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SBI Small Business Loans under MSME Loan Schemes

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Simplified-Small Business Loan: SBI provides loan for business such as for build-up of current assets and fixed assets needed for business purpose. Click below to know more about this MSME/SME Finance Scheme.

General purpose loan for business such as for build-up of current assets and fixed assets needed for business purpose

Features

  • Nature of Facility : Drop-line Overdraft facility
  • Target Group : All Business units engaged in manufacturing, services activities along with self-employed and professional individuals, wholesale/retail trade.
  • Quantum of loan (Min/Max) 10 times of average monthly balance in current account in previous 12 months subject to:
    • Min: Above Rs. 10 lacs
    • Max: Less than Rs. 25 lacs.
  • Margin (%) 10% which will be ensured through stocks and receivable statement
  • Pricing Competitive Pricing Linked to MCLR
  • Collateral Security : Minimum collateral of 40%
  • Repayment Period upto 60 Months
  • Unified Charges : Rs. 7500/- (comprising of processing fee, EM charges, documentation charges, Inspection, commitment charges and remittance charges)

Eligibility Criteria

  • Existing business for at least 5 years in the same locality/area.
  • Should be owner of the premises OR should have valid tenant agreement with the owner of the shop (In case of rented premises, residual period of minimum 3 year)
  • Current account holder at any bank for at least 2 years (proprietorship, partnership & corporate concerns).
  • Min Avg. Monthly balance of more than Rs 1 lac in last 12 months, with monthly threshold balance of Rs 10,00
  • The borrower should also fulfil the eligibility criteria as per Go/No Go Criteria. If any of the parameters get response as ‘No’, the unit will not be considered eligible under this scheme and no deviation to be permitted.

Assessment

The need based assessment for the requirement of credit limits has to be done.

  • Financial statement not required.
  • The guarantee cover is available for five years and hence for advances granted under Mudra Scheme the maximum period is 60 months.
  • 10 times of average monthly balance in current account in last 12 months subject to minimum above Rs. 10 lacs and maximum less than Rs. 25 lacs.

 

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