Are you launching or expanding your small business? SBI's MSME loans can provide the financial boost you need. SBI offers a variety of loans specifically designed for MSMEs/SMEs (Micro, Small, and Medium Enterprises). This can be a great way to get the funding you need to take your business to the next level.
This guide explores the eligibility criteria to avail of a SBI MSME loan.
The eligibility criteria for SBI MSME loans can vary based on the specific loan type, nature of the business, and other factors. It is recommended to visit the nearest SBI branch or their official website to obtain the latest and most detailed information.
However, the general eligibility criteria for SBI MSME loans typically include:
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Here is an overview of the SBI SME loans:
Loan Amount | ₹5 lakhs to ₹500 Crore |
Interest Rate for SBI SME Loan | Starts from 8.25% p.a. |
Loan Tenure | Up to 7 Years |
Processing Fee | 1% of the loan amount sanctioned |
The eligibility criteria for SBI MSME loans can vary based on the specific loan product. Here's a general overview of the eligibility criteria for some common types of SBI MSME loans:
Purpose: Fulfilling working capital requirements and obtaining fixed assets
Loan Amount: ₹10 lakh to ₹5 crore
Eligibility Requirements:
Purpose: To acquire current and fixed assets necessary for business operations, expand capacity, modernize, and support short-term working capital (including strengthening Net Working Capital, etc).
Loan Amount: ₹10 lakh to ₹5 crore
Eligibility: All business entities seeking to access loans for manufacturing and service operations, as well as self-employed professionals and individuals in wholesale/retail trade, are eligible for the facility.
Purpose: To offer financial support for the operational needs of defense canteens by providing working capital for procurement from Depots, thereby facilitating their daily activities.
Loan Amount: ₹10 lakh to ₹5 crore
Eligibility: Defence canteens of the Armed Forces that are registered with a unique Registration Number.
Purpose: To install grid-connected solar rooftop or ground-mounted systems for self-consumption.
Loan Amount: Up to ₹10 crore
Eligibility:
Purpose: To acquire current and fixed assets necessary for business operations, expand capacity, modernize, and meet short-term working capital needs (including increasing Net Working Capital, etc).
Loan Amount: >₹10 crore to ₹20 crore
Eligibility:
Purpose: To fulfill all credit needs, including the acquisition of a store.
Loan Amount: Up to ₹10 Lakhs
Eligibility:
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Purpose: To offer convenient financial support to MSME units (sole proprietorship firms only) using gold ornaments or jewelry owned by the proprietor as collateral, for fund-based needs related to any general business purposes.
Loan Amount: > ₹1 Lakh to ₹50 Lakh
Eligibility:
Purpose: To offer convenient financial solutions to Marble, Felspar, Quartz, and other Stone Units for meeting their various needs such as regular working capital, capital expansion (capex), and other business-related requirements.
Loan Amount: > ₹10 Lakh to ₹10 Crores
Eligibility:
Purpose: Term loans to SME units for the purchase of new cars such as passenger cars, jeeps, multi-utility vehicles (MUVs), and sports utility vehicles (SUVs), exclusively for use by their promoters, partners, directors, and employees. The cars may have Petrol, Diesel, CNG, Hybrid, or Electric engines.
Loan Amount: Up to ₹3 Crores
Eligibility:
All MSME and non-MSME units that have an existing borrowing arrangement with our institution are eligible for this product, subject to their account not being classified as a Special Mention Account (SMA-1) or worse category during the last 12 months.
Purpose: To provide financial assistance to qualified medical professionals who wish to establish clinics, nursing homes, or hospitals.
Loan Amount: > ₹10 lakhs to ₹50 crore
Eligibility:
Purpose: To finance the acquisition of new commercial vehicles, electric vehicles, hybrid commercial vehicles, CNG vehicles, ambulances, and specially-built caravan vehicles for travel, leisure, and accommodation purposes, as well as commercial vehicles loan
Loan Amount: > ₹10 lakhs to ₹50 lakhs
Eligibility:
Purpose: To provide financial assistance for covering payroll expenses to pay salaries to employees, as well as overhead costs and other office-related expenses.
Loan Amount: ₹2 Lakhs to ₹25 Lakhs
Eligibility:
Purpose: To extend financial support to start-up enterprises in the Micro, Small, and Medium Enterprises (MSME) sector to meet their diverse business requirements.
Loan Amount: Starting from ₹50 Lakhs to ₹50 Crores
Eligibility:
Purpose: Financing for new commercial vehicles (e.g., trucks, tankers, trailers, tippers, buses) and passenger vehicles, including electric and hybrid commercial models.
Loan Amount: ₹50 lakhs to ₹50 Crs
Eligibility:
Purpose: Providing financial support to traders, goods owners, manufacturers, and processors based on Warehouse Receipts issued by Collateral Managers (C.M) that we have partnered with.
Eligibility: Traders, owners of goods, and manufacturers can use their processing facilities in exchange for Warehouse Receipts issued by CM/CWC/SWC.
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The SBI MSME loan offers several compelling benefits to support the growth and development of micro, small, and medium enterprises (MSMEs). These include:
The key documents required for obtaining an SME loan from the State Bank of India (SBI) are as follows:
Securing an MSME Loan online can be a convenient and efficient way to access funding for your small or medium-sized business. You can also get business loans with Buddy Loan. Buddy Loan has a pool of RBI-approved loan lenders offering business loans.
Check the steps below to apply for a business loan.
Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
Step 2: Open the Business Loan Application Page. Enter your mobile number and OTP.
Step 3: Specify the desired loan amount and email. Next, choose the Business Loan option.
Step 4: Choose if you have a Business Proof (Yes/ No)
Step 5: Provide income details and Click the ‘Submit’ button.
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You can also check out more on loans offered by SBI with the links below:
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SBI MSME loans can range from Rs. 50,000 to several crores depending on the specific scheme and your business's qualifications.
You can apply for SBI MSME loans online through their website or visit a branch in person.
SBI MSME loans are generally for small and medium-sized businesses operating in India. They typically look for a good credit history, a minimum turnover (amount varies by scheme), and collateral depending on the loan amount.
SBI is a major player, but other banks and NBFCs (Non-Banking Financial Companies) also offer MSME loans. It's wise to compare rates and terms from multiple lenders to find the best fit for your needs.
Manufacturing, services, trading, and self-employed professionals can all qualify as MSMEs depending on their investment and turnover.
The new MSME definition in India uses investment and turnover together. A micro MSME has a turnover of up to Rs. 5 crore and an investment of Rs. 1 crore. Small MSMEs have a turnover of up to Rs. 50 crore and investment up to Rs. 10 crore. Medium MSMEs have a turnover up to Rs. 100 crore and investments up to Rs. 20 crore.
The MSME classification system recently changed to use both investment and turnover to define business size (as mentioned above).
Interest rates on MSME loans can vary depending on the lender, loan amount, and creditworthiness. SBI MSME loan rates typically start around 8.25% p.a.
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