Keep Your Business On Track Always with SBI Business Loan

Lower Interest Rate | Easy Application Procedure | Flexible Repayment

Apply for SBI Bank Business Loan

Apply Now Contact Us
SBI Business Loan

 

Interest Rates & Charges


SBI offers Business Loans with low processing fees and low-interest rates. No hidden fees and 100% transparency are at the core of the loan, making it a seamless borrowing experience.

 

Applicable Fees

Interest rate

 

As per business requirements and linked with MCLR*.

 

Unified charges

 

Rs.7500/- plus applicable taxes. Unified annual charges comprising processing fees, documentation charges, EM charges, commitment charges, inspection charges, and remittance charges (1 remittance per day free).

 

Margin

 

Margin requirement of 10% in the form of stock and receivables statements.

 

Collateral Security

 

· Minimum 40% collateral must be in the form of exclusive mortgage charges on land and buildings, or cash equivalents including liens on fixed deposits, mutual funds, etc. The realizable value of the immovable property must be used for this purpose, and the property must be SARFAESI compliant.

 

· Personal guarantee of all directors/partners. However, personal guarantees will not be obtained from Professional directors / Independent directors / Nominee directors.

 

· Personal guarantee of the owner of the Collateral Security offered as Mortgage/Pledge.

 

 Repayment Period

 

Cash credit: - Annually renewable or repayable on demand.

Dropline OD: -

· Limits can be sectioned for a period ranging from 12 months to 60 months (reducing DP) with a maximum three-month moratorium.

 

· After the repayment period ends, the outstanding debt will be liquidated and the borrowing power reduced by a set percentage.

 

· As long as the credit limit is not exceeded, regular transactions are permitted.

 

· No over-drawings will be permitted.

 

· The due date for DP Reduction or installments will be the last working day of the month.

 

· After liquidation, in case a further loan is required, a loan request must be made to be reviewed annually.

 

SBI Business Loan Calculator

 

SBI Business Loan EMI calculator can help you estimate what you would have to pay for a specific loan amount. The amount you need to pay can be changed by changing one variable or decreasing another. An applicant must provide three basic loan details, including loan amount, interest rate, and repayment tenure, to obtain instant results. Depending on the applicant's profile and business needs, banks may offer different amounts and interest rates.

 

Elements Affecting Your SBI Business Loan EMIs

 

The interest rate on a Business loan is affected by a variety of factors. Knowing about these factors will help you get the most competitive interest rate on Business Loans.

 

Credit Score: - Applicants have a credit score of 750 and above to reduce the interest rates on the amount.

 

Occupation: - Applicant must be a salaried individual, self-employed individual, or a business owner with the ownership documents.

 

Repayment History: - Having an excellent repayment history helps you to increase your business loan eligibility and help you to get a lower interest rate.

 

Stable Income: - Having a steady income makes it easier to pay back the loan. With a higher income, you have a greater chance of getting low-interest business loans.

SBI Business Loan

Types of SBI Business Loan Interest Rate

There are two kinds of SBI Business Loan interest rates: fixed and floating.

Fixed Interest Rate

Here, the rate of interest charged on the SBI Business Loan amount will remain constant throughout the loan repayment period. You know your SBI Business Loan EMI obligation at the start of the tenor, allowing you to plan your monthly budget accordingly.

SBI Business Loan
SBI Business Loan

Floating Interest Rate

Here, SBI Business Loan interest rates could change depending on changes to the Marginal Cost of Lending Rate (MCLR), which is the base rate set for banks by the RBI. With changes in MCLR, the interest rate on loans also gets revised. With a lower interest rate, the repayment amount also reduces. On the other hand, if the interest rates increase, your EMI obligation will also increase. A floating SBI Business Loan interest rate makes it difficult for you to ascertain your monthly financial obligation.

SBI Business Loan Interest Calculation Method

There are two methods to calculate interest: flat rate method and the reducing balance method.

In the flat interest rate method, the interest rate is based on the complete loan amount you pay during the repayment period. In case of reducing the balance method, the rate of interest on the SBI Business Loan will be considered and calculated on the basis of the outstanding loan amount.

Flat Interest Rate Calculation

EMI = (principal + total interest payable) / loan tenure in months i.e. total interest payable = P x r x n/100

Where, ‘P’ is the principal loan amount, ‘r’ is the rate of interest, and ‘n’ is the loan tenure in months.

Floating Interest Rate Calculation

EMI = [P x r x (1 + r) ^n] / [(1 + r) ^(n-1)]

Where, ‘P’ is the principal loan amount, ‘r’ is the rate of interest, and ‘n’ is the loan tenure in months.

Here's what our customer have been saying about us

Our partners from across the industry

We collaborate with the best and biggest in the banking & financial world to get you relevant products at great rates.

Apply Now
indiabulls city-bankidfc-bank poonawala-fincorp
standard-charted bajaj indusind kotak chola lending-kart fullerton-india icici axis
partner-mobile

Your Data Is Secure With Us.

We employ best-in-class security practices and procedures to keep your information secure every time.

security-icon-1

Security

From taking regular backups to using stronger passwords, we strictly prohibit any kind of unauthorized access of your crucial data, corruption, or theft throughout its life cycle.

security-icon-2

Privacy

We identify all the different ways your privacy could be at risk and have prepared safeguards to help you protect yourself online with us. Your privacy is important to us.

security-icon-3

Compliance

We are ISO 27001:2013 and SOC2 Type 2 compliant which instills trust into the hearts of our customers. We are secured with SSL and a certified GSP (GST Suvidha Provider).

Recent Blogs

See More

Our blogs are where you get the latest news along with insights from industry experts.

Business Finance
Insurance

Business Finance

By My mudra

02-08-2022

Personal Loan
Insurance

Personal Loan

By My mudra

02-08-2022

loan against property
Insurance

loan against propert...

By My mudra

02-08-2022

Home Loan and Home Renovation Loan
Insurance

Home Loan and Home R...

By My mudra

20-07-2022

Teaching Personal finance to our kids 
Insurance

Teaching Personal fi...

By My mudra

07-06-2022