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Grow Your Business with Customised SBI Business Loan

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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 Rates11.20% – 16.30%
Loan tenure60-180 months
Processing ChargesUp to 2 lakhs: Rs.500

Above 2 lakhs: 2 to 3% of the total loan amount + applicable tax

PrepaymentAfter 6 installments
Prepayment chargesNIL (after 6 months EMI’s, if the loan is pre-paid from own sources)
Penal Interest2% 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 Yojana11.15% onwards
Supply Chain Finance8.80% onwards
CGTMSE8.25% onwards
Doctor Plus10.25% onwa rds
PMEGP/KVIC11.35% onwards
SBI Asset-Backed Loan10.70% onwards
SBI Asset-Backed Loan for Commercial Real Estate11.45% onwards
Electronic Dealer Finance Scheme8.95% onwards
SME Construction Equipment Loan9.90% onwards
SBI Fleet Finance Scheme9.15% onwards
Warehouse Receipt Financing9.40% onwards
Lease Rental Discounting11.50% onwards
Arthias Plus Scheme9.40% onwards
Dal Mill Plus9.30% onwards
Cotton Ginning Plus9.30% onwards
SME Credit Card10.90% onwards
Weavers Credit Card11.15% onwards
Artisan Credit Card11.15% onwards
Medical Equipment Finance Scheme10.40% onwards
SBI e-Smart SME e-Commerce Loans10.70% 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 TypePurpose of LoanLoan Amount Processing FeeRepayment Tenure/Credit PeriodMargin
SBI Asset-Backed Loan –Business modernization, Capacity ExpansionMin – Rs.10 lacs,

Max – Rs. 20 Crore

1% of total loan amount, max cap – Rs. 10 lacsUp to 15 yearsMin. 25%
SBI Loan for Commercial Real EstateTo purchase a commercial propertyMin – Rs. 10 Lacs, Max – Rs. 50 Crore1% of total loan amount, max cap – Rs. 10 lacsUp to 6 yearsMin. 25%
SBI Doctor Plus SchemeExpanding medical premises, or for setting up a new clinicMin – Rs. 10 Lacs, Max – Rs. 5 CroreUp to 50% off on rate cards3-7 years15%
SBI Fleet FinanceFor purchasing new vehiclesMin – Rs. 50 Lacs, Max – Rs. 10 Crore1% of the total limitUp to 66 months10% onwards
SBI SME eBiz LoanTo avail cash credit facilityMin – Rs. 20 Lacs, Max – Rs. 5 Crore1% of the total limitNil10% onwards
SBI Simplified Small Business LoanFor manufacturersMin – Rs. 10 Lacs, Max – 25 LacsRs. 7,500Up to 5 years10%
e-Dealer Finance SchemeFor providing cash credit facility to dealersMin – need-based,

Max – performance-based

Rs. 10,000 – Rs. 30,000Up to 90 days, yearly renewalNil
e-Vendor Finance SchemeFor providing cash credit facility to vendorsNeed-basedRs. 10,000 – Rs. 50,000NilNil
Export Packing CreditFor pre-shipment finance to exportersNeed-basedAs applicable to cash Credit Facility/Working Capital LimitsNot extending 180 daysDepending on the type of order and capability of exporter
Medical Equipment FinanceTo purchase medical equipmentMin – Rs. 10 Lacs,

Max – Rs. 20 Crore

50% of on rate cards 3-7 years15%

Eligibility Criteria for SBI Business Loan

  1. Applicant should be an Indian citizen and a business owner.
  2. The age limit is 21 years – 65 years.
  3. To be eligible, your business should be at least 3 years old.
  4. Gross turnover of the company should be above Rs. 20 lacs per annum for the duration of the last 2 years.
  5. 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
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