Do you require some financial support for expanding your business, investing in office, buying the advanced equipment or machinery or for expanding the inventory? Does your business have setbacks due to the restricted cash flow? Regardless of the purpose of funds requirements, a business loan is one of the best choices a person can make. As business loan might bring you on track.
SBI business loan benefits a borrower in various ways. Following is the list of some advantages of the SBI business loan:
- Online Loan Application: Nowadays, almost everything is available online. Likewise, you can also apply online for the SBI business loan. This not only saves your time but also facilitates you with a business loan with the comfort of home.
- Competitive Interest Rate: SBI business loan rate of interest is one of the lowest business loan interest rates available in the financial market.
- Low Prepayment Charges: SBI Bank takes low prepayment or foreclosure fees on business loans.
- Timely Discounts: Periodically discount offers are provided in SBI business loans. Especially during the festive time, you can acquire different offers given on the SBI business loans. Apart from the festive offers, other discounts are also provided as per the applicant profile.
- No Hidden Costs: SBI business loan processing is done with complete transparency. This ensures that zero hidden charges are charged for any of the SBI business loan schemes.
- Fast Loan Procedure: Simple and quick loan processing of SBI leads to the fast approval of the loan amount.
Why apply for SBI Business Loan?
SBI offers a wide range of business loans to match the diversified customer requirements. Some of the main reasons why SBI is considered among the best business loans in the financial market are mentioned below:
- Collateral-free Loan: SBI gives an unsecured business loan to the borrowers.
- Flexible Loan Tenure: A business loan from the State Bank of India provides a borrower with a flexible tenure to repay the loan amount. The loan tenure up to 60 months.
- Repayment Mechanisms: A business loan taken from SBI can be repaid either through the ECS or through NACH.
Factors affecting SBI Business Loan EMI
- Interest Rate – The charged rate on the principal amount borrowed is termed as the rate of interest. Higher the interest rate attracts the high amount of monthly EMI which automatically increases the total cost of the business loan.
- Loan Amount – The availed business loan amount plays a significant role in the monthly EMI.
- Loan Repayment Tenure – The total time in which a borrower can repay the business loan to the lender. Generally, longer loan tenure leads to a low amount of EMI on loan. SBI offers a business loan with a flexible repayment tenure of up to 60 months.
Eligibility Criteria for SBI Business Loan
The eligibility criteria of SBI business loan vary based on several factors like loan amount, type of availed loan scheme and others. Here are the eligibility criteria for SBI business loan:
- The business should be in existence for at least 5 years in the same locality/area.
- The borrower should also fit into the eligibility criteria as per Go/No Go Criteria. If any of the parameters get a response as ‘No’, the unit will not be considered eligible under this scheme and no deviation to be permitted.
- A borrower should be the owner of the premises OR should have valid tenant agreement with the owner of the premises (In case of rented premises, a residual period of minimum 3 years).
- The current account holder at any bank for at least 2 years (proprietorship, partnership & corporate concerns).
- The minimum average monthly balance of more than Rs. 1 lakh in the last 12 months, with the monthly threshold balance of Rs. 1000.
Required Documents of SBI Business Loan
The list of required documents for SBI business loans differs based on the type of loan a borrower is seeking. PAN Card – for Company/Firm/Individual.
- A copy of any of the documents as identity proof:
- Aadhaar Card.
- Voter’s ID Card.
- PAN Card.
- Driving License
2. A copy of any address proof documents:
- Aadhaar Card.
- Voter’s ID Card.
- Driving License.
- Bank statement of the previous 6 months.
- Last 2 years ITR along.
- Audit Report.