SBI Business Loan

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Business Loan

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    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 

    ParticularsDetails
    Interest RateStarting From 11.30% p.a.

    (Linked to MCLR)
    Loan AmountUp to Rs. 20 crores
    TenureWorking Capital – 1 year

    Term Loan – Up to 15 years
    Processing FeeConcessional
    Annual Guarantee FeeUp to 1%

    How To Apply

    The applicants can apply for the business loan either online or by visiting the bank branch.

    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.

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    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
    (p.a.)
    Tenure
    (in years)
    EMI
    (in Rs.)
    Total Interest Amount
    (in Rs.)
    Total Repayment Amount (Principal + Interest)
    (in Rs.)
    1,00,00,00015%190,25883,10010,83,100
    1,00,00,00015%248,4871,63,68011,63,680
    1,00,00,00015%334,6652,47,95212,47,952
    1,00,00,00015%427,8313,35,87613,35,876
    1,00,00,00015%523,7904,27,39614,27,396
    1,00,00,00015%621,1455,22,44115,22,441
    1,00,00,00015%719,2976,20,92716,20,927
    1,00,00,00015%81,79,45472,27,5891,72,27,589
    1,00,00,00015%91,69,24382,78,2841,82,78,284
    1,00,00,00015%101,61,33593,60,1951,93,60,195
    1,00,00,00015%111,55,0911,04,72,0772,04,72,077
    1,00,00,00015%121,50,0881,16,12,6252,16,12,625
    1,00,00,00015%131,46,0291,27,80,4842,27,80,484
    1,00,00,00015%141,42,7041,39,74,2672,39,74,267
    1,00,00,00015%151,39,9591,51,92,5682,51,92,568

    YearPrincipal
    (in Rs.)
    Interest
    (in Rs.)
    Balance Amount (in Rs.)
    11,92,37914,87,12998,07,621
    22,23,30314,56,20595,84,318
    32,59,20114,20,30793,25,117
    43,00,86613,78,64290,24,251
    53,49,23313,30,27586,75,018
    64,05,37412,74,1348269644
    74,70,54112,08,96777,99,103
    85,46,18411,33,32472,52,919
    96,33,98410,45,52466,18,935
    107,35,8999,43,60958,83,036
    118,54,1988,25,31050,28,838
    129,91,5156,87,99340,37,323
    1311,50,9065,28,60228,86,417
    1413,35,9193,43,58915,50,498
    1515,52,2241,28,835

    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.

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    Documents Required

    Constitution Specific Documents
    Constitution

    Documents
    Partnership FirmPartnership deed
    TrustTrust deed
    SocietyBy laws of Society, Registration Certificate from the Registrar of Societies
    Private Ltd. CompanyCertificate of Incorporation/ Memorandum and Articles of Association
    Public Ltd. CompanyCertificate 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)

    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. The loan is given to the people covered under the mentioned eligibility criteria:

    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
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    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 Documents ( 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.

    CategoryDocuments
    Application Application Form
    Bio- Data form
    DD for Processing fee / Advocate fee / Valuation fee
    Proprietor /Partners / GuarantorsBrief Profile
    Photo
    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 SheetActual - Past 3 years
    Estimated - Current Year
    Projected - Next Year
    Projected - [for Term Loan]
    CMA form
    Associate UnitsBrief Profile
    Balance Sheet
    Opinion Report from Bankers
    Renewal / EnhancementStock Statement
    Last inspection report
    Term Loan Review
    Copy of last sanction note
    Confirmation of irregularity, if any
    Take overCopy of sanction letter
    Statement of account for 1 year
    Credit Information Report
    PropertyOriginal 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