State bank of India offers SSBL (simplified small business loan) to you if you are a small businessman or entrepreneur engaged in services, manufacturing, or retail/wholesale trade for buying your fixed and current assets required for your business expansion. This SBI business loan provides loan proceeds that range anywhere from Rs 10 lakh to Rs 25 lakh for a loan repayment tenure of as high as 5 years. This credit option is offered in form of a dropline overdraft facility along with a margin requirement equaling 10 per cent (in the form of receivables) and minimal security or collateral of 40 per cent.
| State bank of India’s simplified small business loan or SSBL | |
| Rate of interest | According to the business needs and linked with the MCLR |
| Nature of the loan | Dropline overdraft option |
| Loan proceeds | Ranges anywhere between Rs 10 lakh and Rs 25 lakh |
| Security or collateral | At least 40 per cent |
| Loan repayment tenure | Dropline overdraft – between 12 months and 60 months involving a 3-month moratorium.
Cash credit – To be annually renewed or repayable on demand. |
| Unified charges | Rs 7500 + taxes (it consists of processing charges, documentation, commitment, inspection, and remittance fees) |
| Margin | 10 per cent that may be ensured through receivable statements and stocks. |
A comparative analysis of business loan rate of interest by major banks and NBFCs –
| Banks & NBFCs | Rate of interest |
| Bajaj Finserv | 9.75 – 25 per cent per annum |
| Axis Bank | 14.95 – 19.20 per cent per annum |
| HDB Financial Services Ltd. | As high as 36 per cent per annum |
| Flexiloans | 1 per cent month onwards |
| HDFC Bank | 10 – 22.5 per cent per annum |
| Indifi | 1.50 per cent per month onwards |
| IDFC FIRST Bank | 15 per cent per annum onwards |
| Lendingkart | 1 – 2 per cent per month |
| Kotak Mahindra Bank | 16 per cent – 19.99 per cent per annum |
| NeoGrowth Finance | 19 – 24 per cent per annum |
| MCapital | 2 per cent per month onwards |
| UGRO Capital | 14.90 per cent per annum |
| Tata Capital | 12 per cent per annum onwards |
Eligibility parameters for State Bank of India’s SSBL
- Current account holder for a minimum of 2 years with any financial institution.
- Business vintage for a minimum of 3 years in the same locality or area.
- Must own premises or must hold a valid rental agreement.
- In the case if rented properties, the minimal residual period is 3 years.
- Monthly average balance in past twelve months equals Rs 1 lakh (with monthly threshold balance equaling Rs 10,000).
Must have a strong credit score and a good financial history.
SME loan offered by the State Bank of India
Mentioned here is a wide range of SME (small & medium enterprise) loans provided by the State Bank of India to you as a customer at a reasonable rate of interest with flexible loan repayment options –
- Asset-backed loan
- Arthiyas Plus
- Corporate liquid term deposit
- Asset-backed loan commercial real estate
- SME credit card
- SME car loan
- Rinn Suraksha for MSE (micro & small enterprises)
- Loan as per government schemes (stand up India, Mudra loan, PMEGP and CGTMSE)
- Loan as per contactless lending platform
- Loan to business correspondents
- Lease rental discounting
- Fleet finance
- Finance to the food processing industry
- Export packing credit
- E vendor finance scheme
- E dealer finance scheme
- Corporate liquid term deposit
Read on here about the SBI Mudra loan, another form of business loan offered by the State Bank of India
The SBI e Mudra loan is a collateral or security-free business loan, working capital loan and MSME credit option to individuals, MSMEs (micro, small & medium enterprises), self – employed professionals as per the guidance of Micro unit development & refinance agency or MUDRA. As per the MUDRA scheme, the State Bank of India provides MSME loans and business loans with loan proceeds of as high as Rs 10 lakh. SBI e Mudra loan can be applied for and can be availed online for an amount of as high as Rs 1 lakh with a maximum repayment loan tenure of up to five years.
SBI Mudra loan can be utilised to mitigate distinct working capital needs, like increasing the cash flow, buying raw materials, paying rent, and stocking up the inventory, for business-linked purposes and expansion. SBI mudra loans are provided to MSMEs, individuals, enterprises and businesses engaged just in services, trading, and manufacturing sectors. Listed here are crucial features of the SBI e Mudra loan –
| SBI Mudra loan | |
| Rate of interest | Competitive interest rates linked with the MCLR |
| Purpose | For business & capacity expansion & modernization purposes |
| Loan proceeds | As high as Rs 10 lakh |
| Loan Type | Working capital and term loan |
| Target group | Business in trading, manufacturing, and service sector involving agricultural activities |
| Processing charges | Nil for Kishor & Shishu to MSE units
For Tarun – 0.50 per cent of the sanctioned loan
|
| Prepayment fees | In between 3 – 5 years (moratorium of as high as six months) based on the income generation. |
| Margin | As high as Rs 50,000 – Nil
Between Rs 50,001 and Rs 10 lakh – 10 per cent |
| Security | Nil |
Frequently Asked Questions (FAQs)
How can you get in touch with the State Bank of India customer care?
For this, you can call up on the toll-free number – 1800 – 1234 / 1800 – 425 – 3800 / 1800 – 11 – 2211 for any query.
How is the working capital funding structured at the State Bank of India?
The working capital loan is provided to mitigate your regular business needs of you as a customer. The working capital loan is structured as the joint contribution of the credit features such as cash credit, demand loans, non-funded credit, and bill discounting facilities.
How does the State Bank of India approve a working capital loan and machinery loan?
State Bank of India’s team of professionals tends to check your profile and business needs and distinct factors before approving your application for a working capital loan.
Can you avail a loan from the State Bank of India to begin your own shop enterprise?
Yes, you can opt for a shop loan provided by the State Bank of India to begin your own enterprise.
Can you download the State Bank of India YONO app to avail a business loan?
Yes, using an SBI YONO app, you can open a business account. Also, you can easily transfer funds as well as apply for the overdraft option using the YONO app.