Business Loan Rates 2024

SBI Business Loan

SBI Business Loan

Last Updated : Feb. 6, 2023, 5:47 p.m.

About SBI Business Loan

SBI, the 45th largest public sector bank in the world with assets worth Rs 37 Lakh Crore and a customer base of 500 million is indeed the largest bank in India. The SBI business loan is provided to the eligible candidates covered under the SME segment. The aim of providing SME loan is to assist the Small and Medium sized enterprises. It provides collateral free loan up to Rs. 1 crore and up to Rs. 20 crores against hypothecation of assets. Further details regarding the rate of interest, tenure and scheme are given below:

SBI SME Loan Details

Particulars Details
Interest Rate 9.05% - 16.30% (Linked to MCLR)
Loan Amount Up to Rs. 20 crores
Tenure Working Capital – 1 year

Term Loan – Up to 15 years
Processing Fee Concessional
Annual Guarantee Fee Up to 1%

SBI SME Loan Schemes

State Bank of India provides SME loans under three different schemes:

  • SBI Asset- Backed Loans
  • SBI Fleet Finance Scheme
  • Collateral Free Loans

SBI Asset-Backed Loans

The Bank provides a loan for the business purpose against the mortgage of property. The funds given under this scheme can be utilized for the purpose such as – purchasing of fixed assets, capital expansion, up- gradation or for working capital and other short- term requirements. The facility can be availed by the candidates engaged in manufacturing, trading and service sector units. The quantum of loan available is up to Rs. 20 Crores for the maximum repayment period of 15 years.

SBI Fleet Finance Scheme

The bank provides finance up to Rs. 10 crores for the period of 5 years and 6 months (66 months) to the transport operators owning a fleet of commercial vehicles like trucks, trailers, tankers, buses etc.

SBI Business Loan without Collateral

The eligible candidates can avail the benefit of a collateral free loan up to Rs. 1 crore for the maximum period of 7 years. Under this scheme, the funds are provided as working capital and term loan. The tenure of working capital is 1 year. However, it can be renewed in every two years.

SBI Business Loan Eligibility Criteria

  • Existing Fleet Operators (Goods or Passenger) having experience of 5 years or more in the same line
  • Fleet operator having existing fleet of minimum 10 vehicles
  • Requirement of minimum 10 new vehicles or minimum loan amount Rs.50 Lacs
  • Transport operators holding national/ state route permit and other necessary permits/ license/ approval
  • Satisfactory track record with existing banks / FIs
  • Income Tax Assesse (personal & Business)
  • Eligibility is linked to the scores obtained underscoring model

SBI Business Loan Calculator

SBI Business Loan EMI Calculator or SBI SME loan calculator is a device made to assist the people in calculating the EMI, that is payable each month, against the loan taken. It is the amount the borrower pays to settle the loan over the tenor. It makes the calculation quick and simple. The user only needs to enter the loan amount, tenure and the rate of interest in the calculator. The calculator shows the EMI amount and the total repayment amount.

For Example – An applicant avails a loan of Rs. 1,00,00,000 for the period 15 years at an assumed interest rate of 15% p.a. then his EMI will be Rs. 1,39,959. He has to make the total repayment of Rs. 2,51,92,568 .

Loan Amount
(in Rs.)
Interest Rate
(in years)
(in Rs.)
Total Interest Amount
(in Rs.)
Total Repayment Amount (Principal + Interest)
(in Rs.)
1,00,00,000 15% 1 90,258 83,100 10,83,100
1,00,00,000 15% 2 48,487 1,63,680 11,63,680
1,00,00,000 15% 3 34,665 2,47,952 12,47,952
1,00,00,000 15% 4 27,831 3,35,876 13,35,876
1,00,00,000 15% 5 23,790 4,27,396 14,27,396
1,00,00,000 15% 6 21,145 5,22,441 15,22,441
1,00,00,000 15% 7 19,297 6,20,927 16,20,927
1,00,00,000 15% 8 1,79,454 72,27,589 1,72,27,589
1,00,00,000 15% 9 1,69,243 82,78,284 1,82,78,284
1,00,00,000 15% 10 1,61,335 93,60,195 1,93,60,195
1,00,00,000 15% 11 1,55,091 1,04,72,077 2,04,72,077
1,00,00,000 15% 12 1,50,088 1,16,12,625 2,16,12,625
1,00,00,000 15% 13 1,46,029 1,27,80,484 2,27,80,484
1,00,00,000 15% 14 1,42,704 1,39,74,267 2,39,74,267
1,00,00,000 15% 15 1,39,959 1,51,92,568 2,51,92,568

Year Principal
(in Rs.)
(in Rs.)
Balance Amount (in Rs.)
1 1,92,379 14,87,129 98,07,621
2 2,23,303 14,56,205 95,84,318
3 2,59,201 14,20,307 93,25,117
4 3,00,866 13,78,642 90,24,251
5 3,49,233 13,30,275 86,75,018
6 4,05,374 12,74,134 8269644
7 4,70,541 12,08,967 77,99,103
8 5,46,184 11,33,324 72,52,919
9 6,33,984 10,45,524 66,18,935
10 7,35,899 9,43,609 58,83,036
11 8,54,198 8,25,310 50,28,838
12 9,91,515 6,87,993 40,37,323
13 11,50,906 5,28,602 28,86,417
14 13,35,919 3,43,589 15,50,498
15 15,52,224 1,28,835 0

Documents Checklist for SBI Asset-Backed Loans

Constitution Specific Documents

Partnership Firm Partnership deed
Trust Trust deed
Society By laws of Society, Registration Certificate from the Registrar of Societies
Private Ltd. Company Certificate of Incorporation/ Memorandum and Articles of Association
Public Ltd. Company Certificate of Incorporation/ Memorandum and Articles of Association, Certificate of commencement of business

List Of Common Documents
Audited balance sheet of the last three year
Brief detail of Proprietor / Partners / Promoters / Directors
KYC documents for promoters / units
Copy of IT Returns of promoters / Firm for the last three years
Copies of license, permission approval by regulatory authority , where applicable
Availability of utilities like power etc
Pollution control clearance, if necessary
Details of collateral security (including third party guarantee proposed to be offered
Signed statement of Assets and liability from proprietor / partner guarantors
Copies of other Bank’s sanction letter and statement of accounts (last 6 months)
Copy of the title deeds of the Factory / Shop/ Godown/ collateral security
Details of the capital expenditure, if Term Loan is applied
Cheque for processing and fees to be paid for Valuation & Title search reports on property/ (ies) offered as collateral, ROC search (for companies)

Documents Checklist (Fleet Finance Scheme & Collateral Free Loan)

The list of documents required to avail the SBI business loan for SMEs are listed below in tabular format.

Category Documents
Application Application Form
Bio- Data form
DD for Processing fee / Advocate fee / Valuation fee
Proprietor /Partners / Guarantors Brief Profile
Passport/EC ID Card/Driving Licence
Telephone Bill / Ration Card
PAN Card
IT Return for 2 years
Assets & Liabilities Statement
Unit Partnership Deed & Partnership Letter
Memorandum & Articles of Association
Certificate of Incorporation/Commencement
Board Resolution
Search Report from Registrar of Companies
SSI Registration
Panchayat Licence
PAN Card
IT Return for 2 years
ST Return for 2 years
Project Report
Power Allocation Plan / Estimate / Invoices
Pollution Control Clearance
Lease Agreement for hired premises
Balance Sheet Actual - Past 3 years
Estimated - Current Year
Projected - Next Year
Projected - [for Term Loan]
CMA form
Associate Units Brief Profile
Balance Sheet
Opinion Report from Bankers
Renewal / Enhancement Stock Statement
Last inspection report
Term Loan Review
Copy of last sanction note
Confirmation of irregularity, if any
Take over Copy of sanction letter
Statement of account for 1 year
Credit Information Report
Property Original Title Deed
Prior Deeds
Land Tax Receipt
Building Tax Receipt
Possession Certificate
Location Certificate
Location Sketch
Non-RR & LA Certificate
EC for 30 years

Features & Benefits

  • Bank provides collateral-free loans for MSME
  • Simple process
  • Availability of funds up to Rs. 20 crores
  • Loans available at attractive interest rates

State Bank of India Moratorium process

You can stop your loan EMIs falling due from March 1, 2020, to May 31, 2020, using the following steps.

  • Download the Annexure Form I or II from SBI’s official website
  • Fill up the Annexure I with the Term loan or Account number
  • Mention the branch name and put your signature over it
  • If the loan is co-borrowed then the 2nd applicant’s signature is mandatory
  • You can submit the form online without going anywhere to the mentioned email ID on Annexure-II
  • If the user avails the Standing Instruction service of SBI for the payment, he/she can submit a handwritten application to their SBI branch

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