Looking for a Small Business Loan from SBI?

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MSME 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 finance products, SBI offers different loan options to its MSME customers to help them run their business smoothly. Currently, SBI is offering seventeen MSME loans.

The small business loans offered by State Bank of India are:

  • SBI Asset Backed Loan
  • SME Smart Score
  • Simplified Small Business Loan
  • SBI Lease Rental Discounting
  • SME eBiz Loan
  • Cotton Ginning Plus
  • SBI Doctors Plus Loan
  • SBI Medical Equipment Loan
  • SBI Loans to Business Correspondents
  • SBI Overdraft (OD) to Business Correspondents
  • Warehouse Receipt Finance
  • E-Dealer Finance
  • E-Vendor Finance
  • Fleet Finance
  • SBI Export Packing Credit
  • Stand-Up India
  • Mudra Loan

State Bank of India also offers a Subsidy Linked Scheme namely, Prime Minister Employment Generation Programme (PMEGP).

We give you a brief introduction to each of these MSME loans below. In addition you have the option to click further and read in detail about each loan on a specific page of its own. This specific page has been made specifically for you to get all the information you need on that loan in an uncluttered and easy-to-read format. In case information is less or not available, we have been not been able to create an information page as yet, but we may do so in the course of the next few months.

State Bank of India 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

State Bank of India SME Smart Score

This loan helps small businesses meet their capital expenditure and working capital requirements. Proprietorships, partnerships and limited companies that fit the MSME definition are eligible for this loan.

Features of SBI SME Smart Score

Why this Loan?

  • This SBI SME Smart Score is meant for all types of businesses in the MSME sector that need financial assistance to meet their needs for purchasing equipment and machinery, spend money on research and development activities and so on
  • This loan is only sanctioned to MSME businesses in the manufacturing, trade and services sectors

State Bank of India Simplified Small Business Loan

This loan helps business owners raise capital towards building up current assets and fixed assets for business use. The maximum loan amount sanctioned by SBI under this loan is Rs. 25 lakh.

Features of SBI Simplified Small Business Loan

Why this Loan?

  • The SBI Simplified Small Business Loan is perfect for small businesses in the manufacturing and services sectors to get access to funds for building current assets and purchase fixed assets for business use
  • The loan must be repaid within 5 years

State Bank of India Lease Rental Discounting

This loan helps small business owners raise capital towards expanding their business by availing loan against residential or commercial property. The maximum loan amount sanctioned under this loan is Rs. 50 crore. The borrower must obtain a certificate regarding the end use of the loan amount stating that it will be utilised for business purposes and not for speculative or real estate purposes.

Features of SBI Lease Rental Discounting

Why this Loan?

  • The SBI Lease Rental Discounting is perfect for businesses in the Micro, Small and Medium Enterprise sector to get access to funds for business growth and expansion-related activities by mortgaging property leased to reputed MNCs, banks, central and state government office or public bodies such as municipal organisations
  • The loan must be repaid within 12 months

State Bank of India SME e-Biz Loan

This loan helps registered sellers of e-commerce portals engaged in selling products through online portals of ecommerce companies. The maximum loan amount sanctioned under this loan is Rs. 5 crore.

Features of SBI e-Biz Loan

Why this Loan?

  • The SBI SME e-Biz Loan is meant for registered sellers of e-commerce portals to get financial assistance to meet their working capital needs
  • This is a secured loan

State Bank of India Cotton Ginning Plus

This loan helps MSME businesses engaged in the cotton ginning activities. This is a need-based loan which means that the loan amount sanctioned by the bank depends on the needs as well as the repayment capacity of the borrower.

Features of SBI Cotton Ginning Plus

Why this Loan?

  • This State Bank of India Cotton Ginning Plus offer financial assistance to MSME businesses engaged in the cotton ginning activities to meet their working capital needs
  • This is a secured loan

State Bank of India Doctors Plus Loan Scheme

This loan helps medical practitioners meet their capital expenditures or working capital expenses right from setting up a clinic, nursing home, hospital and pathology labs to purchase of equipment, vehicles and ambulance. The maximum loan amount is Rs. 5 crore for this loan.

Features of SBI Doctors Plus Loan

Why this Loan?

  • The SBI Doctors Plus Loan is meant for medical practitioners who need to financial assistance in fulfilling their capital expenditure needs
  • Qualified Medical practitioners from different branches of medicine such as Allopathy, Homeopathy, Unani, Ayurveda, etc. are eligible for this loan if they have experience in running the business
  • Individuals, Proprietors, LLPs, Trusts and Companies can also avail this loan if minimum 51% of stake is help by a qualified doctor or medical practitioner

State Bank of India Medical Equipment Loan Scheme

This loan helps nursing homes, diagnostic centres, pathology laboratories, ENT centres, skin clinics, dental clinics, IVF centres, medical practitioners, etc. to get financial assistance to purchase ancillary equipment for business use. The maximum loan amount is Rs. 20 crore for this loan.

Features of SBI Medical Equipment Loan

Why this Loan?

  • The SBI Medical Equipment Loan Scheme is meant for nursing homes, diagnostic centres, pathology laboratories, ENT centres, skin clinics, dental clinics, IVF centres, etc. that need financial assistance to purchase ancillary medical equipment
  • Individuals, Proprietors, LLPs, Trusts, Companies and Societies running medical centres such as nursing homes, diagnostic centres, pathology laboratories, ENT centres, skin clinics, dental clinics and IVF centres are also eligible for this loan as long as the business has been running successfully for the last 3 years

State Bank of India Loan to Business Correspondents

The loan helps businesses finance their everyday operations such as for investment in current assets, purchase of raw materials, salary payments, power charges, etc. as well as business expansion and business asset-acquisition needs.

Features of the SBI Loan to Business Correspondents

Why this Loan?

  • The SBI Loan to Business Correspondents can be taken by Kiosk Operators, Customer Service Providers and other Business Correspondents for all projects and activities related to running the business
  • All national and state level business correspondents having a valid agreement with the State Bank of India and a satisfactory relationship with the bank for over 2 years are eligible for this loan

State Bank of India Overdraft (OD) Product for Business Correspondents

The loan helps businesses finance their everyday operations such as for investment in current assets, purchase of raw materials, salary payments, power charges, etc. This a perfect loan scheme for businesses that need help during periods of reduced business activity or other cases when the funds are short to meet the business needs.

Features of the SBI OD to Business Correspondents

Why this Loan?

  • The SBI OD for Business Correspondents can be taken for all projects and activities related to running the business on a day-to-day basis
  • All national and state level business correspondents having a valid agreement with the State Bank of India and a satisfactory relationship with the bank for over 2 years are eligible for this loan

State Bank of India Warehouse Receipt Finance

This loan scheme is designed to provide financial assistance to traders, manufacturers of goods, owners of goods, etc. against Negotiable Warehouse Receipts (NWR) issued by collateral managers. This is a need-based loan.

Features of SBI Financing Against e-NWR

Why this Loan?

  • The State Bank of India Loan Against e-NWR is perfect for small businesses that need financial assistance against negotiable warehouse receipts issued by repositories approved by WDRA for stocks or goods stored in WRDA-accredited warehouses
  • The loan scheme is offered as a cash credit facility, term loan and a revolving demand loan

State Bank of India e-Dealer Finance

This loan helps traders, wholesalers, dealers and distributors in the MSME sector get funds for their working capital needs. This is a need-based loan. A distinguishing feature of this loan is that the bank offers 100% finance for this loan.

Features of SBI e-Dealer Finance

Why this Loan?

  • The SBI e-Dealer Finance is perfect for dealers, stockists and distributors in the Micro, Small and Medium Enterprise sector to get access to funds for working capital needs
  • The bank extends this scheme as a cash credit facility

State Bank of India e-Vendor Finance

This loan helps vendors of corporates and industry majors get funds for their working capital needs. This loan is sanctioned only to existing customers of SBI who have been making a profit in business for the last 3 years. As the name suggests, this scheme is a predominantly online facility.

Features of SBI e-Dealer Finance

Why this Loan?

  • The SBI e-Vendor Finance is perfect for vendors or corporates and industry majors get financial assistance to meet their working capital needs
  • The bank extends this as a cash credit facility

State Bank of India Fleet Finance for MSMEs

This loan helps MSME units in the transportation sector buy new vehicles in the small, light, medium and heavy commercial and passenger vehicle category for business use. The maximum loan amount is Rs. 10 crore.

Features of SBI Fleet Finance

Why this Loan?

  • The State Bank of India Fleet Finance is meant for small businesses in the Transportation sector purchase vehicles such as Light Motor Vehicles (LMVs), Heavy Motor vehicles (HMVs), cars, tempos, mini-vans and trucks for business use
  • Existing Fleet Operators for Goods or Passenger transport sectors as well as individuals, firms, companies, Trusts, Societies, Institutions and Associations are eligible for this loan
  • This loan cannot be availed to purchase pre-owned vehicles

State Bank of India Business Export Packing Credit

This loan helps small businesses get funds to carry out day-to-day operations for pre-shipment activities. It is a type of working capital loan. The bank also offers non-funded assistance under this scheme to help businesses dealing in export to run their operations smoothly. This is a need-based loan.

Features of SBI Business Export Packing Credit

Why this Loan?

  • The State Bank of India Business Export Packing Credit is meant for you if your business needs funds for pre-shipment activity directly related to your export business. Please get in touch with the bank to get a list of all the activities eligible for this loan
  • This loan must be repaid within 6 months or the manufacturing/trade cycle of the business, whichever is lower

State Bank of India Stand-up India Loan Scheme

This loan is designed to help women and SC/ST entrepreneurs set up greenfield enterprises in India. All first time ventures of women and SC/ST beneficiaries in the manufacturing, trading and services sector are eligible for this loan.

Features of SBI Stand-Up India Loan

Why this Loan?

  • This loan is meant for encouraging people from the SC/ST category and women entrepreneurs to set up greenfield enterprises in the manufacturing, services or trading sectors. In the case of non-individual enterprises, at least 51% of the company stakes should be held by women or people in the SC/ST category
  • The maximum loan amount for the State Bank of India Stand-up India loan is Rs. 1 crore

State Bank of India Mudra Loan Scheme

This loan helps unfunded individuals, proprietors and partnerships running small manufacturing units, fruit and vegetable shops, food service units, repair shops, small industries and so on get funds for their business needs. The maximum loan amount sanctioned by the bank for the MUDRA loan is Rs. 10 lakh.

Features of SBI Pradhan Mantri Mudra Yojana (PMMY)

Why this Loan?

  • The SBI Mudra Loan is divided into three variants depending on the type and size of business, namely Shishu, Kishore and Tarun. The quantum of loan depends on the loan variant applicable to the business
  • It is designed for Non-corporate Small Business Segment to help them get funds to meet their working capital needs

Important Note: SBI may offer more 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 MSME 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