How to SBI Business Loan Apply Online -SBI business loan is a one stop solution for financing need for small business operation. SBI is the go to bank for every business due to its large network and trust worthiness that it has achieved over the period of years. in this article, we are going to look into various features and documentation required for a SBI business loan.
How to SBI Business Loan Apply Online Details
How to SBI Business Loan Apply Online– SBI may charge a higher interest rate on a mortgage loan to a salaried person than a self-employed professional or a businessman. A self-employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried people who will most likely take a mortgage loan for his personal purposes.
Features of SBI Business loan
- SBI business loan is offered as dropline overdraft facility.
- Eligible customers include all business that are engaged in manufacturing, services or retail trade. Moreover, self employed individuals and professionals are also eligible to get this business loan.
- Minimum loan amount that is offered in this loan is Rs 10 lakhs which can go up to Rs 25 lakhs
- Current account with banking transactions for at least 12 months is mandatory condition to get SBI loan. Eligibility is calculated on average monthly bank balance with maximum limit of 10 times of last last 12 months average monthly bank balance.
- 10% margin is also maintained through stock and receivables statement
- Pricing for SBI loan is linked to MCLR
- SBI business loan also require a collateral of value that is at least 40% of loan amount financed
- This loan can be offered for up to period of 60 months
- Processing charges for this loan is Rs 7500 which would include charges related to documentation, inspection etc
Eligibility for SBI Business loan
- Business vintage of at least 5 years in the same area and locality
- Applicant should be either owner of the shop or have a valid tenant agreement for at least 3 years with owner of the shop
- Current account vintage of at least 24 months with a regular bank.
- Min Average Monthly balance of more than Rs 1 lac in last 12 months, with monthly threshold balance of Rs 10,00 Lakhs
- SBi also has its own Go/No go criteria for disbursing business loans. If applicant is failing in any of the G/No go criteria then application would be rejected straight away
Assessment for Loan
- Assessment for the loan would be need based
- Financial statements are not necessary to avail this loan
- The guarantee cover is available for five years and hence for advances granted under Mudra Scheme the maximum period is 60 months
- Final loan eligibility is calculated on the basis of 10 times of average monthly bank balance that is maintained in the current account of the firm
How to SBI Business Loan Apply Online -SBI business loan is a very unique and popular product that is offered to every eligible business owner in the country. SBI loan interest rates are comparatively cheaper than those offered by other banks and NBFCs. If you are eligible for a loan from SBI then you should chose SBI business loan.
State Bank of India Loan Against Property:
How to SBI Business Loan Apply Online State Bank of India is the most popular Loan against Property lender in the country.
SBI Loan against Property is ideal for all salaried, self-employed, non-professional LAP seekers.
Borrowers can avail SBI Bank Loan against Property for business expansion, child education, expenses such as wedding or travel, or medical emergency with easy
Documentation, and quick processing.
SBI Loan Against property interest rate begins at 9.80%-10.20% p.a.*
| Interest Rate | 9.80%-10.20% p.a.* |
| Tenure | Up to 15 years |
| Processing Charges | Up to 1% (maximum Rs 50,000) |
Factors Affecting SBI Loan against Property Interest Rates
Loan amount:
How to SBI Business Loan Apply Online Property loan rates in SBI depend upon the loan amount you apply.
You can get a minimum loan of ₹ 25 Lakh from SBI.
Your Net Monthly Income:
Income helps you in identifying your rate of interest.
Higher the income, higher will be your repayment capacity increasing your eligibility for higher loan amount.
Type of loan opted for:
How to SBI Business Loan Apply Online SBI offers differential rates for customer’s different profiles and also fixed and floating rate schemes.
Loan against property interest rates may be higher or lower for special loan products.
Type of property:
How to SBI Business Loan Apply Online Typically, loans against prime residential properties are easier to get and can be availed at the lowest rates compared to loans against commercial and industry properties.
Your profession:
How to SBI Business Loan Apply Online SBI may charge a higher interest rate on a mortgage loan to a salaried person than a self-employed professional or a businessman.
A self-employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or
How to SBI Business Loan Apply Online business compared to salaried people who will most likely take a mortgage loan for his personal purposes.
SBI Loan Against Property Documents Required:
For Self-Employed:
1. Filled up loan application form
2. 2 Passport Size Photo
3. ITR of last 3 years
4. Identity Proof – Passport/ Driving License/ Voter ID/ PAN
5. Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
6. Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
For Salaried employee:
1. Filled up loan application form
2. 2 Passport Size Photo
3. ITR of last 2 years
4. Identity Proof – Passport/ Driving License/ Voter ID/ PAN
5. Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
6. Income Documents – 6 months’ pay slip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
Property documents:
1. Registered Sale Deed/ Conveyance/ Lease Deed
2. Past Sale Deeds Chain (each transaction in respect of this property since first allotment
3. Latest House Tax Return/ Receipt
4. Approved Building Plan from Municipal Corporation
Loan against Property Top up, Transfer in SBI:
How to SBI Business Loan Apply Online SBI offers mortgage loan balance transfer from another bank, subject to your meeting other eligibility criteria of SBI at an affordable interest rate, higher loan amount and convenient loan tenure.
SBI loan against property balance transfer helps you make your loan repayment convenient and opt for a beer customer service.
How to SBI Business Loan Apply Online Current loan against property balance transfer rates in SBI are 8.40%. Along with that, you can also avail of additional top-up on your loan against property.
Loan against Property SBI Products:
1. SBI Loan Against Property
The minimum SBI Loan Against Property amount provided is Rs.10 Lakhs
The maximum SBI Lap amount offered is Rs.7.5 Crores based on the location of the property that is mortgaged.
The minimum loan tenure is five years, while the maximum loan tenure is 15 years based on the eligibility of the applicant.
The LTV ratio for loans up to Rs.1 crore is 65%. The LTV ratio for loans between Rs.1 Crore and up to Rs.7.5 Crores is 60%.
2. SBI Loan Against Mortgage of Immovable Property
How to SBI Business Loan Apply Online Rs. 10 Lakhs is the min loan amount in this case.
Depending upon the property’s location, the maximum loan amount that is offered is Rs.5 crores.
How to SBI Business Loan Apply Online In the case of Non-Urban Centres, the cap on the loan amount is Rs.1 crore. For other BPR centres besides the primary Indian metros, the cap on the loan amount is Rs.2 crores.
In the case of semi-urban and rural areas, this scheme is unavailable.
The LTV depends upon the loan amount. For loans up to Rs.1 crore, the LTV is 65%. For loans up to Rs. 5 crores and above one crore is 60%.
180 months is the maximum repayment tenure of this loan.
3. SBI Rent Plus
How to SBI Business Loan Apply Online This loan is provided based on the future rentals that are expected on a commercial property or residential property.
You can get up to 75% of the value of the mortgaged property as loan according to the valuation provided by an approved SBI valuer.
You can get a loan of 75% of the expected rent for the remaining lease or loan period, whichever is earlier.
The maximum loan amount is subject to a cap of Rs.7.5 crores in metros and Rs.5 crores in non-metro cities.
The maximum loan repayment period is the residual period of the lease or 10 years, whichever comes earlier.