SBI Business Loan
State Bank of India is an Indian public sector bank and financial services statutory body. SBI is the 49th largest bank in the world by total assts and ranked 221st in the Fortune Global 500 list of the world’s biggest corporations of 2020. It is also the 5th largest employer in India with nearly 250,000 employees. On 14th of September 2022, State Bank of India became the third lender and seventh Indian company to cross the 5 trillion market capitalization on the Indian stock exchanges for the first time.
|Name||State Bank of India|
|Type||Public Sector Undertaking|
|Industry||Banking, Financial Services|
|Established||1 July 1955|
|Chairman||Dinesh Kumar Khara|
|Parent||Ministry of Finance (Government of India)|
|Subsidiaries||SBI Life Insurance Ltd, SBI General Insurance,|
Yes Bank, Andhra Pradesh Grameen Vikas Bank, Kaveri Grameen Bank
SBI Business Loan
SBI offers simplified small business loan to the entrepreneurs engaged in manufacturing, services, and wholesale or retail trade, for their business expansion. To avail business loan from SBI you just needs a minimal documentation.
Also Read: Bank of Baroda Gold Loan
What do you mean by Business Loan?
Business Loan is a loan which can be availed by any person who wants to start their own business or any individual who wants to expand their business.
There are two types of business loans offered by the bank –
1. Secured loans – This is a loan where individuals take a loan with collateral. Here the rate of interest is less.
2. Unsecured loan/ Small business loans – This loan a loan where businesses take a loan without any collateral. Here the interest rate is on higher side.
Benefits and Features of Business Loan
- Helps to start and grow your own business
- Helps in expanding your business
- Strengthens business credit score
- No collateral required
- Attractive and competitive interest rate
- Simplified documentation process
- Higher loan disbursal amount
Benefits and Features of SBI Business Loan
- SBI offers a diverse array of Business loans to meet the needs of a wide range of customers
- Competitive interest rate
- No collateral required
- Flexible repayment tenure
- Drop line overdraft facility
- Business loans for women
Interest Rate, Loan Amount, and Other Charges
|Interest Rate||As per the lender’s terms and conditions|
|Loan Amount||Rs 10 lakh to Rs 25 lakh|
|Loan Tenure||From 12 months to 60 months|
|Processing Fee||As per the lender’s terms and conditions|
|Pre-Closure Charges||As per the lender’s terms and conditions|
- Self-employed individuals, professionals, and units engaged in wholesale/retail trading
- The borrower should be the owner of the business location or he/she should have a valid tenant agreement with the owner.
- The business should have existed for a minimum of 5 years in the same location.
- The minimum average monthly balance in the account should be more than Rs 1 lakh throughout the past 12 months.
- Good credit score and financial history
- Current account holder for at least 2 years with any bank
- The applicant should fulfil the Go/No Go criteria as well
How to apply for State Bank of India Business Loan
You can apply for this loan online by visiting the official website of State Bank of India.
To apply 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 up the form and enter the captcha in the box
- 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.
State Bank of India Business Loan EMI Calculator
SBI Business Loan EMI is a fixed amount of money you need to pay to SBI within a definite period of time duration against an availed business loan. To check your monthly EMI you can access an online EMI tool that is SBI Business Loan EMI calculator. All you need to do is to enter the basic details, and whatever the loan amount, interest rate or repayment tenure is, this online calculator will calculate the accurate EMI per the details entered.
1. What is Business Loan?
Ans: Business Loan is a loan which can be availed by any person who wants to start their own business or any individual who wants to expand their business.
2. Can I take a loan from SBI to start my own shop business?
Ans: Yes, you can avail loan from SBI to start your own business or expand the existing shop.
3. Is the business loan interest rate fixed or floating?
Ans: It depends on the bank or lender to offer fixed or floating interests’ rates. However, most banks prefer Fixed interest rates over floating.
4. What are the factors which affects business loan interest rate?
Ans: Factors which affects business loan interest rates are as follows:
- CIBL Score
- Business Reputation
- Nature of Business
- Repayment History
- Relationship with the bank etc.
5. Can I avail business loan from SBI YONO app?
Ans: Yes, from YONO app you can enjoy instant account opening and can avail business loan. You can also transfer funds and apply for an overdraft facility from the app.
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