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The State Bank of India provides a range of business loans tailored to various enterprises and sectors, with loan amounts available up to ₹5 Crores. 

 

This substantial amount allows businesses to address working capital requirements. Entrepreneurs can also use these funds to purchase equipment and other fixed assets for growth and expansion.

SBI Business Loan: Highlights

SBI offers business loans with flexible terms and competitive interest rates. These loans provide support for both new and established enterprises. Below are the key highlights of these loans:

Features

Details

Facilities Available

  • Cash Credit

  • Term Loan 

  • Dropline Overdraft

Loan Quantum

Up to ₹5 Crores

Interest Rates

Based on the borrower’s rating*/external rating** and the bank’s discretion

Repayment Period

Up to 20 years

*Borrower’s ratings are calculated based on the credit repayment history of a corporation. 

 

**External ratings depend on the independent assessment of a corporation’s ability to repay a debt.

SBI Business Loan Interest Rates

Most SBI Business Loan interest rates are tied to the EBLR (External Benchmark Lending Rate) or MCLR (Marginal Cost of Funds Based Lending Rate), along with borrower’s ratings. Below are the specific rates for some of their business loan schemes:

Particulars

Interest Rates (p.a.)

Processing Fee/ Upfront Fee

ABL (Saral)

EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) and 6 months MCLR linked (for non-MSMEs)

Up to 0.65% of the loan amount

SBI Shaurya Maan

Interest rate linked to the bank's MCLR

NIL

Asset Backed Loan

EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) and 6 months MCLR linked (for non-MSMEs)

Dropline OD: 1% of the limits

Cash Credit: Up to 0.65% of the loan amount

E Dealer Finance Scheme

EBR (Repo rate + 2.65%) for MSME borrowers; MCLR for non-MSME borrowers

Single unified charges ranging from ₹10,000 to ₹30,000

Warehouse Receipt Finance

MSME loans linked to EBR (Repo Rate + 2.65%), non-MSME loans linked to 6-month MCLR

No charges for loan amount up to ₹1 Crore; thereafter, a fee of 0.1% p.a.

Disclaimer: The above-mentioned rates are subject to change as per changes in the bank’s policies.

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SBI Business Loan Features and Benefits

Here are a few pros of getting a business loan from the State Bank of India:

Wide Range of Loan Options

SBI provides over 30+ credit products tailored for businesses of all sizes across various sectors

Low Interest Rates

When compared to other lenders, the interest rates offered by SBI on business loans are quite competitive

Collateral-free Loans

Since providing a securing against loan is generally difficult for micro and small enterprises, SBI offers collateral-free loans to such businesses

Easy Application Process

SBI allows you to apply for business loans conveniently and without any hassle on its online portal

Flexible Repayment Tenure

SBI Business Loans come with flexible tenures ranging between 12 months and 20 years, which makes repayment convenient

Business Loans for Women

SBI also runs multiple lending schemes like Stand-Up India to support women entrepreneurs, allowing them to get loans at lower rates

Types of SBI Business Loans

Here are some of the business loans that SBI provides, along with their key details:

  • ABL (Saral)

Category

Details

Target Group

All business units involved in manufacturing and services activities, self-employed individuals, professionals, wholesale/retail trade.

Facilities Available

  • Drop-line Overdraft Facility

  • Cash Credit

  • NFB (Non-Fund Based) Facility

Quantum of Loan

Minimum: ₹10 Lakhs

Maximum: ₹5 Crores

Repayment Period

Dropline Overdraft: 12 to 180 months, with a moratorium of up to 6 months based on activity. Interest is to be paid monthly during the moratorium

Cash Credit: On-demand, no moratorium

  • SBI Shaurya Maan

Category

Details

Target Group

Registered Defence Canteens of the Armed Forces with a valid registration number

Facilities Available

Clean Overdraft Facility

Quantum of Loan

Minimum: ₹1 Lakh

Maximum: ₹5 Crores

Pricing

Interest rate linked to the bank's MCLR

Repayment Period

On-demand

  • Asset Backed Loan

Category

Details

Target Group

Business units involved in manufacturing, services, self-employed individuals, professionals under MSMED Act 2006, and wholesale/retail traders.


Units have to be registered as MSMEs

Facilities Available

Drop-line Overdraft Facility or Cash Credit

Quantum of Loan

Minimum: Above ₹10 Lakhs

Maximum: ₹20 Crores (up to ₹30 Crores in cities like Mumbai and Delhi)

Pricing

EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) & 6 months MCLR linked (for Non-MSMEs)

Repayment Period

Drop-line Overdraft: 12 to 240 months with a limit reduction based on cash accruals, max 18-month moratorium, and interest serviced monthly

Cash Credit: On demand

  • E Dealer Finance Scheme

Category

Details

Target Group

Authorised dealers, stockists, distributors, franchisees

Facilities Available

Cash Credit

Quantum of Loan

Need-based, based on past performance or projected sales, or limit recommended by the internal mechanism (whichever is lower)

Pricing

EBR (Repo rate + 2.65%) for MSME borrowers; MCLR for non-MSME borrowers

Repayment Period

Credit period of up to 90 days, with yearly renewal

  • Warehouse Receipt Finance

Category

Details

Target Group

Traders, owners of goods, processors, manufacturers

Facilities Available

Cash Credit facility (for limits of ₹1 Crore and above), Working Capital Demand Loan, Revolving Demand Loan

Quantum of Loan

Need-based

Pricing

MSME loans linked to EBR (Repo Rate + 2.65%), non-MSME loans linked to 6-month MCLR

Repayment Period

Maximum of 12 months or until stock is liquidated, whichever is earlier

SBI Business Loan Eligibility

The eligibility criteria for an SBI Business Loan varies depending on the type of loan you choose. However, to be eligible, you need to fulfil the following basic requirements:

  • You need to be between 18-60 years of age

  • Your business need to have a valid agreement with a bank as a Business Correspondent (BC) or Customer Service Provider (CSP)

  • Relationship with SBI for at least 1 year

  • You need to be residing in SBI’s area of operations for over 3 years

Documents Required for an SBI Business Loan

The list of required documents also differs based on the specific business loan. Here are some of the basic documents you need to keep in handy when applying:

  • A duly filled loan application form

  • KYC documents, like Aadhaar card, PAN card, voter’s ID, and more

  • Proof of business address

  • Company incorporation documents like Memorandum of Association, PAN and TAN Applications

  • Bank statements for the last year

  • Income Tax Returns for the last three years

How to Apply for an SBI Business Loan

You can easily apply for business financing online. Follow these simple steps to get started:

  • Visit the official SBI website

  • Click on the ‘Business’ tab

  • Select ‘SME’ and then click on ‘Loans’

  • Browse and choose the required loan

  • Click on ‘Apply Now’

  • Fill out the application form and enter the captcha

  • Click on ‘Submit’

  • A bank representative will reach out to you for assistance

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 The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.

Frequently Asked Questions

How can I calculate SBI business loan EMIs?

You can use an SBI Business Loan EMI calculator to determine your monthly instalments. All you have to do is enter the required values, that is loan amount, tenure and interest rates.

Can I get a collateral-free business loan from SBI?

Yes, SBI offers some business loans that do not require you to pledge your valuable assets as collateral. This also includes loans under the Government-run MUDRA scheme.

Can I get a business loan from SBI to start a small shop?

Yes, you can apply for a loan available under the ‘SME Loan’ facility to start a small shop. However, you will have to meet the required eligibility requirements.

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