Looking for MSME Loan from State Bank of India?

You have landed at the right place. This page contains all the information you will need on State Bank of India’s Asset Backed Loan.

State Bank of India SBI Asset Backed Loan

This loan helps small businesses meet their capital expenditure and working capital requirements. The maximum loan amount is Rs. 20 crore. The loan amount can be utilised for modernisation of business unit, purchase of business assets, working capital needs, etc.

Features of SBI Asset Backed Loan

Why this Loan?

  • The SBI Asset Backed Loan is meant for small businesses to get funds to meet their working capital and capital expenditure needs
  • This is a secured loan and requires pledging of immovable property as collateral

Loan Amount

  • The minimum loan amount is Rs. 10 lakh
  • The maximum loan amount is Rs. 20 crore

Interest

  • The interest rate applicable to this loan is defined as the sum of one-year Marginal Cost of Funds based Lending Rate (MCLR) and Strategic Spread of 2.30%. Currently, one-year MCLR of SBI is 7.00% bringing the effective interest rate at 9.30%

Repayment

  • Term Loans: These loans need to be repaid in up to 15 years with a maximum moratorium period of 18 months
  • Working Capital: These loans need to be repaid within 12 months. It can be renewed on an annual basis depending on review terms

Security Needed

  • The bank asks for pledging of immovable property in the form of equitable or registered mortgage of land and building

Eligibility

  • The borrower should be between the ages of 20 years to 50 years
  • The promoter must have graduated from one of the premier institutions from India such as IIMs, IITs, IISc, ISBs, XLRI, SIM-Pune, SIM- Bangalore, MDI-Gurgaon or NITs
  • The business must be a Start-up or Early Stage Unit (ESU). The ESU should not have completed 3 years from the date of commercial operation or balance sheet, whichever is earlier

Borrower Contribution to Total Cost (Margin Money)

  • The bank charges 25% of the total loan amount as margin

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest.

Processing Charges

  • The borrower must pay upfront fee of 1% of the loan amount

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