State Bank of India Business Loan
State Bank of India offers business loan to people who are in need of financial help for their business growth. Both secured and unsecured loans can be availed through the bank by the people of India. One can use the loan amount to purchase new machinery, give salary to people who are working, for any new technology and various other purposes. SBI is an institution built over a century of trust. It is a banking behemoth that has become a household name in India. Having a 23 percent market share in assets today, SBI is the largest bank in the country reaching the remotest districts and talukas. Needless to say, it is a popular and quite trusted among businessmen as well.
Here are the details tabulated for your assistance :
| State Bank of India Business Loan Details updated | |
|---|---|
| Loan Amount | Rs.50,0000 to Rs.10,000,00000 |
| Loan Tenure | 4 Years |
| Interest Rate | 11.20% to 16.30% |
The bank offers loans for starting any business, small and medium-sized enterprises loans and to the people who are self-employed running IT companies and traders etc. The bank offers special schemes for business loans for supplying agricultural activities and for women as well. Business loans can be used to expand and grow the venture. Most business owners are able to scale up their operations with the help of business loans.
Our website, Loanbaba.com provides all the information about SBI business loans:
Why Apply for SBI Business Loan?
- The advantage of this loan is its same interest throughout the duration. Fixed interest rates for the business loan by SBI leaves borrowers with exact clarity of their payment timelines. Planning your repayment accordingly to suit the bank’s requirements is therefore, advisable before applying for a business loan.
- Documentation needed is simple and straight-forward and the business loan by State Bank is all set to get processed faster. We at Loanbaba, work closely with relationship managers at State Bank of India to ensure smooth processing of loan. Any discrepancies are dealt with immediately and care is taken to bypass any hurdle that may result in wastage of time.
- The customers can pay off the loan in easy instalments every month and can repay it via auto debit or PDC or ECS. The convenience with which business owners can repay is of paramount importance and SBI makes sure the terms are in place to be executed automatically. ECS is an automatic mode of payment where your EMI is debited from your account balance at a pre-set date of every month. Post-dated cheques, like ECS ensure that you are ahead of your payment cycle and there is no defaulting on loan.
- You can check out SBI business loan eligibility and SBI Business Loan EMI calculator at Loanbaba.com. It will give further clarity to business loan applicants with regards to the amount they are eligible to borrow from the bank. As the loan tenure increases, it has to be noted that the amount one ends up paying in interest amount also increases.
Features of Business Loans at State Bank of India
The following key points will help you understand the features and benefits of the business loans:
- The minimum loan amount is Rs. 5 lakhs and the maximum loan amount goes upto Rs.100 crores. With business loans, interest rates depend on the amount. Higher loan amounts attract a lower interest rate and vice-versa.
- Loan tenure is 1 year to 4 years. Interest rate currently is up to 16.30% as per records in April 2018. Interest rates are also influenced by the tenure of loan. Loans get sanctioned when the business owner and his background is convincing with regards to the servicing of loan. This factor must be taken into account while deciding the loan amount to be borrowed.
- One can make prepayment of a part of the loan amount anytime post the payment of one percent prepayment charges. Any surplus amount in the business can be used to prepay the loan amount in chunks.
- One can foreclose his/her whole loan amount anytime after the payment of six instalments at foreclosure fee. The option to prepay the entire loan amount is important so as to reduce unaccounted pressure on a certain level.
- No charges for Prepayment after paying off first 6 EMIs. As discussed in the previous point, be it a business or personal loan, it weighs heavily on the mind. Prepayments and liberty to foreclose a loan is necessary.
- The rates of interest offered by the bank are both fixed and flexible. Any of the two options can be selected according to the preference of the loan applicant.
Why Apply for Business Loan on Loanbaba?
At Loanbaba, you can compare and apply for business loans online. You can check out several loans for business and go through their features such as quantum of loan, amount of loan, processing fees, interest rates, and other conditions, on a single platform. The loan application process is simple and easy, as you can upload all the required documents online. Disbursal is done at the soonest, and you can keep a track of your loan application on the website. Loanbaba has worked with managers of various SBI branches in the past few years and we will ensure that your loan is prioritized for smooth processing and other charges. Our team of trained executives and credit managers make sure that your experience from application to approval is a hassle-free one. Comparing the loans by different lenders is also possible as all the details are provided to visitors in a tabulated format. All you have to do is enter the details while also mentioning your requirements.
SBI Business Loan Interest Rates
Business Loan SBI interest rate is between 11.20% and 16.30%, but varies as per individual profile. Keep a check on this page to note the updated SBI business loan interest rate for the current year. SBI loans are sanctioned by the bank’s relationship managers and the branch manager. It is suggested that applicants keep all the documents handy and also have a business plan in place in case of a bigger loan. This helps accelerate the chances of quick approval and thereafter, disbursal of amount. Significant experience is business is taken positively for safety reasons and hence, business owners can avail lower interest rates comparatively.
SBI Business Loan Eligibility Calculator
Business loan eligibility may differ from one candidate to another. You can also use free-of-cost State Bank of India Business loan eligibility calculator at Loanbaba.com. The eligibility criteria for SBI loan for business are discussed below:
- The applicant for business loan State Bank needs to meet the age requirement and must possess all necessary identity and profit/revenue proof, etc. as required while applying for the loan.
- He/she meet the requirement for company credit score and should not be under too many debts. It is best to clear all loan overdue amounts as that can reflect poorly on your credit history with the bank’s managers.
Types of State Bank of India Business Loans
SBI has business loan schemes for all kinds of professionals. The amount taken as loan can be used for either multiple or specific purposes. Under various schemes, SBI has taken care to design different loan products suited for different businesses. Also, a lot of attention to detail has been given so as to make sure most sectors benefit from their offerings.
Frequently Asked Questions about State Bank of India Business Loans
Here are the State Bank of India Business Loans FAQs.
1. What are the details and eligibility criteria of SBI Business Loans?
The details about Functioning capital finance by ICICI bank are as follows:
- One can avail minimum fifty thousand rupees and a maximum of thirty lakh rupees through the bank.
- Minimum annual income should be 1, 50,000 rupees
- Least age should be twenty one years and highest age can be sixty five years at the time of loan maturity
- Least annual turnover of business should be twenty lakh rupees
- At least three years experience in present business and a total of five years experience in doing business.
- The business should be experiencing profits continuously from last two years.
- The business must be filling ITR worth rupees 1.5 lakh annually.
2. Which SBI Business Loan Products are most popular?
- Working Capital Finance
- Term Loan
3. What are the Documents needed to avail SBI Business Loan?
The bank has a straightforward documentation procedure since they go about it with internationally tested methods. All you need is a photo ID, verified signature, address proof and a document that declares your age. The same is submitted with the application, and you are ready to get the loans from the best banks in the world.
- Proof of Address - Aadhar Card, registry copy, utility bills, rental agreement, bank statement etc.
- Proof of Identity - PAN Card, Voter ID, Passport, Aadhar Card, Driving License etc.
- Proof of Business Existence -PAN, excise / VAT/ service tax/ sales tax registration, partnership deed copy, certificate of practice, RBI, SEBI issued registration certificate, trade license etc.
- Income Tax and PAN card Copy of two years.
Disclaimer: Information is gathered from secondary sources and meant for reference only. Loanbaba is not a channel partner of State Bank of India.