI Medical Equipment Finance
Nursing homes, diagnostic centers, a pathology laboratory, eye centers, ENT centers, skin clinics, dental clinics, dialysis centers, endoscopy centers, IVF centers, and Medical Practitioners can avail the benefit of this loan.
Individuals, partnership firms, Corporates, Trusts, and Societies can apply
The applicant should have a tie-up/qualified, employed doctors.
|Nature of facility||Term Loan|
|Purpose of loan||For purchase of medical and ancillary equipment|
|Quantum of loan||Minimum quantum of loan: 10 lakh
Maximum quantum: 20 crore
|Repayment||To be repaid within 3 to 7 years.
Moratorium period of 6 months.
*Interest should be serviced during the moratorium period.
*Repayment is scheduled as equated monthly instalments or customized monthly instalments depending upon the cash accruals
|Collateral security||No collateral security up to 2 Crore.
Will be covered by CGTMSE.
The customer should bear 50% of the premium.
Above 2 Crore, and up to 20 crore a minimum of 25% tangible collateral security and personal guarantee of promoters.
|Interest||MCLR + 2.00 % p.a. to 2.50 % p.a.
*10.45% to 10.95% p.a as on May 10, 2019
|Processing fee||50% concession on applicable rate|
|Other conditions||It should be ensured that the cost of the ancillary equipment is not more than 10% of the main equipment and the ancillary unit is used for the main activity.|
SBI Simplified Small Business Loan
|Nature of facility||Dropline overdraft facility|
|Purpose of loan||To build up current assets and fixed assets required for the business|
|Quantum of loan||10 times of average monthly balance in the current account, subject to a minimum of 10 lakh and the maximum of 25 lakh|
|Margin||10% on stock and receivables|
|Repayment||Up to 60 months|
|Collateral security||Minimum collateral security of 40%
|Interest||Competitive Pricing Linked to MCLR|
|Processing fee||7500/- (inclusive of other charges such as EM, documentation, Inspection, commitment charges & remittance charges)|
|Other conditions||Quantum of loan is fixed as per average balance in the current account. Hence, no Financial Statements required to apply.|
SBI SME E-biz Loan
|Eligibility||Sellers registered on e-commerce portal for selling products online with at least 6 months track record|
|Nature of facility||Cash Credit|
|Purpose of loan||To provide financial assistance to sellers registered on an e-commerce portal for selling products online|
|Quantum of loan||Minimum amount: 50 lakhMaximum amount: 5 crore|
|Margin||15% to 20% on stocks
25% to 40% on receivables
|Security||Prime Security: Hypothecation of stocks and book debts.
Collateral security: Minimum 35% in the form of Sarfaesi compliant land/ building and liquid securities in the form of LIC, Bank deposits, NSC, KVP. The security will be assigned to the bank.
Besides, the personal guarantee of the promoters is also required.
|Interest||MCLR + 2.30% p.a. to 4.30% p.a.
*10.75% to 12.75% as on May 10, 2019
|Processing fee||First year: 1% of the loan sanctioned
Second year onwards: 0.35% of the loan sanctioned
|Other conditions||Assessment is basis the turnover during the past 12 months (data collected via all the accounts maintained by the unit.)
Should be banking only with SBI
SBI SME Smart Score Loan
|Nature of facility||Cash credit/ Term loan|
|Purpose of loan||For Working Capital needs and acquisition of fixed assets|
|Quantum of loan||Manufacturing Units: 5 lakh to 50 lakh (20% of annual turnover for working capital and 67% of project cost for term loan)
Trade and services: 5 lakh to 25 lakh (15% of annual turnover for Working Capital and 67% of project cost for Term Loan)
|Margin||25% for Working Capital and 33% for Term loan|
|Repayment||Working Capital will be renewed every 2 years and will be reviewed annually.
Term Loan for up to 5 years (including moratorium period of 6 months)
|Collateral Security||As per the bank's guidelines for Working Capital and Term Loans|
|Interest||MCLR + 2.30% p.a. to 4.30% p.a.*10.75% to 12.75 p.a as on May 10, 2019|
|Processing fee||1% of the loan amount|
SBI Warehouse Receipt Financing
|Eligibility||Traders/ Owner of goods/ Manufacturers of goods for own processing against Ware House Receipt issued by CM/ SWC/ CWC|
|Nature of facility||Cash credit limit (for limits of 1 crore and above) /Working Capital Demand Loan/ Revolving Demand Loan|
|Purpose of loan||To finance the needs of traders/ manufacturers of goods for own processing against warehouse receipts issued by Collateral Managers with whom they have tie-up and also warehouse receipts issued by SWC/ CWC.|
|Quantum of loan||Need-based limit based on the eligibility as assessed by the bank.|
|Margin||25% of the market price to 35% of the market price depending on the facility with or without tie-up.|
|Repayment||Cash Credit is repayable on demand. The limit should be brought to nil or credit balance whenever the quality certificate expires.
WCDL should be repaid as and when the produce is sold during the validity period but not beyond 12 months.
RDL: All the individual demand loans under revolving demand loan should be liquidated after closure underlying loan and after repaying all the other bank dues. Bank notes down the due dates of the warehouse receipts and ensure that they are released only after closure of the underlying loan and payment of bank dues.
|Collateral security||Primary security: Hypothecation of stocks for which warehouse receipt has been issued by CM/ CC/ SWC for which lien is marked in favour of the bank|
|Interest||MCLR + 1.00% p.a. to 3.25% p.a.(both 6 months & 12 months MCLR)
*9.45% to 11.70% as on May 10, 2019 for 12 months MCLR
*9.30% to 11.55% as on May 10, 2019 for 6 months MCLR
|Processing fee||Ranges from NIL to 3 lakh depending on the quantum of loan|
SBI Business Loans under SME Government Schemes
Prime Minister Employment Generation Programme (PMEGP)
Type of Loan: Start-Up Business Loan as Initial Set-Up Finance, Term Loan, & Working Capital Loan
Prime Minister Employment Generation Programme (PMEGP) is a Start-Up financing scheme nationally executed by Khadi and Village Industries Commission (KVIC) as its Nodal Agency.
Thus, the State KVIC Directorates, State KVIBs (Khadi and Village Industries Boards), District Industries Centres (DICs) and banks are responsible for implementing the scheme at the State level.
No private Party/ Agency/ Middlemen/ Franchise is appointed by KVIC /KVIB /DIC /COIR for promoting or sanctioning the funds under PMEGP Programme. Only select public sector banks are designated for the purpose, and the State Bank of India is one of the major banks for eventual disbursal to the entrepreneurs. KVIC routes the government subsidy under the scheme through SBI directly to the beneficiary's bank account.
The financial assistance under the scheme for the manufacturing sector is 25 Lakh and 10 Lakh for the business/services sector.
Individuals above 18 years of age and who are at least VIII standard pass-outs are eligible for financial assistance for projects costing above 10 Lakh (manufacturing sector) and above 5 Lakh (business/ service sector) under the PMEGP Scheme.
Also, SHGs (self-help groups), cooperative societies, and charitable trusts are eligible, provided they have not accessed financial assistance under other government schemes.
The application form is available online. You can fill the form and take a printout along the Project Report (in detail) and documents to submit at the respective KVIC office.
You can contact here for further details:
State Director, KVIC
Dy. CEO (PMEGP), KVIC, Mumbai
Call at: 022-26711017
Mail at: firstname.lastname@example.org
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Type of Loan: Subsidized government funding for New as well as Existing Micro and small enterprises
Launched by Ministry of Micro, Small & Medium Enterprises (MSME), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) directs bank credit to small and medium enterprises without the hassle of pledging an asset/ collateral or third-party guarantee via select lenders
The main objective of the CGTMSE scheme is to extend ease of commercial borrowing to existing as well as new micro & small enterprises to initiate, expand, or rehabilitate the operations. The funding is available as term loan as well as working capital loan for diverse needs.
The eligible units for the loan include all small & micro-enterprises involved in manufacturing or service activity, excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions.
Currently, the beneficiary can use the facility from more than one bank jointly or separately for a maximum limit of 2 crore per borrower. The ceiling amount of individual MLI is applicable.
Stand up India
Stand-up India scheme facilitates Bank Loans ranging from 10 Lakh to 1 Crore for setting up a Greenfield enterprise in manufacturing, trading or the services sector. The Scheme also assures guaranteed financial assistance to at least one Woman applicant, one Scheduled Tribe borrower (ST) and one Scheduled Caste (SC) borrower per bank branch.
The application form is available online. You can choose the preferred lender and fill the form and take the print out of the filled application. You can also choose to visit the bank branch and apply directly.
Pradhan Mantri MUDRA Yojana (PMMY)
Pradhan Mantri MUDRA Yojana or PMMY extends financial assistance to non-corporate and non-farm small and/or micro-enterprises. The lenders associated include commercial banks, Regional Rural Banks, Cooperative Banks, Small Finance Banks, MFIs as well as Non-Banking Financial Corporations.
You can avail PMMY loan from SBI for up to 10 Lakh. The types of Mudra loans include Shishu, Kishore, and Tarun.
The classification is based on the financial need and size of the micro unit.
- Under Shishu Mudra Loans, funding is available for up to 50,000.
- Under Kishor Mudra Loans funding is available for above 50,000 and up to 5 Lakh.
- Under Tarun Mudra Loans funding is available for loans above 5 lakh and up to 10 Lakh.
These funding schemes under MUDRA are available for four categories of applicants:
- Micro Credit Scheme (MCS): Loans up to 1 lakh through MFIs.
- Refinance Scheme for Commercial Banks / Regional Rural Banks (RRBs)/ Scheduled Co-operative Banks
- Women Enterprise Programme
- Securitization of Loan Portfolio
Factors that Affect Eligibility for SBI Business Loan
There are a number of factors that affect the SBI Business Loan eligibility of an individual. The major loan parameters, like business income, profitability, business plan, loan amount, and tenure, have an important impact on your eligibility for Business Loan.
- Age: Age is one of the primary criteria to consider before applying for SBI Business Loan. The bank, in general, prefers to offer the loan to the business loan applications submitted by the units managed by promoters in the productive age groups. Promoters of the units should be between 21 years to 65 years old.
- Business Stability: A steady business with a stable income is the pre-requirement to get approved for SBI Business Loan. Existing units should have been in the existing business and in the present area/ location for a minimum of 3 years and should have been profit making for the last 2 years.
- Relationship with the bank: The relationship with the bank also plays an important role to decide the eligibility of the SBI Business Loan. This is one of the prime criteria if you want to reap the multiple benefits of the business loan from the largest public sector bank in the country.
Existing bank customers who have availed credit limits with SBI and have proved their credibility by maintaining a good credit history are readily approved for Business Loans.
- Loan Repayment - The credit repayment capacity of a borrower is determined on the past regularity and continuity of payment of EMIs for previous loans. The loan applicants must plan their EMIs so that their monthly finances are not disturbed and they do not feel the financial crunch while paying out scheduled EMIs. The applicants need to make sure that there are not too many EMIs to be paid at the same time. Also, it is important to maintain a good Credit Score before applying for the loan.
- Active credit accounts - When an applicant has piled up a number of loans then it represents the financial stress and lowers the credibility of the borrower. Always ensure the right mix of secured and unsecured loans and be disciplined for loan repayments.
- Credit Score - Be it an individual or a business unit; it is important to maintain a good Credit Score. Your CIBIL Score or Experian Score help bank determine your credit repayment capacity and Business Loan eligibility.
Your Credit Score is based on your past credit behavior, EMIs repayment history, and credit portfolio. A lower Credit Score will harm the credibility of the applicant who wants to avail a Personal Loan from SBI. Hence the promoters of the business should maintain good Credit Score as well as business score.
- Too many Unsecured Loans - You should always maintain the right mix of secured and the unsecured loans to stay creditworthy. Higher the number of Unsecured Loans on your portfolio, the lower will be the Credit Score and thus would hamper your eligibility for a business loan.
- Multiple Loan Applications - When you need a Business Loan for your SME, make sure you do not apply for multiple loans and credit facilities at different banks in a short span of time. Or, your Credit Score will fall and would also hurt your creditworthiness. The same is true for the individual as per as corporate accounts.
- Delayed Payments - With irregular repayments of the loan, your CIBIL score is badly hurt. It also reduces the chances of getting a loan with ease from the SBI.
- Credit Limit Use - The credit behaviour of the Business Loan applicant, is calculated based on their credit card history, withdrawals, and expenses, etc. Exceeding credit use limit, irregularity, and delay in Card payments represent the financial stress and unorganized behavior of the loan applicant.
Tips to Increase SBI Business Loan Eligibility
- Automate repayments: You should always set Standing Instruction facility and automate loan EMI repayment. Paying out loan instalments and card dues on time boost your CIBIL score significantly.
- Prove your creditworthiness: The CIBIL score above 750 is considered suitable for availing a hassle-free loan at an attractive rate. Hence, it is vital that the borrower maintains a good track record for the past repayments and good score before filling up the loan application.
- Keep Documents handy: You must always keep your documents, including business proposal, business stability, and ITR & profit proofs handy to get fast approval for a commercial loan.
- Optimize the use of Credit Cards: Whether you are using business credit cards or individual credit card, make sure you do not exhaust credit limit every month. Be wary of rolling over the Credit Card balance as it creates a red flag on the credit report.
- Maintain a good relationship with the bank: If you maintain a good relationship with the bank where your business holds a Current Account, you are likely to get approval for the loan more swiftly.
SBI Business Loan Charges
|Purpose of Charge||Fees/ Charges|
Loan Processing Fees
1% of the loan amount; subject to the maximum of 10 lakh for select loan schemes, clearly specified with each category.
NIL, after payment of 6 EMIs
No Dues or No Objection Certificate (NDC/ NOC)
Duplicates of No Dues Certificate or NOC
Stamp Duty and other Statutory Charges and Fees
As per applicable laws and guidelines
Legal or Incidental Charges
Tips to Decide the Right Amount of EMI
- Decide the Amount for Loan: It is vital that an applicant decides and plans the amount of loan to be borrowed well in advance. The EMI should be planned so that there is no financial stress in realizing the financial commitments. So, carefully assess the loan amount, tenure, and rate of interest before signing the dotted lines.
- Calculate the Business Loan Eligibility: The cash accruals which indicate the income of a business unit is considered to assess the business loan eligibility.
- Review all present responsibilities: The loan borrower must complete assessment of the current obligations and responsibilities before applying for a Business Loan from SBI.
- Use Online EMI Calculator: Always using different permutations and combinations on the online EMI Calculator, you can calculate the financially viable EMI for your loan application. This will help you pay out the loan with more ease.
MyMoneyMantra Business Loan EMI Calculator
MyMoneyMantra Business Loan EMI calculator is an online tool that helps you to instantly calculate the Equated Monthly Instalment (EMI) for your Business Loan.
You can use different permutations and combinations to calculate the exact amount of EMI that is affordable for you as per your current financial situation. This will help you successfully manage your loan repayment without facing a financial crunch.
You can conveniently plan the monthly and annual expenses in such a way that the budget is not disturbed and plan your finances accordingly. All you need to do is provide the loan parameters like loan amount, tenure and interest rate, and the calculator will determine the EMI load for you.
How to Use MyMoneyMantra Business Loan EMI Calculator online?
- Visit MyMoneyMantra.
- Choose "EMI calculator" by hovering over the Financial Tools tab on the right side of the top Menu.
- Provide the loan amount, tenure, and interest rate.
- Click Calculate.
- Instantly you will get the results.
Change in Personal Loan EMI with Change in Pre-Payment
Prepayment of the loan helps in considerably reducing the outstanding principal amount and the interest component. There is no one-size-fits-all approach. You can prepay your SBI Business Loan and choose any of the following pathways:
- Keep the EMI intact and reduce the loan tenure: If you have a stable monthly income source, you must opt for this option. Try to keep the EMIs unchanged as it will help you close the loan earlier than the overall tenure and make you debt free faster.
- Reduce EMI amount and keep the loan tenure intact: If you are looking forward to reduce your monthly financial obligations, you can opt for lowering EMIs and keep the loan running for the original tenure. This helps you use the funds for other important events of life.
SBI Business Loan Customer Care
For any related query or complaint, you can contact SBI customer care at their toll-free number 1800 11 2211/ 1800 425 3800.
Alternatively, you can call at 080-26599990 (normal call charges apply)
SBI Business Loan- 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 apply for Business Loans up to 10 crore from SBI. The approval depends on the stability of business, financial need, and business viability.
Is SBI Business Loan a Secured Loan or Unsecured Loan?
SBI lends Business Loan as a Secured as well as an Unsecured Loan. The approval for the same depends on the eligibility and viability of the application.
How long does it take to get the approval of the 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. The final disbursal will be completed within one to four weeks in most cases.
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 Business Loan eligibility?
The eligibility for Business Loan is decided as per your business revenue. In general, any business operation with GSTIN & ITR can apply for SBI Working Capital or SBI Business Term Loan above 10 Lakh to 100 Lakh.
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:
- SME eBiz Loan
- Simplified Small Business Loan
- Stand Up India
- SME Smart Score
- SME Credit Card
- Doctor Plus
- Medical Equipment Finance
- e Dealer Finance Scheme
- e Vendor Finance Scheme
- ABL & ABL CRE
- Fleet Finance
- PM Mudra Yojana
- Export Packing Credit
- Lease Rental Discounting
- Open term Loan
- Warehouse Receipt Finance
Besides, a small & micro unit can apply for government-aided SME finance, subject to its eligibility for the same.
How do I benefit when I apply for SBI Business Loan from MyMoneyMantra?
MyMoneyMantra is a one-stop destination to locate the most affordable as well as hassle-free loan near you. When you need a business loan for a specific need, such as to expand the operations, or to set up a new establishment or to purchase equipment, MyMoneyMantra business loan expert can help you go through available deals in the market and help you select the most affordable of all options. We have tied up with more than 90 Banks & financial institutions in India and ensure a competitive rate of interest for each profile. You need not visit the bank branch at any step as our representative will not only assist you about the loan amount, tenure & EMI but would also facilitate doorstep pick up of documents. There is no charge involved.
How do I contact MyMoneyMantra for Business Loan query?
You can contact MyMoneyMantra in 3 ways:
1. Filling a loan application form on the website.
2. By calling toll free customer care number 1800 103 4004.
3. By emailing us your requirement at email@example.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.
Is SBI business loan offered on fixed rate or floating rate?
SBI Business Loan interest rate is highly attractive. It is linked to MCLR, and the rate of interest resets every year. Currently, you can avail SBI business loan starting at 10.45% to 12.75%. The effective rate of interest varies according to credit eligibility of the business unit.
Why Apply for SBI Business Loan on MyMoneyMantra?
It is safe, fast, and hassle-free to apply for Business Loan at MyMoneyMantra. With three decades of experience in the credit distribution sphere and integration of best Fintech practices, the business loan application and processing at MMM is just a few clicks away.
You just need to visit MyMoneyMantra 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.
How to apply for SBI Business Loan on MyMoneyMantra?
- Visit MyMoneyMantra.com. There is no subsidiary website of MMM. Make sure you only apply through the safe and secure mymoneymantra official website.
- Choose Business Loan tab from the menu bar on Home Page.
- Fill the user form and share the required details.
- Once you share your loan requirement along with your credentials, an OTP is generated and sent to your mobile number.
- Verify your identity by logging in with OTP. This will ensure safe and secure access to the best matching Commercial Loan offers available in the market. You will indeed be directed to a customized Business Loans listing page.
- Select the best suitable loan offer according to your needs and budget. Click on "Apply" or "connect with bank" tab.
- As you fill the application, a loan representative will call you and assist you regarding the steps involved for loan approval. You must feel free to ask questions as there are no charges involved, and loan assistance is offered to each of the website visitors of MyMoneyMantra.
- The Business Loan representative will further help you understand the documentation procedure involved. S/he will also arrange for doorstep pick up of the required documents through bank representative.
- The team will extend all kind of support until the final disbursal of the loan.