Looking for Lease Rental Discounting Scheme for business needs from SBI?

Get all the information you need on the Lease Rental Discounting Scheme from State Bank of India below.

State Bank of India (SBI) 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

Loan Amount

  • The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 50 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 3.10% to 3.60%. This means that the effective interest rate may range anywhere from 10.10% to 10.60%

Repayment Period

  • This loan must be repaid before the end of lease period. Other details about the repayment period of this loan are not mentioned on the bank’s website. Please check with the bank for details

Security Needed

  • The mortgage of property is the primary security for this loan. The bank may also ask for third-party guarantee to secure the loan

Eligibility

  • The borrower must be 21 years of age and above
  • Businesses in the Micro and Small Enterprises (MSE) sector are eligible for this loan
  • The property must be

Borrower’s Contribution to Total Cost (Margin Money) and Processing Charges

  • The margin and processing fees charged by the bank on this loan are not mentioned on the bank’s website. Please check with a bank representative before applying 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