SBI Business Loan – A Financial Aid for SME Units

State Bank of India is the country’s largest bank that has been serving the country’s population since ages. It has all products to help the people in all situations. Right from deposits product to multiple loans and advances it has various financial tool in its kits. Also, after the merger with associate banks, it has gained the 45th position in the list of top 50 banks in the world. The bank has always believed in building customer’s potential.

Since it is the country’s bank it fulfills the requirement of each segment of the society. It considers and values the role played by the SME units in the development of the country’s economy. To help them in increasing and expanding their scale of operation the bank provides them with the credit facility. SBI Business loan is designed to match the needs of Small and Medium Scale Enterprises. Under the SME loan segment following are the schemes offered by the bank:

  1. Fleet Finance Scheme
  2. Asset Backed Loan

The three schemes proposed by the bank target different section and their wants. Each of it has different eligibility parameters and funding policy. Read the details for each of it in the following section.

SBI Fleet Finance Scheme

This scheme is exclusively introduced for the transport operators owning a fleet of commercial vehicles like trucks, trailers, tankers and buses etc. Under this scheme, the customer can get a loan for the maximum amount of Rs. 10 crores.

The credit is given for the highest tenure of 66 months. The purpose of issuing the loan is to finance new four-wheelers viz. trucks/ tankers/ trailers/ tippers/ luxury buses and car etc. The finance is for fully built vehicles, chassis, body building, road tax, registration & insurance. For borrowers who do not have any security to provide no collateral, security option is available. The loan is available to the following eligible candidates

  • Existing Fleet Operators (Goods or Passenger) having experience of 5 years or more in the same line
  • Fleet operator having existing fleet of minimum 10 vehicles
  • SRTOs will not be eligible
  • Requirement of minimum 10 new vehicles or minimum loan amount Rs.50 Lacs
  • Transport operators holding national/ state route permit and other necessary permits/license/approval
  • Satisfactory track record with existing banks/FIs
  • Income Tax Assesse (personal & Business)
  • Eligibility is linked to the scores obtained under the scoring model

Documents Required

  • Application Form
  • Bio-Data form
  • DD for Processing fee / Advocate fee / Valuation fee
  • Proprietor /Partners / Guarantors- Brief Profile, Photo, Passport/ EC ID Card/Driving Licence, Telephone Bill / Ration Card, PAN Card, IT Return for 2 years, Assets & Liabilities Statement
  • Unit – Partnership Deed & Partnership, Letter, Memorandum & Articles of Association, Certificate of Incorporation/Commencement, Board Resolution, Search Report from Registrar of Companies, SSI Registration, Panchayat Licence, PAN Card, IT Return for 2 years, ST Return for 2 years, Project Report, Power Allocation Plan / Estimate / Invoices, Pollution Control Clearance
  • Balance Sheet – Actual – Past 3 years, Estimated of current year, projected balance sheet of next year
  • Associate Units – Brief Profile, Balance Sheet, Opinion report from Bankers

Asset Backed Loans

Now get the hassle free business loan against the mortgage of your property. The loan product targets the business units engaged in the trading, manufacturing and services. This loan is provided for all business purpose like the working capital requirement, purchasing of fixed assets, capacity expansion/ modernization /technology up-gradation/R&D/shoring of NWC or any other short term requirement. The bank disburses loan amount of up to Rs. 20 crores or 60% of the property value. The repayment period for the loan ranges up to 180 months/15 years. The list of documents needed for availing the loan is as follows:

Documentation Required

  • Audited balance sheet of the last three year
  • Brief detail of Proprietor / Partners / Promoters / Directors
  • KYC documents for promoters / units
  • Copy of IT Returns of promoters / Firm for the last three years
  • Copies of license, permission approval by regulatory authority, where applicable
  • Availability of utilities like power etc
  • Pollution control clearance, if necessary
  • Details of collateral security (including third party guarantee proposed to be offered
  • Signed statement of Assets and liability from proprietor / partner guarantors
  • Copies of other Bank’s sanction letter and statement of accounts (last 6 months)
  • Copy of the title deeds of the Factory / Shop/ Godown/ collateral security
  • Details of the capital expenditure, if Term Loan is applied
  • Cheque for processing and fees to be paid for Valuation & Title search reports on property/ (ies) offered as collateral, ROC search (for companies)
  • Constitution Specific documents –
  • Partnership Firm – Partnership deed
  • Trust – Trust deed
  • Society – By laws of Society, Registration Certificate from the Registrar of Societies
  • Private Ltd. Company – Certificate of Incorporation/ Memorandum and Articles of Association
  • Public Ltd. Company – Certificate of Incorporation/ Memorandum and Articles of Association, Certificate of commencement of business

To avail the loan from the bank the customer has to fill the SBI Business Loan application form and submit it to the nearest bank branch. Also to facilitate the calculation of the installment amount the bank provides SBI Business loan calculator using which you can compute the repayment amount.

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