So many startups start and finish in a jiffy. Well, the start happens with an idea that fails to deliver the desired result due to the lack of adequate finance. At least most of the time, limited finance has been attributed to a short-lived venture. To help startups grow and flourish in today’s competitive business environment, State Bank of India (SBI) provides business loans with interest rates of as low as 9.05% per annum. With rates getting increasingly affordable, micro, small and medium enterprises (MSMEs) are flocking to SBI branches and its website to apply for a business loan.
if you are a businessman wanting information on SBI Business Loan, the article is there to provide you the same.
Types of SBI Business Loans
SBI provides a wide range of loans meeting the desired business needs of the enterprises. These loans basically help manufacturing, trade and other enterprises expand their operational scale. These are Term Loan, Working Capital Loan, Asset Backed Loan, SME Construction Equipment Loan, SME Open Term Loan, Doctor Plus, Rent Plus, Warehouse Receipt Financing and SBI Fleet Finance Scheme, and much more.
Let’s talk about each of the loans separately.
You can avail it from SBI to purchase fixed assets such as equipment or machinery, construct a building, upgrade technology, etc.
Working Capital Loan
This loan can be taken to purchase current assets, employ labour, pay power & fuel charges and other expenses, helping units carry out their operations without any delay. You can get this loan in the form of cash credit, bill discounting, pre-and post-shipment finance, bank guarantee, letter of credit, etc.
SBI Asset Backed Loan
It’s given against the mortgage of property to meet working capital needs, buy fixed assets, expansion or modernization of existing capacity. Basically, manufacturing and trading enterprises get this loan.
SME Open Term Loan
It’s a pre-approved term loan that can be disbursed over a period of 12 months based on the request made by SMEs.
SME Construction Equipment Loan
It is a kind of term loan given to purchase new construction equipment and initiate construction activities such as mining. A maximum of ₹25 lakhs can be extended to SMEs for the purposes described above.
SBI Fleet Finance Scheme
This scheme is applicable to transport operators with a fleet of commercial vehicles such as trucks, trailers, tankers, buses, etc.
Warehouse Receipt Financing
Traders or owners of commodity goods get this finance against the warehouse receipts of warehouses managed by NBHC/MCX/NCMSL, central warehousing corporation.
Those having commercial or office spaces rented out to corporates, banks, MNCs, PSUs can avail benefits of this scheme. Individuals, partnership firms, corporates can apply for this loan to resolve liquidity deficiencies.
Term loan and cash credit can be provided to medical practitioners, promoters of nursing homes, hospitals, polyclinics, pathological clinics.
SBI Business Loan Application Form
You can apply for a business loan by visiting the website of SBI or its nearest branch. In either of the two, you are required to fill the application form requiring you to enter personal and professional details. These details are then verified by SBI before it approves the loan.