SBI Business Loan

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Business Loan

State Bank of India (SBI) offers a wide range of secured as well as unsecured business loans to SMEs at affordable interest rates starting from 6.70% p.a. and a maximum tenure of 15 years. You can get an SBI Business Loan up to Rs. 25 lakhs as a loan amount, depending on the loan scheme applied for. Below is a detailed overview of the various SBI business loan schemes, their interest rates, eligibility criteria, and other pertinent details.

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On SBI bank official website

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Updated: 20-05-2024 03:29:06 PM

SBI Business Loan Highlights 2024

Interest Rates  6.70% p.a. onwards
Loan Amount Up to Rs. 500 Crores
Tenure Up to 5 Years
Loan Processing Fee Up to 1% of the limit
CIBIL Score 750+
Foreclosure Charges 3%

SBI Business Loan Features & Benefits

Some of the striking features of SBI online Business Loan are:

  • A host of Business Loans to match with diversified customer requirements.
  • The SBI business loan interest rates start from just 6.70% p.a.
  • The need-based funding is available for all types of business operations.
  • Collateral-free loans available for MSMEs.
  • The application process is simple, as well as easy to follow.
  • Business loan for women in SBI comes at concessional interest rates.

SBI Business Loan Interest Rates

The SBI business loan interest rates are competitive and are generally linked to the bank’s External Benchmark Lending Rate (EBLR) and Marginal Cost of Funds Lending Rate (MCLR). Key interest rates include:

  • For Business Correspondents: 11.30% p.a.
  • For Finance to Food Processing Industry: 9.00% to 11.45% (MCLR linked) and 9.20% to 11.65% (RLLR linked)
  • SME Gold Loan: 9.75%

The fees and charges for availing of SBI Business Loan for new business vary based on the specific loan product. For instance, processing fees for different loan products range from a percentage of the loan amount to fixed charges.

Why Apply for SBI Business Loan?

Following are the key benefits of SBI business loans:

  • A host of Business Loans to match with diversified customer requirements.
  • The interest rate offered is highly competitive and linked to MCLR.
  • The need-based funding available for all types of business operations.
  • Collateral-free loans available for MSMEs.
  • The application process is simple, as well as easy to follow.
  • Business loan for womens in SBI comes at concessional interest rates.

SBI Business Loan EMI Calculation

It is crucial to know your SBI Business Loan EMI amount that you have to pay each month towards your loan repayment till the end of your tenure. Now it is easy to calculate your EMI with the SBI business loan EMI calculator available on our website. It is a tool that helps in calculating the EMI payable each month against the loan taken. It’s quick and easy to use. You only need to enter the loan amount, tenure, and interest rate in the calculator to get the EMI amount along with the total repayment amount.

Here is an example of EMI calculation using MyMoneyMantra EMI Calculator:

  • Loan amount required: Rs. 25 Lakhs
  • Applicable rate of interest: 6.70% p.a.
  • Repayment tenure: 5 years
  • EMI to be paid by you each month: Rs. 49,150
  • Total interest to be paid: Rs. 4,48,995
  • Total amount to be paid by you to the lender: Rs. 29,48,995

Our efficient EMI Calculator also provides the following amortization schedule:

Year Opening Balance Principal paid during the year Interest paid during the year Amount Paid by Customer(EMI*12) Closing Balance
1st ₹ 25,00,000 ₹ 4,35,511 ₹ 1,54,287 ₹ 5,89,799 ₹ 20,64,489
2nd ₹ 20,64,489 ₹ 4,65,604 ₹ 1,24,195 ₹ 5,89,799 ₹ 15,98,885
3rd ₹ 15,98,885 ₹ 4,97,775 ₹ 92,024 ₹ 5,89,799 ₹ 11,01,110
4th ₹ 11,01,110 ₹ 5,32,169 ₹ 57,629 ₹ 5,89,799 ₹ 5,68,940
5th ₹ 5,68,940 ₹ 5,68,940 ₹ 20,859 ₹ 5,89,799 ₹ 0

Types of Business Loans provided by SBI

SBI Simplified Small Business Loan

  • Purpose: Aimed at business units in manufacturing, services, and trade sectors for working capital requirements.
  • Interest Rate: Linked to the EBLR.
  • Loan Amount: Ranges from Rs 10 lakh to Rs 25 lakh.
  • Margin: A margin of 10% is required.
  • Collateral Security: Minimum collateral of 40% in various forms including mortgage charges on land & building.
  • Repayment Period: Varies for Cash Credit and Dropline OD.

SBI Asset Backed Business Loan

  • Purpose: For MSMEs to fund the purchase of current assets and fixed assets for capacity expansion.
  • Interest Rate: Linked to EBLR or 6-month MCLR.
  • Loan Amount: Up to Rs 20 crore.
  • Loan Tenure: 1 to 10 years with a moratorium period.
  • Collateral Security: Mandatory, compliant under the SARFAESI Act.

SBI Asset Backed Business Loan – Commercial Real Estate

  • Purpose: Financing working capital needs and real estate acquisitions like retail space, office buildings, etc.
  • Interest Rate: Linked to EBLR or 6-month MCLR.
  • Loan Amount: Up to Rs 50 crore for urban centers.
  • Margin: 25% for both working capital and fixed assets.
  • Collateral Security: Immovable property, compliant with the SARFAESI Act.

SBI SME Smart Score Business Loan

  • Purpose: Catering to diverse credit requirements of MSMEs.
  • Interest Rate: Competitive rates linked to EBLR.
  • Loan Amount: Up to Rs 50 lakh.
  • Margin: 20% for working capital and 33% for term loans.

SBI SME Credit Card

  • Purpose: To meet various credit requirements including the purchase of shops.
  • Interest Rate: Linked to EBLR.
  • Loan Amount: Up to Rs 10 lakh.
  • Margin: Nil for loans up to Rs 50,000 and 20% above this amount.

SBI Business Loan for Commercial Vehicles

  • Purpose: Financing new commercial vehicles, electric vehicles, hybrid vehicles, etc.
  • Interest Rate: Linked to the EBLR.
  • Loan Amount: Up to Rs 50 lakh.
  • Margin: 15% on the on-road price.
  • Repayment Period: Up to 7 years for commercial vehicles.

SBI Business Loan for SME Finance of CA Firm

  • Purpose: For CA firms, both overdraft and term loan options are available for various business expenses and asset purchases.
  • Interest Rate: Linked to EBLR.
  • Loan Amount: Varies for overdraft and term loan options.
  • Margin: Nil for overdraft; 25% for term loans.
  • Collateral Security: For term loans, coverage under CGTMSE with the borrower paying the CGTMSE fees.

SBI PM Mudra Yojana Loan

  • Purpose: For small businesses in the manufacturing, trading, or services sector.
  • Interest Rate: Linked to MCLR.
  • Loan Amount: Up to Rs 10 lakh.
  • Margin: 10% for loans between Rs 50,000 to Rs 10 lakh; nil below Rs 50,000.

SBI Business Loan for Export Packing Credit

  • Purpose: Pre-shipment finance for purchasing raw materials and processing for export.
  • Loan Tenure: Usually not exceeding 180 days.
  • Collateral Security: As applicable for cash credit/working capital limits.

SBI Business Loan for E-Dealer Finance

  • Purpose: For authorised dealers of industry majors to purchase inventory.
  • Interest Rate: Linked to MCLR.
  • Loan Tenure: Credit period up to 90 days with annual renewal.

SBI Business Loan for E-Vendor Finance

  • Purpose: Cash credit facility against receivables to vendors of reputed companies.
  • Interest Rate: Linked to MCLR.
  • Loan Tenure: Based on the tenor of the receivables.

SBI Stand Up India Business Loan

  • Purpose: For SC/ST and women entrepreneurs to set up greenfield projects.
  • Interest Rate: Linked to MCLR.
  • Loan Amount: Rs 10 lakh to Rs 1 crore.
  • Margin: Minimum 10%, up to 25% for composite loans.

SBI Business Loan for Warehouse Receipt Finance

  • Purpose: For manufacturers, traders, or owners of goods against warehouse receipts.
  • Interest Rate: Linked to MCLR rates.
  • Margin: Between 25% to 35% of the market price of goods.

SBI SME Gold Loan

  • Purpose: Overdraft/demand loan facility against gold ornaments or jewellery.
  • Interest Rate: 9.75% (EBLR + 0.60%).
  • Loan Amount: Up to Rs 50 lakh.

SBI SME Car Loan

  • Purpose: For businesses to finance new car purchases.
  • Interest Rate: Linked to the CIC score of the proprietor, partner, promoter, or director.
  • Loan Amount: Rs 1 lakh to Rs 3 crore.
  • Repayment Period: Up to 5 or 7 years.

SBI Business Loan under Contactless Lending Platform

  • Purpose: Online loan lending facility for small and medium industrial and trading sectors.
  • Interest Rate: Linked to both EBLR & MCLR.
  • Loan Amount: Rs 1 lakh to Rs 5 crore.

SBI Healthcare Business Loan

  • Purpose: For medical practitioners to set up or expand clinics, hospitals, nursing homes, etc.
  • Interest Rate: Linked to EBLR or 6-month MCLR.
  • Loan Amount: Up to Rs 20 crore.

SBI Business Loan for Fleet Finance

  • Purpose: Financing the purchase of new vehicles for businesses.
  • Interest Rate: Based on MCLR or 6 months EBLR.
  • Loan Amount: Rs 50 lakh to Rs 50 crore.

SBI Lease Rental Discounting

  • Purpose: Term loan against future rental incomes.
  • Interest Rate: Linked to MCLR.
  • Loan Amount: Rs 10 lakh to Rs 500 crore.

SBI SME Marble Plus Loan

  • Purpose: For units engaged with marble, quartz, and other stone-based products.
  • Interest Rate: Linked to collateral coverage and internal rating.
  • Loan Amount: Up to Rs 10 crore.

SBI Arthiyas Plus

  • Purpose: For Arthiyas or commission agents in retail trading activity.
  • Interest Rate: Linked to the EBLR.
  • Loan Amount: Rs 10 lakh to Rs 5 crore.

SBI SME Open Term Loan

  • Purpose: For businesses in manufacturing and services sectors for expansion, modernization, etc.
  • Interest Rate: Linked to EBLR or 6 months MCLR.
  • Loan Amount: Rs 25 lakh to Rs 10 crore.

SBI Dall Mill Plus Business Loan

  • Purpose: For MSME units in dal milling activities.
  • Interest Rate: Linked to EBLR.
  • Loan Amount: Up to Rs 25 crore.

SBI Business Loan Documents Required

Broadly, you will need the following SBI Business Loan documents when applying for the loan:

  • Duly filled loan application form.
  • 2 photographs of the applicant in passport size.
  • Proof of identity, such as Passport, PAN Card, Voter ID, or Driving License.
  • Proof of residential address, such as Registered Rent Agreement, Leave and License/, Utility Bill of at least 3 months, or Passport.
  • Proof of business, such as GST/ Service Tax registration, Company’s incorporation details including address proof of the business, P&L Account and Balance Sheet certified by a CA, the proof of the business’s existence, a copy of the partnership deed and business profile.
  • In case of companies, KYC documents of Directors.
  • For partnership firms, KYC documents of Partners.
  • Bank statements and Sanction Letters of existing loans.
  • All the legal, property-related documents like past Title Chain. E.g. Conveyance Deed, Allotment Letter, Sales Deed, Latest Property Tax Receipt, Possession Letter, Copy of Approved Plan of construction or extension.
  • The documentation requirement may greatly vary as per the loan product. MyMoneyMantra representative will guide you on the same.

Eligibility Criteria for SBI Business Loans

SBI provides an extensive range of business loans, each with its specific criteria designed to meet the varied needs of different business entities. Here’s a detailed look at the business loan eligibility SBI for various business loans:

SBI Asset Backed Business Loans

  • Targeted at MSME business units as defined by the MSMED Act 2006.
  • Open to both existing customers with credit facilities and new units offering marketable assets as security.
  • Takeover of existing units with a satisfactory credit track record is allowed.

SBI Asset Backed Business Loans – Commercial Real Estate

  • Applicable to proprietorships, partnerships, companies, or LLPs.
  • Eligibility extends to existing customers and new units with marketable assets as security.
  • Includes takeover of units with a satisfactory credit history.

SBI Healthcare Business Loan

  • Designed for individuals, proprietorship/partnership firms, corporates, or trusts.
  • Applicants must have at least 2 years of operations in their healthcare facility.
  • Promoters need relevant qualifications (MBBS, BDS, BHMS, etc.) and statutory approvals/registrations.
  • ITR is mandatory for units operating for at least 1 financial year.

SBI SME Marble Plus Loan

  • For new or existing units in the marble and stone industry, including manufacturing, processing, and trading.
  • Takeovers from other lenders are allowed given a satisfactory track record.

SBI Business Loan for Warehouse Receipt Finance

  • Aimed at traders, manufacturers, or goods owners with warehouse receipts from recognized Collateral Managers, CWC, or SWC.

SBI PM Mudra Yojana Loan

  • Available to both new and existing businesses in trading, manufacturing, services, and allied agricultural sectors.

SBI Stand Up India Business Loan

  • Specifically for SC/ST and women entrepreneurs establishing greenfield projects in services, trading, or manufacturing.

SBI Business Loan for SME Finance of CA Firm

  • CA firms registered with ICAI are eligible.
  • Promotors’ age should be between 25 to 65 years.
  • At least 5 years old Certificate of Membership or Practice from ICAI.
  • Minimum ITR for the past 3 years and a score above 60% as per the scheme’s scorecard.
  • Registration on the UDYAM portal as MSME and a CIC score above 650 is required.

SBI Business Loan for Fleet Finance

  • Intended for existing fleet operators, business enterprises, contractors, etc.
  • A minimum of 3 years of experience in the transport industry is required.
  • Eligibility is linked to scoring models and a satisfactory track record with existing banks/FIs.

SBI Lease Rental Discounting

  • Owners of commercial or residential buildings leased to banks, MNCs, large corporates, etc.
  • Properties leased to social infrastructure projects are not eligible.

SBI Simplified Small Business Loan

  • Targeted at business units in manufacturing or services, and self-employed individuals in wholesale/retail trade.
  • Requires 3 years of business continuity in the same area and a satisfactory banking relationship.

SBI SME Smart Score Business Loan

  • Open to MSMEs in industrial, trading, and service sectors.
  • The chief promoter/executive must be between 18 to 65 years old.
  • A minimum score of 60% in their evaluation model is required.

SBI SME Credit Card

  • Available to Micro Enterprises, SSI units, Retail Traders, etc.
  • Mandatory Udyam Registration with the MSME ministry.
  • A minimum of 60% score as per the Scoring Model is required.

SBI Business Loan to Business Correspondents

  • For Kiosk operators or customer service providers engaged by SBI.
  • Age criteria range from 18 to 60 years, with at least 1 year of attachment to the bank.

SBI SME Gold Loan

  • Targeted at MSME units (proprietorship firms) with active operations.
  • The account should not be classified as NPA.

SBI SME Car Loan

  • Available to MSME or Non-MSME units with borrowing arrangements with SBI.
  • Account should not be in SMA-1 or worse category in the last year.

SBI Open Term Loan

  • For existing customers with a good credit rating and track record.
  • Non-customers or units without borrowing arrangements with SBI are not eligible.

SBI Healthcare Business Loan

  • For healthcare entities with at least 2 years of operation.
  • The promoter needs to have relevant qualifications and statutory approvals.
  • ITR is mandatory for all existing units operating for a minimum of 1 financial year.

SBI Business Loan Fees & Charges

Processing fees associated with SBI Business Loans are as follows:

Type of SBI Business Loan Processing Charges
Asset Backed Loan/ Asset-Backed Loan – Commercial Real Estate 1% of the limits (maximum Rs. 10 Lakhs)
e Dealer Finance Scheme/ e Vendor Finance Scheme Rs. 10,000 – Rs. 30,000
Fleet Finance 1% of the limit
PM Mudra Yojana 0.50% + applicable tax for Tarun
SME eBiz Loan 1% of limit sanctioned + applicable taxes for 1st year & 0.35% + applicable taxes for 2nd year onwards.
Simplified Small Business Loan Rs. 7,500
Stand Up India Rs. 0.20% of loan amount + GST
Warehouse Receipt Finance Up to Rs. 3 Lakhs
Finance to Food Processing Industry Up to 0.40% of loan amount (maximum Rs. 40 Lakhs)
Loans to Business Correspondents 0.50% for loans above Rs. 50,000
SBI OD Product 1% of loan amount
SME Gold Loan Rs. 500 – Rs. 1,000 + applicable taxes
PMMY 0.50% + applicable tax for Tarun

How to Apply for an SBI Business Loan?

A business owner can apply for SBI Business Loan in any of the ways suitable for them.  There are no hassles involved, whatsoever. You can primarily opt for any of the following methods:

Online Application: If you are looking for quick processing of your SBI business loan, apply online by filling the online application form on their website. Their business loan representative will contact you and assist you with the documentation and further procedures.

You can also apply for the loan online on MyMoneyMantra.

Call Customer Care: You can request a call back by contacting SBI customer care on their toll-free number.

Visit the Branch: Alternatively, you can visit the nearest SBI branch and submit the application physically. However, in this digital age, more and more customers are opting for the online route.

Customer Care Number for SBI Business Loans

SBI is committed to providing exceptional customer support around the clock. With a dedicated team of skilled and efficient customer care professionals, SBI ensures that all your queries and concerns are addressed efficiently. Customers have multiple channels to reach out to the SBI customer care team:

  • Email Support: You can email your queries or complaints to [email protected] or [email protected].
  • Net Banking & Mobile App: For a more direct approach, customers can use SBI’s net banking services or the mobile app.
  • Phone Support: For immediate assistance, customers can call SBI’s Toll-Free numbers: 1800-11-2211 and 1800-425-3800. Alternatively, they can call 080-26599990, where standard call charges may apply.
  • SMS Service: If you are dissatisfied with the services, you can express your concern by sending an SMS with the text ‘UNHAPPY’ to 8008 20 20 20.
  • Bank Branch Visit: Customers can also visit the nearest SBI branch for in-person assistance.

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SBI Business LoanFAQs

SBI extends diversified Business Loans as Term Loans, Working Capital Loan, SME finance, and many more. You can get up to a maximum limit of Rs. 500 Crores from SBI. The approval depends on the stability of business, financial need, and business viability.

SBI lends secured as well as unsecured business loans.

SBI is one of the choicest lenders for Business Loan. You get swift approval, provided the loan application entails complete documentation of business as well as collateral attached, besides the laid-out business plan.

You can borrow SBI Business Loan for up to 15 years according to your requirement. The bank extends a high degree of repayment flexibility to the borrowers.

The eligibility for Business Loan is decided as per your age, business type, business revenue, experience, credit score, and other factors.

SBI is the largest Public Sector Bank in India and offers highly customized loan options for the vastly diversified business needs of the country of over 1 billion. Broadly the SME loans and credit schemes are classified as:

  • Asset Backed Loan
  • Asset Backed Loan – Commercial Real Estate
  • Cotton Ginning Plus
  • e Dealer Finance Scheme
  • Fleet Finance
  • Lease Rental Discounting
  • SME eBiz Loan
  • SME Credit Card
  • Export Packing Credit
  • Prime Minister Employment Generation Programme (PMEGP)
  • Warehouse Receipt Finance
  • Loans to Business Correspondents
  • SBI OD Product
  • SME Gold Loan
  • SME Smart Score
  • Finance to Food Processing Industry
  • PM Mudra Yojana
  • Stand Up India
  • Other Schemes (NULM, Weaver’s Credit Card, Artisan Credit Card)

Prepaying a loan helps you save on interest component significantly. In order to calculate the prepayment benefit, you can make use of the Business Loan Prepayment Calculator. All you need to do is fill the loan details, and the calculator will instantly share the saving.

You can calculate your business loan EMI by using Business Loan EMI Calculator available

The interest rate for a business loan in SBI can vary depending on various factors such as the type of loan, creditworthiness of the borrower, and the prevailing market rates. Generally, SBI’s business loan interest rates start from competitive points and are linked to the bank’s External Benchmark Lending Rate (EBLR) and Marginal Cost of Funds based Lending Rate (MCLR). It’s advisable to check the latest rates directly from SBI or their official website, as these rates are subject to periodic changes.

  • Online Application: Visit the official website of SBI and navigate to the business loans section. Fill out the online application form with the required details and submit it. An SBI representative will then contact you for further processing.
  • Call Customer Care: Reach out to SBI’s customer care via their toll-free number to request a callback for assistance with the loan application.
  • Visit a Branch: You can also visit your nearest SBI branch, where you can submit your business loan application in person. This traditional method is still preferred by many who seek face-to-face interaction.

The eligibility criteria for an SBI business loan include:

For General Business Loans:

  • Applicable to proprietors, partnership firms, private limited companies, and publicly listed companies.
  • The business should have a minimum operational history (usually 2-3 years).
  • A good credit history and satisfactory financial records.

Specialized Business Loans (like SME loans, and startup loans):

  • Specific criteria are based on the nature of the business, scale of operation, and loan type.
  • Compliance with relevant legal and financial norms.

Documents Required:

  • KYC documents for the business and its owners.
  • Financial statements, bank statements, and relevant business registration documents.

Other Specific Criteria:

  • Depending on the loan type, additional criteria such as collateral, business turnover, and profit margins might be considered.