SBI Business Loan

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The State Bank of India provides a range of business loans tailored to various enterprises and sectors, with loan amounts available up to ₹5 Crores.

This substantial amount allows businesses to address working capital requirements. Entrepreneurs can also use these funds to purchase equipment and other fixed assets for growth and expansion.

SBI Business Loan: Highlights

SBI offers business loans with flexible terms and competitive interest rates. These loans provide support for both new and established enterprises. Below are the key highlights of these loans:

Features	Details
Facilities Available	Cash Credit Term Loan Dropline Overdraft
Loan Quantum	Up to ₹5 Crores
Interest Rates	Based on the borrower’s rating/external rating* and the bank’s discretion
Repayment Period	Up to 20 years

*Borrower’s ratings are calculated based on the credit repayment history of a corporation.

**External ratings depend on the independent assessment of a corporation’s ability to repay a debt.

SBI Business Loan Interest Rates

Most SBI Business Loan interest rates are tied to the EBLR (External Benchmark Lending Rate) or MCLR (Marginal Cost of Funds Based Lending Rate), along with borrower’s ratings. Below are the specific rates for some of their business loan schemes:

Particulars	Interest Rates (p.a.)	Processing Fee/ Upfront Fee
ABL (Saral)	EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) and 6 months MCLR linked (for non-MSMEs)	Up to 0.65% of the loan amount
SBI Shaurya Maan	Interest rate linked to the bank's MCLR	NIL
Asset Backed Loan	EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) and 6 months MCLR linked (for non-MSMEs)	Dropline OD: 1% of the limits Cash Credit: Up to 0.65% of the loan amount
E Dealer Finance Scheme	EBR (Repo rate + 2.65%) for MSME borrowers; MCLR for non-MSME borrowers	Single unified charges ranging from ₹10,000 to ₹30,000
Warehouse Receipt Finance	MSME loans linked to EBR (Repo Rate + 2.65%), non-MSME loans linked to 6-month MCLR	No charges for loan amount up to ₹1 Crore; thereafter, a fee of 0.1% p.a.

Disclaimer: The above-mentioned rates are subject to change as per changes in the bank’s policies.

Calculate Your SBI Business Loan EMI

Loan Amount

Tenure

Rate of Interest

Your Monthly Business Loan EMI

Principal Amount

Total Interest

Total Amount Payable

Amortization Schedule

Download

Year	EMI	Principal	Interest	Balance

SBI Business Loan Features and Benefits

Here are a few pros of getting a business loan from the State Bank of India:

Wide Range of Loan Options

SBI provides over 30+ credit products tailored for businesses of all sizes across various sectors

Low Interest Rates

When compared to other lenders, the interest rates offered by SBI on business loans are quite competitive

Collateral-free Loans

Since providing a securing against loan is generally difficult for micro and small enterprises, SBI offers collateral-free loans to such businesses

Easy Application Process

SBI allows you to apply for business loans conveniently and without any hassle on its online portal

Flexible Repayment Tenure

SBI Business Loans come with flexible tenures ranging between 12 months and 20 years, which makes repayment convenient

Business Loans for Women

SBI also runs multiple lending schemes like Stand-Up India to support women entrepreneurs, allowing them to get loans at lower rates

Types of SBI Business Loans

Here are some of the business loans that SBI provides, along with their key details:

ABL (Saral)

Category	Details
Target Group	All business units involved in manufacturing and services activities, self-employed individuals, professionals, wholesale/retail trade.
Facilities Available	Drop-line Overdraft Facility Cash Credit NFB (Non-Fund Based) Facility
Quantum of Loan	Minimum: ₹10 Lakhs Maximum: ₹5 Crores
Repayment Period	Dropline Overdraft: 12 to 180 months, with a moratorium of up to 6 months based on activity. Interest is to be paid monthly during the moratorium Cash Credit: On-demand, no moratorium

SBI Shaurya Maan

Category	Details
Target Group	Registered Defence Canteens of the Armed Forces with a valid registration number
Facilities Available	Clean Overdraft Facility
Quantum of Loan	Minimum: ₹1 Lakh Maximum: ₹5 Crores
Pricing	Interest rate linked to the bank's MCLR
Repayment Period	On-demand

Asset Backed Loan

Category	Details
Target Group	Business units involved in manufacturing, services, self-employed individuals, professionals under MSMED Act 2006, and wholesale/retail traders. Units have to be registered as MSMEs
Facilities Available	Drop-line Overdraft Facility or Cash Credit
Quantum of Loan	Minimum: Above ₹10 Lakhs Maximum: ₹20 Crores (up to ₹30 Crores in cities like Mumbai and Delhi)
Pricing	EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) & 6 months MCLR linked (for Non-MSMEs)
Repayment Period	Drop-line Overdraft: 12 to 240 months with a limit reduction based on cash accruals, max 18-month moratorium, and interest serviced monthly Cash Credit: On demand

E Dealer Finance Scheme

Category	Details
Target Group	Authorised dealers, stockists, distributors, franchisees
Facilities Available	Cash Credit
Quantum of Loan	Need-based, based on past performance or projected sales, or limit recommended by the internal mechanism (whichever is lower)
Pricing	EBR (Repo rate + 2.65%) for MSME borrowers; MCLR for non-MSME borrowers
Repayment Period	Credit period of up to 90 days, with yearly renewal

Warehouse Receipt Finance

Category	Details
Target Group	Traders, owners of goods, processors, manufacturers
Facilities Available	Cash Credit facility (for limits of ₹1 Crore and above), Working Capital Demand Loan, Revolving Demand Loan
Quantum of Loan	Need-based
Pricing	MSME loans linked to EBR (Repo Rate + 2.65%), non-MSME loans linked to 6-month MCLR
Repayment Period	Maximum of 12 months or until stock is liquidated, whichever is earlier

SBI Business Loan Eligibility

The eligibility criteria for an SBI Business Loan varies depending on the type of loan you choose. However, to be eligible, you need to fulfil the following basic requirements:

You need to be between 18-60 years of age
Your business need to have a valid agreement with a bank as a Business Correspondent (BC) or Customer Service Provider (CSP)
Relationship with SBI for at least 1 year
You need to be residing in SBI’s area of operations for over 3 years

Documents Required for an SBI Business Loan

The list of required documents also differs based on the specific business loan. Here are some of the basic documents you need to keep in handy when applying:

A duly filled loan application form
KYC documents, like Aadhaar card, PAN card, voter’s ID, and more
Proof of business address
Company incorporation documents like Memorandum of Association, PAN and TAN Applications
Bank statements for the last year
Income Tax Returns for the last three years

How to Apply for an SBI Business Loan

You can easily apply for business financing online. Follow these simple steps to get started:

Visit the official SBI website
Click on the ‘Business’ tab
Select ‘SME’ and then click on ‘Loans’
Browse and choose the required loan
Click on ‘Apply Now’
Fill out the application form and enter the captcha
Click on ‘Submit’
A bank representative will reach out to you for assistance

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How can I calculate SBI business loan EMIs?

You can use an SBI Business Loan EMI calculator to determine your monthly instalments. All you have to do is enter the required values, that is loan amount, tenure and interest rates.

Can I get a collateral-free business loan from SBI?

Yes, SBI offers certain business loans that do not require you to pledge valuable assets as collateral. This includes loans available under the Government-run MUDRA scheme. A good CIBIL score can also enhance your chances of approval for these collateral-free loans.

Can I get a business loan from SBI to start a small shop?

Yes, you can apply for a loan available under the ‘SME Loan’ facility to start a small shop. However, you will have to meet the required eligibility requirements.