SBI Business Loan

State Bank of India offers Simplified Small Business Loans (SSBL) to small entrepreneurs engaged in manufacturing, services and wholesale/retail business to purchase their current assets and fixed assets required for their business expansion. The loan amount is Rs. 10 lakh to Rs. 25 lakhs for a repayment period of 5 years. This loan is offered in the form of a dropline overdraft facility of 10% (in the form of stocks and debentures) and with a minimum collateral of 40%.

Loan Name SBI Business Loan
Interest rate As per business requirements and linked with MCLR
Nature of loan Dropline overdraft facility
Loan amount Rs. 10 lakh to Rs. 25 lakhs
Collateral Security At least 40%
Payback period Up to 60 months
edge 10% is ensured through stocks and receivable statement
Consolidated charges Rs. 7500 (includes processing fee, and EM, document, inspection, commitment and shipment charges)

Key Features of SBI Business Loans

  • Purpose of Loan: You can avail SBI Business Loan to expand or modernize your business, purchase assets, set up new units.
  • Loans are available to self-employed professionals and non-professionals.
  • Borrowers between 21 and 65 years of age can avail SBI Business Loan.
  • Security: Both secure and insecure
  • The loan tenure ranges from 12 to 48 years.
  • SBI Business Loan interest rates range from 11.20% to 16.30%.
  • SBI Bank Business Loan EMI starts at ₹ 2,594 per lakh.
  • Processing Fee: 2% to 3%
  • Special Schemes: Some of the special business loan offers of SBI are:

Low SBI Business Loan Interest Rates

Currently, the lowest business loan rate offered by SBI starts from 11.20%. There is no change in the low interest rate of SBI Business Loan Interest Rate for a long time and the interest rate continues to be in the range of 11.20% to 16.30%.

Eligibility Criteria for SBI Business Loan:

Age: SBI offers business loan to minimum age of 21 years at the time of loan approval and maximum age of 65 years at the time of loan maturity.
Loan Amount: Depending on the loan amount eligibility, SBI offers you loan amount ranging from ₹ 5 lakh to ₹ 100 crore. To improve your chances of approval, apply for a loan amount that you can comfortably service.
Profitability and Income: SBI requires minimum 2 years of profitability and minimum business turnover of ₹ 20,00,000.
Business Stability: SBI requires a business track record of at least 36 months. The bank sees minimal growth in sales over the past three years. A fall in sales for a certain period or below a certain threshold may affect your eligibility for a loan.

ITR and Banking: SBI gives loan only after verifying your income tax return and bank statements. Bank requires you to submit your ITR details and bank statements for at least 24 months and 0 months.
CIBIL Score: SBI checks your repayment history for all current and previous loans and credit cards. Bank advises you to maintain a score of 750 and above to get loan approval.

Documents Required to Apply for SBI Business Loan:

  • Proof of address of the individual: Aadhaar Card, Voter ID Card, Bank Statement, Registry Copy, Rent Agreement, Utility Bills
  • Proof of Identity: Passport, Driving License, PAN Card, Aadhaar Card, Voter ID Card
  • Proof of Business Existence: PAN, Sales Tax/ Excise/ VAT/ Service Tax Registration, Copy of Partnership Deed, Business Licence, Practicing Certificate, Registration Certificate issued by RBI, SEBI
  • Copy of Income Tax PAN for 24 months
  • Last 6 months bank statement

How to Apply SBI Business Loan Online?

  • To get best offers on business loan and compare SBI business loans with other banks, you can apply online through MyLoanCare here.
  • MyLoanCare gives you a detailed comparison of business loan schemes of all banks, calculates your business loan eligibility and connects you to SBI’s customer representatives.
  • Moreover, you will also be assisted by a dedicated MyLoanCare loan executive who will ensure that the process of getting a loan is smooth, convenient and quick.

Offline Process:

Apply Offline First visit your nearest SBI bank branch and submit all the required documents

You can get a loan by filling up the application and attaching the documents.

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