SBI Business Loan

SBI Business loan can be divided into two segments namely Traders Easy Loan Scheme and Retail trade.

Traders Easy Loan Scheme:

 Loan can be availed by any business man / Professional/ entrepreneur and self employed person.
 Loan is sanctioned against equitable mortgage of the property (commercial or residential) which is in the unit’s name or proprietor’s/partner’s name or relatives.
 The advance can be taken in form of Cash Credit limit, loan or Non Fund Based requirements.
 Cash Credit limit and Non Fund Based requirements can be renewed every year.
 Loan term is 5 years.
 Repayment can be done monthly, quarterly or yearly.
 Business is assessed and is done on the basis of projected turnover.
 Minimum loan amount: Rs 25000 and maximum loan amount is Rs 5.0 crores.
 Floating interests charged monthly on daily reducing balance.
 Loan margin 35%.
 Third party guarantee in not required.

Retail Trade:

 Loan is given to retail traders.
 The retail traders need to be the communication link between the manufacturer and the consumer.
 The bank provides working capital for the business, renovation, repair and others.
 Minimum loan amount is INR 25000 and maximum is 5 lacs.
 Margin: No margin for loan up to 25000, 20% for the range 25,000-50,000 and 25% for loan > 50,000.

Security required:

Loan Amount: Up to 25,000
Primary Security: Charge Over the assets bought with the bank finance
Collateral: NO

Loan amount: greater than 25000
Primary Security: Charge Over the assets bought with the bank finance.
Collateral: Charge Over movable and immovable assets or third party guarantee as per the RBI guidelines.

Eligibility:

 The business must have registered pre-tax profit in last three years.
 The trader needs to be established and must have a track record of profit.

Purpose of the SBI Business loan:
 Holding the book/stock debts.
 Fixed asset acquisition.
 Construction, renovation, up gradation etc.
 High cost debt substitution.
 Networking capital shoring.
 Expenditures for computerization.

Nature of the loan: Term loan.

Loan tenure: 3-5 years and repayments can be made monthly, quarterly or yearly.