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SBI Business Loan

Is your business facing setbacks due to restricted cash flow? Do you need some financial support for expanding the business, investing in office or factory space, buying equipment or machinery or expanding inventory? Almost all business owners know the pain of getting a business loan sanctioned. Are you one of those facing issues in getting your business loan approved? A business loan from SBI might put you on track. Read on to know more about SBI Business Loan offers.

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Introduction to SBI Business Loan

SBI business loan could be a backbone to grow your small or large-scale company. Tailor-made to suit the needs of all categories, the bank provides a lot of benefits to their customers on business loans. With competitive interest rates and quick loan processing, SBI business loan could be the best option to achieve success in your business.

Loan AmountUp to Rs. 20 crores
TenureUp to 15 months
Interest RateStarts from 11.30%
Processing feeConcessional

SBI Business Loan Features

There are various features that makes taking a business loan from SBI beneficial:

  • The application process is simple and quick.
  • Requires minimal documentation.
  • Does not require any security or collateral.
  • Attractive interest rates.
  • Flexible loan amount, tenure and repayment methods.
  • Funding available for up to Rs. 20 crores
  • Flexible tenure up to 15 years

What is a Business Loan?

Any person wanting to start a business or any individual wanting to expand their business need funds to do so. This is where individuals and entrepreneurs take loans at a previously agreed rate of interest and time. Without this working, capital businesses cannot run smoothly. There are 2 types of business loans

1. Secured loans –This is the case where individuals and entrepreneurs provide collateral like inventory, land, machinery etc. Here the interest rate will be less

2. Unsecured loans –This is the case where businesses take a loan without any collateral. The interest rates are high as the risk for the banks are high

Purpose of Business Loans

The most common reasons to take business loans are as follows

1. Expanding Operations

Buying land or leasing a property to expand business operations when you feel that your business has grown large enough and scaling up at this moment is an opportunity that you do not wish to forgo, a business based on its growth projections can go for expanding operations more than once.

2. Purchase Equipment

Technology has become a key driver in the information age of business, and since technology comes with a pre-set expiry date, there is always a demand to purchase or upgrade existing equipment and technology. Buying/leasing/replacing a new equipment that will help improve the production or operations of the organization, alternatively the equipment can also be leased, it is best to conduct a cost-profit analysis to determine whether to buy or lease.

The advantage with buying equipment is that depreciation can be claimed each year apart from the first-year tax exemptions.

3. Purchase of inventory

Most often small business would require immediate capital for the purchase of inventory stock or raw material. There may arise the situation where the demand for your product may be very high in the market. Businesses may not have the funds to get the raw materials to meet the rise in demand. This problem can be solved when individuals and entrepreneurs take loans to buy the inventory needed for production.

4. To increase working capital

Many times, small businesses may not have enough working capitals to run their day to day activities. They will take short term loans till their own assets earn enough revenues to meet their operational needs.

5. Improve credit history

If a business is looking to get a larger loan it is necessary for the company to have a good credit history. To make sure of this the individual or proprietors get short term loans and pay them on time to improve their credit history. Consistent repayment of borrowings will lead to a positive credit history.

SBI Business Loan Eligibility

You are eligible for a Business Loan from SBI if you are a:

  • Self-employed individual
  • Self-employed professional
  • Sole proprietorship firm
  • Partnership firm
  • Private limited company (including closely-held public limited company)

You should be a minimum 25 years of age at the time of SBI Business Loan application and maximum 65 years of age.

You must have a minimum experience of 5 years in the current line of business, with at least 3 years of profitable business establishment & operation in the same city.

For self-employed professionals, a minimum of 4 years of post-qualification experience is necessary.

The applicant should own either residence or office in his name or jointly with family members or reside in a residence owned by an immediate family member.

SBI Business Loan Interest Rate

SBI offers attractive interest rates on its business loans. However, it depends on a host of eligibility criteria which might include but is not limited to - your credit history, current outstanding loans / EMIs, and other factors that reflect your financial capability and behaviour. It is best to contact the bank directly for the most up to date interest rates.

SBI Business Loan Documents

The documentation required is simple and straightforward. Following are some of the documents which will be required:

  • Application form with Passport Size Photographs of all applicants and co applicants
  • PAN Card
  • Identity Proof – Voter ID / Driving License / Passport / Aadhar Card (Any one can be submitted)
  • Address Proof – Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement (Any one can be submitted)
  • Ownership proof of either residence or office either in the name of applicant or jointly with family members
  • Business Continuity Proof – Any one document dated 5 years old (Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / Certificate of Incorporation / Partnership Deed)
  • Letter certifying end use of the business loan funds on Business Letterhead

List of Financial Documents Required

  • For Self-Employed Individuals / Sole Proprietorships
  • Latest audited ITR and financials for the last 2 years. (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Past 6 months Bank statements from the borrower's main account/s and 3 months of all other bank accounts mentioned in the Balance Sheet
  • For Self-Employed Professionals
  • Latest audited ITR and financials for the last 2 years. (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Past 6 months Bank statements from the borrower's main account/s and 3 months of all other bank accounts mentioned in the Balance Sheet
  • Educational certificate, Professional Qualification Certificate and Degree Certificate for professionals like Doctors, Architects, Chartered Accountants etc.
  • For Partnership Firms / Private Limited Companies
  • Latest audited ITR and financials for the last 2 years. (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Past 6 months Bank statements from the borrower's main account/s and 3 months of all other bank accounts mentioned in the Balance Sheet
  • Partnership Deed and partnership authority letter for partnership firms
  • Memorandum and Articles of Association and Board Resolution from the company
  • Certificate of Incorporation (COI) for companies
  • Latest shareholding patterns for Private Ltd. / Public Ltd. companies

SBI Business Loan FAQs

1. What is the minimum and maximum amount that I can get for my business?

You can get up to Rs.10 crores as business loan from SBI.

2. How much time does it take to process my application?

It depends on the completeness of the documents furnished. Once everything is found to be order, the processing could take between two to four weeks.

3. What is the available tenures of the loan?

SBI offers flexible tenure options up to 15 years.

4. On what basis, will my loan limit be determined?

Your loan amount will be decided as per your business revenue.

5. Is there any processing fee included?

Yes, a nominal processing fee would be levied which is communicated at the time of application for the loan.

SBI Business Loan Review

The simplified processing formalities facilitates loan borrowings from SBI with ease. It offers an array of finance products to suit every need and budget. The loans is disbursed as soon as you are found to be creditworthy and your net worth is satisfactory.

How to Get Business Loan from SBI

You can get a business loan from SBI in the following ways:

  • Online - by filling the Online Application Form on their website. A bank representative will get in touch with you.
  • In person - by visiting the nearest SBI branch and submitting the application and required documentation.
  • By phone - you can call customer care for help with your SBI Business Loan application.

Need help? If you think you need help with your SBI Business Loan Application and advice on loan eligibility, CreditMantri can guide you through the entire process and match you with the loan offer that best suits your profile.

About SBI

The State Bank of India, founded in 1806 is one of the largest and oldest commercial banks in Asia. It is a major banking and financial services public sector company with more than 24,000 branches and 59, 000 ATMs. It is the largest bank in India which has a 20% market share in deposits and loans among commercial banks, truly being a bank for every Indian.

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