SBI Business Loan – Interest Rates & Features
| Interest Rate | Depends on 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.
State Bank of India offers business loan to meet the varied needs of large business houses as well as Small and Medium Enterprises (SME). These loans can be secured as well as unsecured. SBI also assists businesses in availing loans under government schemes such as PMEGP, PM Mudra Yojna, CGTMSE and Stand-up India.
Table of Contents :
SBI Business Loan Eligibility Criteria
| Age | Min. 18 years & Max. 65 years |
| Business Existence | Min. 2 years |
| Annual Turnover | Depends on business volume and requirements |
| Business experience | Min. 2 years |
| ITR | Last 1 year |
| Profitability | Last 2 years in profit |
| Citizenship | Indian citizen with no previous defaults with any financial institution |
SBI Business Loans Documents Required
The documentation requirements for SBI Term Loan 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.
- Business Plan
- Duly Filled Application form
- Passport-sized Photographs
- PAN Card of Primary Applicant or of the Enterprise
- KYC Documents of applicant, partners, co-applicants, promoters, if any
- Identity Proof: 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 the 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 CAs
Related Post: Documents Required for Pradhan Mantri Mudra Yojana
Interest Rates of SME Loans offered by SBI – 2021
| SME/Business Loan Interest Rates | |
| Supply Chain Finance | 8.00% onwards |
| CGTMSE | 7.40% onwards |
| Doctor Plus | 9.00% onwards |
| PMEGP/KVIC | 10.45% onwards |
| SBI Asset Backed Loan | 9.30% onwards |
| SBI Asset Backed Loan for Commercial Real Estate | 10.05% onwards |
| Electronic Dealer Finance Scheme | 7.55% onwards |
| SME Construction Equipment Loan | 8.50% onwards |
| SBI Fleet Finance Scheme | 7.75% onwards |
| Warehouse Receipt Financing | 8.00% onwards |
| Lease Rental Discounting | 10.10% onwards |
| Arthias Plus Scheme | 8.00% onwards |
| Dal Mill Plus | 7.90% onwards |
| Cotton Ginning Plus | 7.90% onwards |
| SME Credit Card | 9.50% onwards |
| Weavers Credit Card | 9.75% onwards |
| Artisan Credit Card | 9.75% onwards |
| Medical Equipment Finance Scheme | 9.50% onwards |
| SBI e-Smart SME e-Commerce Loans | 9.00% onwards |
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.
Note: SBI 1 yr MCLR effective from 10 June, 2020 is 7%
On 16 June 2020, SBI disbursed approx. Rs 8,700 crore from the Rs 3 lakh crore funding under Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector.
In addition to the SME Business Loans, SBI caters to the Mid-Corporate Group that are defined as entities availing aggregate limits of above ₹ 50 Crores and up to ₹ 500 Crores. Financial assistance is extended to these entities in the form of working capital finance, project finance, corporate term loans, structured finance, dealer financing, loan syndication, construction equipment loans, etc.
Steps to apply for Business Loan in SBI Bank
To apply for SBI Business Loan or SBI Term Loan, you need to follow below mentioned steps:
Step 1: Firstly, check your eligibility before applying for a business loan with SBI
Step 2: To check your eligibility, fill in your basic details like age, required loan amount, type of business, business vintage, annual turnover, profit and other related information
Step 3: Fill in the loan application form and deposit all the required documents, as defined by SBI
Step 4: After form submission, SBI’s representative will proceed with the loan formalities
Step 5: Once the documents are verified and loan get approved, the sanctioned loan amount shall get disbursed in the mentioned bank account within specified time duration or working days
Also Know: How to Apply for SBI e Mudra Loan
How to Track SBI Business Loan Application Status Online?
Follow these 3 simple steps to track the application status:
Step 1: Fill in the your reference number that you must have received after loan application submission.
Step 2: Enter your registered mobile number with ISD code
Step 3: Click on the below Tab ‘Track’ to get the actual status of your loan application
SME Loans from SBI Bank
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.
Features
| Minimum Loan Amount | Rs. 10 Lakh |
| Maximum Loan Amount | Rs. 20 Crore |
| Repayment Tenure | From 12 months to 180 months (Max. 18 months moratorium period) |
| Processing Fee | 1% of the limits with maximum cap of 10 Lakh |
| Margin | Minimum 25% cash margin for NFB facility |
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.
Features
| Minimum Loan Amount | Rs. 10 Lakh |
| Maximum Loan Amount | For Tier II and Tier III branches- Rs. 20 Crore For Tier I branches- Rs. 50 Crore |
| Repayment Tenure | From 12 months to 72 months |
| Processing Fee | 1% of the limits with maximum cap of 10 Lakh |
| Margin | 25% for both working capital and fixed assets |
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.
Features
| Minimum Loan Amount | Rs. 10 Lakh |
| Maximum Loan Amount | Rs. 5 Crore |
| Repayment Tenure | 3-7 years (moratorium period of 6 months) |
| Processing Fee | 50% concession on card rates |
| Margin | 15% uniformly |
Eligibility Criteria
- Individuals/Partnerships/ Corporate/Trusts
- Promoters/applicants should be registered practitioners and must be qualified to practice allopathy
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.
Features
| Minimum Loan Amount | Rs. 50 Lakh |
| Maximum Loan Amount | Rs. 10 Crore |
| Repayment Tenure | Up to 66 months |
| Processing Fee | 1% of the limit |
| Margin | For Cost of Chasis : 5% (score b/w 35-60%) & 0% (above 60% score) For Cost of Body : 45% (score b/w 35-60%) & 40% (above 60% score) For fully built model : 10% (score b/w 35-60%) & 5% (above 60% score) Other expenses : Min. 50% |
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
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.
Features
| Minimum Loan Amount | Rs. 50 Lakh |
| Maximum Loan Amount | Rs. 5 Crore |
| Nature | Cash credit |
| Processing Fee | 1st year: 1% of sanctioned limit 2nd year and onwards: 0.35% of sanctioned limit |
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. The SBI Working capital loan or Small Business Loan can be taken for the purpose of building fixed assets and current assets of the business.
Features
| Minimum Loan Amount | Rs. 10 Lakh |
| Maximum Loan Amount | Rs. 25 Lakh |
| Repayment Tenure | Up to 5 years |
| Processing Fee | ₹ 7,500 |
| Margin | 10% which will be ensured through stocks and receivable statement |
7- Medical Equipment Finance
This SBI Business Loan is offered to path labs, diagnostic centers, nursing homes, etc. for the purchase of medical equipment.
Features
| Minimum Loan Amount | Rs. 10 Lakh |
| Maximum Loan Amount | Rs. 20 Crore |
| Repayment Tenure | 3-7 years (6 month moratorium period) |
| Processing Fee | 50% concession on card rates |
| Margin | 15% uniformly |
Eligibility Criteria
- documents required
- Individuals, Corporate enterprises, 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
SME Government Schemes
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. 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 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 growth and funding needs of the beneficiary micro unit/entrepreneur.
- Shishu : Loan amount up to ₹ 50,000
- Kishor : Loan amount above ₹ 50,000 and up to ₹ 5 Lakh
- Tarun : Loan amount 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.
SBI Supply Chain Finance
SBI has added a financial feature to its range of products that is supply chain finance for the benefit and convenience of its customers. Supply chain finance will add strength in financing supply chain partners with the help of SBI. SBI has launched an online platform for providing funding support to supply chain partners of renowned and established corporate enterprises.
SBI provides financing services through its two products, such as Electronic Vendor Financing Scheme (e-VFS) and Electronic Dealer Financing Scheme (e-DFS).
This platform can be accessed via its online portal: https://scfu.onlinesbi.com/vfim/login.htm
Benefits of online platform:
- Offers hassle-free paperless online banking service
- Customization as per business requirements is possible
- Platform is integrated with Corporate Enterprise Resource Planning Software (ERP)/SAP
Types of Supply Chain Finance Products offered by SBI:
1. Electronic Vendor Financing Scheme (e-VFS): The buyers can easily upload the details of invoices raised by their respective vendors on SBI’s online platform that results in instant credit to vendor account.
2. Electronic Dealer Financing Scheme (e-DFS): Sellers make online requests to SBI’s online platform for debiting dealer’s account by providing details of invoices raised on their respective dealers that results in immediate credit to corporate seller’s account.
Why Apply for Business Loan at Paisabazaar?
At paisabazaar.com you can check and compare from all the SME and Business loan deals offered by SBI and pick as per your business requirements. You can also check for other types of business loans offered by SBI at competitive interest rates.
SBI Business Loan Customer Care
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.
Compare Business Loan Interest Rates from Top Banks/NBFCs
| Banks / NBFCs | Interest Rate |
| Canara Bank | 9.60% onwards |
| Corporation Bank | 10.3% onwards |
| Bajaj Finserv | 15% onwards |
| Lendingkart Finance | 15% onwards |
| HDFC Bank | 15% onwards |
| FlexiLoans | 15% onwards |
| Kotak Mahindra Bank | 16% onwards |
| IDFC First Bank | 16% onwards |
| Axis Bank | 16% onwards |
| ICICI Bank | 16% onwards |
| ZipLoan | 16% onwards |
| IIFL Finance | 16% onwards |
| Fullerton India | 17% onwards |
| Hero Fincorp | 18% onwards |
| RBL Bank | 19% onwards |
| NeoGrowth Finance | 21% onwards |
| Indifi Finance | 22% onwards |
| Bank of Baroda | Based on your Business’s Profile |
| PNB Business Loan | Based on your Business’s Profile |
FAQs on SBI Business Loan
Q. What is the interest rate charged by SBI for its range of business loans?
Ans.The interest rates offered by SBI depends on particular loan option, applicant profile and business requirements.
Q. Can I take Government loan scheme like Mudra Yojana from SBI?
Ans. Yes, SBI do offered loans under various Government schemes like PEMGP, Stand-up India, Mudra loan scheme and many more.
Q. What are the popular business loans offered by SBI?
Ans. 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
Q. How can I get in touch with SBI customer care?
Ans. You can call on their Toll Free Number 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 loan, cash credit, bill discounting and non-funded credit facilities.
Q. How does SBI approve working capital loans?
Ans. SBI’s team of experienced professionals check 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.
Disclaimer:
SME Loan or Business loan offers are available through partner banks & NBFCs
