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SBI Business Loan Interest Rate Jul 2020

SBI Business Loan Interest Rates India

Last Updated 30th Jun 2020

SBI offers Business Loan starting at interest rate of 11.20%. The rates vary by loan amount, occupation and type of loan availed. Check Best Offers

Interest Rate 11.20%
Processing Fee From 2% to 3%
Tenure From 12 months to 48 months
Lowest EMI per lakh ₹ 2,594
Loan Amount Min ₹ 5 Lakh and Max ₹ 100 Cr
Part Prepayment, Charges 3%
Early Foreclosure, Charges Allowed after 6 EMI's, 3%

SBI Business Loan

SBI offers loan to self employed and businessmen for financing the expansion or working capital requirements of their business. There are some benefits of taking loan from SBI:

  • You can prepay part of your loan anytime after paying 1 % prepayment charges
  • You can foreclose your entire Business loan anytime after paying 6 EMI's at foreclosure charges - 3%
  • SBI has been rated 3.3/5.0 by customers for its service quality on MyLoanCare
  • SBI has over 25,332 branches in India where you can avail service

SBI Business Loan Interest Rate Calculator

There are multiple factors on which basis bank calculates your interest rate. Some of these factors are -

  • Loan amount: Business loan rate in SBI depends upon the loan amount you apply for. Higher the loan amount, lesser will be the interest rate. Bank gives loan of minimum ₹ 5 Lakh to upto ₹ 100 Cr. Interest rate for high loan amount can be lower resulting in lower EMIs.
  • CIBIL Score: SBI offers loan at higher interest rate if your CIBIL score is low or vice versa. However, to get loan from SBI, your CIBIL score should be atleast 700. Higher the CIBIL Score, higher the chances of getting a loan at lowest business loan interest.
  • Revenue: SBI will offer you loan at lower interest rate if you have higher monthly revenue. Bank gives loan to the borrowers whose annual turnover is at least ₹ 20,00,000.
  • Time in Business: SBI offers loan at lower rates if you have significant business experience. Minimum business existence to get loan from SBI is 36 months.

SBI Business Loan Eligibility Criteria

Bank have a detailed criteria to determine the eligibility of a borrower for business loans. Some of the key criteria are:

Eligibility Criteria Description
Age: 21 to 65 years
Minimum Turnover ₹ 20,00,000
Business Existence (in months) 36 months
ITR (months) 24 months
Loan Amount ₹ 5 Lakh to ₹ 100 Cr
Loan Tenure 48 months
Owned House or Place of Work Not Required
CIBIL Score 750 and above

SBI Business Loan Eligibility Calculator

Eligibility of Business loan in SBI relies on two important factor:

1.Your ability to repay the loan and
2.Your past track record in repayment of loans.

The main factors on which the eligibility of an applicant depends are

  • Age: Age plays an important role to know your eligibility and repayment capacity. SBI offers loan to those who are at least 21 years old at the time of loan approval and maximum 65 years at the time of loan maturity.
  • Loan Amount: Based on the loan amount eligibility, bank gives you loan ranging from ₹ 5 Lakh to ₹ 100 Cr. To improve chances of approval, apply for a loan amount that you can comfortably service.
  • Profitability and Revenue: Loan eligibility significantly depends upon profitability on your turnover, revenue and profitability. SBI requires profit for minimum 2 years and minimum business turnover of ₹ 20,00,000.
  • Business Stability: Future business prospects and its stability is important to improve your eligibility for business loan. SBI requires minimum business track record of 36 months. The bank will also look for minimum growth in sales for the last three year. A decline in sales for a certain period or below a certain limit might impact your eligibility to get loan.
  • ITR and Banking: Bank gives loan only after checking your income tax return and bank statements. Your ITR details for minimum 24 months and bank statement for minimum 0 months will be required by SBI.
  • CIBIL Score: When checking loan eligibility, SBI will look at the complete CIBIL report. SBI will check your repayment history for all current and past loans and credit cards. Bank advise you to maintain a score of 750 and above to get loan approval.

SBI Business Loan EMI Calculator

SBI Business Loan EMI is a fixed amount that you pay each month towards the repayment of your loan till the end of tenure. Lowest EMI offered by SBI is ₹ 0.01 Lakh per lakh loan amount. EMI of SBI depends on factors like:

  • Interest Rate: Higher the interest rate, higher will be the EMI. For a 48 months loan from SBI at an interest rate of 11.20% per annum, EMI will be ₹ 0.01 Lakh per Rs. one lakh loan amount. At an interest rate of 16.30% for the same loan, the EMI will be ₹ 0.01 Lakh.
  • Loan tenure: Longer the loan tenure, lesser your smonthly EMI. At interest rate of 11.20% per annum, the EMI on SBI business loan would range from ₹ 0.01 Lakh to ₹ 0.01 Lakh for loan tenure ranging from 12 to 48 months.
  • Amount Borrowed: SBI Loan EMI will be high if you apply for a high loan amount. For amount borrowed ₹ 5 Lakh, the EMI at 11.20% for 48 months would be ₹ 0.05 Lakh. Similarly for amount borrowed ₹ 100 Cr, the EMI at 11.20% for 48 months would be ₹ 0.94 Cr.

What are the benefits of calculating business loan EMI?

  • Business loan EMI calculator of SBI helps you to calculate your monthly EMI at different rate of interest
  • SBI EMI calculator helps you to know your capacity to repay the loan after meeting your regular monthly expenses
  • You get a rough idea about your monthly EMI and can plan your monthly budget accordingly

Business Loan Products

SBI offers customized products for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Term Loan

Description

  • You can take term loan for business expansion, repaying high-cost debt or technology up-gradation.
  • SBI Business Term Loans can fulfill your business needs such as expansion of business, upgrading technology and others.

Who is eligible?

  • SBI Term Loans are available for a tenure ranging between 3-5 years.
Working Capital Finance

Who is eligible?

  • SBI Working Capital Finance is provided for a tenure of 1 year.

Other Charges

In addition to interest rates, business loan also carry some other charges which include:

  • Foreclosure Charges- These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. SBI allows prepayment of loan after paying 6 EMI’s with prepayment charges - 3%
  • Processing Fee- SBI asks for a processing fee of From 2% to 3% with applicable service tax

Documents required

  • Address proof of individual: Aadhaar Card, Voter’s ID Card, Bank statement, registry copy, rent agreement , utility bills
  • Identity proof of individual: Passport, Driving License, PAN Card, Aadhaar Card, Voter’s ID Card
  • Business existence proof: PAN, sales tax/ excise/ VAT/ service tax registration, copy of partnership deed, trade license, certificate of practice, registration certificate issued by RBI, SEBI
  • Copy of Income Tax PAN for 24 months
  • Bank statement of last 6 months

FAQs

Why to take business loan from SBI?

Bank offers loan at 11.20% rate with the lowest EMI of ₹ 938 per lakh. If you are paying EMI more than this then you can opt for balance transfer and relocate your loan to SBI.

What is the interest charged on SBI business loan?

Interest rates on Business loan in SBI are very attractive starting from 11.20% to 16.30%. Bank offer various offer for self employed professionals to get loan at very low rate of interest.

What is the lowest EMI per lakh on business loan from SBI?

If you apply for loan from SBI, your lowest EMI per lakh will be ₹ 938.

What is the minimum and maximum tenure of business loan in SBI?

These loans are shorter tenure loans. You can repay your loan in a flexible period of minimum 12 months to maximum echo 48 months.

How much business loan amount I can borrow from SBI?

SBI offers you loan if you need a minimum amount of ₹ 5 Lakh to a maximum amount of ₹ 100 Cr.

What is the processing fee charged by SBI on business loan?

SBI charges a processing fee of From 2% to 3% with applicable tax.

Is age an eligibility factor to get loan for business from SBI?

Yes, age is an important eligibility factor to get loan as you should be at least 21 years old at loan approval time and 65 years old at loan maturity time.

What are the prepayment charges on business loan from SBI?

Bank charges a fee in case you want to repay your entire loan amount before the end of tenure period. The fee charged by SBI is 3%.

SBI Business Loan Customer Care Number, Email, Application Status, Branches
City Customer Care Number
Agra 979-350-2211
Ahmedabad 972-434-2211
Ambala 999-637-2211
Anand 972-434-2211
Aurangabad Bihar 973-001-2211
Bangalore 973-193-2211
Bhilai 989-328-2211
Bhilwara 979-933-2211
Bhiwadi 973-001-2211
Bhopal 989-328-2211
Bhubaneswar Cuttack 977-745-2211
Bikaner 979-933-2211
Chandigarh 977-916-2211
Chennai 979-094-2211
Cochin 999-539-2211
Coimbatore 979-191-2211
Dehradun 976-020-2211
Delhi 995-880-2211
Durg 989-328-2211
Faridabad 995-880-2211
Gandhinagar 972-434-2211
Ghaziabad 995-880-2211
Goa 973-001-2211
Greater Noida 995-880-2211
Gurgaon 995-880-2211
Guwahati 995-705-2211
Gwalior 989-328-2211
Hyderabad 995-919-2211
Indore 989-328-2211
Jabalpur 989-328-2211
Jaipur 979-933-2211
Jalandhar 977-916-2211
Jodhpur 979-933-2211
Kanpur 979-350-2211
Karnal 999-637-2211
Kolhapur 973-001-2211
Kolkata 974-842-2211
Kota 979-933-2211
Kozhikode 999-539-2211
Lucknow 979-350-2211
Ludhiana 977-916-2211
Madurai 979-191-2211
Meerut 976-020-2211
Mehsana 972-434-2211
Mohali Sas Nagar 977-916-2211
Mumbai 998-755-2211
Mussoorie 976-020-2211
Nagpur 973-001-2211
Nashik 973-001-2211
Noida 995-880-2211
Noida Extn 995-880-2211
Panipat 999-637-2211
Patna 995-595-2211
Pondicherry 979-191-2211
Pune 973-001-2211
Raipur 989-328-2211
Rajkot 972-434-2211
Ranchi 995-595-2211
Rohtak 999-637-2211
Roorkee 976-020-2211
Salem 979-191-2211
Shimla 980-509-2211
Sonipat 999-637-2211
Surat 972-434-2211
Trichy 979-191-2211
Udaipur 979-933-2211
Vadodara 972-434-2211
Varanasi 979-350-2211
Vijaywada 995-919-2211
Vizag 995-919-2211

SBI Business Loan Reviews 3.3/5  by 2 customers
MyLoanCare Service
3/5.0
Banks Service
3.5/5.0
Sachin Deshpandey, Mumbai
Reviewed on 04th Apr 2016
3.5 / 5 stars
SBI Business Loan Availed in Apr-17

Bank kept to its promise in terms of interest rate and sanctioning timeline. Overall a good expereinRead more...

Suneel Singh, Delhi
Reviewed on 03rd Apr 2016
3 / 5 stars
SBI Business Loan Availed in Dec-17

It was a good experience to take loan from SBIRead more...

SBI Business Loan News - Jul 2020
  • 2020-06-05 : State Bank of India reported the highest ever yearly net profit
    State Bank of India registered a Net Profit of Rs.3581 Crores bolstered by retail business loan, FDs and RDs in Q4FY20, an increase of 327% over Q4FY19. For the full year FY20, Net Profit stood at Rs. 14,488 Cr backed by retail loans like home, personal, gold, two-wheelers, and car loan along with business and mudra loan against Net Profit of Rs 862 Crores in FY19. This is also the highest ever yearly Net Profit recorded by the Bank.
  • 2020-04-14 : SBI urged for loan guarantee and extension of the moratorium
    State Bank of India urged the Government to provide banks with the risk capital or extends guarantees against business loan defaults. Further, the bank also requested to extend the moratorium on repayment of retail loan like home, personal, auto and gold loans along with mudra loans to six months depending on the pandemic and subsequent lockdown.
  • 2020-03-31 : SBI likely to offer 3-month moratorium to loan borrowers
    To help its customers cope up with the economic crisis during the loan period, SBI may soon implement a three-month moratorium on loan repayments. Thereby, customers will be relieved of loan repayments schedules during this period. However, the bank will also offer an opt-out facility for customers, who wish to continue making repayments as per their affordability. This applies to all loans like personal loans, loans against property and the MSME loans, amongst others.
  • 2020-03-26 : SBI commits 0.25% of FY20 annual profit to fight COVID-19
    State Bank of India announced 0.25% of FY20 annual profit to fight COVID-19. The bank will use this fund for several activities related to COVID-19 specifically to support health care for underprivileged people in cooperation with healthcare professionals and industry. Earlier the bank also announced the emergency credit facility for business and personal loans.
  • 2020-03-24 : Government urged Banks to provide liquidity support to corporates
    The government encouraged all state-owned lenders to extend emergency credit lines to corporate borrowers. State Bank of India has already started an emergency credit line, and other banks are expected to follow suit. The move will impact business loans.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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