Corporate Business Loans from State Bank of India (SBI)
Being one of the largest public sector banks in India, State Bank of India (SBI) offers a range of loans to different segments of its customer base. In addition to other financial products, SBI offers different loan options to its corporate customers to help them run their business smoothly. As of April 2020, the bank offers five corporate business loans.
The business loans offered by State Bank of India are:
- Corporate Loan
- Term Loan
- Project Finance
- Transport Plus
- Construction Equipment Loan
We give you a brief introduction to each of these SBI business loans below.
State Bank of India Corporate Loan
The State Bank of India Corporate Loan helps businesses with a rating of SB10 and above finance their everyday operations such as for investment in current assets, purchase inventory, salary payments, power charges, etc. Although, there is little information on what is SB rating.
Features of SBI Corporate Loan
Why this Loan?
- This business loan can be taken for all current obligations due within a year related to running the business as well as for investing in long-term assets
- The repayment period for this loan cannot exceed 10 years
State Bank of India Term Loan for Asset Acquisition
State Bank of India offers term loan schemes to help businesses to meet working capital or capital expenditure needs. This loan can also be availed for expenditure related to business expansion.
Features of SBI Term Loans for Business
Why this Loan?
- The State Bank of India Term Loan for Asset Acquisition is meant for you if your business needs funds to meet acquire assets for business such as plant, machinery, land or other physical assets required for the growth and expansion of the company
- This is a need-based loan
State Bank of India Project Finance
State Bank of India offers the Project Finance loan scheme to help businesses raise funds for expansion, diversification or modernisation of ongoing projects or for setting up a new project.
Features of SBI Project Finance (Business Loan)
Why this Loan?
- The State Bank of India Project Finance Loan is meant for you if your business needs funds to modernise, expand or diversify an existing project or to set up a new project
- This loan is extended in Indian and foreign currencies to businesses in the infrastructure, manufacturing and services sector
State Bank of India Transport Plus (Vehicle Loan)
This loan is specially designed for businesses in the transportation sector to raise funds for purchasing new vehicles for business use. The loan can be availed for different types of vehicles including Light Commercial Vehicle (LCV), Small Commercial Vehicle (SCV), Medium Commercial Vehicle (MCV), Heavy Commercial Vehicle (HCV), etc.
Features of State Bank of India Transport Plus Loan
Why this Loan?
- The SBI Commercial Vehicle Loan is perfect for businesses in the transport sector to buy new vehicles for business
- The maximum loan amount sanctioned under this loan is Rs. 10 crore
- This is a secured loan. The bank asks for hypothecation of vehicles financed under the loan as well as book debts as primary security for this loan
State Bank of India Construction Equipment Loan
The SBI Construction Equipment Loan enables the borrowers in the construction sector get funds to purchase new machines, equipment or vehicles for the execution of construction projects. Businesses with a credit rating of SB-1 to SB-8 are eligible for this loan. Please get in touch with the bank to know more details of this credit rating system.
Features of State Bank of India Construction Equipment Loan
Why this Loan?
- This SBI business loan is specially designed for businesses in the construction sector raise funds to acquire machines, equipment or vehicles for business use
- The maximum loan amount sanctioned under this loan is Rs. 10 crore
Important Note: SBI may offer more corporate loan options that are not yet published on the website. We suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, Strategic Premium, etc. may be decided on a case-to-case basis.
Interest Rate for State Bank of India Business Loans
- The interest rate for State Bank of India Loans is defined as the sum of three factors, namely: Marginal Cost of Funds based Lending Rate (MCLR), Strategic Premium and Credit Risk Premium
- The Strategic Premium depends on various factors including the type of business, tenure of loan, etc. Credit Risk Premium, as the name suggests, depends on the Credit Risk Rating of the borrower
Documents Needed for Individuals
- Loan Application Form duly filled and signed by the applicant and co-applicant, if any
- Two Passport Size Photographs of applicant and co-applicant
- Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
- Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
- Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
Documents Needed for Proprietorship and Partnership Firms
- Loan Application Form duly filled and signed
- Partnership Deed and Partnership Registration Certificate
- ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
Documents Needed for Private Limited and Public Limited Companies
- Application Form duly filled and signed
- Company ID Proof: Company’s PAN Card
- Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
- Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
- Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
- Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
- Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
- Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References
Reference Facts
- State Bank of India Website: www.sbi.co.in and www.onlinesbi.com (net banking)
- Headquarters: Mumbai, Maharashtra
- Call Centre Toll-Free Number: 1800 425 3800, 1800 11 2211