Get a SBI Business Loan to grow your business with flexible repayment options
✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now!
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 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 |
|
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.
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.
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
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 |
|
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 |
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
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
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 certain business loans that do not require you to pledge valuable assets as collateral. This includes loans available under the Government-run MUDRA scheme. A good CIBIL score can also enhance your chances of approval for these collateral-free loans.
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.
