SBI Business Loan

The table given below shows the interest rate range for SME business loans offered by SBI.

Note: SBI 1 yr MCLR effective from 11 March, 2020 is 7.75%

Check – Business Loan Interest Rate of Top Banks

1- SBI Asset Backed Loan

This business loan can be taken for the purpose of building current and fixed assets of a business. Such assets may be needed for business modernization, capacity expansion, arranging for short-term working capital, etc. It is a drop-line overdraft facility wherein applicant can withdraw funds from his/her current account up to a certain limit. Some key characteristics of this loan are given below-

Eligibility Criteria

• Applicant must be a customer of SBI, availing credit facility from them
• A business must have marketable assets to offer as collateral to the bank
• Takeover of existing business loan from other banks can also be done provided the borrower has a satisfactory track record

2- SBI Loan for Commercial Real Estate

Business houses can take this type of loan from SBI to purchase a commercial property which could be a retail space, warehouse, restaurant, hotel, storage space, gym or office building. This loan is also offered in the form of a drop-line overdraft. Key features of this SBI Business Loan include:

Eligibility Criteria

• Applicant must have availed a credit facility from SBI
• The business must have marketable assets which can be offered as collateral to the bank
• Takeover of existing business loan from other banks can also be done provided that the borrower has a satisfactory track record

3- SBI Doctor Plus Scheme

This term loan is offered by SBI to medical practitioners, especially those of allopathic discipline. Hospitals, X-ray labs, pathological clinics, nursing homes and polyclinics are also eligible. The loan proceeds can be used for buying equipment, setting up a new clinic or drug store or for expanding existing medical premises. Some key features of this SBI Business Loan are:

Eligibility Criteria

• Individuals/Partnerships/ Corporate/Trusts
• Promoters/applicants should be registered practitioners and must be qualified to practice allopathy

Collateral Security

• For loan amounts up to ₹ 2 Crores, no collateral is required. Such applicants will be covered under the Credit Guarantee Fund Trust For Micro and Small Enterprises (CGTMSE)
• For loans above ₹ 2 Crore and up to ₹ 5 Crore, minimum 25% tangible collateral security and Personal guarantee of promoters will be required

4- SBI Fleet Finance

This SBI Business Loan is a type of term loan targeted for fleet operators such as goods transport or passenger transport. The loan proceeds can be used for purchasing new vehicles. Following are the important elements of this loan:

Eligibility Criteria 

• Fleet operators having more than 2 years’ experience in the field
• Fleet operators should have at least 10 vehicles in the fleet
• Loan can be taken for the purpose of buying minimum 10 new vehicles or a minimum loan of ₹ 50 Lakh must be availed
• Transport operators holding national/state route permit and other necessary permits required

Collateral Security

• For loan amounts up to ₹ 1 Crore, no collateral is required. Such applicants will be covered under the Credit Guarantee Fund Trust For Micro and Small Enterprises (CGTMSE)
• For loans above ₹ 1 Crore, minimum 20% tangible collateral security will be required

 5- SBI SME eBiz Loan

This is a cash credit facility by SBI launched to provide financial assistance to people who sell products online through e-commerce portals. Given below are the key points related to this loan-

Eligibility Criteria

• The applicant must be registered as a seller on an e-Commerce portal for selling products online with at least 6 months track record on any of the major e-Commerce player

6- SBI Simplified Small Business Loan

This is again a drop-line overdraft facility offered to business units engaged in manufacturing or service activities. This SBI Business Loan can be taken for the purpose of building fixed assets and current assets of the business. Important aspects of this loan are:

7- e Dealer Finance Scheme

This is a cash credit facility offered to dealers who are working on a fully-electronic platform. Dealers include authorized distributors, stockiest, franchisees, etc. All authorized dealers of Industry Majors (IM) with whom SBI has tie-up arrangement are eligible for this finance scheme. Following are the key aspects related to this loan:

8- e Vendor Finance Scheme

This is again a cash credit scheme offered to vendors of reputed corporates. This is a completely web based solution and provides instant credit to such vendors. The corporates with which the vendors are dealing should have a tie-up arrangement with SBI in order for the vendors to be eligible for this scheme. Important aspects of this SBI Business Loan are:

This financing will be made to the vendors against the supply of goods and services to corporates or industry majors. Repayment can be done through cash, cheque, NEFT, RTGS, etc.

9- Export Packing Credit

This is a type of pre-shipment finance extended by the State Bank of India to manufacturers and merchant exporters. The proceeds of this SBI Business Loan can be utilized towards the purchase of raw materials, processing, packing, warehousing and transportation of goods meant for export. Some important elements of this business loan are:

10- Medical Equipment Finance

This SBI Business Loan is offered to path labs, diagnostic centers, nursing homes, etc. for the purchase of medical equipment. Some important points related to this facility are:

Eligibility Criteria

• Individuals, corporates, partnerships, trusts and societies can apply for this loan
• Minimum 3 years of operation is mandatory at a diagnostic center or other such eligible practices
• Applicant should have an ITR
• The medical center should have all regulatory/statutory approvals
• It should have tie-up with/employed qualified doctors

Collateral Security

• No collateral is needed for loans up to ₹ 2 Crore

For loans above ₹ 2 Crore, minimum 25% tangible collateral will be required along with personal promoter guarantee.

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 8^th standard for projects costing above ₹ 10 Lakh in the manufacturing sector or above ₹ 5 Lakh for projects belonging to the business/service sector. Societies, self-help groups, production cooperative societies and charitable trusts are also eligible provided that they have not availed financial assistance under any other government scheme.

Applicants can fill out an online form and take a printout of the same along with Detailed Project Report and other required documents and submit at the respective office.

2 – Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

The Ministry of Micro, Small & Medium Enterprises (MSME) 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 loan and working capital facilities from a single agency.

The Credit Guarantee scheme (CGS) reassures the lender bank that in case a MSE unit fails to discharge its liabilities, the Guarantee Trust would cover the loss incurred by the lender up to 50/75/80/85 per cent of the credit facility. The maximum credit cap is set at ₹ 200 Lakhs.

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 to one woman borrower per bank branch. This loan is offered for setting up a Greenfield enterprise in manufacturing, trading or the 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 Non-Banking Financial Corporations. 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 growth and funding needs of the beneficiary micro unit/entrepreneur.

• Shishu : covering loans up to ₹ 50,000
• Kishor : covering loans above ₹ 50,000 and up to ₹ 5 Lakh
• Tarun : covering loans above ₹ 5 lakh and up to ₹ 10 Lakh

Click here to read in detail about the offering of Mudra Loan by the Government of India.

The documentation requirements for SBI Business Loans differ on the basis of the type of loan. Here we have compiled a list of some common business documents which may be needed at the time of application.

• PAN Card of Primary Applicant or of the Enterprise
• Duly filled application form with passport-size photograph
• Identity Proof of the applicant: Voter ID, Passport, Driving License, Aadhaar Card, etc. are accepted by the bank
• Address Proof: Driving License, Voter’s ID, Passport, Telephone Bill, Electricity Bill (Not older than 3 months), Sale Agreement / Bank Statement (not older than 3 months) Registered Lease Deed, etc. are accepted by SBI
• Ownership proof of either residence or office either in the name of applicant or jointly with family members
• Proof of Business Continuity– Any one of the following document can be submitted-Bank Statement, ITR, Certificate of Incorporation, Shops & Establishment Certificate, Partnership Deed or Sales Tax Challans
• Financial Documents of the Business such as Profit & Loss Statement and Balance Sheet (duly audited by a registered Chartered Accountant), book-debt and creditors-statement for latest three months, Periodic Stock, etc.

SBI Toll-free Number- 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.

Disclaimer

Business loan offers are available through partner banks & NBFCs

What is the interest rate charged by SBI for its range of business loans?
The interest rates offered by SBI depends on particular loan option, applicant profile and business requirements.

Can I take Government loan scheme like Mudra Yojana from SBI?
Yes, SBI do offered loans under various Government schemes like PEMGP, Stand-up India, Mudra loan scheme and many more.

What are the popular business loans offered by SBI?
The popular business loans offered by SBI are as follows:

SBI Asset backed loan
SBI loan for commercial real estate
SBI Doctor Plus Scheme
SBI Fleet Finance
Medical Equipment Finance
e-vendor & e-dealer finance scheme
Lease rental discounting
Export packing scheme and many more

How can I get in touch with SBI customer care?
You can call on their Toll Free Number 1800-11-2211 / 1800-425-3800 regarding any query.