State Bank of India commercial loans come with attractive interest rates, various repayment tenures, and the benefit of availing large loan amounts. Making it easier for you to access the funds you need for your business to thrive. With its extensive network and hassle-free application process, SBI ensures that businesses of all sizes can find a suitable financial solution to support their ventures.
Here are the highlights of SBI commercial loan details:
| Loan Amount | ₹10 Lakhs to ₹50 Crore |
| Repayment Term | Up to 84 Months |
| Moratorium Period | Up to 6 Months |
Note: The above-mentioned rates are subject to change with the finance market.
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SBI Commercial Loan Interest Rates & Charges
When considering an SBI commercial loan, it is important to know the SBI interest rates and the charges you could incur if not planned properly. Given below is a simple breakdown of the SBI interest rate highlights that will help you arrive at the right charges and maturity value.
Here are the SBI commercial loan interest rates and charges:
| Interest Rate | Linked to EBR (Repo rate* + 2.65%) or 6 Months MCLR |
| Processing Fee | Up to 1% |
| Prepayment Fee | Up to 4% |
| Default Charges | 5% p.a. over existing rate of interest |
*The repo rate as of February 2024 is 6.50% p.a.
Note: The above-mentioned rates are subject to change with the finance market.
(The EBR or External Benchmark Base Lending Rate is a rate that determines the interest rates on various loans. It is linked to the RBI Repo Rate (Repurchase Rate) which is the interest rate at which RBI lends to commercial banks.)
(The MCLR or Marginal Cost of Funds Based Lending Rate is the benchmark rate of interest set by SBI . It includes the cost of funds the bank incurs to raise money, operating expenses and the profit margin.)
SBI Commercial Loan Eligibility Criteria
To avail a State Bank of India commercial loan, there are a set of eligibility criteria that you need to pass, these are:
- Self employed, Private and Public Limited Companies, Partnerships, Proprietorships, Trusts, Societies, etc.
- Must be 21 years old.
- The business must have been operating for 3 years.
- The business owner must have a good credit history.
- Must be profitable with stable income.
- Must have no history of default on Loan repayments from banks or NBFC.
Documents Required for SBI Commercial Loan
The documents required for State Bank of India Commercial Loan are as follows:
- Identity and Address Proof:
- Aadhaar Card
- Passport
- Voter ID
- PAN Card
- Utility Bills (for address proof)
- Income Proof:
- Salary Slips
- Bank Statements
- Income Tax Returns
- Any other documents demonstrating the applicant’s income
- Business Proof:
- Certificate of Incorporation or Registration (for companies and partnerships)
- GST Registration Certificate
- Business Registration Documents
- Business Licences and Permits
- Shop & Establishment Certificate
- Trade License
- Financial Documents:
- Income Tax Returns (ITR) for the last 3 years
- Bank Statements for the last 12 months
- Audited Financial Statements (for companies)
- Projected Financial Statements (for startups)
- Business Turnover Certificate
- Vehicle Documents (if applicable): Details of the vehicle to be purchased, including pro forma invoice, quotation, and other relevant vehicle-related documents
- Photographs: Recent passport-sized photographs of the applicant
Features & Benefits of SBI Commercial Loan
SBI Commercial Loans offer a comprehensive range of features and benefits designed to help your business grow, they are:
- Diverse Loan Products: SBI offers various loan options to meet your short-term working capital boost or long-term financing for infrastructure projects. SBI offers Lump sum financing for acquisitions, equipment purchases, or working capital.
- Competitive Interest Rates: State Bank of India offers attractive interest rates that help keep your borrowing costs manageable. Rates offered by SBI are determined using either EBR ( Repo Rate + 2.65%) or 6 months MCLR, ensuring you receive the most competitive option.
- Flexible Repayment Options: SBI offers the best commercial loans with flexible repayment terms of up to 84 months to help align with your business cash flow.
- Personalised Solutions: SBI also offers a dedicated team for you to discuss your business needs. Helping you get a loan solution that aligns with your business goals and financial situation.
- Streamlined Process: the bank offers a hassle-free loan application experience. Making the process efficient to ensure you receive the funds you need quickly.
- Improved Cash Flow: SBI commercial loan gives you access to working capital or specific project financing to improve your cash flow and operational efficiency.
- Growth Opportunities: With SBI Commercial Loans you can seize business expansion opportunities, invest in equipment, or pursue strategic ventures.
Types of SBI Commercial Loan Scheme
State Bank of India offers several commercial loan schemes as every business will have unique financial needs. Whether you are using the commercial loan for vehicle financing, land purchases, construction or acquisition of real estate or retail space, SBI will offer a scheme designed to meet your specific needs. The different SBI commercial loan scheme are:
Fleet Finance Under Tie-up with Hinduja Leyland Finance Limited
This scheme is a unique tie-up by State Bank of India with Hinduja Leyland Finance with the aim to support businesses that are expanding their commercial vehicle fleet from Ashok Leyland. The vehicles include small, light, intermediate, medium, and heavy commercial vehicles, as well as passenger vehicles. Trucks, tankers, trailers, tippers, transit concrete mixers, pickups, buses, luxury buses, and passenger vehicles are also included. Additionally, financing is available for electric, CNG, LNG, and hybrid commercial vehicles.
This scheme offers the following features:
| Loan Amount | ₹50 Lakhs to ₹50 Crore |
| Interest Rate | Linked to EBR Repo Rate (6.50%) + 2.65%, or 6 months MCLR. |
| Prepayment Fee | 72 months |
| Moratorium period | 5 months |
| Processing Fee | 0.20% + Taxes |
| Prepayment Charges | Up to 2 years: 4% 2 years above: 2% |
| Collateral | No collateral required |
Note: The above-mentioned rates are subject to change with the finance market.
Loan-to-Value Ratio (LTV) & Margin
The scheme offers tiered LTVs and margin requirements based on your fleet size and classification (Large Fleet Owner, Strategic Fleet Owner, Strategic Captive User). Here’s a breakdown of LTV ratio and margin requirement:
| Segment | LTV on Chassis or Prime Mover | LTV on Body or Trailer | LTV on Fully Built Vehicles |
| Large Fleet Owner | 100% | 70% (30% Margin) | 90% (10% Margin) |
| Strategic / Super Strategic Customer | 100% | 80% (20% Margin) | 95% (5% Margin) |
| Strategic Captive Users | 100% | 40% (60% Margin) | 90% (10% Margin) |
Note: The above-mentioned rates are subject to change with the finance market.
Asset Backed Loan-Commercial Real Estate
The Asset Backed Loan for Commercial Real Estate is designed to finance the construction or acquisition of various types of real estate properties. This includes office buildings, retail spaces, industrial or warehouse spaces, multiplexes, hotels, restaurants, gymnasiums, amusement parks, and cold storage facilities. The repayment prospects for these Commercial loans typically come from lease or rental payments, sale of assets, project cash flows, or the unit’s cash flows.
This scheme offers the following features:
| Minimum Loan Amount | ₹10 Lakhs |
| Maximum Loan Amount | Metro and Urban Areas: ₹50 Crore Semi-Urban Areas: ₹25 Crores Rural Areas: Not available |
| Interest Rate | Linked to EBR Repo Rate (6.50%) + 2.65%, or 6 months MCLR. |
| Repayment Tenure | 12 to 72 months |
| Borrower’s Margin | 25% |
| Processing Fee | 1% (Upper Cap ₹10 lakh) |
| Loan-to-Value Ratio | 50% of the realisable value of the immovable property. |
| Collateral | The immovable property must be compliant under the SARFAESI Act. |
Note: The above-mentioned rates are subject to change with the finance market.
SBI Fleet Finance
Fleet finance is designed to support the acquisition of new vehicles for businesses involved in various transportation and logistics operations. This includes small, light, medium, and heavy commercial vehicles, as well as passenger vehicles like buses and luxury buses. Additionally, electric and hybrid commercial vehicles are also eligible for financing under this scheme.
The State Bank of India fleet finance scheme:
| Minimum Loan Amount | ₹50 Lakhs |
| Maximum Loan Amount | ₹50 Crore |
| Interest Rate | Linked to EBR Repo Rate (6.50%) + 2.65%, or 6 months MCLR. |
| Repayment Tenure | Scores between 50% to less than 60%: Maximum 60 months. Scores above 60%: Maximum 66 months. |
| Annual Review of Term Loan | 0.05% of the sanctioned loan amount. |
| Processing Fee | 1% |
| Collateral | Must be covered under CGTMSE. |
Note: The above-mentioned rates are subject to change with the finance market.
Eligibility Criteria
The eligibility criteria for this scheme is as follows:
- Minimum 3 years of experience in the transport industry or related businesses.
- Existing fleet of at least 10 commercial vehicles.
- National/state route permits and other necessary licences and approvals.
- Satisfactory track record with existing financial institutions.
- Income Tax Assessee (personal and business).
- Minimum credit score of 50% under SBI’s scoring model, with a minimum CIBIL score of 650 for main promoters/directors.
Margin Requirement
The margin requirement for the loan is based on the scores given by SBI, this is given in detail below:
| Add a particular here | Scores between 50% to 60% | Scores above 60% |
| For cost of chassis | 5% | 0% |
| For cost of body | 30% | 30% |
| For fully built model | 10% | 5% |
| Other expense (Road tax + Insurance + Registration) | Minimum 50% | Minimum 50% |
Note: The above-mentioned rates are subject to change with the finance market.
Commercial Vehicle Loan
The SBI Commercial Vehicle Loan is a scheme to finance the purchase of new commercial vehicles, including electric vehicles, hybrid commercial vehicles, CNG vehicles, ambulances, and caravans designed for travel, leisure, and accommodation. This loans is ideal for transport operators, tour operators, travel agencies, business enterprises, contractors, warehouse owners, hospitality sectors, logistics providers and more.
The features of commercial vehicle loans are:
| Loan Amount | ₹10 Lakh – ₹50 Lakh |
| Interest Rate | Linked to EBR(Repo Rate (6.50%) + 2.65% |
| Borrower’s Margin | 15% of the on road price |
| Repayment Term for Commercial Vehicles | Up to 84 Months |
| Repayment Term for Electric Vehicles | Up to 48 Months |
| Moratorium period | Up to 6 Months |
| Processing Fee | 0.50% + GST |
| Late Payment Fee | 5% p.a. on overdue amount. |
| Collateral | Must be covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) |
| Guarantee Fee | Must be paid by the borrower. |
Note: The above-mentioned rates are subject to change with the finance market.
Eligibility Criteria
The eligibility criteria for State Bank of India commercial vehicle loan is as follows:
- Minimum of 2 years of experience in the transport industry, hospitality industry, or other related business activities.
- A satisfactory track record with existing banks or financial institutions.
- Must be an Income Tax Assessee (personal and business).
- Micro, Small, and Medium Enterprises (MSMEs) should be registered on the UDYAM portal and possess a Udyam Registration Certificate.
SBI Fleet Finance Under Tie-Up with Tata Motor Finance Ltd
The SBI Fleet Finance program in collaboration with Tata Motor Finance Ltd. is designed to support the acquisition of new commercial vehicles, providing a comprehensive financing solution for a diverse range of vehicles. This includes small, light, intermediate, medium, and heavy commercial vehicles, as well as passenger vehicles such as trucks, tankers, trailers, tippers, transit concrete mixers, pickups, buses, luxury buses, and passenger vehicles. The program also extends to electric, CNG, LNG, and hybrid commercial vehicles.
Small Commercial Vehicle Finance Under Tie-up with Tata Motors Ltd
The Small Commercial Vehicle Finance is a collaboration between Tata Motors Ltd and SBI, where they offer financing solutions for businesses acquiring new small commercial vehicles. This initiative offers support for the purchase of Tata Ace and all its variants including Tata EV Electric Vehicles (Intra and all its variants), Tata Yodha Pick Ups and all its variants, Tata Magic Passenger Vehicles and all its variants and any other SCV model manufactured by Tata Motors Limited.
The featured of Fleet Finance and Small Commercial Vehicle Finance under Tie-up with Tata Motor Finance Ltd schemes are as follows:
| Loan Amount | ₹50 Lakh – ₹50 Crore |
| Interest Rate | Linked to EBR(Repo Rate (6.50%) + 2.65%, or 6 months MCLR. |
| Borrower’s Margin | 15% of the on road price |
| Repayment Term for Commercial Vehicles | Up to 84 Months |
| Repayment Term for Electric Vehicles | Up to 72 Months |
| Moratorium period | 5 Months |
| Processing Fee | 0.20% + Taxes |
| Prepayment Charges | Up to 2 years: 4% 2 years above: 2% |
| Collateral | No collateral required |
Note: The above-mentioned rates are subject to change with the finance market.
Loan-to-Value (LTV) Ratio and Margin Requirements for both schemes
The LTV is based on the fleet size, here’s a detailed table on the LTV and margin required:
| Segment | LTV on Chassis or Prime Mover | LTV on Body or Trailer | LTV on Fully Built Vehicles |
| Large Fleet Owner | 100% | 70% (30% Margin) | 90% (10% Margin) |
| Strategic / Super Strategic | 100% | 80% (20% Margin) | 95% (5% Margin) |
| Captive Users | 100% | 40% (60% Margin) | 90% (10% Margin) |
Note: The above-mentioned rates are subject to change with the finance market.
Eligibility Criteria for Fleet Finance and Small Commercial Vehicle Finance under Tie-up with Tata Motor Finance Ltd Schemes
The eligibility criteria for this scheme is as follows:
- Eligible fleet operators must have at least 3 years of experience in the same line.
- New units floated by existing fleet operators, individuals, or promoters with 3+ years of experience in transport activities are also considered.
- Fleet operators must have a minimum fleet of 10 vehicles.
- Transport operators must hold national/state route permits and other necessary licences and approvals.
- Borrowers must achieve a minimum score of 50% under the scoring model to be eligible.
- Main promoters/partners/directors must have a minimum CIBIL score of 650.
Small Commercial Vehicle Finance Under Tie-up with Mahindra & Mahindra Ltd
The Small Commercial Vehicle Finance under tie-up with Mahindra & Mahindra Ltd is a scheme designed to support small road transport operators. The scheme helps them and first time users in getting new small commercial vehicles, electric vehicles, and light commercial vehicles that are manufactured by Mahindra & Mahindra. This includes vehicles like Jeeto, Supro, Alfa & Pick-up vans, Treo Auto, Treo Zor, Treo Yaari & E-Alfa, Jayo, Furio & Cruzio cars manufactured by Mahindra & Mahindra.
The features offered by the scheme are:
| Loan Amount | Up to ₹10 Lakh |
| LTV Ratio | 90% of on road price |
| Interest Rate | Linked to EBR(Repo Rate (6.50%) + 2.65% |
| Borrower’s Margin | 10% of the on road price |
| Repayment Term for Small/Light Commercial Vehicles | Up to 72 Months |
| Repayment Term for Electric Vehicles | Up to 48 Months |
| Moratorium period | 1 Month |
| Processing Fee | 0.50% + Taxes |
| Default Charges | 5% p.a. above the existing ROI |
| Collateral | Must be covered under the Credit Guarantee Fund for Micro Units (CGFMU) |
| Guarantee Fee | Must be paid by the borrower. |
Note: The above-mentioned rates are subject to change with the finance market.
Eligibility
The eligibility criteria for this scheme is as follows:
- Small Road Transport Operators with less than 10 vehicles.
- Transport operators must possess the necessary permits, licences, and approvals.
- Applicants must have a satisfactory track record with existing banks or financial institutions.
- Borrowers must achieve a minimum score of 60% under the scoring model to be eligible under the tie-up with Mahindra & Mahindra Ltd. (same as applicable to Mudra).
- Applicants must be MSMEs registered on the UDYAM portal.
- Only CLP in-principle approved proposals will be accepted for further processing by the bank.
Check out more on Mahindra Finance Business loan from the linked page.
Apply for SBI Commercial Loan
To apply for a Commercial Loan at SBI, you can follow the steps below:
Step 1: Visit your nearest SBI branch or use the e-portal. Complete the online application with your personal and business details. Ensure all necessary documents are prepared.
Step 2: Provide key documents including KYC proofs, business registration papers, ITRs for the last 3 years, audited financial statements for the last 3 years, bank statements, details of existing loans, and any collateral you can offer.
Step 3: An SBI representative will reach out to collect and verify your documents if your application meets the initial criteria. They will evaluate your creditworthiness, cash flows, and collateral.
Step 4: The SBI business loan processing team will appraise your application and make the final credit decision based on your eligibility.
Step 5: If approved, the business loan amount will be disbursed to your account within 2 weeks. You can then utilise the funds as per the approved purposes.
You can also check out more on loans offered by SBI with the links below:
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