What is the SBI Simplified Small Business Loan?

SBI’s Simplified Small Business Loan comes under the SME Loans category. The bank offers these loans against current account balances. The loan amount can vary between Rs. 10 lakhs to Rs. 25 lakhs. The loan repayment tenure can be maximum of 60 months.

Key Features of SBI Simplified Small Business Loan

The main purpose of this loan is to offer funding to businesses for meeting current and fixed asset requirements. A drop-line overdraft facility, the loan comes with competitive interest rates that are linked to MCLR.

Eligibility Criteria

Some of the eligibility criteria for this loan are:

• This loan mainly caters to self-employed individuals, professionals, businesses that are involved in manufacturing activities, or wholesale/retail trading.
• The business should have been in existence for a minimum of 5 years and preferably in the same location.
• The main applicant or borrower must be the owner of the business location or he/she must have a valid lease agreement with the owner.
• The minimum average monthly balance in the current account should be at least Rs .1 lakh in the past 12 months.
• The applicant must also fulfil the Go/No Go criteria to apply for this loan.

The bank may perform a need-based assessment and verify credit limits. The financial statements of the business are usually not sought by the bank.