SBI Scheme: If you have also started your business at a small level, then this news is useful for you. Now SBI Bank is giving loan of Rs 25 lakh to the customers to expand their business. If you also want to take advantage of this service, then definitely read this news…
Business always starts at a small level and gradually it becomes big. If you also do business on a small scale, and you need funding for working capital, then you can get help from State Bank of India (SBI). SBI offers Simplified Small Business Loan (SSBL) for working capital needs to small businessmen engaged in manufacturing, services and wholesale/retail business.
Loan and repayment details
According to SBI website, loan up to Rs 25 lakh can be taken under the Simplified Small Business Loan Scheme. Under this, loans ranging from Rs 10 lakh to Rs 25 lakh can be taken on easy terms. In this, collateral security has to be given, which is 40 percent of the loan amount. Repayment of this loan can be done for 5 years. The loan is offered as a dropline overdraft facility with a margin requirement of 10% (in the form of stock and receivables) and minimum collateral of 40%.
Who can take loan
According to the bank, the businessman should have been running the business for at least 3 years at the place where the loan has been applied for. If the business is on rented space, there should be a rent agreement with the owner. Must have a current account for at least two years.
SBI has linked its SSBL to External Benchmark Based Lending Rate (EBLR). These will be available at competitive pricing. Interest rates on small business loans also depend on the loan amount. SBI’s EBLR is 8.05%+CRP+BSP. For Simplified Small Business Loan, a processing fee of Rs 7500 will have to be paid. This includes processing fees, EM charges, documentation charges, inquiry, commitment charges and remittance charges.
