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 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 4.0/5.0 by customers for its service quality
  • SBI has over 22,405 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. The bank gives a loan of a maximum of ₹500 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. The higher the CIBIL score, the higher the chances of getting a loan at the lowest business loan interest.
  • 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.
  • The business should have a Minimal Annual Income (ITR) of Rs. 1.5 lakhs per annum.
  • The applicant should be at least 21 years old and should be no older than 65 years at the time of loan maturity.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.