State Bank of India Business Loan

4.5
State Bank of india offers floating-rate packages on their loan against property. SBI interest rates are pegged to floating interest card rate which currently stands lowest at 9.30% p.a for the tenure of 15 years.

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State Bank of India Business Loan

Interest Rate

11.2% - 16.3%

Loan Amount

Up to ₹50Cr

EMI Per Lakh

₹2,184 - ₹2,448

Processing Fees

Flat Rs 10,000

Pre-Payment Charges

NIL

Features & Benefits of SBI Business loan

SBI Bank Business Loan offers several features that borrowers can employ to enjoy various benefits. These include the following:

  • Loan Amount: The SBI offers a minimum business loan of up to ₹ 10 lakhs and a maximum loan amount of ₹ 25 lakhs.
  • Target Group: All the business units involved in services and manufacturing, professional, self-employed individuals, retail and wholesale trade.
  • Flexible Loan Tenure: State Bank of India offers a flexible loan term ranging from 12 months to 60 months (reducing drawing power). It also includes a moratorium of a maximum of three months.
  • Guarantee Cover: The bank provides you with a guarantee cover for 5 years. Also, under Mudra Scheme, the advance cover has a maximum period of up to 60 months.
  • Assessment Process: You don’t need to furnish any financial statements. Rather, the bank performs credit limit checks and need-based assessments. However, the applicant must have ten times the average monthly balance in the current account for the last year. The balance must be between ₹ 10 lakhs and ₹ 15 lakhs.

SBI Business Loan Overview

A simplified Small Business Loan (SSBL) is India’s most popular type of SBI Business Loan. The SSBL aims to offer hassle-free finance for meeting fund requirements pertaining to the business activities of the unit. The loan offers an attractive interest rate starting at 8.05% onwards. The bank provides you with a business loan ranging from ₹ 10 lakhs to ₹ 25 lakhs.

Every business units involved in service activities, manufacturing, and wholesale/retail trade, along with professional and self-employed individuals, are eligible to apply for this loan.

Simplified Small Business Loan falls under SBI’s SME Loans. Other business/SME loans offered by SBI are as follows:

  • Surya Shakti Solar Finance
  • Asset-Backed Loan
  • Loans under Contactless Lending Platform
  • Asset-Backed Loan – Commercial Real Estate
  • Fleet Finance
  • E Dealer Finance Scheme
  • E Vendor Finance Scheme
  • Export Packing Credit
  • Stand Up India
  • PM Mudra Yojana
  • Lease Rental Discounting
  • Finance to Food Processing Industry
  • SME Smart Score
  • Warehouse Receipt Finance, etc.

SBI offers a range of SME loans. You can visit the official website of the bank for further  information.

Documents Required for SBI Business loan

To obtain an SBI Business Loan, you must submit the following documents:

  • A duly signed and completely filled SBI business loan application.
  • KYC documents, including Aadhaar Card, PAN Card, Voter ID card, Driving Licence, Utility Bills, etc.
  • Rent agreements or property papers associated with business location. 
  • Company incorporation documents, if required.
  • Last year’s bank statement and details of filed ITR for the last three years.

Besides these, the bank may require additional documents that you must furnish, or your application may get rejected.

How does the EMI calculation Work for SBI Business Loans?

SBI business loan calculator renders a deep insight into the business loan EMIs. It helps you arrange your finances well. Moreover, you can use the calculator to instantly assess the monthly EMI payment of the loan.

You are simply required to enter the desired loan amount, interest rate, and loan tenure in the EMI calculator. The tool will display the result on the screen containing values of monthly EMIs, the interest rate payable, and the total principal amount. You can also use the Urban Money Business Loan calculator as a secondary reference.

If you wish to dip your hands into the calculation, you can use the following formula to determine the EMI on a business loan.

EMI = P x R x (1+R)N/ (1+R) N – 1

Where,

  • P = Loan Amount 
  • R = Rate of Interest
  • N = Loan Tenure

How does SBI Compare with Other Lenders?

Go through the table below to understand the comparison of SBI Bank’s business loan interest rate with its competitors.

Bank/NBFCs Interest Rate
SBI Bank 6.25% onwards
Axis Bank 14.25% – 18.50% p.a.
HDFC Bank 10.00% – 22.50% p.a.
IDFC First Bank 14.50% onwards
ZipLoan 1% – 1.5% per month (Flat ROI)
FlexiLoans 1% per month onwards
Fullerton Finance 17% – 21%
Kotak Mahindra Bank 16% – 19.99%
RBL Bank 17.50% – 25% p.a.
Bajaj Finserv 17% p.a. onwards
Indifi Finance 1.5% per month onwards
ICICI Bank 17% onwards
Tata Capital Finance 19% p.a. onwards
Lendingkart Finance 1.5% – 2% per month
Hero FinCorp Up to 26% p.a.
NeoGrowth Finance 19% – 24% p.a.

Note: The interest rate on business loans keeps changing. The given rates are as of September 2022.

SBI Business Loan Customer Care Number

For any queries or detailed information about the SBI Business Loan, you can contact SBI customer care executives at the following numbers:

  • 24 x 7 helpline number — 1800 1234 (toll-free) 
  • Other toll-free numbers — 1800 11 2211, 1800 425 380, 1800 2100, or 080-26599990. 

You can access the aforementioned toll-free numbers from all mobile phones and landline numbers in the country.

FAQs

From refinancing to reducing your interest, we have the answers right here.

Does the SBI Provide business loans at the best rate?

SBI business loans are available at the best rate, especially when the applicant has a good credit score and credit history.

What is the interest rate of a business loan in the SBI?

The SBI business loan interest rate starts at 6.5% per annum.

What are the benefits SBI provides on a business loan?

SBI offers guarantee cover of up to 5 years and doesn't require any financial statements for obtaining a business loan.

Does the SBI have a fixed rate of interest on a business loan?

No, the interest rates on a business loan may vary depending on the borrower's profile, credit history, and other factors.

What are the documents required in SBI for a business loan?

KYC documents, bank statements, rent agreements, etc., are some documents required for obtaining a business loan with SBI.

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