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