Grow Your Business with Customised SBI Business Loan
Being the largest bank in terms of market share, SBI holds a very prestigious position in loan and deposit market. Under Government of India schemes, State Bank of India is providing financial services like line of credit and business loan. Under the various schemes of Government of India, SBI distributes business loan to small and medium enterprises. Apart from that, the bank also lends SBI Business Loan at convenient interest rate. Business Loan by SBI is given to well established big business as well as small and medium enterprises (SME). To know more about the SBI Business Loan rate of interest, eligibility, etc., read the entire article below.
Important Facts about SBI Business Loan
|Interest Rates||11.20% – 16.30%|
|Loan tenure||60-180 months|
|Processing Charges||Up to 2 lakhs: Rs.500
Above 2 lakhs: 2 to 3% of the total loan amount + applicable tax
|Prepayment||After 6 installments|
|Prepayment charges||NIL (after 6 months EMI’s, if the loan is pre-paid from own sources)|
|Penal Interest||2% per month on the overdue installment amount|
SBI Business Loan interest rate depends on various factors like loan amount, CIBIL Score, revenue of your business and age of the business. Furthermore, the interest rate of SBI Business Loan depends upon Marginal Cost of Fund Based Lending Rate (MCLR) of SBI. The current MCLR of SBI is 8.40%.
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Rate of Interest of SBI Business Loan
As SBI also provides SME loan under various government schemes, interest rate of Business Loan by SBI varies from one loan scheme to another.
|SBI Business Loan/SME Loan Interest Rate|
|Pradhan Mantri Mudra Yojana||11.15% onwards|
|Supply Chain Finance||8.80% onwards|
|Doctor Plus||10.25% onwa rds|
|SBI Asset-Backed Loan||10.70% onwards|
|SBI Asset-Backed Loan for Commercial Real Estate||11.45% onwards|
|Electronic Dealer Finance Scheme||8.95% onwards|
|SME Construction Equipment Loan||9.90% onwards|
|SBI Fleet Finance Scheme||9.15% onwards|
|Warehouse Receipt Financing||9.40% onwards|
|Lease Rental Discounting||11.50% onwards|
|Arthias Plus Scheme||9.40% onwards|
|Dal Mill Plus||9.30% onwards|
|Cotton Ginning Plus||9.30% onwards|
|SME Credit Card||10.90% onwards|
|Weavers Credit Card||11.15% onwards|
|Artisan Credit Card||11.15% onwards|
|Medical Equipment Finance Scheme||10.40% onwards|
|SBI e-Smart SME e-Commerce Loans||10.70% onwards|
Types of Business Loan by SBI for SME
SBI lends business loan for various reasons. Be it expansion in inventory, equipment, or premise of the office, SBI Business Loan covers it all. For different needs, SBI has different terms and conditions.
|Loan Type||Purpose of Loan||Loan Amount||Processing Fee||Repayment Tenure/Credit Period||Margin|
|SBI Asset-Backed Loan –||Business modernization, Capacity Expansion||Min – Rs.10 lacs,
Max – Rs. 20 Crore
|1% of total loan amount, max cap – Rs. 10 lacs||Up to 15 years||Min. 25%|
|SBI Loan for Commercial Real Estate||To purchase a commercial property||Min – Rs. 10 Lacs, Max – Rs. 50 Crore||1% of total loan amount, max cap – Rs. 10 lacs||Up to 6 years||Min. 25%|
|SBI Doctor Plus Scheme||Expanding medical premises, or for setting up a new clinic||Min – Rs. 10 Lacs, Max – Rs. 5 Crore||Up to 50% off on rate cards||3-7 years||15%|
|SBI Fleet Finance||For purchasing new vehicles||Min – Rs. 50 Lacs, Max – Rs. 10 Crore||1% of the total limit||Up to 66 months||10% onwards|
|SBI SME eBiz Loan||To avail cash credit facility||Min – Rs. 20 Lacs, Max – Rs. 5 Crore||1% of the total limit||Nil||10% onwards|
|SBI Simplified Small Business Loan||For manufacturers||Min – Rs. 10 Lacs, Max – 25 Lacs||Rs. 7,500||Up to 5 years||10%|
|e-Dealer Finance Scheme||For providing cash credit facility to dealers||Min – need-based,
Max – performance-based
|Rs. 10,000 – Rs. 30,000||Up to 90 days, yearly renewal||Nil|
|e-Vendor Finance Scheme||For providing cash credit facility to vendors||Need-based||Rs. 10,000 – Rs. 50,000||Nil||Nil|
|Export Packing Credit||For pre-shipment finance to exporters||Need-based||As applicable to cash Credit Facility/Working Capital Limits||Not extending 180 days||Depending on the type of order and capability of exporter|
|Medical Equipment Finance||To purchase medical equipment||Min – Rs. 10 Lacs,
Max – Rs. 20 Crore
|50% of on rate cards||3-7 years||15%|
Eligibility Criteria for SBI Business Loan
- Applicant should be an Indian citizen and a business owner.
- The age limit is 21 years – 65 years.
- To be eligible, your business should be at least 3 years old.
- Gross turnover of the company should be above Rs. 20 lacs per annum for the duration of the last 2 years.
- Applicant must not be CIBIL defaulter and he/she should have a good credit score.
Documents Needed for SBI Business Loan
- ID Proof
- Pan Card
- IT return of last 2 years
- Signed assets and liabilities statements
- Partnership Deed and Partnership Letter
- Search Report from registrar of companies
- Balance Sheet and profit and loss account for the last 2 years, audited and certified by CA
- Land Tax Receipt of the property