SBI MSME Loan

Different Types of SBI MSME Loan

State Bank of India MSME Loan offers diverse loan products structured for Micro, Small, and Medium Enterprises (MSMEs) in India. These specialized financial solutions cater to various business needs, facilitating growth, expansion, working capital, equipment purchase, technology up-gradation, and more.

Small eBiz Loan

1. Eligibility:

• A month's track record as a registered e-commerce seller is required.
• Collateral of at least 35% in land, building, or liquid securities.

2. Borrower's Profile:

• The partners/promoters/directors can act as a guarantee.
• Limited to registered e-commerce portal sellers.

3. Purpose:

• Financial support for selling products on e-commerce platforms.
• Facilitates business growth and expansion in online sales.

4. Loan Structure:

• Tailored for sellers engaged with major e-commerce players.
• Collateral security is required to support the loan amount.

Simplified Small Business Loan

1. Applicant Eligibility:

• Open to all business units engaged in services, manufacturing, retail, etc.
• Self-employed individuals and professionals are also eligible.

2. Collateral Requirement:

• A minimum collateral of 40% is mandatory for loan approval.
• Existing businesses must have a minimum 5-year presence in the same locality.

3. Loan Utilization:

• Funds can be utilized for fixed and current asset acquisition.
• Flexible financing for business infrastructure and operations.

4. Business Criteria:

• Extended to diverse business sectors and self-employed individuals.
• Targeted for general-purpose business funding needs.

SME Smart Score

1. Eligible Entities:

• Targeted at partnership firms, privately or publicly held small and medium industrial/trading units.
• Requires the chief executive promoter aged between 18 to 65 years.

2. Loan Usage:

• Specifically, it caters to working capital needs and the acquisition of fixed assets.
• Facilitates operational liquidity and asset procurement.

3. Margin Requirement:

• 33% margin for the term loan component.
• 25% margin for the working capital component.

4. Borrower's Profile:

• Aims at boosting the financial strength of SMEs in industrial and trading sectors.
• Offers a financing solution with structured margins for different loan components.

SME Credit Card

1. Loan Purpose:

• Meets various credit requirements like shop purchases.
• Target retail traders, SSI units, self-employed, etc.

2. Collateral & Eligibility:

• No collateral is needed for SSI units.
• Eligible entities encompass diverse business sectors.

3. Loan Conditions:

• Loans above Rs.25,000 require a 20% margin.
• Assists in diverse financial requirements for SSI units.

4. Borrower Benefits:

• Serves credit necessities of diverse business entities.
• Allows for easy access to credit without significant collateral.

Doctor Plus Scheme

1. Target Group:

• Aimed at medical practitioners and allopathic facilities.
• Supports clinics, drugstores, X-ray labs, etc.

2. Loan Utilization

• Enables establishment and up-gradation of medical facilities.
• Allows renovation and modernization of existing premises.

3. Security & Requirements:

• Loans above Rs.2 crore require 25% tangible security.
• Facilitates expansion and modernization of healthcare services.

4. Borrower Advantages:

• Tailored financing for medical practitioners' needs.
• Allows for upgrading medical equipment and facilities.

In need of a business loan?

Medical Equipment Finance

1. Target Industry:

• Aims at pathology labs, diagnostic centers, ENT & dental clinics.
• Supports purchases for ancillary equipment in healthcare.

2. Loan Utilization:

• Financing is available for medical facility setups.
• For loans up to Rs.2 crore, no collateral is required.

3. Collateral & Conditions:

• Loans above Rs.2 crore need 25% tangible collateral.
• Enhances healthcare facilities through technological investment.

4. Repayment Structure:

• Loan repayment begins 6 months post the first disbursement.
• Supports healthcare infrastructure enhancement without immediate repayment burdens

E-Dealer Finance Scheme

1. Loan aim:

• Aids distributors/franchisees in inventory purchases.
• Targeted at allowed industry dealers with bank tie-ups.

2. Financing Structure:

• Facilitates 100% financing for eligible dealers.
• Interest rate linked to Marginal Cost Based Lending Ratio (MCLR).

3. Flexible Repayment:

• Multiple repayment methods like NEFT, RTGS, cheques, etc.
• Loans cater to the immediate financial needs of distributors.

4. Borrower Eligibility:

• Exclusive to authorized dealers collaborating with the bank.
• Promotes easy access to finance for inventory management.

E-Vendor Finance Scheme

1. Target Group:

• Vendors of reputed corporates tied up with SBI.
• Must demonstrate 3 years of continuous profit.

2. Eligibility Criteria:

• Industry majors collaborating should exceed Rs.500 crore turnover.
• Scheme variants available: vendor exposure and IM exposure.

Loan Purpose:

• Tailored financing for vendor transactions with major corporations.
• Encourages vendor-profit partnerships with established firms.

4. Scheme Variants:

• Vendor exposure and IM exposure cater to different vendor-corporate collaborations.
• Vendor exposure and IM exposure cater to different vendor-corporate collaborations.

Fleet Finance

1. Loan Utilization:

• Finances for the purchase of vehicles like cars, trucks, buses, etc.
• Specifically for existing fleet operators in passenger or goods transportation.

2. Eligibility Criteria:

• Requires a minimum 2 years of experience in the transportation line.
• Eligible operators must have an existing fleet of at least 10 vehicles.

3. Collateral Requirement:

• Loans over Rs.1 crore demand 20% of tangible collateral security.
• Tailored for operational fleet expansion and modernization.

4. Target Group:

• Supports existing fleet operators' vehicle acquisition needs.
• Fosters growth in the transportation sector through funding support.

Export Packing Credit

1. Target Audience:

• Manufacturers and merchant exporters with prior SBI credit facilities.
• Specific focus on aiding businesses engaged in exports.

2. Loan Utility:

• Supports purchase of raw materials, packaging, processing, and transportation for export goods.
• Aims to streamline the export process by facilitating financial assistance.

3. Margin and Loan Quantum:

• Margin percentage tailored based on the exporter's capability and order specifics.
• Loan quantum adjusted to meet the varying business demands of exporters.

4. Business Support:

• Enables exporters to meet financial requirements for export-oriented operations.
• Encourages growth and competitiveness in the export sector.

Lease Rental Discounting

1. Eligibility Criteria:

• Individuals owning commercial or residential properties leased out.
• Targeted at addressing liquidity mismatches faced by borrowers.

2. Loan Usage:

• Serves to bridge financial gaps due to lease-related cash flow differences.
• Borrowers must provide a certified statement detailing fund utilization.

3. Property Restrictions:

• Properties leased out should not be associated with social infrastructure projects.
• Realizable property value should be at least 143% of the loan amount.

4. Borrower Support:

• Provides financial flexibility for property owners with leased-out premises.
• Ensures liquidity support while maintaining specific property value ratios.

Warehouse Receipt Financing

1. Loan Purpose:

• Aims to subsidise manufacturers and traders in processing goods against warehouse receipts.
• Supports self-processing of goods with backing from collateral managers tied up with SBI.

2. Margin and Loan Amount:

• Loan margin set between 25% and 35% of the market price based on specific facility agreements.
• Maximum loan amount dependent on the diverse financial requirements of businesses.

3. Primary Security:

• Stocks against which warehouse receipts are issued serve as primary security.
• Pledged or hypothecated underlying stocks safeguard the loan.

4. Business Aid:

• Facilitates financial backing for businesses involved in self-processing against warehouse receipts.
• Encourages self-processing activities by providing financial support and security.

SBI MSME Loan Schemes By Government of India

These schemes aim to provide financial help, boost entrepreneurship, and support the growth of Micro, Small, and Medium Enterprises in India.​​Here are some prominent SBI MSME loan schemes started by the Government of India:

Pradhan Mantri Mudra Yojana (PMMY)

Let’s go through PM Mudra Loan details from below:

• Categories: Shishu, Kishor, and Tarun, catering to varying loan sizes.
• Eligibility: Small businesses in manufacturing, trading, and services sectors, including allied agricultural activities.
• Collateral: No collateral is required.
• Loan Period: Up to 60 months repayment tenure.

Stand-Up India Scheme

Check Stand-up India Scheme details from below:

• Target Group: Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs and women.
• Objective: Encourages entrepreneurship and financial inclusion.
• Collateral: No requirement of third-party guarantee or collateral.
• Loan Amount: For setting up Greenfield projects in the trading, and services sectors.

Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE)

The CGTMSE Scheme details are as follows”

• Objective: Facilitates collateral-free credit for MSMEs.
• Eligibility: New and existing MSMEs.
• Collateral: No collateral requirement up to a certain loan limit.
• Coverage: Loans up to Rs. 2 crores per borrower.

SBI Loan for Women Entrepreneurs

Check SBI loans for

• Focus: Aids women entrepreneurs and promotes women-led businesses.
• Eligibility: Business women or women-led enterprises.
• Interest Rates: Preferential rates of interest.

SBI SME Smart Score Loan Scheme

• Target Group: Small and medium industrial and trading sector units.
• Purpose: Working capital needs and acquisition of fixed assets.
• Margin: 33% for the term loan component and 25% for the working capital component.
• Age Criteria: Chief executives or chief promoters aged between 18 to 65 years.

SBI SME Credit Card

• Eligibility: Retail traders, SSI units, village industries, self-employed individuals, professionals, etc.
• Collateral: No collateral for SSI units.
• Purpose: Meets various credit requirements of businesses like shop purchases, etc.

Asset-Backed Loan for MSMEs

• Objective: Aids in business expansion, short-term working capital, modernization, etc.
• Collateral: Provided against immovable property (equitable/registered mortgage).
• Eligibility: Only existing customers of SBI who have availed credit facilities.

Steps to Apply For SBI MSME Loan

Here are the quick steps to apply for SBI MSME Loan:

Step 1: Fulfill the primary SME loan eligibility criteria by being an Indian resident aged between 24 and 70 years, self-employed with a business vintage of at least 3 years, and maintaining a CIBIL score of 685 or higher.

Step 2: Fill out the concise online loan application form with personal and business details, and prepare the necessary documents accordingly.

Step 3: Provide essential documents such as KYC documents, proof of business ownership, income tax returns from the previous year, and financial statements including profit-and-loss statements, along with balance sheets for the last two years.

Step 4: Our customer care representative will contact you after your application approval to collect and verify your documents and profile.

Step 5: Upon thorough verification of your application, the approved loan amount will be swiftly credited to your registered bank account.