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%.
|SBI Business Loan
|As per business requirements and linked with MCLR
|Nature of loan
|Dropline overdraft facility
|Rs. 10 lakh to Rs. 25 lakhs
|At least 40%
|Up to 60 months
|10% is ensured through stocks and receivable statement
|Rs. 7500 (includes processing fee, and EM, document, inspection, commitment and shipment charges)
- 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:
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%.
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.
- 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
- 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.
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.