Grow your Business with SBI Business Loan

SBI Bank business loan helps you to stand strong in the competition. It considered one of the best ways to fulfill all the financial business requirements. An SBI business loan is an unsecured loan. This business loan is an EMI based loan that can be availed by anyone who is planning for the expansion and growth of the existing business. SBI provides business loans for the maximum amount at a pocket-friendly rate of interest.

SBI business loan benefits a borrower in various ways. Following is the list of some advantages of the SBI business loan:

  • Timely Discounts: Periodically discount offers are provided in SBI business loans. Especially during the festive time, you can acquire different offers given on the SBI business loans. Apart from the festive offers, other discounts are also provided as per the applicant profile.

  • Competitive Interest Rate: SBI business loan rate of interest is one of the lowest business loan interest rates available in the financial market.

  • Online Loan Application: Nowadays, almost everything is available online. Likewise, you can also apply online for the SBI business loan. This not only saves your time but also facilitates you with a business loan with the comfort of home.

  • No Hidden Costs: SBI business loan processing is done with complete transparency. This ensures that zero hidden charges are charged for any of the SBI business loan schemes.

  • Low Prepayment Charges: SBI Bank takes low prepayment or foreclosure fees on business loans.

  • Fast Loan Procedure: Simple and quick loan processing of SBI leads to the fast approval of the loan amount.

Why go for the SBI Business Loan?

SBI offers a wide range of business loans to match the diversified customer requirements. Some of the main reasons why SBI business loan is considered among the best loans in the market are mentioned below:

  • SBI business loans can be availed for all types of business operations.

  • Hassle-free loan processing.

  • The application process is simple, as well as easy to follow.

  • A competitive interest rate is offered.

  • The high loan amount is offered based on the borrower’s profile.

Required Documents of SBI Business Loan

The list of required documents for SBI business loans differs based on the type of loan a borrower is seeking. Here is the generic list for business loan which may be needed at the time of loan application.

  • Duly filled the application form.

  • Passport-size photograph.

  • Proof of business continuity like a bank statement, ITR, Certificate of Incorporation, Shops & Establishment Certificate, Partnership Deed or Sales Tax Challans.

  • PAN Card of the primary applicant or the enterprise.

  • Identity proof like Aadhaar Card, Passport, Voter ID, Driving License, etc. are accepted by the bank.

  • Last 3 months bank statement.

  • Proof of address like Driving License, Voter’s ID, Passport, Telephone Bill, Electricity Bill, Sale Agreement.

  • Ownership proof of either residence or office.

  • Financial Documents of the Business such as Profit & Loss Statement and Balance Sheet (duly audited by a registered Chartered Accountant), book-debt and creditors-statement for the latest three months, Periodic Stock, etc.

Factors affecting the Business Loan EMI

Various factors have a major impact on the business loan EMI, some of them have been mentioned below:

  • Loan amount - This is the amount a borrower promises to repay to the bank with the interest applied.

  • Rate of Interest - The Interest rate is the rate charged over the principal amount borrowed. Usually, the higher rate of interest increases the business loan EMI which ends up an increase in the total cost of the loan.

  • Loan Repayment Tenure - This is the period in which you can repay your business loan to the bank. Longer loan tenure means lower loan EMI.

Tips to decide the right amount of Business Loan

  • Ascertain the amount you need to borrow: It is important that before approaching the SBI Bank for a business loan, you need to estimate the amount of loan you need to borrow. Remember business loan is an unsecured short-term loan, and hence it is advisable to minimize your loan amount to the extent possible. Also, based on the EMI you can service, try to opt for the lowest tenure of loans as long tenure loans result in huge interest outgo.

  • Look at your current obligations: Before taking a loan from SBI Bank, it is advisable to evaluate your current monthly expenses including any EMI obligations that you have on your current loans. The evaluation of the EMI amount in advance will help you to estimate the amount of EMI you can pay comfortably after taking into account other obligations. Once you are sure about the EMI amount then, you can also decide on the right loan repayment tenure.

Eligibility Criteria for SBI Business Loan 

The eligibility criteria of SBI business loan vary based on several factors like loan amount, type of availed loan scheme and others. Here are the common eligibility criteria for a business loan:

  • Nature of the Business: SBI Business loan can be availed for the sole proprietorship firm, partnership firm, private limited company and others those having the current account in any bank for at least 2 years.

  • Age: A borrower’s age should be a minimum of 25 years at the time of the SBI Business Loan application and a maximum of 65 years.

  • Business Existence: SBI business loan can be acquired for those businesses which are in working at for 5 years in the same locality/area.

Location Ownership: A borrower should have the owner of the premises or should have a valid tenant agreement with the owner of the business location. In the case of rented premises, a residual period of a minimum of 3 years.

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