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SBI Business Loan

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.

Retail Trade:

  • 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.

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.

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.