SBI SME Loans

State Bank of India (SBI) offers a vast array of loans to cater to the financial needs of the Small and Micro Enterprises (SME) sector. Individuals who are engaged in income-generating activities in the manufacturing, trading, and services sectors can avail loans ranging between Rs.5 lakh and Rs.500 crore. The interest rates charged on these loans range between

SME Loans offered by State Bank of India

Small eBiz Loan – Features:

• The purpose of the loan is to extend financial support to the registered sellers of e-commerce portal involved in the sale of products through online portal of e-commerce firms.
• To be eligible for the loan, sellers should have a track record of 6 months selling on e-commerce portals of major e-commerce players.
• Borrowers must provide at least 35% collateral in the form of land, building, liquid securities, etc.

• The partners/promoters/directors of the unit can act as a guarantee for the borrowers.

Simplified Small Business Loan – Features:

• This is a general-purpose business loan that can be used for building-up the fixed and current assets of your business.
• All business units that are engaged in services, manufacturing, retail/wholesale trade, etc., are eligible to avail the loan. Self-employed and professionals can also avail this loan.
• A minimum collateral of 40% must be provided to borrow under this scheme.

• The existing business must be situated in the same area/locality for a minimum of 5 years to be eligible for the loan.

Stand Up India Scheme – Features:

• This loan can be used to fulfil all types of credit requirements for establishing Greenfield projects in the trading, manufacturing, and the services sector.
• This loan has been targeted at women entrepreneurs and for people under the Scheduled Caste/ Scheduled Tribe.
• Borrowers need not provide any collateral or third-party guarantee to avail this loan.

• The loan will be given to SC/ST and women entrepreneurs for setting up Greenfield projects only.

SME Smart Score – Features

• This loan can be availed to fulfil the working capital needs and can also in the acquisition of fixed assets.
• The target group for this loan is partnership firms/individually managed proprietaries or closely held private/public limited firms in the small and medium industrial and trading sector.
• To be eligible for this loan, the chief executive or chief promoter should be aged between 18 years to 65 years.

• The margin for this loan is 33% for term loan component and 25% for working capital component.

SME Credit Card – Features

• This loan is given to help borrowers meet any kind of credit requirements such as purchase of shop.
• This loan is targeted at retail traders, SSI units, village industries, self-employed individuals, professionals, etc.
• No collateral needs to be provided for SSI units.

• The margin for loans above Rs.25,000 is 20%.

Doctor Plus Scheme – Features

• This loan is targeted at medical practitioners of allopathy, promoters of allopathic hospitals, nursing homes, X-ray labs, polyclinic, pathological clinics, or any activity of allopathic discipline.
• The loan can be used to set up nursing homes, clinics, drug store, pathology labs, etc. Doctors can also use this loan to purchase medical equipment.
• Existing premises can be renovated/expanded/modernized with the help of this loan.

• For loans above Rs.2 crore and below Rs.5 crore, borrowers must provide at least 25% tangible security and personal guarantee of promoters.

Medical Equipment Finance – Features

• The target group of this loan is pathology laboratories, diagnostic centres, nursing homes, ENT centers, dental clinics, skin clinics, etc.
• The loan can be used to purchase ancillary equipment and clinics, hospitals, nursing homes, etc., should have tie-ups with employed, qualified doctors.
• For loans up to Rs.2 crore, there is no need to provide collateral. However, for loans above Rs.2 crore and up to Rs.20 crore, borrowers need to provide 25% tangible collateral and personal guarantee of promoters.

• The repayment for this loan will commence after 6 months of first disbursement.

Electronic Dealer Finance Scheme – Features

• The purpose of this loan is to help distributors/dealers/stockists/franchisees purchase inventory.
• All authorised dealers of industry majors that have a tie-up with the bank are eligible to avail this loan.
• Dealers can avail 100% finance and the interest rate on this loan is linked to Marginal Cost Based Lending Ratio (MCLR).

• The loans availed can be repaid through NEFT, cheque, cash, RTGS, fund transfer, etc.

Electronic Vendor Finance Scheme – Features

• The target group for this loan is vendors of reputed corporates/industry majors that have tied-up with the bank.
• To avail loan under this scheme, borrowers should be making profit continuously for the last 3 years.
• The industry majors should have a minimum turnover of Rs.500 crore.

• There are 2 variants of the scheme – vendor exposure and IM exposure.

Asset-Backed Loan – Features

• The purpose of this loan is to provide financial assistance needed for business expansion, short-term working capital, modernisation, etc.
• This loan is provided against collateral security which can be an immovable property in the form of equitable/registered mortgage such as building, land, etc.
• Any industry property that is leased or freehold cannot be provided as security.

• Only existing customers of SBI who have availed credit facilities from them previously are eligible for this loan.

Fleet Finance – Features

• This loan can be used to purchase new vehicles (passenger vehicles, heavy commercial vehicles, etc.) such as cars, trucks, buses, tankers, etc.
• The target group of this loan is existing fleet operators (for transport of passenger or goods) who have experience in the same line for at least 2 years.
• To be eligible for the loan, fleet operators should have an existing fleet of at least 10 vehicles.

• To avail loans over Rs.1 crore, borrowers must provide at least 20% tangible collateral security.

Pradhan Mantri Mudra Yojana – Features

• Loans under this scheme are categorised into 3 – Shishu, Kishor, and Tarun. Loans that are below Rs.50,000 fall under the Shishu scheme while loans over Rs.50,000 and up to Rs.5 lakh fall under the Kishor category. Loans over Rs.5 lakh and up to Rs.10 lakh fall under the Tarun category.
• Business enterprises in the manufacturing, trading, and services sector, including allied agricultural activities are the target group for this loan.
• Borrowers need not provide any collateral to avail this loan.

• The maximum repayment period for this loan is 60 months.

Export Packing Credit - Features

• The target group for this loan is manufacturers and merchant exporters who have already availed credit facilities from SBI previously.
• The loan can be used to purchase raw materials, packing, processing, transportation, and warehousing of goods meant for export.
• The margin percentage will be based on the nature of the order, capability of exporter, commodity, etc.

• The quantum of loan will depend on the business needs of manufacturers and merchant exporters.

Lease Rental Discounting - Features

• Individuals who own commercial and residential properties given out on rent, and all MSME units are eligible to avail this loan.
• The loan can be used to fulfil the liquidity mismatch of the borrower. The borrower has to obtain a certificate stating the end use of funds.
• The properties to be rented out or rented already should not be or have been leased to social infrastructure projects such as colleges, hospitals, schools, nursing homes, old age homes, etc.

• The realizable value of the property to be mortgaged should be at least 143% of the loan amount.

Warehouse Receipt Financing - Features

• The scheme is meant for providing financial support to manufacturers and traders for own processing against warehouse receipts issued by collateral managers (CMs) who have tie-ups with SBI.
• The margin of this loan ranges between 25% and 35% of market price and will be dependent on the facility and the tie-up.
• The maximum loan amount will depend on the business requirements.

• Underlying stocks for which warehouse receipt has been issued by the CMs will be pledged or hypothecated as primary security.

FAQ's on SBI SME Loan

1. How can I apply for SBI SME Loan? 

You can apply for this type of loan by visiting the official website of SBI and under the small business loan section click on ‘Apply Now’. You will have to fill the form and submit the required documents in order to get your loan application approved. You can also apply for the loan offline by visiting the nearest SBI branch. 

2. I have an existing business for 4 years. Can I apply for this loan? 

No, you cannot apply for this loan. Your business should exist no lesser than 5 years in order for you to be eligible for this loan. 

3. How can I check the status of my loan application? 

You can log in to the SBI net banking portal where under ‘loan’s you can check the status of your loan by entering the application number. You can also get in touch with a customer care executive if you wish to know the status of your loan. 

4. Will I need to submit collateral? 

Yes, a minimum collateral of 40% might be required. However, you must get in touch with the bank for further information on this. 

5. I own a shop. Can I apply for this loan? 

Yes, you can apply for this loan if you wish to improve your business and you meet the eligibility criteria.