SBI Business Loan

If you are someone who is waiting for the perfect opportunity to come for you to propel your business into top gear, SBI Business Loans could help you make your dream a reality. You can scale your business to new heights with SBI SME (Small and Medium Enterprises) Loans, which comes with a host of benefits to meet your business needs. We are here to help you understand the different types of loans that come under SBI SME Loans, as well as what these loans are. 

Types of SBI SME Loans

SBI has a vast range of products designed to meet the needs of its customers. The loans cater to requirements across sectors like services, manufacturing, trading, etc. 

SME Ebiz Loan

• Purpose: SME Ebiz Loan helps in providing financial assistance to sellers registered on e-commerce portals.

• Nature of Facility: Cash credit

• Amount of Facility: 50 Lakhs to 500 Lakhs

• Banking Arrangement: Sole banking

• Limit Assessment: Completely based on the turnover in the previous 12 months, across all accounts maintained by the unit.

• Eligibility: Sellers registered on an e-commerce portal for selling products online, with a minimum track record of 6 months on any major e-commerce platform. 

• Processing Fee: 

  • First Year: 1.00% of limit sanctioned + tax

  • From Second year: 0.35% + tax

Simplified Small Business Loan

• Purpose: Simplified Small Business Loan is a general purpose loan for business, to build up the current and fixed assets needed for business purposes.

• Nature of Facility: Dropline overdraft facility

• Amount of Facility: 10 times of the average monthly balance in the current account for the previous 12 months, which must be between 10 lakhs and 25 lakhs.

• Limit Assessment: The limit assessment is based on the  need of the applicant.

  • Financial statement is not required.

  • The limit is 10 times the monthly average balance in the current account for the last 12 months, wherein the minimum amount must be above Rs. 10 lakhs and the maximum must be less than Rs. 25 lakhs.

• Eligibility: Business units engaged in the manufacturing or services industry, as well as professional and self-employed individuals engaged in wholesale/retail trade.

  • The business must have been based in the same locality/area for a minimum of 5 years.

  • The applicant must be the owner of the premises or have a valid tenant agreement with the owner of the shop (for rented premises - a minimum residual period of 3 years)

  • Must have been holding a current account in any bank for at least 2 years (partnership, proprietorship, and corporate concerns).

  • Minimum average monthly balance of greater than Rs 1 lakh for the last 12 months, with a threshold balance of Rs 10,000 monthly.

  • The individual must also fulfill the eligibility as per Go/No Go criteria. If any of the parameters get a response as ‘No’, the unit will not be eligible under this scheme, with no deviation permitted.

• Collateral Security: Minimum collateral of 40%

• Unified Charges: Rs. 7500/- (including processing, documentation, EM, commitment, inspection, and remittance charges)

• Loan Tenure: Repayment can be done for up to 60 Months.

• Margin: 10%, which is ensured through stocks and receivable statements.

Stand Up India Scheme

• Purpose: Stand Up India Scheme helps meet all kinds of the credit requirements for setting up greenfield projects under the services, manufacturing, or trading sectors.

• Nature of Facility: Composite loan (term loan/working capital facilities)

• Target Group: SC/ST and women entrepreneurs

• Amount of Facility: 10 lakhs to 1 crore

• Eligibility: SC/ST borrowers and women entrepreneurs(Greenfield projects only)

• Collateral Security: No collateral or third-party guarantee to be obtained. All loans to be covered under the CGSSI.

• Processing Fee: 0.20% of the loan amount + taxes

• Loan Tenure: Maximum of 7 years (including moratorium period of up to 18 months)

• Margin: Minimum margin is 10%, and the maximum margin on a composite loan can be up to 25%, which can be reduced through convergence with Central/State schemes.

SME Start Score

• Purpose: SME Start Score helps you fund working capital needs as well as the acquisition of fixed assets.

• Nature of Facility: Cash credit/term loan

• Target Group: Proprietary/partnership firm managed individually/closely held public or Pvt. Ltd. companies in the SME industrial and trading sector, under SIB and C&I segments.

• Amount of Facility: 

  • Manufacturing Units: Rs.5 lakhs - Rs.50 lakhs

(20% of the annual turnover for working capital loan and 67% of the project cost for term loan)

• • Trades & Services: Rs.5 lakhs - Rs.25 lakhs

(15% of the annual turnover for working capital loan and 67% of the project cost for term loan)

• Eligibility: The chief promoter/chief executive must be 18 - 65 years of age

• Collateral Security: As per the bank's extant norms for working capital loans and term loans

• Processing Fee: As applicable to SSI/SBF/C&I units as per the bank's latest instructions.

• Loan Tenure:

  • Working capital loans must be renewed every two years, with an annual review of performance.

  • Term loans are for not more than 5 years, excluding moratorium, which cannot exceed 6 months

• Margin: 25% for working capital components and 33% for term loan components.

SME Credit Card

• Purpose: SME Credit Card helps you in funding any credit requirement, including purchase of a shop.

• Nature of Facility: Cash credit/term loan

• Target Group: Village industries, SSI units, retail traders, self-employed individuals, professionals, etc.

• Amount of Facility: Up to Rs.10 lakhs

• Eligibility: Customers with a satisfactory record for the last 2 years in the following segments:

  • Small retail traders, small industrial units, small business enterprises, self-employed persons & professionals, transport operators, units that do not enjoy credit limit with SBI/any other banks at present.

  • Term loans can be sanctioned for acquisition of a shop under SBCC for small business enterprises.

• Collateral Security: 

  • SSI- No collateral(To be covered under CGTMSE)

  • SBF- For loans > Rs. 25,000/- charge over immovable/movable property/third party guarantee. 

• Processing Fee: As applicable to SSI/SBF units

• Loan Tenure:

  • Working capital finance - valid for 3 years, with an annual review.

  • Term loan - for not more than 5 years, excluding a moratorium of 6 months.

• Margin: 

  • Up to Rs.25000 - Nil

  • Above Rs.25000 - 20%

Doctor Plus Scheme

• Purpose: 

  • To finance qualified medical practitioners.

  • To buy equipment (For dentists - covers dental implants besides equipment; for orthopedists - covers various implants/replacements for knee/hip/shoulder/spine, etc.)

  • For setting up/funding clinics, nursing homes, drug stores, pathology labs, ambulances, vehicles, computers, etc.

  • Renovation/expansion/modernization of existing premises.

• Nature of Facility: Term loan

• Target Group: Promoters of allopathic hospitals and nursing homes, medical practitioners of the allopathic discipline, polyclinics, pathological clinics, X-ray labs, and any activity of the allopathic discipline.

• Amount of facility: Rs. 10 lakhs - Rs. 5 crores.

• Eligibility: 

  • Individuals/Corporations/Partnerships/Trusts

  • Promoters must be registered practitioners and must possess the minimum qualification to practice in an allopathic discipline, such as MBBS, BDS, etc.

• Collateral Security: 

  • No collateral security for loan amounts of up to Rs. 2 crores.

  • For loans between Rs. 2 crores and Rs. 5 crores: Minimum 25% tangible collateral security and personal guarantee.

• Processing Fee: As applicable to SSI/SBF units

• Loan Tenure:

  • Term Loan: 3-7 years (including a moratorium period of 6 months)

  • Repayment to commence after 6 months of the first disbursement. 

  • Interest must be paid on a monthly basis during the moratorium period

• Margin: 15%, uniformly.

Medical Equipment Finance

• Purpose: As the name suggests, Medical Equipment Finance is specifically for the purchase of equipment and the funding of ancillary equipment.

• Nature of Facility: Term loan

• Target Group: Nursing homes, diagnostic centers and pathology laboratories, eye centers, ENT centers, small/medium-size specialty clients like skin/dental clinics, dialysis/endoscopy centers, IVF centers.

• Amount of Facility: Rs. 10 lakhs - Rs. 20 crores.

• Eligibility: 

  • Individuals/Partnerships/Corporations/Trust & Societies

  • ITR is mandatory in all cases

  • Applicant must have a minimum experience of 3 years of operations at the hospital/diagnostic center/ pathological lab/nursing home, irrespective of the constitution.

  • Must have approvals/registrations from the statutory/regulatory authority.

  • Must employ/have a tie-up with qualified doctors.

• Collateral security: 

  • No tangible collateral security for loan amounts of up to Rs. 2 crores: They will be covered under CGTMSE, but 50% of the fees must be borne by the borrower.

  • For loans between Rs. 2 crore and Rs. 20 crores: Minimum 25% tangible collateral, along with personal guarantee.

• Processing fee: 50% concession on card rates

• Loan Tenure:

  • Term Loan: 3-7 years (including a moratorium period of 6 months)

  • Repayment commences after 6 months of the first disbursement. It can be equated or customized as per the cash accrual of the unit.

  • Interest is to be paid on a monthly basis during the moratorium period

• Margin: 15%, uniformly.

E Dealer Finance Scheme

• Purpose: The E Dealer Finance Scheme is exclusive to dealers/distributors/franchisees/stockists of Industry Majors (IMs) who can furnish adequate collateral security, for the purchase of inventory.

• Nature of Facility: Cash credit

• Amount of Facility: 

  • Need-based.

  • Past performance/projected sales(whichever is higher) or limit recommended by IM (whichever is lower).

• Eligibility: 

  • Authorized dealers of Industry Majors(IMs) with whom SBI has a tie-up arrangement.

• Collateral Security: 

  • 0-50% (depending on each tie-up)

• Processing fee: Unified charges comprising processing fee and inspection charges of Rs. 10,000 - Rs. 30,000/-

• Loan Tenure: Credit period of up to 90 days with yearly renewal

• Margin: Nil

E Vendor Finance Scheme

• Purpose: The e-Vendor Finance Scheme helps finance vendors of reputed corporates or Industry Majors(IMs). It is a web-based solution with minimal intervention by the branch, providing instant credit to the vendor’s account electronically.

• Nature of Facility: Cash credit (clean)

• Amount of Facility: Need-based

• Eligibility: 

  • Must be existing borrowers of SBI, with a continuous record of making a profit for the last 3 years.

  • Minimum Turnover: Rs. 500 Crores

  • External Rating: A & above/Internal Rating SB-7 & above (only for SBI customers).

  • Total vendor base of at least 50 for the IM.

  • Industry scenario must be considered/RMD guidelines must be referred to.

  • Outstanding sundry creditors not to exceed three months since purchase.

  • Transactions are done on the Internet Banking platform of SBI, which results in easy, convenient, and hassle-free banking facilities for all the stakeholders, i.e., the bank, IM, and dealer.

  • Multiple-channel repayment options such as cash, cheque, fund transfer, RTGS, NEFT, etc.

  • There are 2 variants under e-VFS:

    • Vendor Exposure: Offers finance to vendors against the supply of goods/services to reputed corporates or IMs.

    • IM Exposure: Offers finance to a reputed corporate/IM for payment towards the supply received from the vendors.

• Collateral Security: Nil

• Processing Fee: Rs. 10,000 - Rs. 50,000/-

• Loan Tenure: According to the tenure of the receivables.

• Margin: Nil

Asset-Backed Loan

• Purpose: Asset-Backed Loan helps build current assets and fixed assets that are needed for business purposes or as short-term working capital, as modernization or capacity expansion.

• Nature of Facility: Dropline overdraft. Both FB & NFB 

• Target Group: Business units who want to avail a loan for manufacturing and service activities, along with self-employed & professional individuals as covered by the MSMED Act 2006, for wholesale/retail trade.

• Amount of Facility: Rs. 10 lakhs - Rs. 20 Crores

• Eligibility: 

  • New units that offer marketable assets as security.

  • Existing customers who have been availing credit facilities from SBI.

  • A takeover of existing units from banks other than SBI/FIs with a satisfactory track record.

• Collateral Security: 

  • Any immovable property in the form of registered mortgage/equitable of land or building.

  • Industrial property, either leased or freehold plot/land, cannot be taken as security for ABL.

  • Leasehold property, subject to the conditions mentioned uncer the head “Eligible Security” can be taken.

  • No second charge/Pari-Passu charge.

• Processing fee: 1% of the limits (Upper Cap: Rs.10 Lacs)

• Loan Tenure: 

  • Dropline OD: 12 months to 180 months, with equated reduction or customized reduction in limit, depending on the cash accruals.

  • Moratorium must not be more than 18 months, based on the activity. Interest must be serviced monthly during this period.

  • The drawing power can be reduced monthly to have the overdraft liquidated at the end of the period.

• Margin: Minimum 25% cash margin for NFB

Fleet Finance

• Purpose: Fleet Finance helps finance new vehicles (small/light/medium/heavy commercial vehicles/passenger vehicle). 

• Nature of Facility: Term loan

• Target Group: 

  • Existing fleet operators (for goods/passenger transport)

  • Individuals/companies/firms/trusts/institutions/societies/associations

• Amount of Facility: Rs.50 lakhs - Rs.10 Crores

• Eligibility: 

  • Existing fleet operators (goods/passenger) having an experience of 2 years or more in the same line.

  • A fleet operator having an existing fleet of a minimum of 10 vehicles.

  • A requirement of a minimum of 10 new vehicles or Rs.50 Lakhs

  • Transport operators holding a national/state route permit and other necessary permits/approvals/licenses.

• Collateral Security: 

  • Up to Rs. 1 Crore: No collateral security(gets covered under CGTMSE)

  • Above Rs. 1 Crore : Minimum 20% tangible security

• Loan Tenure: 

  • Upto 66 months

  • Repayment as EMIs

• Margin: 

  • For cost of chassis : 5% (score between 35-60%) & 0% (above 60% score)

  • For cost of body : 45% (score between 35-60%) & 40% (above 60% score)

  • For fully-built model : 10% (score between 35-60%) & 5% (above 60% score)

  • Other expenses : Min. 50%

• Upfront Fee: 1% of the limit

Pradhan Mantri Mudra Yojana

• Purpose: PMMY helps obtain finances for business purposes, modernization, and capacity expansion.

• Nature of Facility: Working capital and term loan.

• Target Group: Business enterprises (manufacturing, services, and trading sectors, including allied agricultural activities)

• Amount of Facility: 

  • Maximum loan of Rs. 10 lakhs

    • SHISHU - Loans upto Rs.50,000 

    • KISHORE - Loans from Rs.50,001 to Rs.500,000

    • TARUN - Loans from Rs.500,001 to Rs.10,00,000

• Eligibility: Existing and new units

• Collateral Security: 

  • Nil. (covered under CGFMU)

• Loan Tenure: 

  • WC/TL: 3 - 5 years, including a moratorium period of up to 6 months depending on activity/income generation. Review to be done annually.

• Margin: 

  • Upto Rs. 50,000 - Nil

  • Between Rs. 50,001 and Rs. 10 lacs - 10%

• Processing Fee: 

  • Nil for Shishu & Kishore to MSE Units

  • 0.50% of loan amount + tax for Tarun

• Other Conditions:

  • The loans under this scheme are guaranteed by CGFMU, and the same is provided through NCGTC.

  • The guarantee cover is available for five years.

  • The maximum period for advances granted under the scheme is 60 months.

Export Packing Credit

• Purpose: Export Packing Credit is specially designed to fund raw materials, packing, processing, transportation, and warehousing of goods that are meant for export. It has two essential features:

  • Existence of an export order/letter of credit

  • Liquidation of the packing credit by submitting the export documents within a stipulated period.

• Nature of Facility: Pre-shipment finance that is extended as working capital.

• Target Group: Manufacturers and merchant exporters are eligible to apply for Rupee Packing Credit at a concession.

• Amount of facility: Need-based 

• Eligibility: 

  • Existing customer who is already availing credit facilities from SBI.

  • New units.

  • Takeover of existing units from Banks other than SBI/FIs with a satisfactory track record. 

• Collateral Security: As applicable for cash credit/working capital limit.

• Loan Tenure: Depends on the manufacturing/trade cycle or on the requirements of the individual export, not exceeding 180 days.

• Margin: The percentage of margin depends on the nature of the order, commodity, capability of the exporter, etc. 

• Processing Fee: Same as cash credit facility/working capital limits.

Lease Rental Discounting

• Purpose: Lease Rental Discounting helps meet a borrower’s liquidity mismatch. 

• Nature of Facility: Term loan

• Target Group: MSME units, along with individuals who are owners of residential and commercial properties let out on rent.

• Amount of Facility: 

  • Rs. 10 lacs to Rs. 50 Crores for NBG; up to 500 Crores for MCG

• Eligibility: 

  • Owners of residential buildings and commercial properties rented to MNCs/banks/government offices(both Central and State)/large & medium-size corporates/reputed public bodies like Municipal Corporations, etc.

  • However, the property must not have been leased to any Social Infrastructure projects like schools, orphanages, old age homes, colleges, hospitals, nursing homes, etc.

• Collateral Security: The realizable property to be mortgaged must be at least 143% of the loan amount.

• Loan Tenure: Repayment of loan must be through EMI. The applicant must open an escrow account with SBI for rental credit, against which the loan is sanctioned.

• Processing Fee: As per extant instructions.

Warehouse Receipt Finance

• Purpose: The Warehouse Receipt Finance scheme is extended to finance owners/traders of goods/manufacturers for their own processing against warehouse receipts issued by collateral managers with whom SBI has a tie-up.

• Nature of Facility: Cash credit facility (for Rs. 1 crore and above)/revolving demand loan/working capital demand loan.

• Amount of Facility: Need-based 

• Eligibility: 

  • Owners/traders of goods/manufacturers. 

  • For own processing against WHR issued by CWC/SWC/CM.

• Security: 

  • Primary- Pledge/hypothecation of stocks for which warehouse receipt is issued by the CM/CWC/SWC, with a lien marked in favor of the bank.

  • Collateral- PersonalgGuarantee of directors/partners, wherever applicable.

• Loan Tenure:

  • WCDL: The loan should be liquidated during the validity period, which does not exceed 12 months.

  • Cash credit: Nil

  • RDL: All the individual DLs under RDL must be liquidated after the closure of the underlying loan and liquidation of the bank’s dues. In addition to this, branches must diarize the due date of each warehouse receipt and also ensure that the WHRs are released only after closure of the loan & liquidation of the bank’s dues.

• Processing Fee: Unified charges (processing, inspection, and facility charges) are levied, which range from Nil to Rs.3 Lakhs, based on the quantum of the loan.

• Margin: Ranges from 25% - 35% of the market price depending on wheter the facility has a tie-up. 

How to Apply for SBI Business Loan

Applying for an SBI Business Loan is quite simple. 

Apply for SBI Business Loans Through a Branch

• Visit the nearest SBI Branch.

• Fill in the Business Loan Application form.

• Submit the form along with the required documents.

• Your documents will be verified by the bank.

• After verification, your application will be processed and approved/rejected.

Documents Required to Apply for SBI Business Loans

Here is the list of documents required to apply for SBI Business Loans.

• PAN Card of the Individual/Company/Firm

• For identity proof:

  • PAN Card

  • Aadhaar Card

  • Voter's ID Card

  • Passport

  • Driving License

• For address proof:

  • Voter's ID Card

  • Aadhaar Card

  • Driving License

  • Passport

• Bank statement for the last six months.

• Latest ITR along with balance sheet, computation of income, and profit & loss account for the last two years, which has been CA certified/audited.

• Form 60 for the Applicant/Co-applicant/Guarantor.

• Proof of continuation (ITR/Establishment/Trade license/Sales Tax Certificate)

• Other documents. 

  • Sole Proprietorship Declaration or certified copy of partnership deed.

  • Board resolution (Original)

  • A certified true copy of Memorandum and Articles of Association (certified by the Director).

Eligibility and EMI Calculator for SBI Business Loan

If you want to know about your loan eligibility status and calculate the EMI you would have to pay for your loan amount, click here.

Interest Rates of Top Banks Offering Business Loans 

 

Bank	Interest Rate	Processing Fee
SBI	11.20% - 16.30%	2% to 3%
Axis Bank	15.50% - 24%	Up to 2%
HDFC	15.65% - 21.20%	Up to 2.5%
ICICI	12.90% - 16.65%	Up to 2%
Citibank	16% - 18.99%	Up to 2%
Yes Bank	16.25% - 19.99%	Up to 2%
PNB	12.65% - 16.65%	Up to 1.8%
IDBI	13%	1%
Kotak Bank	16% - 19.99%	Up to 2%
IndusInd	14%	Up to 2.5%
Andhra Bank	9.15% - 16%	1% to 3%
RBL	20% onwards	Up to 3%
Canara Bank	10.50% - 18%	Up to 1%
Bank of Baroda	14.10%	Up to 1%

FAQs

What is the interest rate for SBI business loans?

SBI Business Loan interest rates range between 11.20% - 16.30%.

What is the processing fee charged for SBI business loans?

SBI charges a processing fee of 2%-3% of the loan amount + the applicable taxes.

How much loan amount does SBI offer for business?

The loan amount ranges between 5 lakhs and 100 Crores.

What is the age limit to apply for SBI business loans?

The individual’s age must be between 21 and 65 years.

What is the lowest EMI per lakh on SBI business loans?

The lowest EMI per lakh for SBI business loans is Rs. 2,594 .