Any person aspiring to start a business or any individual who wants to expand their business requires funds. Individuals and entrepreneurs take loans at a previously agreed rate of interest. SBI offers loans to self-employed and businessmen for financing the expansion or working capital requirements of their business.
There are some benefits of taking a loan from SBI:
- You can prepay a portion of your loan anytime after paying 1 % prepayment charges.
- You can dispossess your entire Business loan anytime after paying 6 EMI’s at foreclosure charges – 3%
- SBI has been rated 3.3/5.0 by customers for its service quality
- SBI has over 25,332 branches in India where you can avail service.
Factors on which SBI bank calculates your interest rate.
Some of these factors are:
- Loan amount: The higher the loan amount, the lesser will be the interest rate. Bank gives a loan of minimum of ₹ 5 Lakh to ₹ 100 Cr. The interest rate for high loan amounts can be lower resulting in lower EMIs.
- CIBIL Score: SBI offers loans at a higher interest rate if your CIBIL score is low. However, to get a loan from SBI, your CIBIL score should be at least 700. Higher the CIBIL score, the higher the chances of getting a loan at the lowest business loan interest.
- Revenue: SBI will offer you a loan at a lower interest rate if you have higher monthly revenue. Bank gives loans to the borrowers whose annual turnover is at least ₹ 20,00,000.
- Time in Business: SBI offers loans at lower rates if you have significant business experience. The minimum business existence to get a loan from SBI is 36 months.
Business Loan Eligibility Criteria for State Bank of India (SBI)
- Self-employed individuals, Proprietors, Private Ltd. Co., and Partnership Firms involved in the business of Manufacturing, Trading, or Services.
- Individuals who have been in the current business for a minimum of 3 years, with 5 years total business experience.
- The business should have a minimum turnover of Rs. 20 lakhs
- The business should have a Minimal Annual Income (ITR) of Rs. 1.5 lakhs per annum
- Those whose business has been a profit-making for the previous 2 years
- The applicant should be at least 21 years and should be no older than 65 years at the time of loan maturity