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  • SBI Simplified Small Business Loan

    The Simplified Small Business Loan from SBI falls under the SME Loans category. These loans are offered against current account balances. The loan amount varies from Rs.10 lakh to Rs.25 lakh. The repayment tenure can go up to 60 months.

    Key Features of SBI Simplified Small Business Loan

    • The main purpose of the loan is to provide funding to businesses for accumulating current assets and fixed assets.
    • This is a drop-line overdraft facility.
    • Interest rates are competitive and are linked to MCLR.
    Loan Amount 10 times the average monthly balance (in the preceding 12 months) in the current account, subject to: Minimum – Rs.10 lakh Maximum – Rs.25 lakh
    Margin 10%*
    Collateral Minimum of 40%
    Repayment Tenure Up to 60 months
    Fees and Charges Rs.7,500**

    *This is ensured through receivable statement and stocks

    **This consists of processing fee, documentation charges, remittance charges, commitment charges, inspection fees, etc.

    Eligibility Criteria

    • The target group for this loan consists of businesses involved in manufacturing activities, self-employed individuals, professionals, and units engaged in wholesale/retail trading.
    • The business should have existed for a minimum of 5 years in the same location.
    • The borrower should be the owner of the business location or he/she should have a valid tenant agreement with the owner.
    • The minimum average monthly balance in the account should be more than Rs.1 lakh throughout the past 12 months.
    • The applicant should fulfill the Go/No Go criteria as well.

    Assessment Process for the Loan

    The bank will perform need-based assessment and credit limit checks. The financial statements of the business are not required for this. 10 times the average monthly balance in the current account (in the previous 12 months) should be between Rs.10 lakh and Rs.25 lakh.

    How to apply SBI Business Loan

    • You can apply for this loan online by visiting the official website of State Bank of India (SBI), where you will have to click on Business.
    • Under ’SME’, click on ’Simplified Small Business Loan’.
    • You will be directed to a new page, where you can click on the ‘Apply Now’ button.
    • An application form will be displayed on your screen. Fill the form and enter the captcha in the box given.
    • Click on ‘Submit’.
    • A representative from the bank will get in touch with you and will help you with the process of applying for this particular loan.

    You can also apply for this loan offline by visiting the nearest branch of SBI along with all the relevant documents. A representative of SBI will assist you with the application process.

    SBI Simplified Small Business Loan

    1. What’s the maximum amount I can borrow under SBI Simplified Small Business Loan scheme?

      You can borrow a minimum of Rs.10 lakh and above and maximum of any amount that’s below Rs.25 lakh. However, the final amount sanctioned is based on various parameters, including your eligibility and is solely at the bank’s discretion.

    2. Under what category of loan does this scheme fall?

      SBI Simplified Small Business Loan is a drop-line overdraft facility. It’s designed for small and medium-sized businesses looking to build their current and fixed assets for business purpose.

    3. How much collateral do I have to pledge against the loan?

      You have to pledge minimum collateral of 40% of the loan amount to get your loan sanctioned.

    4. What’s the minimum balance I have to maintain in my account to be eligible for this loan?

      You have to maintain a minimum average monthly balance of more than Rs.1 lakh in last 12 months, with monthly threshold balance of Rs 10,000.

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