SBI MSME Loans: Empowering India’s Small and Medium Business

SBI MSME Loans: State Bank of India (SBI) plays a significant role in supporting the growth of India’s Micro, Small, and Medium Enterprises (MSMEs) by providing specialized loan products tailored to meet the unique needs of these businesses. With a variety of loan options, SBI’s MSME loans enable entrepreneurs to access funding with flexibility, whether they’re starting a new business or expanding an existing one. Below is an overview of SBI MSME loans offerings, eligibility criteria, and benefits.

SME E-Smart Score (Loans above ₹10.00 Lakh to ₹5 crore sourced through CLP)

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Features

• Target Group : Individually managed proprietary/partnership firm or closely held public/private limited companies in the Small and medium industrial and trading sector under C&I and SIB segments.
• Facilities Available :  Cash Credit and Term Loan
• Quantum of loan : >₹10.00 lakh to ₹5 crore
• Pricing :Competitive Pricing Linked to EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%)
• Borrower’s Margin / Contribution : 25% for working capital component and 33% for TL component
• Repayment Period
  • Working Capital: Repayable on demand.
  • Term Loan: Not more than 7 years including moratorium not exceeding 6 months
• Processing Fee/ Upfront Fee As applicable to MSME units as per as per Bank’s latest Instruction.
• Other Charges : As per Bank Guidelines which will be appraised to the borrower before sanction of loans
• Collateral Security : As per Bank’s extant norms for WC and TL
• Special Feature
  • For Term Loan, Project Report for the tenure of the loans to be obtained and processed as per Bank norms.
  • Eligibility :
  • Age of the borrower: The chief promoter /chief executive should be 18 to 65 years of age.
  • The applicant must obtain a minimum overall score of 60% with a minimum of 50% under each sub-head like Personal Details, Business Details, Collateral Details of our internal Scoring Model.

ABL (Saral): 

For build-up of current assets and fixed assets needed for business purpose, capacity expansion, modernization, short-term working capital (including shoring up of Net Working Capital, etc).

Features

• Target Group : All Business Units who want to avail loan facility for manufacturing and services activities along with self-employed and professional individuals, wholesale/retail trade.
• Facilities Available :  Drop-line Overdraft facility, Cash Credit, NFB Facility
• Quantum of loan : 
  • Minimum: Above Rs.10.00 lakh.
  • Maximum: Rs.5.00 Cr.
• Pricing :
  • Attractive Interest rates based on rating of the Borrower/ External Rating or as per Scheme Specific Rating (if applicable) or as per extant guidelines of the Bank. EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) & 6 months MCLR linked (for Non-MSMEs)
• Borrower’s Margin / Contribution : 25%
• Repayment Period
  • Dropline Overdraft Limit : Limits can be sanctioned for a period of 12 months to 180 months. The moratorium under the scheme should not be more than 6 months based on activity. Interest to be serviced monthly during the moratorium period.
  • Cash Credit : On Demand. (No Moratorium)
• Processing Fee/ Upfront Fee : Up to 0.65% of the loan amount.
• Other Charges : As per Bank Guidelines which will be appraised to the borrower before sanction of loans.
• Special Feature
  • LTV: 65% of the realizable value of immovable property.
  • Immovable (compliant under SARFAESI Act) belonging to the unit, its proprietor/partners/ directors or their near relatives.