SBI Business loan can be divided into two segments namely Traders Easy Loan Scheme and Retail trade.
Traders Easy Loan Scheme
- The loan can be availed by any business man / Professional/ entrepreneur and self-employed person.
- The 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 NonFund Based requirements.
- Cash Credit limit and NonFund 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.
- The 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.
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.
- 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.
The 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.