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SBI Business Loan

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State Bank of India offers Simplified Small Business Loans to small entrepreneurs engaged in the manufacturing, services and wholesale/retail trade, for purchasing their current assets and fixed assets required for their business expansion. The loan amount can range between Rs. 10 lakh to Rs. 25 lakh for repayment tenure up to 5 years. This loan is offered in the form of Dropline Overdraft Facility with margin requirement of 10% (in form of stocks and receivables) and minimum collateral of 40%.

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हिंदी में पढ़े
Updated: 27-06-2022 06:49:46 AM

SBI’s Simplified Small Business Loan – June 2022

Interest RateAs per business requirements and linked with MCLR*
Nature of LoanDropline Overdraft Facility
Loan AmountRs. 10 lakh to Rs. 25 lakh**
Collateral SecurityMinimum of 40%
Repayment TenureUp to 60 months
Margin10% that will be ensured via stocks and receivable statement
Unified ChargesRs. 7500 (Consisting of Processing Fee, and EM, Documentation, Inspection, Commitment and Remittance Charges)

*SBI 1 year MCLR with effect from 15th June 2022 is 7.40%.

**(Min/Max) 10 times of average monthly balance in the current account in the previous 12 months, subject to a Minimum of Rs. 10 lakh and max. up to Rs. 25 lakh

Apply for Business Loan @ 16% p.a. onwards Apply Now

Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs

Bank/NBFCsInterest Rate
HDFC Bank10.00% – 22.50% p.a.Apply Now
FlexiLoans1% per month onwardsApply Now
ZipLoan1% – 1.5% per month (Flat ROI)Apply Now
Axis Bank14.25% – 18.50% p.a.Apply Now
IDFC First Bank14.50% onwardsApply Now
Kotak Mahindra Bank16% – 19.99%Apply Now
Fullerton Finance17% – 21%Apply Now
Bajaj Finserv17% p.a. onwardsApply Now
RBL Bank17.50% – 25% p.a.Apply Now
ICICI Bank18% onwardsApply Now
Indifi Finance1.5% per month onwardsApply Now
Lendingkart Finance1.5% – 2% per monthApply Now
Tata Capital Finance19% p.a. onwardsApply Now
NeoGrowth Finance19% – 24% p.a.Apply Now
Hero FinCorpUp to 26% p.a.Apply Now

Eligibility Criteria for SBI’s Simplified Small Business Loan

  • Business vintage of at least 5 years in the same area or locality
  • Current account holder for at least 2 years with any bank
  • Should own the premises or should have a valid rent agreement
  • In the case of rented properties, minimum residual period of 3 years
  • Monthly average balance in the last 12 months of minimum Rs. 1 lakh (with monthly threshold balance of Rs. 1000)
  • Applicant shall fulfil Go/No Go Criteria – If any parameter gets No response then shall not be eligible under this loan scheme.

The applicant may also fulfill the eligibility criteria, as per Go/No Go Criteria as defined by the bank. If any of the parameters get a response as ‘No’, the applicant shall not be considered eligible under this scheme, as well as no deviation to be permitted.

Need-based Assessment while sanctioning Credit Limit
  • No Financial Statement required
  • Guarantee cover is available for 5 years and hence for advances approved under Mudra Scheme, maximum period is up to 60 months
  • Last 12 months’ average monthly balance in current account of 10 times, subject to minimum above Rs. 10 lakh and maximum up to Rs. 25 lakh

FAQs

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. 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.

 

 

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