This is a convenient way of raising funds for businesses which are involved in any of the following sectors – Services, Trading or Manufacturing. This hassle-free business loan is available against mortgage of property
- Purpose of loan
This loan is extended to business units for all their work-related needs such as purchase of equipments and fixed assets, meeting requirements of working capital requirement, funding their expansion or growth plans, modernization or technology up-gradation, Research and Development, shoring of NWC or any other short term requirement
- Loan Amount
Loans up to the value of Rs twenty crores are offered under this scheme. On a case to case basis, this limit may be extended by the bank.
- Tenure or Repayment Period
Maximum of 180 months
- Pre-Payment Penalty
2% of the limit is charged as pre-payment penalty
- Special Features
- Applicants are eligible to get a loan amounting to up to 60% of the value of property offered as mortgage. For loans, up to Rs. 10 crore, the LTV (loan to Value) Ratio is 3/5th of the realizable value of the asset and for other loans (i.e. Above Rs. 10 crore and up to Rs. 20 crore, the LTV is taken at 50% of the realizable value)
- Availability of Dropline overdraft facility.
- Applicants are eligible to receive complimentary cards upon applying for loan under this scheme, namely SME Insta Deposit Card and SBI Business Debit Card
- The bank offers free Cash pick up facility
- Moratorium period is allowed under this scheme, provided the maximum tenor does not exceed 96months.