What are the MSME Loans from State Bank of India (Part 1)
Being the largest bank in India and the primary bank to carry out financial empowerment programmes of the Central and State governments, State Bank of India offers a range of loans to the MSME sector.
In fact, it offers so many loans that we have divided this post into a three-part series for this week. We look at 5 loans in today’s piece and 6 each tomorrow and the day after.
Here are the loans we cover in today’s post:
- SBI Asset Backed Loan
- SME Smart Score
- Simplified Small Business Loan
- SBI Lease Rental Discounting
- SME eBiz Loan
Let us look at them in some detail.
SBI Asset Backed Loan
This loan helps small businesses meet their capital expenditure and working capital requirements. The maximum loan amount of Rs 20 crore can be utilised for modernisation of business units, purchase of business assets, working capital needs, and so on. The minimum loan amount you can get is Rs. 10 lakh. This loan has a maximum tenure of 15 years and a maximum moratorium of 18 months in case it is taken as a term loan.
More details of the loan are available here.
SME Smart Score
This loan is specifically meant for small businesses. It helps them meet their capital expenditure and working capital requirements. You are eligible for this loan if you run a proprietorship, partnership or a limited company that can be classified under the definition of an MSME. You can use the funds for purchasing equipment and machinery, research and development and so on. This loan needs to be repaid within 5 years with a moratorium period of 6 months.
More details of the loan are available here.
Simplified Small Business Loan
This small business loan helps business owners raise capital for current and fixed assets. The maximum loan amount sanctioned by SBI under this loan is Rs 25 lakh. The loan must be repaid within 5 years
More details of the loan are available here.
SBI Lease Rental Discounting
This is a secured loan that can be availed against residential or commercial property. It helps small business owners raise capital for expanding their business. You can apply for a maximum loan of Rs 50 crore. You have to obtain a certificate regarding the end use of the loan and stating that it will be utilised for business and not speculation or real estate.
More details of the loan are available here.
SME eBiz Loan
The eBiz loan is designed for registered sellers of e-commerce websites. It helps them sell products through online portals such as Amazon, Flipkart and so on. The maximum loan amount sanctioned under this loan is Rs 5 crore. You should note that it is a secured loan.
More details of the loan are available here.
In conclusion:
If you are looking for a small business loan, you can apply right here. We give you access to loans from some of the largest banks and financial institutions in the country.
If you apply through us, you can get quotes from different banks and FIs, which helps you choose the bank that is giving you the lowest interest rate and best terms.
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