State Bank of India (SBI) is the largest bank if India and has the unbeatable customer support. Be it a personal loan to finance daughter’s dream wedding or a home loan to gift a dream home to your parents or a business loan to help you become an entrepreneur, SBI has always been the first choice of most of the people. The lower rate of interest and most importantly the reliability for the beneficial services makes the lender one of its kind.
What are the different SBI Business Loan Schemes?
The SME loan offered by the bank is one of its kind and is available in three different schemes namely:
- SBI Fleet Finance Scheme
- SBI Asset-Backed Loans
- Collateral Free Loans.
The facility of a higher loan amount up to ₹20 crores helps many give structure to their dream project and live like a King in their own world.
How much is the SBI SME Loan Interest Rate 2017?
The interest rate offered under this category is linked to 1 Year Marginal Cost of Lending Rate (MCLR) which means it is subject to change whenever there is a change in the MCLR of the bank. At present, the 1-Year MCLR is 7.95% and the interest rate applicable to different schemes is as follows:
- SBI Fleet Finance Scheme – MCLR+0.50% p.a. to MCLR+1.75% p.a. = 8.45% p.a to 9.70% p.a
- SBI Asset Backed Loans – MCLR + 1.85 % p.a. = 0.80% p.a.
SBI Business Loan Eligibility Criteria
- Existing Fleet Operators (Goods or Passenger) having experience of 5 years or more in the same line
- Fleet operator having existing fleet of minimum 10 vehicles
- Requirement of minimum 10 new vehicles or minimum loan amount Rs.50 Lacs
- Transport operators holding national/ state route permit and other necessary permits/ license/ approval
- Satisfactory track record with existing Banks / FIs
- Income Tax Assessement (Personal & Business)
- Eligibility is linked to the scores obtained underscoring model
What are the documents required?
The list of documents required SBI SME loans are as follows:
Constitution Specific Documents
- Partnership deed
- Trust deed
- By laws of Society, Registration Certificate from the Registrar of Societies
- Certificate of Incorporation/ Memorandum and Articles of Association
- Certificate of Incorporation/ Memorandum and Articles of Association, Certificate of commencement of business
List Of Common Documents
- Audited balance sheet for the last three year
- Brief detail of Proprietor / Partners / Promoters / Directors
- KYC documents for promoters / units
- Copy of IT Returns for promoters / Firm for the last three years
- Copies of license, permission approval by regulatory authority , where applicable
- Availability of utilities like power etc
- Pollution control clearance, if necessary
- Details of collateral security (including third party guarantee proposed to be offered
- Signed statement of Assets and liability from proprietor / partner guarantors
- Copies of other Bank’s sanction letter and statement of accounts (last 6 months)
- Copy of the title deeds of the Factory / Shop/ Godown/ collateral security
- Details of the capital expenditure, if Term Loan is applied
- Cheque for processing and fees to be paid for Valuation & Title search reports on property/ (ies) offered as collateral, ROC search (for companies)
How can you fill up SBI Business Loan Application Form?
Just like any other loan application, you can fill the SME loan form very simply. You have to mention the personal and professional details properly. The collateral for the unsecured loan has to be submitted to the bank as well. Most importantly, the SBI business loan details such as the name of the applicant, the purpose of the loan, the account details for the deduction of EMIs and the permanent address.
How can you check your EMIs with SBI Business Loan Calculator?
A loan calculator is an online tool which helps you in calculating your monthly installments in just a few seconds. With the basic details like the loan amount, the interest rate and the tenure, you can check the EMI, the total interest outgo, and the total repayment amount. Other than this, you also get the amortization schedule which is the presentation of the balance amount at the end of each year.
Using a loan calculator not only informs you about the payments in advance for managing other financial liabilities accordingly, it also helps in making the right choice in terms of choosing the suitable tenure.