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SBI Business Loan is available to large corporations as well as small scale and medium-sized businesses. The banking giant offers a wide range of commercial loans, including secured and unsecured business loans, with interest rates starting at 11.20% p.a. and a maximum term of 15 years. SBI also offers loans through government programs such as the PMEGP, Mudra Loan, and Stand-up-India. SBI's mid-corporate loans, which range from Rs. 50 Crores to Rs. 500 Crores are another unique offering. Working capital finance, project finance, corporate finance, dealer finance, and other funding methods are also available at SBI.

Whatever your business credit requirements are, the State Bank of India will undoubtedly be able to meet them. Depending on the loan scheme you apply for, you can get an SBI Business Loan worth up to Rs. 500 Crores. The SBI Business Loan provides longer monetary assistance against any leverage or security with a decent valuation, as well as a tailored loan application process to meet your specific business requirements.

SBI Business Loan Features & Benefits

Here are some important features & benefits of an SBI Business Loan.

  • Diverse Array of Loans: SBI offers a wide selection of Business Loans to meet the needs of a wide range of customers. SBI Bank Business Loan is available in amounts ranging from Rs. 10,000 to Rs. 500 Crores, depending on the business profile and requirements.

  • Low-Interest Rate: You can avail a State Bank of India Business Loan at a low-interest rate. The interest rate of an SBI Business Loan is based on the Marginal Cost of Funds based Lending Rate (MCLR).

  • Collateral-free Loans: At SBI, MSMEs can get loans with no collateral. State Bank of India offers collateral-free Business Loans with EMIs up to Rs. 1 Crore.

  • Easy Application Process: The application procedure of applying for an SBI Business Loan is simple and quick to follow. You can get through the whole process in a few minutes without any difficulty. 

  • Flexible Repayment Tenure: The State Bank of India offers its lenders a flexible loan repayment period ranging from one year for working capital to 15 years for monetary loans.

  • Business Loans for Women: Women can enjoy the advantages of an SBI Business Loan that is specifically curated for them. Women-owned businesses or businesses with more than 50% of their company shares owned by women industrialists can benefit from a special grant offered by the State Bank of India called the 'Stree Shakti Package.' Women entrepreneurs can get a benefit of 0.05%  interest rate reduction for loans ranging from Rs. 2 Lakhs to Rs. 50 Lakhs.

SBI Business Loan Eligibility

Here are the parameters of obtaining an SBI Bank Business Loan.

  • The State Bank of India Business Loan is available to any Indian citizen who owns a business and has residual income and the ability to repay the loan.

  • Businesses that fall under the SME categories are eligible to apply for an SBI Business Loan. Typically, these businesses are engaged in trade, manufacturing, or self-employment.

  • People who have been in the current business for at least three years and have a total of five years of business experience are eligible for an SBI Bank Business Loan. 

  • The applicant must be at least 21 years old at the time of loan application and no more than 65 years old at the time of loan maturity.

  • The company's annual revenue should be at least Rs. 40 Lakhs.

  • The company should generate a minimum annual income (ITR) of Rs. 1.5 Lakhs per year.

  • An applicant must have a good credit score. Banks are required to verify that the borrower has not defaulted to any financial institution about previous loans.

SBI Business Loan Interest Rates

Here is the table containing the SBI Business Loan interest rates for 2021. 

Processing Fee

Amounts generally range from 1% to 5% of the loan amount sanctioned

Securities

Unsecured business loans do not require a credit check 

Loan Disbursement Timeframe

Depends upon the type of loan

Loan Amount

Minimum of Rs. 10,000 and a maximum of Rs. 500 Crores

Rate of Interest

Determined by the type of loan, the individual's profile, and the business needs

Duration of Repayment

From 12 months to 5 years, with the possibility of extension based on business necessities

Factors Affecting SBI Business Loan Rates

Here are some of the major reasons through which SBI Bank Business Loan rates get affected. 

CIBIL Score: If your CIBIL score is low, SBI will offer you a Business Loan with a higher interest rate and vice versa. To get a loan from SBI, however, your CIBIL score must be at least 700. The higher your CIBIL score, the better your chances of getting a low-interest Business Loan.

Business Experience: If you have a wide range of business experience, SBI will give you a low-interest loan. SBI requires a minimum of 36 months of business experience to obtain a Business Loan.

Monthly Income: If you have higher monthly revenue, SBI will offer you a loan with a lower interest rate. Lenders with an annual turnover of minimum Rs. 20 Lakhs are eligible for bank loans.

Loan Amount: The interest rate on a State Bank of India Business Loan is determined by the amount borrowed. If you are applying for a higher amount, the interest rate will be lower. 

Types of SBI Business Loans

Below is the table listing the different SME loans from SBI.

Type of Loan

Aspect of Loan

Loan Amount

Processing Fee

Repayment Duration

Commercial Real Estate Asset-Backed Loan

Overdraft on the dropline

Up to Rs. 20 Crores

1% of the limitations 

12 months to 72 months

Credit for Export Packing

Finance for pre-shipment

Need-based

As it relates to the cash credit limit

Up to 180 days

Loan Secured by Assets

Overdraft on the dropline

Up to Rs. 20 Crores

1% of the limitations 

12 months to 180 months

E-Dealer Financing Scheme

Credit for working capital

Need-based

Up to Rs. 30,000

Up to 90 days

Finance for Fleets

Loan for a specific period

Up to Rs. 10 Crores

1% of the limitations

Up to 66 months

Scheme for E-Vendor Financing

Credit for working capital

Need-based

Up to Rs. 50,000

According to the duration of payables

Credit Card for Small Businesses

Credit for working capital

Up to Rs. 50 Lakhs

Following the bank's instructions

Up to 5 years

SBI Overdraft Product

Operating an A/C OD facility

Up to Rs. 5 Crores

1% of the loan amount

12 months

Simplified Small Business Loan (SSBL)

Loan for a specific period

Up to Rs. 25 Lakhs

Rs. 7500

Up to 5 years

How to Apply for SBI Business Loan

Here are the ways through which you can apply for the State Bank of India Business Loan.

  • Online

You can apply online for Business Loan by filling out the online application form on their website. Their Business Loan representative will get in touch with you and assist you with the paperwork and the rest of the process.

  • Contact Customer Service

You can contact SBI customer service on their toll-free number to request a callback regarding the loan procedure. 

  • Go to the Branch

You can also visit your nearest branch and apply for the SBI Business Loan offline. 

Documents Required for  SBI Business Loan

The following documents are required for SBI Business Loans.

  • Completed application form and passport-sized photographs

  • KYC documents such as PAN Card, Passport, Aadhar Card, Driving License, Voter ID card, and Utility Bills 

  • Last year's bank statement, along with ITR business address proof, and, if applicable, company incorporation certificate

  • Aside from these, SBI may require additional documentation.

SME Government Schemes

The following are the loan schemes offered by SBI that the Indian government initiated.

1. Prime Minister's Employment Generation Program (PMEGP)

The scheme is run by the Khadi and Village Industries Commission (KVIC), which provides financial assistance to people who want to start new businesses. 

  • In the manufacturing sector, the maximum project cost should be Rs. 25 Lakhs. 

  • In the business/services sector, the maximum project cost should be Rs. 10 Lakhs. 

  • This financial assistance is available to anyone over the age of 18. 

  • For sponsoring more than Rs. 10 Lakhs in the manufacturing sector or more than Rs. 5 Lakhs in the firm sector, the applicant must have completed the eighth standard.

2. MUDRA Yojana of Pradhan Mantri (PMMY)

PMMY was established in 2015 by the Prime Minister to assist non-corporate micro-enterprises in obtaining financial assistance. 

  • Loans are provided by cooperative banks, regional rural banks, commercial banks, small finance banks, MFIs, and NBFCs.

  • The scheme allows for loans of up to Rs. 10 Lakhs. 

  • To categorize the enterprises according to the growth and funding needs of the beneficiary micro unit/entrepreneur, the products are classified as Shishu, Kishore, and Tarun.

3. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)

The Ministry of Micro, Small, and Medium Enterprises (MoMSME) established CGTMSE to make bank credit available to SMEs without the use of collateral. The main goal of the scheme is for the lender to place the greatest emphasis on project viability and provide funding solely on the foremost stability of the investments funded. Furthermore, the lender utilizing the guarantee facility should make every effort to provide composite credit to the borrowers, allowing them to obtain both term loans and working capital from a single source.

4. Stand Up India

  • Under the Stand-up India scheme, each bank branch will provide at least one Scheduled Tribe (ST) and Scheduled Caste (SC) borrower, as well as at least one woman borrower, with loans ranging from Rs. 10 Lakhs to Rs. 1 Crore. 

  • This loan can be used to start a new business in the manufacturing, trading, or service sectors.

  • Applicants can apply online by filling out a form. 

  • They also have the option of selecting a preferred lender. 

  • Alternatively, they can apply in person at a branch of their preferred bank.

FAQs on SBI Business Loan

  • ✔️What is the State Bank of India (SBI) Business Loan Interest Rate for Existing Customers?

    Existing customers can strike a favorable deal if they have a good standing with the State Bank of India (SBI) and have a good credit score and cash flows.

  • ✔️How to Check State Bank of India (SBI) Business Loan Status?

    You can check the status of your loan product by going to the SBI website or downloading the SBI loan app. To check the status of the loan that you have taken out, you will need to enter your reference number and the mobile number that you have registered with the bank.

  • ✔️Can I get a Loan from SBI to Start my Shop?

    The answer is yes. The SBI offers term loans for shops and offices in the amount of up to Rs. 20 Lakhs. The loan's interest rate is variable and based on the bank's base rate. Under the scheme, a person can get a repayment period of up to 7 years, including a 6-month moratorium period.

  • ✔️How Can I Calculate SBI Business Loan EMI?

    You can calculate your SBI business loan EMI by using this formula:

    EMI = P x R x (1+R)^n/((1+R)^n-1)

    • The applicant's loan amount is denoted by the letter P.

    • The monthly interest rate is denoted by the letter R.

    • The repayment period specified by the bank is denoted by n.

  • ✔️How Can I Get in touch with SBI Customer Service?

    You may contact SBI customer service through their 24/7 numbers i.e 1800 1234 (toll-free), 1800 11 2211 (toll-free), 1800 425 3800 (toll-free) or 080-26599990.

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