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
(p.a.) |
Tenure
(in years) |
EMI
(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.) |
Interest
(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 | |
|---|---|
|
Constitution
|
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 |
| 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 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