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How to Get SBI Asset Backed Loan for Small Businesses

SBI Asset-Backed Loan Scheme or SBI ABL is a specific loan against property mortgages for business owners. At any point, if you need funding and you have a certain property to mortgage, you can apply for this loan. This loan scheme comes with great flexibility and a comparatively low interest rate.

Additionally, SBI provides this loan facility to business units involved in the trading, manufacturing, and services sectors. Genuinely, this is a hassle-free business loan against the mortgage of the property.

Purpose of SBI Asset-Backed Loan

This is a loan for all business purposes. The list includes working capital, fixed asset purchasing, capacity expansion, modernization, technology upgrades, R&D, or any other short-term requirement. You can apply for a maximum amount of Rs 20 Crores. However, the bank may increase the limit on a case-to-case basis. Additionally, you can avail of a repayment tenor for 180 months to pay back the amount.

Read: Best SBI SME Loan Schemes

SBI Asset-Backed Loan Special Features

  • Loan amount up to 60% of the value of the property.
  • In addition, the bank provides a dropline overdraft facility.
  • The borrower will get an SME Insta Deposit Card and SBI Business Debit Card free of cost.
  • The bank provides a free cash pick-up facility.
  • Also, you can avail yourself of a pre-payment facility. However, the bank will charge 2% of the limit.
  • Generally, the bank will collect an upfront or processing fee of 1% of the limit at the time of sanction.
  • Finally, SBI provides both two facilities such as fresh loan sanction and takeover.

Documents Checklist for SBI Asset-Backed Loan

  • The audited balance sheet for the last three years.
  • Brief detail of Proprietor/Partners/Promoters/Directors.
  • KYC documents for promoters/units
  • A copy of IT Returns of promoters / Firms for the last three years.
  • Copies of a license, permission approval by the regulatory authority, where applicable
  • Availability of utilities like power etc.
  • Pollution control clearance, if necessary.
  • Details of collateral security including third-party guarantee proposed to be offered.
  • Signed statement of Assets and liability from proprietor/partner guarantors.
  • Copies of other Bank’s sanction letters and statements of accounts (last 6 months)
  • A copy of the title deeds of the Factory / Shop/ Godown/ collateral security.
  • Details of the capital expenditure, if you apply for a Term Loan.
  • A cheque for processing and fees to be paid for Valuation and title search reports on the property is offered as collateral, ROC search (for companies).

Indicative Checklist:

  • Partnership Firm: Partnership deed
  • Trust: Trust deed
  • Society:  Bylaws of Society, Registration Certificate from the Registrar of Societies
  • Private Ltd. Company: Certificate of Incorporation/Memorandum and Articles of Association
  • Public Ltd. Company: Certificate of Incorporation/Memorandum and Articles of Association, Certificate of commencement of business.

Also Read: Mudra Bank Loan Details In India | Basic Procedures

How To Apply

You can apply for the loan in two ways. You can visit your nearby branch and contact the loan department. Additionally, you can apply for the SBI Asset-Backed Loan online also. Visit https://sbi.co.in/web/business/sme/sme-loans/asset-backed-loan for more details.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.