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State Bank of India (SBI) offers various kinds of business loans. In fact, the bank has different loan schemes for various types of businesses such as healthcare, food processing units, hotels and restaurants, and so on. Similarly, you can also obtain a business loan from SBI for conducting varied business activities including, buying new business property, machinery loan, and so on.

Different kinds of SBI business loans

As mentioned earlier, SBI offers various kinds of business loans. Some of these business loans are mentioned below:

  • Simplified Small Business Loan
  • Export Packing Credit
  • eDealer Finance Scheme
  • eVendor Finance Scheme
  • Fleet Finance
  • Lease Rental Discounting
  • PM Mudra Yojana through SBI
  • Stand Up India loan
  • SME Credit Card
  • Warehouse Receipt Finance
  • SME Car Loan

The above mentioned are only a few loan schemes under SBI business loans. You can check the SBI’s website for a detailed list.

Features of SBI business loan

As mentioned earlier, SBI business loans can be obtained for various business activities. For example, SBI Simplified Business Loan is a working capital loan that helps business owners raise funds for day-to-day business activities. Similarly, you can also obtain loan for other activities such as buying machinery, modernisation, buying factory or office premise and so on. Here are some other details regarding SBI business loans.

  • What is the loan amount offered by an SBI business loan?

SBI offers diverse kinds of business loans with loan amounts of up to ₹500 crore.

  • What is the rate of interest on an SBI business loan?

The interest rate on SBI business loans varies from scheme to scheme. For example, a loan for food processing units can be obtained at the interest rate of 8.95% to 11.40%, while the interest rate on an the SBI Gold business loan is 9.75%.

Note: The interest rate on any business loan is linked to MCLR, which is regulated by the Reserve Bank of India (RBI). Therefore, it is recommended to verify the prevailing interest rate with SBI.

  • What is the repayment period of the SBI business loan?

The borrower can repay the loan over a period of 12-60 months.

  • Does the borrower have to promise any collateral for availing of the SBI Small Business loan?

Most of the SBI business loan schemes do not require to promise any collateral. In case, you are opting for a collateral loan, you may promise collateral in the form of property, bank investments such as fixed deposits, mutual funds, etc.

  • Does the borrower have to arrange for margin money for availing of the SBI business loan?

It depends on the loan scheme. For example, under the SBI Simplified Business Loan scheme, the business owner needs to raise 10% margin money. It can be raised through stocks and receivable statements.

At Tata nexarc, we aim to enable MSMEs to borrow funds seamlessly. We have partnered with multiple lenders and offer collateral-free business loans of up to ₹50 lakhs. The loan application process is online, requires minimum documentation, and you can get a loan offer in just 5 minutes. Apply now.

Eligibility criteria for SBI business loan

  • The borrower needs to be a self-employed individual or proprietor or partner in the business to be eligible for SBI business loan.
  • The borrower has to be 21 years old and above.
  • The business has to be in operation for at least 3 years.
  • The borrower should not have defaulted to any other bank or NBFC.
  • Eligibility criteria changes from scheme to scheme. For example, only restaurant and hotel owners are eligible for loan scheme for hotels and restaurants.

Note: It is best to check the eligibility criteria with SBI before obtaining a business loan as it may change depending on the loan scheme.

Business Loan

How to apply for an SBI business loan?

In order to obtain a business loan from SBI, you can visit the SBI branch to get to know about various loan schemes or you can apply online. Alternatively, you can also approach a direct selling agent (DSA) to help you obtain a business loan from SBI.

Also Read: How to Register as DSA loan agent

Applying for an SBI business loan online

  • You can visit the website of SBI for applying for a business loan online.
  • Click on the ‘Apply’ button against the loan scheme that you wish to apply for.
  • Fill in the required details such as the name of the applicant, business details, address, contact details, amount required, etc. and submit the application form.

Applying for an SBI business loan offline

You can visit the nearest SBI branch to enquire about the loan scheme. Select your loan scheme and submit the application form along with the required documents.

Also Read:

1.Paytm business loan up to 5L
2. HDFC Business Loan

Concluding remarks

Whether you need a loan for your startup or existing business, SBI’s portfolio of business loan offerings is extensive. As a business owner, you can explore all the options and choose the best one for your business. Before signing a business loan agreement, get all information regarding the loan including interest to be paid on the business loan, and so on.

Also Read:
Yes Bank MSME Loan
Paytm Business Loan
HDFC Bank Business Loan
Startup business loans by government

Frequently asked questions about SBI business loan

Here are answers to some frequently asked questions.

Which bank is the best to get a business loan for MSMEs?

All banks offer business loans including HDFC Bank, SBI, Axis Bank, ICICI Bank and so on. Additionally, there are multiple government loan schemes available to help MSMEs. You can check and compare these loan schemes and avail the one that suits your business needs the best.

Does SBI offer the best rate of interest on a business loan?

SBI may or may not be the bank offering the best interest rate on a business loan. Since interest rates change on regular intervals, it is best to check and compare the offers. Additionally, you can also negotiate with the bank to get the best rate.

What is the minimum credit score required for an SBI business loan?

Credit score is one of the essential elements of any business loan’s eligibility criteria. It is better to have a credit score of 700 and above to get a quick business loan.

Swati Deshpande

Swati is a passionate content writer with more than 10 years of experience crafting content for the business and manufacturing sectors, and helping MSMEs (Micro, Small and Medium Enterprises) navigate complexities in steel procurement, and business services. Her clear and informative writing empowers MSMEs to make informed decisions and thrive in the competitive landscape.