SBI is one of the largest Government-owned financial institutions in public sector banking. Additionally, the bank has the largest branch and ATM network throughout the country. Even you can find an SBI branch in an interior location where there is no other bank also. Therefore, SBI is no doubt a great option for small business owners in India. Here in this article, we have listed 15 best SBI SME loan schemes for the Indian Entrepreneurs.
Basically, 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 the specific type of businesses. Broadly, there are three categories. Loan schemes for the manufacturing business, for trading business, and for the professional self-employed.
List of 15 Best SBI SME Loan Schemes for Entrepreneurs
#1. SBI Asset-Backed Loan
SBI asset-backed loan is basically a business loan that you can avail against mortgage of a property. It is a hassle-free loan. Business units that are engaged in manufacturing, trading and service industry can apply for this loan.
SBI provides up to Rupees 20 Crore loan under this scheme. An entrepreneur can apply for the loan as working capital, for purchasing fixed assets, capacity expansion, technology upgradations, etc. Read More…
#2. Rice Mill Plus
SBI offers the Rice Mill Plus scheme for promoting 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.
#3. Dal Mill Plus
Basically, the bank offers this loan for the dal mill owners. The units engaged in the activity of dal milling and having a credit rating of SB-9 and above for this loan. However, you must have a profit-making unit. Under this scheme, the bank provides both term loan and working capital assistance.
#4. Cotton Ginning Plus
For promoting cotton milling business in India, SBI offers this particular loan scheme. Basically, 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.
#5. 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.
#6. SME Open Term Loan
First of all, all units under the manufacturing sector can apply for this SBI SME loan. Additionally, service providing companies are also eligible for applying for this loan. The bank provides assistance to Educational Institution, Healthcare Industry (Hospital, Doctors, Pathological Labs, and Nursing Home), Hospitality Industry (Hotels, Restaurants, and Health Club, etc), and Transport Operators.
#7. 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 Base Rate.
#8. Stree Shakti Scheme
Stree Shakti scheme is only for women entrepreneurs. Under this scheme, the bank provides financial assistance to the 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.
#9. SBI eSmart SME eCommerce Loan
This is one of the latest SBI SME loan schemes for the 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.
#10. Pradhan Mantri MUDRA Yojna
Mudra stands for Micro-Units Development and Refinance Agency Ltd. Mudra bank loan initiative has been taken to provide low-cost funding for MFI (Micro Finance Institutes). State Bank of India provides financial assistance under this scheme. Read More…
#11. SME Credit Card
To meet any kind of credit requirements including the purchase of shops, equipment the bank provides financial assistance under this scheme. You can apply both a term loan or cash credit under this SBI SME loan scheme. Basically, small industrial units, small retail traders, professionals &self-employed, small business enterprises, and transport operators can apply for the loan.
For Service Providers & Self Employed Professionals
#12. SBI Fleet Finance Scheme
The transport operators owning fleets of commercial vehicles like Trucks, Trailers, Tankers, buses, etc. can apply for this loan. This is a term loan scheme. One can apply up to a maximum limit of Rupees 10 Crore. Generally, the bank provides a maximum repayment period of 66 months to the borrowers.
#13. Doctor Plus
Basically, 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.
#14. Rent Plus
Rent plus is absolutely 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 margin money of 40% on the loan amount. Individuals, partnership firms, and large corporates can apply for this loan.
#15. SBI Shoppe
Present and prospective owners of shops, offices, showrooms, training centers, service centers, garages, 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.
India’s largest bank, State Bank of India (SBI), has been a pioneer in digital banking. And the bank is constantly upgrading the services under the effective leadership of Arundhati Bhattacharya, ChairWoman of SBI.
Currently, SBI has about one million MSME customers with a loan book of around Rs 1,80,000 crore. Hence, it makes the bank a definite choice of the SME sectors in India. We hope, the present article with a list of 15 SBI SME loan schemes in India, will help you in getting the required financial assistance in your business.
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Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.