MSME Loans, alternatively referred to as Micro, Small, and Medium Enterprise Loans, cater to business owners and entrepreneurs. Among these, SBI provides specialized financial services for MSMEs with the goal of driving growth, encouraging innovation, and supporting economic progress in various industries.

If you are looking for financial help for your enterprise working capital to support your business growth provided by SBI, then read further to know more about SBI MSME Loan.

Features of SBI MSME Loans in India

These features can vary based on the specific MSME loan scheme or product offered by SBI. Businesses are advised to review the terms and conditions of the respective loan schemes to understand the complete set of features and benefits provided by SBI.

Some of the key features of SBI MSME Loans include:

  • Diverse Loan Options: SBI provides various MSME loan schemes catering to original business needs such as working capital, expansion, technology up-gradation, equipment purchase, etc.
  • Competitive Interest Rates: SBI offers competitive interest rates on MSME loans, making financing more affordable for businesses.
  • Flexible Loan Amount: MSME loans from SBI cover a wide range of loan amounts, allowing businesses to access funding based on their specific requirements.
  • Customized Repayment Tenure: SBI offers flexible repayment periods, enabling businesses to choose a tenure that suits their financial capabilities.
  • Quick Processing: SBI aims for swift processing of MSME loan applications, ensuring timely disbursal of funds for approved cases.
  • Online Application: SBI provides an online application process for MSME loans, streamlining the application and documentation process for convenience.
  • Support and Guidance: SBI's customer service representatives offer guidance throughout the loan application process, assisting businesses with queries and document verification.
  • Government Scheme Integration: SBI often participates in government-backed MSME loan schemes, providing access to special schemes or interest rate benefits.

SBI MSME Loan Interest Rate, Fee & Charges

The State Bank of India offers MSME loans with varied interest rates, fees, and charges to suit different business needs. This includes varying risk profiles of different businesses. The table shows below the rates and charges that are essential for seeking SBI MSME loans, to make better decisions and choose the most suitable loan options.

Interest Rate 9.65% p.a. onwards
Processing Fee Up to 2% of the loan amount
Loan Amount Depending on the scheme
Loan Repayment Tenure Up to 120 months

SBI MSME Loan Eligibility

The Loan eligibility can vary based on the loan type, business nature, and other factors. Visiting SBI directly or their official website is recommended for the latest and detailed information. However, you can also follow the listicle below to understand the eligibility for SBI MSME loans typically includes:

  • Business Vintage: Operational for at least 2-3 years.
  • Good Credit Score: A favorable credit history is important.
  • Annual Turnover: Meeting a minimum turnover requirement.
  • Profitability: Showing a certain level of profit.
  • Documentation: Proper financial and legal documents.
  • Collateral/Security: Depending on the loan type and amount.
  • Compliance: Following regulatory & policy norms.
  • Specific Loan Requirements: Different schemes may have specific criteria.

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Documents Required for SBI MSME Loan

The below set of documents serve as verification in terms of identity and other verification. Especially, to come clean in financial and legal records that reflect the credibility of availing MSME loans.

Understanding the required documentation is essential for a smooth and successful loan application process.

  • Proof of Identity - PAN card, Aadhaar card, Voter's ID, passport
  • Proof of Residence - Rental agreement, ration card, utility bills
  • Proof of Business Address - Rental agreement, lease agreement, utility bills
  • Proof of Income - P/L account and balance sheet copies of the last 2 years
  • Tax documents - sales tax returns, PAN card
  • Proof of securities provided - Photocopies of title deeds/lease deeds offered as securities
  • Other documents - Projected balance sheet, project report, etc.

MSME Loan Offered By Various Bank

For a comprehensive comparison of MSME loan offerings from different banks, refer to the table below. This table showcases a detailed breakdown for a better assessment of these various financing options for your MSME loan.

Bank Name Interest rate
Central Bank of India 11.25% p.a. onwards
Indian Bank 9.75% p.a. onwards
Punjab and Sind Bank 9.95% p.a. onwards
Punjab National Bank At the discretion of the bank

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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:

2. Borrower's Profile:

3. Purpose:

4. Loan Structure:

Simplified Small Business Loan

1. Applicant Eligibility:

2. Collateral Requirement:

3. Loan Utilization:

4. Business Criteria:

SME Smart Score

1. Eligible Entities:

2. Loan Usage:

3. Margin Requirement:

4. Borrower's Profile:

SME Credit Card

1. Loan Purpose:

2. Collateral & Eligibility:

3. Loan Conditions:

4. Borrower Benefits:

Doctor Plus Scheme

1. Target Group:

2. Loan Utilization

3. Security & Requirements:

4. Borrower Advantages:

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Medical Equipment Finance

1. Target Industry:

2. Loan Utilization:

3. Collateral & Conditions:

4. Repayment Structure:

E-Dealer Finance Scheme

1. Loan aim:

2. Financing Structure:

3. Flexible Repayment:

4. Borrower Eligibility:

E-Vendor Finance Scheme

1. Target Group:

2. Eligibility Criteria:

Loan Purpose:

4. Scheme Variants:

Fleet Finance

1. Loan Utilization:

2. Eligibility Criteria:

3. Collateral Requirement:

4. Target Group:

Export Packing Credit

1. Target Audience:

2. Loan Utility:

3. Margin and Loan Quantum:

4. Business Support:

Lease Rental Discounting

1. Eligibility Criteria:

2. Loan Usage:

3. Property Restrictions:

4. Borrower Support:

Warehouse Receipt Financing

1. Loan Purpose:

2. Margin and Loan Amount:

3. Primary Security:

4. Business Aid:

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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:

Stand-Up India Scheme

Check Stand-up India Scheme details from below:

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

The CGTMSE Scheme details are as follows”

SBI Loan for Women Entrepreneurs

Check SBI loans for

SBI SME Smart Score Loan Scheme

SBI SME Credit Card

Asset-Backed Loan for MSMEs

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.

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Frequently Asked Questions

An MSME loan from SBI is financial support tailored for Micro, Small, and Medium Enterprises (MSMEs) in India, offering funding for business expansion, working capital, equipment purchase, etc.

Eligible borrowers include businesses meeting SBI's criteria for business vintage, creditworthiness, turnover, profitability, compliance, and documentation requirements.

Yes, SBI follows the government's defined criteria based on investment in plant and machinery/equipment or annual turnover to categorize micro, small, and medium enterprises.

SBI offers various MSME loan schemes such as SBI MSME Business Loan, SBI Stand-Up India Scheme, SBI SME Collateral Free Loan, etc., catering to diverse business requirements.

The classification determines the maximum loan amount, interest rates, and terms offered by SBI, varying for micro, small, and medium enterprises.

SBI MSME Loans serve purposes like working capital, machinery purchase, infrastructure development, business expansion, technology upgradation, etc., supporting various business needs.

Yes, startups and newly established MSMEs meeting SBI's eligibility criteria can apply for specific loan schemes tailored for them, provided they meet the conditions.

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