SBI Business Loan – Interest Rates & Features – Jan 2022
|Interest Rate||Depends on the loan type, applicant’s profile & business requirements|
|Processing Fee||From 1% – 5% of the sanctioned loan amount|
|Loan Amount||Min. Rs. 10,000 – Max. up to Rs. 500 crore*|
|Collateral||Not required for unsecured business loans|
|Repayment Tenure||From 12 months – 5 years, may exceed as per business requirements|
|Loan Disbursal Duration||Depends on case to case|
Note: Note: The mentioned interest rates, fees, and charges are subject to change and depend on the sole discretion of the bank, NBFC, and RBI. GST and service tax shall be levied extra on the mentioned charges.
*Loans up to Rs. 500 crore are offered to Mid-Corporate Group (MCG) for Lease Rental Discounting.
The bank also assists businesses in availing loans under government schemes, such as Mudra Yojana under PMMY, PMEGP, PSB Loans in 59 minutes, CGTMSE, Startup India, and Stand-up India.
Apply for Business Loan @ 14.99% onwards per annum Apply Now
Table of Contents:
SME Loans from SBI
|Loan Type||Nature of loan||Loan Amount||Processing Fee||Repayment Tenure|
|Asset-Backed Loan||Dropline Overdraft||Up to Rs. 20 crore||1% of the limits (Upper Cap: Rs.10 Lacs)||From 12 months to 180 months|
|Asset-Backed Loan-Commercial Real Estate||Dropline Overdraft||Up to Rs. 20 crore||1% of the limits (Upper Cap: Rs.10 Lacs)||From 12 months to 72 months|
|Export Packing Credit||Pre-shipment Finance||Need-based||As applicable to the cash credit limit||Up to 180 days|
|E-Dealer Finance Scheme||Cash Credit||Need-based||Up to Rs. 30,000||Up to 90 days|
|E-Vendor Finance Scheme||Cash Credit||Need-based||Up to Rs. 50,000||As per tenure of receivables|
|Fleet Finance||Term Loan||Up to Rs. 10 crore||1% of the limit||Up to 66 months|
|Simplified Small Business Loan||Term Loan||Up to Rs. 25 lakh||Rs. 7500||Up to 5 years|
|SME Credit Card||Cash Credit||Up to Rs. 50 lakh||As per the bank’s instructions||Up to 5 years|
|SBI OD Product||Running A/C OD facility||Up to Rs. 5 crore||1% of the loan amount||12 months|
Note: The above-mentioned fees and charges may change and shall depend on the sole discretion of SBI and RBI. The eligibility criteria shall vary from loan to loan and can be checked by visiting the bank’s official website. Interest rates offered by SBI shall vary from applicant to applicant. Updated as on Jan 2022.
SBI Business Loan Scheme for Healthcare Sector (Newly Launched)
SBI recently introduced a business loan scheme exclusively for the Healthcare sector to combat Covid-19 named ‘’Aarogyam Healthcare Business Loan’’. The eligible Healthcare entities shall include hospitals, equipment manufacturers, makers of equipment devices, diagnostic centres, suppliers, nursing homes, pathology labs, importers, and logistics firms. Below mentioned are the additional loan details:
SBI’s Aarogyam Healthcare Business Loan – 2022
|Interest Rate||As per business requirements|
|Loan Amount||Up to Rs. 100 crore|
|Nature of Loan||Term Loan & Working Capital Loan|
|Repayment Tenure||Up to 10 years|
|Collateral/Security||Not required up to Rs. 2 crore (Coverage under CGTMSE)|
|Loan Amount for Tier 1 & Urban centres||Up to Rs. 20 crore|
|Loan Amount for Tier 2-4 centres||Up to Rs. 10 crore|
Note: The above-mentioned fees and charges may change and shall depend on the sole discretion of SBI and RBI. Please Note: SBI is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.
SME Government Schemes
Below mentioned are the loan schemes initiated by Govt. of India that are offered by SBI:
1 – Prime Minister Employment Generation Programme (PMEGP)
Implemented by the Khadi and Village Industries Commission (KVIC), this scheme offers financial assistance to individuals who wish to set up new enterprises. The maximum project cost in the manufacturing sector should be ₹ 25 Lakh and ₹ 10 Lakh in the business/services sector. Any individual above 18 years of age is eligible for this financial assistance. The applicant must have passed the 8th standard for projects costing above ₹ 10 Lakh in the manufacturing sector or above ₹ 5 Lakh for projects belonging to the business/service sector.
2 – Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The Ministry of Micro, Small & Medium Enterprise (MoMSME) has launched CGTMSE to make bank credit available to SMEs without the hassle of collateral or third-party guarantee. The main objective of the scheme is that the lender should give utmost importance to project viability and provide funding purely on the primary security of the assets financed. Moreover, the lender availing guarantee facility should endeavor to give composite credit to the borrowers so that the borrowers obtain both term loans and working capital facilities from a single agency.
For details regarding CGTMSE, click here.
3 – Stand up India
Under the Stand-up India scheme, bank loans will be provided between ₹ 10 Lakh and ₹ 1 Crore to at least one Scheduled Tribe (ST) and Scheduled Caste (SC) borrower and at least one woman borrower per bank branch. This loan is offered for setting up a Greenfield enterprise in the manufacturing, trading, or services sector.
Applicants can fill out an online form. They can also choose a preferred lender. Alternately, they can visit a branch of their preferred bank and apply directly.
4 – Pradhan Mantri MUDRA Yojana (PMMY)
Launched by the Prime Minister in 2015, PMMY helps non-corporate, non-farm small/micro enterprises secure financial assistance. Loans can be availed from commercial banks, Regional Rural Banks, Cooperative Banks, Small Finance Banks, MFIs, as well as from Non-Banking Financial Companies (NBFCs). Loans up to ₹ 10 Lakh can be availed under the scheme. Products are classified as Shishu, Kishore, and Tarun to categorize the enterprises according to the growth and funding needs of the beneficiary micro unit/entrepreneur.
Click here to read in detail about the offering of Mudra Loan by the Government of India.
Why Apply for Business Loan from Paisabazaar?
- Check and compare the best available business loan offers from leading financial institutions
- Unmatched loan products to meet your business requirements
- Get business loan offers based on your credit score
- Get professional and unbiased advice from our experts
- The complete digital process with no or less paperwork
Compare SBI Business Loan Interest Rates with Other Banks/NBFCs
|SBI||8.30% onwards (SME Loan)|
|Kotak Mahindra Bank||14% onwards|
|HDFC Bank||16% onwards|
|Axis Bank||17% onwards|
|Fullerton Finance||17% onwards|
|Bajaj Finserv||17% onwards|
|Yes Bank||17% onwards|
|ICICI Bank||18% onwards|
|Lendingkart Finance||18% onwards|
|IIFL Finance||18% onwards|
|Hero Fincorp||18% onwards|
|Indifi Finance||18% onwards|
|NeoGrowth Finance||18% onwards|
|Tata Capital Finance||17% onwards|
|RBL Bank||19% onwards|
|IDFC First Bank||20% onwards|
|HDB Financial Services Ltd.||22% onwards|
|PNB Business Loan||Based on your Business’s Profile|
|Bank of Baroda||Based on your Business’s Profile|
Note: The above-mentioned interest rates may change and shall depend on the sole discretion of SBI and RBI. Interest rates are updated as on Jan 2022.
SBI Business Loans Documents Required
Below mentioned are the documents required for SME loans from SBI:
- Duly Filled Application form along with Passport-sized Photographs
- KYC Documents of the applicant, including PAN Card, Passport, Aadhar Card, Driving License, Voter ID card, Utility Bills (Water & Electricity Bills)
- Income Proof: Last 1 years’ bank statement along with ITR
- Business address proof
- Company incorporation certificate, if applicable
- Any additional document required by SBI
FAQs on SBI Business Loan
Q. How can I get in touch with SBI customer care?
Ans. You can call on their Toll-Free Number 1800-1234 / 1800-11-2211 / 1800-425-3800 regarding any query.
Q. How is working capital finance typically structured at SBI?
Ans. Working Capital Loans are offered to meet the daily business requirements of its customers. Working capital loans are structured as a joint contribution of credit features like demand loans, cash credit, bill discounting, and non-funded credit facilities.
Q. How does SBI approve machinery loans and working capital loans?
Ans. SBI’s team of experienced professionals checks the applicant’s profile and business requirements and various eligibility factors before sanctioning any working capital loan.
Q. What are the tenors for which SBI extends working capital finance?
Ans. The maximum tenor offered by SBI for its working capital loan is up to 12 months, being as short-term loans.
Q. Can I take a loan from SBI to start my own shop business?
Ans. Yes, you can avail shop loan offered by SBI to start your own business.
Q. Can I download SBI Yono app to open an account and avail business loan from it?
Ans. Yes, from SBI Yono app you can enjoy instant account opening an account and avail business loan. You can also transfer funds and apply for overdraft facility from the app.
Q. Am I eligible to avail any loan subsidy under SBI loan schemes?
A. No, there is no subsidy offered by SBI under any loan scheme.
SME Loan or Business loan offers are available through partner banks & NBFCs
SBI Business Loan Customer Care
SBI Toll-free Number- 1800-1234 / 1800-11-2211 / 1800-425-3800
Call on 080-26599990; normal call charges may apply. Toll-free numbers can be accessed from all landlines and mobile phones in India. You can also email at email@example.com or firstname.lastname@example.org.
Business Loan News
FM announces additional Emergency Credit Line Guarantee Scheme (ECLGS) for Covid-19 affected sectors
28 June 2021: Finance Minister Nirmala Sitharaman announces additional Rs 1.5 lakh crore funding under the Emergency Credit Line Guarantee Scheme (ECLGS) for Covid affected sectors. The sector-wise details shall be decided as per the requirements or sector needs. Now the ECLGS scheme is expanded up to Rs. 4.5 lakh crore. Approximately, 25 lakh people can avail the loan via Micro Finance Institutions (MFIs). This fiscal stimulus is launched as a part of the Atma Nirbhar Bharat Package in May 2020. Recently, Govt. has extended its emergency credit scheme (ECLGS) till March 31, 2022.
SBI Launches New Business Loan Scheme to support Healthcare Sector
June 25, 2021: SBI introduces Aarogyam Healthcare Business Loan scheme to offer financial support to the healthcare sector to fight Covid-19. Under this special loan category, healthcare entities can avail loans up to Rs. 100 crore, as per their geographical location. The repayment tenure of the loan is up to 10 years. Collateral-free loans up to Rs. 2 crore, as covered under guarantee of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The nature of the loan is both Term Loan for expansion purposes, as well as Working Capital Loan in form of letter of credit and cash credit. For Tier I & Urban centres maximum loan amount offered is upto Rs 20 crore and Rs. 10 crore for Tier II to Tier VI centres.