SBI 
Business Loan

Some of the striking features of SBI online Business Loan are:

• A host of Business Loans to match with diversified customer requirements.
• The SBI business loan interest rates start from just 6.70% p.a.
• 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.
• Business loan for womens in SBI comes at concessional interest rates.

Additional Reading: How to get instant loan for low cibil score?

Following are the key benefits of SBI business loans:

• 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.
• Business loan for womens in SBI comes at concessional interest rates.

Additional Info: Also, check PSB Loans in 59 Minutes is a quick business loan portal for start ups.

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 the SBI Business Loan EMI Calculator available on our website. 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 is an example of EMI calculation using MyMoneyMantra EMI Calculator:

Loan amount required: Rs. 25 Lakhs

Applicable rate of interest: 6.70% p.a.

Repayment tenure: 5 years

EMI to be paid by you each month: Rs. 49,150

Total interest to be paid: Rs. 4,48,995

Total amount to be paid by you to the lender: Rs. 29,48,995

Our efficient EMI Calculator also provides the following amortization schedule:

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, such as Passport, PAN Card, Voter ID, or Driving License.
• Proof of residential address, such as Registered Rent Agreement, Leave and License/, Utility Bill of at least 3 months, or Passport.
• Proof of business, such as 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.

Additional Reading: Check cibil score by pan card

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 a 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: 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 Rs. 10 Lakhs: Nil (covered under CGFMU)
  • Loans above Rs. 10 Lakhs and up to Rs. 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 the last 3 years.
• Minimum turnover size for Industry Majors: Rs. 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 an existing fleet of minimum 10 vehicles.
  • Borrowers must have a requirement of minimum 10 new vehicles or a minimum loan amount of Rs. 50 Lakhs.
  • Transport operators who have national/state route permit & other necessary permits/license/approval.
• Collateral security
  • Up to Rs. 1 Crore: Nil
  • Above Rs. 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 Rs. 50,000: Nil
  • Rs. 50,001 to Rs. 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
  • Applicants must have an existing business for at least 5 years in the same area/locality.
  • Applicants 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).
  • Applicants 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 Rs. 1 Lakh in the last 12 months, with monthly threshold balance of Rs. 1,000.
  • Applicants 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 Rs. 10 Lakhs & up to Rs. 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 Rs. 25,000 & 20% for loan above Rs. 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 Rs. 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 Rs. 50,000 and 10% for loan above Rs. 50,001 to Rs. 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 the 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

Additional Reading: Top credit rating agencies in India

Processing fees associated with SBI Business Loans are as follows:

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.

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