Looking for MSME Loan to purchase vehicles for business use 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 Fleet Finance.

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

Loan Amount

  • The maximum loan amount for this loan is Rs. 10 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. Currently, one-year MCLR of SBI is 7.00% and the Strategic Spread may range from 0.75% to 3.25%. This means that the effective interest rate may range anywhere from 7.75% to 11.00%

Repayment

  • The repayment period for this loan is 66 months

Security Needed

  • Loans up to Rs. 1 crore: The bank may also ask for CGTMSE coverage
  • Loans Above Rs. 1 crore: The bank asks for collateral security of immovable property

Borrower Contribution to Total Cost (Margin Money)

  • Cost of Chassis: The bank charges up to 5% as margin for this loan
  • Cost of Body: The bank charges up to 45% as margin for this loan
  • Cost of Fully Build Model: The bank charges up to 10% as margin for this loan
  • Other Expenses: The bank charges up to 50% 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 bank charges up to 1% of the total loan amount as processing charges for this loan

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