SBI Small Business Loan is one of the popular choices for Business solutions. It is simply called SBI Simplified Small Business Loan (SSBL) offering loan amounts from Rs. 10 Lakhs to Rs. 25 lakhs. It can be used for comprehensive purposes and other needs of the business in manufacturing, services, and trade sectors.
SBI Small Business Loan without Security
SBI (Small Medium and Large enterprises) SME Loan under CGTMSE scheme. It provides collateral-free business loans to small businesses in the Manufacturing and Service sectors.
Features:
- Loan amount: Up to ₹1 Crore (covers Working Capital, Term Loan and Overdraft facilities)
- Collateral: Not required (secured by a guarantee from CGTMSE)
- Target Borrowers: Small businesses in Manufacturing (up to ₹5 Crore investment in plant & machinery) and Service sectors (up to ₹2 Crore investment in equipment)
- Guarantee Fee: This fee covers the security provided by CGTMSE.
- Interest Rates: This may be slightly higher than unsecured loans due to the guarantee cover.
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SBI Small Business Loan Interest Rate & Charges
The primary objective of the SBI Simplified Small Business loan is to provide financial support to businesses to fulfill their current and fixed asset needs. This loan offers a drop-line overdraft facility and competitive interest rates that are tied to MCLR.
| Feature | Description |
|---|---|
| Loan Amount | ₹10 lakh to ₹25 lakhs |
| Margin | 10% |
| Collateral | Minimum 40% |
| Repayment Tenure | Up to 60 months |
| Fees | ₹7,500* |
Small Business Loan Interest Rates from Top Banks
Here is a list of top banks offering small business loans:
| Top Bank | Interest Rate | Loan Amount |
|---|---|---|
| HDFC Bank | 10.75% p.a. | Up to Rs.50 lakh |
| IDFC First Bank | 15% p.a. | Up to Rs.1 crore |
| RBL Bank | As per the Bank | Up to Rs.50 lakh |
| IIFL Finance | 12.75% p.a. | Up to Rs.50 lakh |
| Bank of Baroda | As per the Bank | At the discretion of the bank |
| Axis Bank | As per the Bank | Rs.50,000 - Rs.75 lakh |
SBI Small Business Loan Eligibility
SBI Simplified Small Business loan program has the following eligibility criteria:
Here are two ways to check your SBI account balance.
- Caters to self-employed individuals, professionals, businesses involved in manufacturing or wholesale/retail trading
- Business must have been in existence for a minimum of 5 years, preferably in the same location
- The main applicant/borrower must be the owner of the business location or have a valid lease agreement
- Minimum average monthly balance in the current account must be at least Rs. 1 lakh in the past 12 months
- Applicant must fulfill the Go/No Go criteria
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SBI Small Business Loan Documentation
The essential documents for SBI business loan:
- KYC documents (Aadhaar, PAN, etc.)
- Proof of business address
- Company registration documents (if applicable)
- Bank statements
- Income Tax Returns
- Business plan or project report (if applicable)
- Collateral documents (if required)
SBI Business Loan Schemes
As a leading bank in India, State Bank of India (SBI) offers a comprehensive range of business and SME loans to cater to the diverse needs of small and medium enterprises. The Simplified Small Business Loan falls under SBI's SME Loans portfolio. Additionally, SBI provides the following other business/SME loan options:
1. SBI Simplified Small Business Loan:
- For small business owners, shopkeepers, and traders.
- Offers easy and quick access to finance with minimal documentation.
2. SBI SME Smart Score:
- For businesses with a good credit score.
- Provides working capital and term loan facilities.
3. SBI Asset Backed Loan:
- Loans against property or other assets.
- Higher loan amounts with flexible repayment terms.
4. SBI Warehouse Receipt Loan:
- For businesses dealing in agricultural products.
- Loans against warehouse receipts.
Other SBI SME Loan schemes include:
- Surya Shakti Solar Finance
- Loans under Contactless Lending Platform
- Fleet Finance
- E Dealer Finance Scheme
- E Vendor Finance Scheme
- Export Packing Credit
- Stand Up India
- Lease Rental Discounting
- Finance to Food Processing Industr
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SBI Pradhan Mantri MUDRA Yojana (PMMY)
SBI participates in the Pradhan Mantri MUDRA Yojana (PMMY), a government program that provides loans to non-corporate, non-farm small & micro enterprises in India. Here's a breakdown of the key points for SBI MUDRA Loans:
Loan Amounts:
Categorized under three brackets:
Shishu: Up to ₹50,000
Kishore: ₹50,001 to ₹5,00,000
Tarun: ₹5,00,001 to ₹10,00,000
Eligibility:
- Existing and new business units in manufacturing, trading, and service sectors.
- Allied agricultural activities may also be eligible.
SBI Small Business Loan EMI Calculator
To help potential borrowers plan their finances, SBI provides an Equated Monthly Installment (EMI) calculator specifically designed for SME loans. The Business loan EMI calculator allows business owners to estimate their monthly repayment amount based on the loan amount, interest rate, and tenure.
Steps to Apply for a Small Business Loan
Securing an SBI business Loan online can be a convenient and efficient way for small and medium-sized businesses to access the funding they need. Additionally, there is an alternative option available through Buddy Loan, which offers a pool of RBI-approved lenders providing business loans.
To apply for a business loan, you can follow these steps:
Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
Step 2: Open the Business Loan Application Page. Enter your mobile number and OTP.
Step 3: Specify the desired loan amount and email. Next, choose the Business Loan option.
Step 4: Choose if you have a Business Proof (Yes/ No)
- If ‘Yes’ (If you have a business proof), enter your business and personal details.Or
- If ‘No’ (If you do not have a business proof), choose the profession type and enter your personal details.
Step 5: Provide income details and Click the ‘Submit’ button.
Apply for a Business Loan with Best Interest Rates
You can also check out more on loans offered by SBI with the links below:
Frequently Asked Questions
The loan amount offered by SBI for small businesses typically ranges from ₹10 lakhs to ₹1 crore, based on the business's financial standing and requirements.
Collateral or security may be required, depending on the loan type and loan amount and the business's risk profile. However, SBI also offers collateral-free loan options for eligible small businesses.
Both existing small businesses and new startups can apply for the SBI Small Business Loan, subject to meeting the eligibility criteria.
The loan tenure can range from 1 year to 5 years, with flexible repayment options, such as monthly, quarterly, or half-yearly installment based on the loan type.
The applicant's credit history and CIBIL score are important factors in the loan approval process. However, SBI also considers other aspects, such as the business's financial performance and growth potential.
Small businesses can apply for multiple SBI Small Business Loans, subject to their overall credit exposure and repayment capacity. SBI evaluates each application independently based on the specific requirements and risk profile.
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