About South Indian Bank Business Loan
South Indian Bank has the distinction of being one of the earliest banks in India, as it was conceived during the Swadeshi movement. A group of enterprising men established the bank in Thrissur, Kerala to provide safe banking facilities to people, including the business community who were suffering under the clutches of greedy moneylenders.
Over a period, the bank grew in size to have several firsts to its credit. South Indian Bank was the first bank in the private sector in Kerala to become a scheduled bank. It was also the first private sector bank to open an Industrial Finance Branch in India. South Indian Bank places much emphasis on technology. It is the first Kerala-based bank to implement Core Banking System (CBS). Among the private sector banks in India, South Indian Bank has the third largest branch network under CBS.
South Indian Bank has a dominating presence in Kerala and the neighbouring state of Tamil Nadu. The bank has a pan India presence with more than 870 branches and 50 extension counters.
South Indian Bank offers various kinds of loans, such as Business Loans, home loans, car loans, personal loans, and education loans. Besides catering to the local clientele, South Indian Bank offers loan facilities to NRIs as well.
Why Choose South Indian Bank Business Loan?
South Indian Bank was established with a primary aim of easing the worries of the business community. They offer an extensive range of Business Loans to cater to almost every industrial sector. The bank provides diverse facilities like cash credit, overdraft, working capital finance, long-term finance, supply chain finance, finance for commercial vehicles and mortgage loans for business.
South Indian Bank Business Loan - Features and Benefits
- Different types of Business Loans are available for all businesses
- Working capital finance offered in the form of cash credit, overdraft, bills discounting
- Long-term financing facilities for business expansion and procurement of fixed assets
- Collateral-free Business Loans up to a maximum of 1 Crore
- Convenient repayment period ranging between 12 and 48 months depending on the working capital cycle of the business entity.
- Attractive rates of interest on Business Loans
- Transparency in the Business Loan approval process
- Relaxed eligibility norms and documentation procedures
- Reasonable charges
- Pre-closure of loan facility available subject to specific conditions
- Mortgage loans for business purposes are also available
- Loans for purchase of commercial vehicles
- Supply chain finance facility
- Non-fund based finance
South Indian Bank Business Loan Interest Rates
With effect from 01 April 2016, South Indian Bank has shifted to the Marginal Cost of Funds Based Lending Rates (MCLR) methodology.
The bank's MCLas on 20 June 2019 are as follows:
Tenor | MCLR |
Overnight |
8.60% |
One-Month |
8.65% |
Three-Month |
8.80% |
Six-Month |
9.05% |
One-Year |
9.50% |
Accounts sanctioned before 01 April 2016 can continue with the Base Rate or the Benchmark Prime Lending Rate as applicable.
The Base Rate of the South Indian Bank is 10%. The BPLR of the bank is 15%.
The rate of interest differs from one product to the other. The interest rate depends on other factors, such as the credit rating of the business entity. Here are the rates of interest applicable to schematic finances related to the business sector.
Loan Product | Rate of Interest |
SIB Vyapar Rating AAA and AA |
11.20% |
SIB Vyapar Rating A |
11.70% |
SIB Vyapar Rating BBB |
12.20% |
SIB Vyapar Rating below BBB/Unrated |
12.70% |
SIB Mobiloan - Commercial |
12.40% to 13.90% |
SIB Loan against Property for Business |
10.75% to 12% |
OD against Property for Business |
11.50% |
SIB Pharma Plus Rating SIB A/White 3 |
10.80% |
SIB Pharma Plus Rating BBB/Grey 1/Unrated |
11.30% |
SIB BB Pharma Plus Rating BB/Grey 2 and below |
12.30% |
SIB Mini Rental Scheme |
12% |
SIB Business Loan - Income Programme |
13.70% to 15.70% |
SIB Business Loan - Non-Income Programme |
15.70% to 17.70% |
SME Composite Loan |
11.50% to 14 % |
Trader's Overdraft |
11.75% to 13% |
All overdue accounts falling in the Special Mention Accounts (SMA) category attract additional interest.
Overdue period | Category | Additional Interest |
31 to 60 days |
SMA 1 |
Existing rate + 0.50% |
61 to 90 days |
SMA 2 |
Existing rate + 1 % |
South Indian Bank Business Loans - Types and Eligibility Norms
South Indian Bank offers the following Business Loan facilities:
Business Banking | |
Working Capital Finance |
Business Loan |
Long Term Finance |
Mortgage Loan for Business |
Non-Fund Based Finance |
SIB Commercial Vehicle Loan |
Supply Chain Finance |
Personal Banking |
Loans for Purchase of Commercial Property |
SIB Pharma Plus |
SIB Rental Loans |
Here's the detailed description of all the business financing products with their features and eligibility criteria:
Business Loan
Purpose |
To meet all business requirements including working capital needs and long-term asset financing for business expansion |
Target |
|
Age Criteria |
|
Amount of Loan |
|
Repayment Tenure |
|
Rate of Interest |
Attractive interest rates |
Eligibility |
Minimum credit score of 650 |
Features |
|
Processing Fees |
Up to 2% of the sanctioned amount |
Pre-Closure charges |
|
Working Capital Finance
Type of Finance |
Overdraft Facilities |
Purpose |
Meet working capital requirements |
Type of Account |
Overdraft account where the borrower can withdraw up to the sanctioned limit. It is a running-type account where the borrower can remit business proceeds. |
Target Group |
Traders, individuals, and industrial concerns |
Security |
It can be unsecured, partially secured, or fully secured by mortgage of property and hypothecation of securities available to the bank |
Type of Finance |
Cash Credit Facilities |
Purpose |
Meet working capital and urgent business requirements |
Type of Account |
Similar to the overdraft account where the Projected Annual Turnover decides the amount of finance |
Target Group |
Traders, proprietorship concerns, partnership firms, private limited companies |
Security |
|
Loan Product |
SIB Vyapar |
Purpose |
Working Capital requirements |
Type of Account |
CC/OD limit for a maximum of 12 months subject to renewal thereafter |
Amount of Finance |
|
Target Group |
Same as that of CC/OD |
Security |
|
Collateral |
|
Type of Finance |
Bill Purchase or Bill Discounting |
Purpose |
Post Sale limit to meet working capital requirements |
Type of Account |
|
Loan Product |
SIB GST Business Loan |
Target Group |
MSME Units with a minimum existence of 3 years and filing GST returns for the last 12 months |
Stability of office/residence |
|
Purpose |
Meet Working Capital requirements |
Amount of Loan |
|
Type of Facility |
Cash Credit |
Primary Security |
Hypothecation of stocks and book debts |
Collateral |
|
Rate of Interest |
Present applicable rate - 10% to 12% depending on internal ratings |
Assessment of finance |
25% of sales turnover as per GST statement |
CIBIL Checks |
Satisfactory CIBIL report |
Takeover of accounts |
Allowed |
Validity |
One year subject to renewal thereafter |
Processing Fee |
0.40% of the approved limit |
Loan Product |
MSME Star |
Target Group |
MSME borrowers with a satisfactory record in credit bureaus/RBI defaulters list/SAL list by ECGC |
Eligibility |
|
Type of Loan |
|
Purpose of Loan |
|
Amount of Loan |
|
Primary Security |
|
Collateral |
|
Rate of Interest |
Applicable rate of interest ranging from 10% to 12% depending on internal ratings |
Processing Fees |
|
Type of Finance |
Long-term Loan |
Type of Loan |
Disbursement is in a lump sum and repayable in EMIs |
Purpose |
Meet business requirements like acquiring assets, upgrading capacity, and expand business or for a specific project |
Repayment Tenure |
|
Supply Chain Finance
Facility |
Vendor Finance |
Purpose |
Finance direct vendors of corporate |
Conditions for operations |
Execution of Memorandum of Understanding (MOU) between the corporate entity and the bank |
Mode of Finance |
The vendors identified by the corporate body alone are eligible for this finance facility |
Nature of Facility |
Vendor Finance |
Limit per vendor |
|
Assessment |
As per Bank rules and policies |
Primary Security |
Invoices/Bills accepted by the corporate entity |
Documents |
Product Specific documents |
Rate of Interest |
Applicable rates - 9.30% to 10.80% depending on internal ratings |
Processing Fees |
0.10% for each vendor |
Software Support |
Dedicated software support to both corporate and vendor with a user interface |
Vendor Selection |
Bank's decision |
Repayment |
Bullet payment or part payment depending on the cash flow of borrower subject to settling of all dues within the stipulated period |
Type of Finance |
Dealer Finance |
Purpose |
Finance direct dealers of the corporate entity |
Conditions |
Execution of MOU between the corporate and the bank |
Mode of Finance |
Dealers identified as eligible for finance by the corporate entity |
Nature of Facility |
Dealer Finance |
Limits per dealer |
|
Assessment |
Bank's discretion |
Primary Security |
Hypothecation of stock/goods purchased through bank finance |
Documents |
Product Specific |
Rate of Interest |
Range of 9.30% to 10.80% based on internal ratings of the dealer |
Software Support |
Available |
Dealer selection |
Bank's discretion |
Repayment |
Bullet payment or part payment depending on cash flow subject to clearing each bill within the stipulated period |
Type of Finance |
Corporate Bill Discounting |
Target Group |
|
Additional Conditions |
|
Purpose |
|
Amount of Loan |
|
Period of finance |
Maximum of 90 days |
Primary Security |
|
Collateral |
|
Rate of Interest |
9.05% to 10.30% depending on internal ratings |
Documents |
Product Specific |
Processing Fee |
0.25% of the approved limit |
Other conditions |
Satisfactory credit record |
Mortgage Loan for Business
Purpose |
To meet business related expenses |
Loan variants |
|
Features |
|
Amount of Loan |
|
Loan tenure |
|
Types of property |
|
Conditions |
Agricultural property, schools, hospitals, hostels, farmhouses, auctioned property or disputed property not acceptable |
Processing Fee |
Up to 1.50% |
Documents |
KYC documents and property documents along with income proof for 3 years |
SIB Commercial/Agricultural Vehicle Loan
Purpose |
|
Target Customers |
Individuals, proprietorship concerns, partnership firms, company, trust, LLP, society |
Age |
|
Amount of Loan |
|
Repayment tenure |
|
Rate of Interest |
Starting from 12.40% |
Margin on Loan |
|
Credit rating |
Minimum CIBIL score of 650 |
Processing fee |
1.50% with minimum 5,000 |
Prepayment charges |
|
Other features |
|
SIB Pharma Plus
Purpose |
To meet business-related working capital expenses |
Target Customers |
Pharmaceutical dealers, stockists, distributors handling Ayurvedic, Allopathic, or Homoeopathic drugs on wholesale or retail basis |
Eligibility |
|
Nature of Limit |
|
Loan Amount |
|
Appraisal |
Bank's internal appraisal formats |
Rates of Interest |
Attractive rates depending on the credit rating of the Pharma unit |
Charges |
Competitive rates |
Collateral |
|
Processing Fees |
0.20% of the loan amount |
Repayment tenure |
12 months limit subject to renewal |
Pre-closure Charges |
|
Penal Interest |
2% for the defaulted amount for the concerned period |
SIB - Mini Rental Scheme
Purpose |
To meet any business or personal purpose |
Target Customers |
Any customer having rental income from property |
Eligibility |
The borrower should necessarily be the owner of the property let out |
Nature of advance |
Financing against future rent receivables |
Repayment tenure |
Maximum of 84 months |
Amount of Loan |
|
Eligible Loan amount |
Maximum of 40 times monthly rent with 75% of rent covering EMI |
Margin |
Nil |
Primary Security |
Hypothecation of rent receivables |
Collateral |
100% in the form of property from where there is generation of rental income Other property also accepted NSC, Gold, FDs, LIC policies |
Rate of Interest |
Attractive rates |
Upfront fee |
1% of the loan amount |
Penal Interest |
2% for default amount for the default period |
Loans for Purchase of Commercial Property
Purpose |
Purchase commercial building or property for own use or letting out |
Type of property |
|
Target |
Both residents and Non-resident Indians |
Age |
|
Loan Amount |
Minimum 25 Lakhs with a maximum of 15 Crores |
Repayment tenure |
144 months |
LTV Ratio |
Up to 75% |
Interest Rate |
Start from 11.50% |
Credit rating |
Minimum CIBIL score of 600 |
Features |
|
Processing Fee |
1% of loan with a minimum of 10,000 |
Pre-closure Charges |
2% of the outstanding amount |
Apart from Business Loans, South Indian Bank offers non-fund based facilities to eligible customers.
- Inland Letter of Credit
- Bank Guarantees
- Combination of fund-based and non-fund based limits
Documents Required South Indian Bank Business Loan
KYC Documents | |
Individuals |
PAN Card, Aadhaar Card, and Photographs |
Proprietorship |
|
Partnership |
|
Companies |
|
Trust/Society |
|
Income Documents | |
Individuals |
|
Proprietorship/ Partnership/ Companies/ Trust/Societies |
|
Additional Documents | |
Takeover of loan |
Sanction letter of existing facility along with a loan account statement |
Property Documents | |
|
|
Other Documents | |
SIB Commercial Vehicle Loan |
|
Besides the above general documents, the following products require the submission of additional documents.
Vendor Finance for Corporate / Dealer finance for corporate | |
Documents from Corporate entities |
|
Documents from Vendors |
|
Corporate Bill Discounting | |
Documents from Corporate/Principal |
|
SIB GST Business Loan | |
|
|
MSME Star Business Loan | |
|
|
Why Apply for South Indian Bank Business Loan on MyMoneyMantra?
Applying for South Indian Bank Business Loans on the MyMoneyMantra entitles the applicants to the following benefits:
- Get an opportunity to compare the Business Loan products of different banks on a single screen
- Our customer service executives can help you with the compilation of loan documents and submitting the same to the bank.
- Avail the benefits of using our Loan EMI Calculator to arrive at the appropriate EMI. It also helps in determining your eligibility.
- Get all the information regarding South Indian Bank Business Loan on a single platform
- Our services are available free of cost to our clients
How to Apply for South Indian Bank Business Loan on MyMoneyMantra?
MyMoneyMantra makes it easy for you to apply for South Indian Bank Business Loans.
- Access our website and select the Business Loan option, it is given under the tab of Loans
- Fill in the details asked for by the system
- Furnishing your mobile number is necessary for confirmation purposes
- We send you an OTP on the registered mobile number
- Enter the OTP details at the requisite place and gain access to compare the best Business Loans on offer in the industry on a single screen.
- Our customer service executives will make it easy for you by explaining the loan application procedure.
- Complete the documentation formalities and proceed to apply for your South Indian Bank Business Loan.
- We will assist you in submitting the documents to the South Indian Bank
Other Products by South Indian Bank
South Indian Bank offers an array of Business Loans. Besides, they have loan products for almost every activity. Here are some of the other loan products on offer.
- Personal Loans - for all personal uses
- Home Loans - to purchase homes or construct houses
- Car Loans - to buy cars
- Gold Loans - to meet all kinds of personal and business exigencies
- Education Loans - for education in India and abroad
- Property Loans - for personal and commercial uses
- SIB Decor - for interior decoration
- SIB Travel Delight - To fund travel expenses
Non-resident Indians can also avail personal loans, home loans, car loans, property loans, education loans, and SIB Decor.
Apart from loans and deposits, South Indian Bank is active on mutual funds and insurance businesses.
How to Calculate South Indian Bank Business Loan EMI?
You can also use the MyMoneyMantra EMI Calculator to calculate EMI for South Indian Bank Business Loan. The procedure is easy and instant.
Enter the loan amount, rate of interest, and tenure and click on the Calculate button to calculate the EMI within no time.
The online tool comes at free of cost for you. You can use the same calculator innumerable times to calculate EMI for any loan.
Charges for South Indian Bank Business Loans
Processing Fees | |
Business Loans |
Up to 2% of the loan amount |
SIB GST Business Loan |
0.40% of the loan amount |
MSME Star Loan |
CCOL Facility - 0.25% of limit sanctioned Term Loan - 0.50% of the sanctioned amount Non-fund-based - 0.25% of the limit |
Vendor Finance |
0.10% for vendors and NIL for corporate |
Dealer Finance |
0.20% for dealers and NIL for corporate |
Corporate Bill Discounting |
0.25% of the limit sanctioned |
Mortgage Loan for Business |
Up to 1.50% of the loan amount |
SIB Commercial Vehicle Loan |
1.50% with a minimum of 5,000 |
SIB Pharma Plus |
0.20% of the loan amount |
SIB Mini Rental Scheme |
Upfront Fee of 1% of the loan amount |
Pre-Closure Charges | |
Business Loan |
3% of the outstanding loan amount on the day of pre-closure |
Mortgage Loan for Business |
2% of Outstanding balance/DP for using own funds 3% of DP/outstanding balance for balance takeover accounts |
SIB Commercial Vehicle Loan |
Up to 12 months - 2% of the prepaid amount Above 12 months - 1% of the prepaid amount |
SIB Pharma Plus |
Closed through own funds - 2% of the sanctioned amount Closed by takeover - 3% of the sanctioned amount |
Other Charges | |
Mortgage Loan for Business |
Commitment charges - 0.025% of the unutilized portion above 1 Crore |
SIB Pharma Plus |
Penal Interest - 2% p.a. for the defaulted amount for the default period |
SIB Mini Rental |
Penal Interest - 2% p.a. for the default amount |
South Indian Bank Business Loan - Customer Care
Customers can contact South Indian Bank with their feedback and grievances at the following phone numbers and email address:
Toll-Free Number: 1800-425-1809 or 1800-102-9408
Landline Number: 0487-2420020, 0487-2420488
Email id: customercare@sib.co.in
Corporate Office: South Indian Bank Ltd, Head Office, TB Road, Mission Quarters, Thrissur 680001, Kerala, India.
South Indian Bank Business Loan - FAQs
How do I pay the South Indian Bank Business Loan EMI?
South Indian Bank offers various methods for servicing your loan EMIs. If you have a current account with the bank, you can set up a standing instruction to the bank to debit your account with the EMI amount on the due date. In this way, you do not miss out on the repayment. Submitting PDCs or ECS mandates are alternative methods of paying your EMIs. You can also transfer funds online to your loan account. Paying cash into your loan account is a common way of repaying your EMIs. However, you might incur cash handling charges if the amount is high.
Are there any benefits to existing SIB customers in the pricing of loans?
Yes, SIB Prime Platinum and SIB Platinum customers get discounts on the applicable interest rates for retail loans. Besides, they get 25% to 50% waiver on processing fees in addition to other concessions.
What is the turnaround period for a South Indian Bank Business Loan?
The turnaround period for SIB Business Loans differs depending on the sanctioning authority.
- Branch Level: The turnaround period is 7 days after receipt of all documents in order
- Regional Office Level: The period is 10 days after clarifying all queries
- Head Office Level: The time frame for disposal of a Business Loan at HO level is 15 days after receiving the final clarifications.
- Management Committee: You can expect a decision on your loan proposal within 30 days if it goes to the Managing Committee of the Board of Directors.
Does South Indian Bank Ltd offer loans under CGTMSE guarantee cover?
Yes, South Indian Bank Ltd offers loans under CGTMSE guarantee cover, as the bank is a member lending institution authorised by CGTMSE. The SIB Commercial Vehicle Loan product provides cover under CGTMSE for loans under 10 Lakhs.
Can NRIs get loans from South Indian Bank Ltd?
Yes, NRIs can avail home loans, personal loans, car loans, property loans, education loans, and loans for interior decoration from SIB. They cannot avail Business Loans in India from SIB.
Does South Indian Bank offer any branch banking?
Yes, South Indian Bank Ltd has all its branches and extension counters under CBS. It offers 'Any Branch Banking' facility to its customers.
Does South Indian Bank have any office outside India?
South Indian Bank has a representative office in Dubai to cater to the Indian Diaspora in the UAE. It provides customers with banking, financial, and investment consultation services. The bank facilitates easy transfer of money from the UAE to India.
How do you contact MyMoneyMantra for availing loan from South Indian Bank?
MyMoneyMantra provides excellent facilities to its clients by helping them to apply for Business Loans and other loans from more than 90 banks and NBFCs. You can contact us in three ways.
- Call us on 1800-104-4404 to speak to one of our customer service executives. We help you with understanding the loan application process.
- Drop an email to contactus@mymoneymantra.com to enable our customer service executives to get back in touch with you.
- Access our website and apply for the South Indian Bank Business Loan through us after comparing the loan offers from various banks.
Can I foreclose my Business Loan with SIB?
Yes, you can foreclose your South Indian Bank Business Loan subject to paying the necessary foreclosure charges.
What type of non-fund-based facilities does the South Indian Bank offer to its clients?
South Indian Bank offers inland LC and Bank Guarantee facilities to its customers. Some of the products provide composite fund-based and non-fund-based facilities.
Latest News - South Indian Bank
South Indian Bank plans to raise a debt of 500 Crores
South Indian Bank Ltd has approved a proposal to raise funds in Indian or foreign currency up to 500 Crores by issuing debt securities including non-convertible debentures in the domestic/overseas market on a private placement basis.
Reserve Bank of India fines South Indian Bank an amount of 10 Lakhs
Due to a failure to honour its bank guarantee commitments, Reserve Bank of India or RBI has slapped a fine of 10 Lakhs following references from a private party and a Government department.
South Indian Bank has posted a stand-alone net interest income of 499.36 Crores for the year ended March 2019.
South Indian Bank has witnessed a growth of 1.45% from 492.20 Crores in March 2018 to post a net interest income of 499.36 Crores for March 2019. However, the quarterly net profit of the bank saw a decline from 114.10 Crores in March 2018 to 70.51 Crores in March 2019.