SBI Asset-Backed Loan scheme or SBI ABL is a specific loan against property mortgage for the business owners. At any point, if you need funding and you have a certain property to mortgage, you can apply for this loan. Basically, 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
Basically, this is a loan for all business purposes. The list includes working capital, fixed asset purchasing, capacity expansion, modernization, technology upgradations, 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 the case to case basis. Additionally, you can avail a repayment tenor for 180 months for paying 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 for free of cost.
- Bank provides a free cash pick-up facility.
- Also, you can avail yourself of a pre-payment facility. However, the bank will charge 2% on 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 take over.
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 / Firm 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 & 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
Basically, 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.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.