SBI 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.

• 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. 

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

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