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Best 21 SBI SME Loan Schemes in India

SBI is the largest Government-owned public-sector bank. The bank has the largest branch and ATM network throughout the country. You can find an SBI branch in an interior location where there is no other bank. Therefore, SBI is undoubtedly a great option for startups to get funds in India. In this article, we have listed the best SBI SME loan schemes for Indian Entrepreneurs.

SBI is popular in offering low-interest rates on loans because of the low base interest rates. In addition to that, SBI offers different types of loan schemes for specific types of businesses. Broadly, there are three categories. Loan schemes for the manufacturing business, trading business, and the professional self-employed.

List of 21 SBI SME Loan Schemes in India

1. SBI Asset-Backed Loan

The SBI Asset loan is designed for the build-up of current assets and fixed assets needed for business purposes, capacity expansion, modernization, and short-term working capital (including shoring up of Net Working Capital, etc). Under this scheme, SMEs can avail of loans against their fixed assets, such as land and buildings. It is a hassle-free loan. Business units that are engaged in the manufacturing, trading, and service industries can apply for this loan.

Features

  • Target Group: All MSMEs as per MSMED Act 2006, are Self-employed and Professional individuals. Wholesale/Retail Traders. The unit should be registered as MSME.
  • Quantum of loan (Min/Max): Rs 10 lakhs to Rs. 20 Crores. However, in cities viz, Mumbai and Delhi loans up to Rs.30 Crores can be considered.
  • LTV (%): Immovable property: 60% of the realizable value.
  • Pricing: Competitive pricing linked to EBLR / 6 Months MCLR
  • Repayment Period: 12 months to 240 months with either an equated reduction in limit or a customized reduction in limit, depending upon the cash accruals.
  • Moratorium Period: The Max Moratorium period is 18 months based on activity. Interest is to be serviced monthly during the moratorium period.
  • Processing fee/Upfront Fee: For Dropline OD: Upfront/ processing fee of 1% of the limit subject to a maximum of Rs.10 lakhs. For Cash Credit: 0.40% of the loan amount Once a year.

2. Surya Shakti Solar Finance

The Surya Shakti Solar Finance is aimed at funding SMEs and business Enterprises for the installation of Solar rooftop / ground-mounted grid-connected systems up to 1 MW capacity for captive use.

Features

  • Target Group: Existing and Prospective SME & Business enterprises, having requirement for installation of Solar rooftop/ground mounted grid-connected systems up to 1 MW capacity.
  • Type of facility: Term Loan
  • Quantum of Loan: Maximum: Rs.4 Crores
  • Borrower’s Margin / Contribution: 20% (minimum)
  • Pricing: Attractive Interest rates based on the rating of the Borrower.
  • Repayment Period: Upto 10 years (maximum incl. initial moratorium of 6 months)
  • Upfront fees/charges: 1% of Term loan amount + applicable GST
  • Processing of loans: Centralised Processing for quick Turn Around Time (TAT)

3. SBI Packing Credit Loan

For purchase of raw materials, processing, packing, transportation and warehousing of goods meant for export. It has two essential features. One is the existence of an export order and/or letter of credit and the other is the liquidation of the packing credit by submission of export documents within a stipulated period

Features

  • Nature of Facility: Pre-shipment finance extended as working capital.
  • Target Group: Manufacturers as well as merchant exporters, are eligible to avail of Rupee Packing Credit at a concessional rate of interest.
  • Quantum of loan (Min/Max): Need-based finance
  • Margin (%): The percentage of margin is determined depending on the nature of the order, commodity, capability of the exporter, etc. keeping in view the spirit behind RBI guidelines for liberal finance to the export
  • Pricing: Competitive Pricing
  • Collateral Security: As applicable in case of Cash Credit / Working capital limits)
  • Repayment Period: The period for which the Bank gives packing credit depends on the manufacturing/trade cycle or specific requirements of the individual export, normally not exceeding 180 days.
  • Processing Fee/Upfront Fee: As applicable to cash Credit Facility/Working Capital Limits

4. SBI E-Dealer Finance Scheme

The SBI E-Dealer Finance Scheme is tailored for dealers of automobiles and two-wheelers. Under this scheme, dealers can obtain financing to manage their working capital requirements and maintain a smooth business operation. This scheme helps dealers by offering flexible financial solutions to cover various dealership-related expenses, such as procurement of stock and managing operational costs.

Features

  • Type of Facility: Cash/ Credit
  • Quantum of loan (Min/Max): Need Based on past performance or Projected Sales, whichever is higher.
  • Margin (%): Nil. 100% finance to dealers
  • Pricing: Competitive Interest Rate Linked to MCLR
  • Collateral Security: Nil / Or up to 50% depending on each tie-up
  • Repayment Period: Credit period up to 90 days. Yearly renewal
  • Processing Fee/Upfront Fee: Minimum single unified charges comprising of Processing Fee, and Inspection Charges ranging from Rs. 10,000 to Rs. 30,000/-

5. SBI E-Vendor Finance Scheme

The SBI E-Vendor Finance Scheme is designed to support vendors and suppliers who provide goods and services to well-established companies, including large corporates and PSUs. This scheme enables vendors to access timely finance to bridge the working capital gap between the delivery of goods or services and the receipt of payment. It is a completely web-based solution with minimal branch intervention and provides instant credit to vendors’ accounts electronically.

Features

  • Type of Facility: Cash Credit (Clean)
  • Target Group: Vendors of reputed Industry Majors/Corporations with whom the Bank has tie-up arrangement
  • Quantum of loan (Min/Max): Need Based
  • Margin (%): Nil
  • Pricing: Competitive Pricing Linked to MCLR
  • Collateral Security: Nil
  • Repayment Period: As per the tenor of the receivables.
  • Processing Fee/Upfront Fee: Rs. 10,000 to Rs. 50,000/-

6. SBI Fleet Finance Scheme

The SBI Fleet Finance Scheme is tailored for businesses engaged in the transportation sector, including fleet operators, logistics companies, and those looking to purchase commercial vehicles. This scheme provides financing for the acquisition of new vehicles, including trucks, buses, and other commercial automobiles. It helps businesses modernize their fleets, enhance their operations, and improve their logistics capabilities.

Features

  • Target Group: Existing Fleet Operators and captive Users, Business Enterprises, contractors, Mine owners, Port owners/ operators/ aggregators etc.
  • Quantum of loan (Min/Max): Rs.50.00 lakhs to Maximum Rs.50.00 Crs.
  • Margin (%) : Score-based
  • Pricing: Competitive pricing linked to EBLR / 6 Months MCLR
  • Repayment Period: 60 months to 66 months
  • Upfront Fee: 1% of the loan amount

7. Pradhan Mantri MUDRA Yojna

PM MUDRA Yojana is a flagship scheme initiated by the Indian government to support small and micro-enterprises. It includes small businesses, shops, vendors, and individuals looking to start their ventures. The scheme provides loans at affordable interest rates to help entrepreneurs establish or expand their businesses. PM MUDRA Yojana is categorized into three stages: Shishu, Kishor, and Tarun, based on the stage of business development.

Features:

  • Type of Facility: Working Capital and Term Loan
  • Purpose: Business purpose, capacity expansion, modernization
  • Target Group: Business Enterprises in the Manufacturing, Trading and Services sector including allied agricultural activities.
  • Maximum loan amount: Upto Rs 10 lacs
  • Margin (%): Upto Rs. 50,000/- Nil,  Rs. 50,001 to Rs. 10 lacs: 10%
  • Pricing: Competitive Pricing Linked to MCLR
  • Repayment Period: 3 – 5 yrs including a moratorium of up to 6 months depending on the activity/ income generation. Review of WC/TL to be done annually.
  • Processing Fee: Nil for Shishu and Kishore to MSE Units, for Tarun: 0.50%(plus applicable tax) of the Loan amount.

8. Stand Up India SME Loan

The Stand-Up India scheme is a special initiative launched by the Government of India to promote entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs). The scheme provides financial assistance to help individuals in these categories set up greenfield enterprises in the manufacturing, trading, or services sector. Under this scheme, eligible applicants can avail of loans ranging from Rs. 10 lakhs to Rs. 1 crore to start or expand their businesses. The loans are available through State Bank 0f India.

Features

  • Nature of Facility: Composite Loan (Working Capital facilities / Term Loan)
  • Purpose: To meet all kinds of credit requirements for setting up Greenfield projects under manufacturing, services or the trading sector.
  • Target Group: SC / ST and Women entrepreneurs
  • Loan amount: Rs 10 lacs to Rs. 1 Cr.
  • Margin (%): The minimum mandatory margin is 10%. Max. Margin money on composite loans would be up to 25% which will be reduced through convergence with Central / State schemes.
  • Pricing: Competitive Interest rates Linked to MCLR
  • Collateral Security: No Collateral / Third Party Guarantee to be obtained. All loans to be covered under CGSSI (Credit Guarantee Scheme for Stand-Up India Scheme)
  • Repayment Period: Maximum of 7 years (including moratorium period up to 18 months)
  • Processing Fee: 0.20% of the loan amount (plus GST as applicable). No other charges are proposed to be recovered.

9. Rinn Suraksha for Micro and Small Enterprises

The Rinn Suraksha scheme is a financial product designed to provide security and stability to micro and small enterprises (MSEs) in India. It primarily focuses on safeguarding MSEs from financial uncertainties, especially related to loans and working capital. This scheme often involves offering insurance products, risk mitigation measures, and financial advisory services.

Features

  • Target Group: New as well as existing Micro and Small Enterprises which are paying the Annual Guarantee Fee (AGF) for the CGTMSE coverage. A new demand loan is to be sanctioned every year for the payment of AGF. Coverage to Standard Account only.
  • Quantum of loan (Min/Max): Equivalent to the amount of AGF for CGTMSE Coverage plus applicable GST.
  • Margin (%): NIL
  • Pricing: Same as applicable to linked SME Facility/loan
  • Collateral Security: Nil
  • Repayment Period: Interest to be repaid as and when applied Principle to be repaid in a maximum of 12 months/repayment to be co-terminus with the tenure of the loans (for which CGTMSE fee is paid) whichever is earlier.
  • Fee & Charge: NIL

10. Dal Mill Plus SBI Loan

The Dall Mill Plus Loan is a specialized loan scheme aimed at supporting the establishment and expansion of pulse (dall) mills in India. Pulse mills are crucial for processing various pulses like lentils, chickpeas, and mung beans, which are dietary staples in India. This loan scheme assists entrepreneurs in the agricultural sector to set up or upgrade their ball mills, improving productivity and efficiency.

Features

  • Purpose: Working Capital needs, acquisition of machinery/factory building for modernization/expansion etc
  • Target Group: MSME manufacturing units engaged in Dal Milling activities. (Trading units not eligible)
  • Type of Facility: Term Loan, Working Capital limit (Fund based & Non-fund based facilities)
  • Quantum of loan: Maximum: Rs.25 Crores
  • Pricing: Competitive pricing linked to EBLR,
  • Margin (%): Term Loan: Min. 25%, Working capital: Stocks: Min. 25%, Book debts: Min. 40% with a cover period of up to 90 days
  • Primary Security: Hypothecation of Assets financed by the Bank.
  • Collateral Security: All loans up to Rs.2 Crores are eligible to be covered under CGTMSE, w.e.f. 01.01.2017. Loans above Rs.2 Crores can also be covered under CGTMSE for an amount up to Rs.2 Crores under the Hybrid Model (with partial collateral security). The annual CGTMSE Fee has to be borne by the borrower.
  • Repayment Period: Term Loan: 8 years (including the moratorium period of a maximum of 12 months): Working Capital: Repayable on demand

More SME Loans from the State Bank of India

11. Rice Mill Plus

SBI offers the Rice Mill Plus scheme for promoting the rice mill business in India. Both an existing entrepreneur and a new entrepreneur can apply under this scheme.

Any rice mill unit engaged in the activity of rice milling and having a credit rating of SB-9 and above as per the bank’s risk assessment condition can apply for this loan.

Read: How to Get a Business Loan from the CGTMSE Scheme

12. Cotton Milling Plus

For promoting the cotton milling business in India, SBI offers this particular loan scheme. The units engaged in cotton milling can only apply for this SBI SME loan. Generally, the bank demands 25 to 40% margin money from the borrowers.

13. Corporate Loan

Existing and new companies/partnership/proprietor firms engaged in manufacturing activity can apply for this loan. This is purely a term loan scheme. However, you have to apply for a minimum amount of Rupees 25 Lakh. For non-corporate clients, the maximum loan amount limit is 10 Crores. However, there is no upper limit for corporate companies.

14. SBI SME Open Term Loan

First of all, all units in the manufacturing sector can apply for this SBI SME loan. Additionally, service-providing companies are also eligible to apply for this loan. The bank assists Educational institutions, the Healthcare Industry (hospitals, Doctors, Pathological Labs, and Nursing homes), the Hospitality Industry (Hotels, Restaurants, Health clubs, etc), and Transport Operators.

15. Warehouse Receipt Financing

Any trader dealing with commodities can apply for this SBI SME loan. Under this scheme, the bank provides two different types of loans. These are demand loans and cash credit. However, the bank charges a floating interest rate that is linked to the Base Rate.

16. Stree Shakti Scheme

Stree Shakti scheme is only for women entrepreneurs. Under this scheme, the bank provides financial assistance to women entrepreneurs in retail trade, business enterprises, professionals, and self-employed like Doctors, Beauty Parlour operators, etc. Additionally, women-operated small-scale units or tiny units are also eligible for this loan.

Read: Personal Loan Apps in India for Instant Cash

17. SBI eSmart SME eCommerce Loan

This is one of the latest SBI SME loan schemes for eCommerce sellers. SBI launched the scheme in 2016. Here, the sellers can apply for the loan online and get an immediate sanction – thereby enabling “loans at the click of a button”. The product is launched in partnership with the well-known eCommerce platform Snapdeal.

18. SME Credit Card

To meet any kind of credit requirements including the purchase of shops, and equipment the bank provides financial assistance under this scheme. You can apply for both a term loan or cash credit under this SBI SME loan scheme. Small industrial units, small retail traders, professionals &self-employed, small business enterprises, and transport operators can apply for the loan.

19. Doctor Plus

Doctor Plus is a very effective SBI SME loan scheme in the healthcare industry. Medical practitioners of any discipline, promoters of hospitals, nursing homes, pathological clinics, polyclinics, X-ray labs, etc. can apply for this loan. The bank provides both the term loan and cash credit facility under this scheme.

20. Rent Plus

Rent Plus is a term loan facility for business owners in India. You can apply for a minimum loan amount of Rupees 50000 and a maximum amount of Rupees 10 Crore. However, the bank charges a margin money of 40% on the loan amount. Individuals, partnership firms, and large corporations can apply for this loan.

#21. SBI Shoppe

Present and prospective owners of shops, offices, showrooms, training centres, service centres, garages, and offices for Chartered Accountants and consultants can apply for this loan. However, the bank provides the maximum loan amount of Rupees 20 Lakh. The interest is floating and linked to the Base Rate.

Frequently Asked Questions

What is an SME loan offered by SBI?

SBI offers SME loans to Small and Medium-sized Enterprises to support their growth, expansion, or working capital needs.

What are the eligibility criteria for SME loans from SBI?

Eligibility criteria can vary depending on the specific SME loan scheme. Generally, SMEs should meet certain financial requirements and have a viable business plan.

What types of SME loans are available at SBI?

SBI offers a range of SME loan products, including term loans, working capital loans, equipment financing, and more.

How can I apply for an SBI SME loan?

You can apply for an SBI SME loan by visiting your nearest SBI branch or through the SBI online portal. Be prepared to provide the necessary documents and business details.

What is the interest rate on SBI SME loans?

Interest rates may vary based on the specific loan product, your business’s financial health, and prevailing market rates. It’s essential to check with the bank for the most accurate interest rate information.

What is the repayment tenure for SME loans from SBI?

Repayment tenures can vary based on the type of SME loan. Generally, they range from a few years to a decade.

Can I prepay an SBI SME loan?

Yes, you can prepay an SBI SME loan, but some schemes may have prepayment charges. Check the loan terms and conditions for details.

What collateral or security is required for SBI SME loans?

Collateral requirements depend on the loan amount and the specific scheme. SBI may ask for security or provide loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) guarantee.

What is the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)?

CGTMSE is a trust that provides credit guarantees to financial institutions for loans given to micro and small enterprises. It enables SMEs to obtain loans without providing third-party collateral.

How long does it take to get an SBI SME loan approved?

Approval times can vary, but it generally takes a few weeks to process and disburse SME loans, depending on the loan scheme and application completeness.

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.