State bank of India is government-owned and one of the largest financial institution in the country. The bank is offering the different type of business loans, covering the small scale to large scale so the more and more entrepreneurs can enter the market. Also, the loans are without any collateral or security as well as comes with the lowest interest rate, which makes SBI business loan more preferable.
However, to get the loan, there are few things that the bank needs from you. You need to have the proper documents and paperwork done before you apply for the SBI business loan. To make it more understandable here is everything in detailed.
Why and How to Apply for SBI Business Loan?
The bank has its different benefits and features which the account holder can get. Also applying for the loan is hassle-free if you are well aware of all documentation and details. You can do it online or go with other offline options such as visiting the nearest branch that you get.
Read More: How to Activate SBI Online Banking?
SBI business loans come under different types covering large range and including government schemes as well. Here are a few advantages that you can get too:
- The same interest through your duration is the major advantage of SBI business loan. You get the fixed interest rate which gives you a clear picture of the payment timelines. However, it is recommending that you understand and make a plan regarding payments before you apply
- The documentation is simple, and you don’t have to go through any trouble. The process of loan is faster too.
- You can either pay the loan instalments every month or if you want to go with auto-debit, ECS or PDC are fine too.
What are the Rules and Internets Rates?
About the interest rates that you get here, the bank offers the rate between 11.20 % to 16.30%. However, it depends on the profile pf yours too. It will be better if you keep yourself updated with the latest changes as well.
There are some set of rules; major are the documents and the eligibility section. As for the documents you are going to need all these mentioned papers:
- Application form with all information along with your photo, DD for processing fees and biodata form
- Id proof for address, you can give property or guarantor proofs too
- KYC documents for promoters or units
Also, to check if you are eligible for the loan, here are the points you need to know:
- Your business should be related to manufacturing, trade, and service or self-employed or professional
- Your age should be minimum 21 years and maximum of 65 years
- The business needs to be well established around three years
- Your gross business income must be between 20 lakhs to 10 crores per annum at least for two years
- You should have at least two years of working experience
- Your monthly income should be a minimum of Rs 25,000 per month
Every business needs some funds to run and some of the new startups need the real amount of money very frequently to ensure continued running of their business. This is the time where we think about getting a business loan from any particular bank. In this post, we have talked about one of the popular banks of India, SBI which is providing the most convenient approval on business loans and that too in fewer interest rates. Interesting? Yes, the process is easier compared to most of the private banks and the only thing they require is the credit history of the borrower. It should be perfect and the business should have the potential to run in the future.