SBI MSME Loan Eligibility

Are you launching or expanding your small business? SBI's MSME loans can provide the financial boost you need. SBI offers a variety of loans specifically designed for MSMEs/SMEs (Micro, Small, and Medium Enterprises). This can be a great way to get the funding you need to take your business to the next level.

This guide explores the eligibility criteria to avail of a SBI MSME loan.

SBI MSME Loan Eligibility

The eligibility criteria for SBI MSME loans can vary based on the specific loan type, nature of the business, and other factors. It is recommended to visit the nearest SBI branch or their official website to obtain the latest and most detailed information.

However, the general eligibility criteria for SBI MSME loans typically include:

• Business History/ Timeline: The business should have been operational for at least 2-3 years.
• Good Credit Score: A favorable credit score above 650 is essential.
• Annual Turnover: The business must meet a minimum annual turnover requirement.
• Profitability: Showing a certain level of profitability is necessary.
• Documentation: Provide proper financial and legal documents in the requested order for verification
• Collateral/Security: Depending on the loan type and amount, collateral or security may be required.
• Compliance: The business must follow all relevant regulatory and policy norms.
• Specific Loan Requirements: Different loan schemes may have specific additional criteria.

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Highlights of SBI SME Loans

Here is an overview of the SBI SME loans:

Eligibility Criteria for SBI MSMSE Loan Schemes

The eligibility criteria for SBI MSME loans can vary based on the specific loan product. Here's a general overview of the eligibility criteria for some common types of SBI MSME loans:

SME E-Smart Score

Purpose: Fulfilling working capital requirements and obtaining fixed assets

Loan Amount: ₹10 lakh to ₹5 crore

Eligibility Requirements:

• Age of the Borrower: The chief promoter/chief executive should be between 18 to 65 years of age.
• Minimum Score Requirement: The applicant must obtain a minimum overall score of 60% on our internal Scoring Model. The applicant must score a minimum of 50% under each sub-head, such as Personal Details, Business Details, and Collateral Details.

SBI ABL (Saral) Scheme

Purpose: To acquire current and fixed assets necessary for business operations, expand capacity, modernize, and support short-term working capital (including strengthening Net Working Capital, etc).

Loan Amount: ₹10 lakh to ₹5 crore

Eligibility: All business entities seeking to access loans for manufacturing and service operations, as well as self-employed professionals and individuals in wholesale/retail trade, are eligible for the facility.

SBI Shaurya Maan

Purpose: To offer financial support for the operational needs of defense canteens by providing working capital for procurement from Depots, thereby facilitating their daily activities.

Loan Amount: ₹10 lakh to ₹5 crore

Eligibility: Defence canteens of the Armed Forces that are registered with a unique Registration Number.

SBI Surya Shakti Solar Finance

Purpose: To install grid-connected solar rooftop or ground-mounted systems for self-consumption.

Loan Amount: Up to ₹10 crore

Eligibility:

• Existing and prospective SME and business enterprises requiring the installation of solar rooftops or ground-mounted projects for captive use are eligible.
• All promoters must have a CIBIL score of 650 or above.
• The solar systems must be grid-connected.
• The net metering arrangement is mandatory.
• The MSME unit should possess a valid Udyam Registration Number (URN).
• Post-installation of the solar rooftop or ground-mounted grid-connected system, the electricity cost savings should cover at least the monthly repayment obligations.

Asset-Backed Loan

Purpose: To acquire current and fixed assets necessary for business operations, expand capacity, modernize, and meet short-term working capital needs (including increasing Net Working Capital, etc).

Loan Amount: >₹10 crore to ₹20 crore

Eligibility:

• Existing customers who are already availing of credit facilities from our institution are eligible.
• New units with marketable assets to offer as security can apply.
• Takeover of existing units from other banks or financial institutions is permitted, provided they have a satisfactory track record. (Credit information report will be obtained for such cases.)

SME Credit Card

Purpose: To fulfill all credit needs, including the acquisition of a store.

Loan Amount: Up to ₹10 Lakhs

Eligibility:

• Small industrial units, micro-enterprises, small retail traders, MSME units, professionals, self-employed individuals, small business enterprises, and transport operators (SRTO).
• Units that do not currently have credit limits with our bank or other banks, but have excellent performance and credentials, may also be considered.
• Scoring Model Requirement: Units must obtain a minimum score of 60% as per the applicable scoring model to qualify for this product.

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SME Gold Loan

Purpose: To offer convenient financial support to MSME units (sole proprietorship firms only) using gold ornaments or jewelry owned by the proprietor as collateral, for fund-based needs related to any general business purposes.

Loan Amount: > ₹1 Lakh to ₹50 Lakh

Eligibility:

• MSME (Micro, Small, and Medium Enterprises) units and Proprietorship firms only
• The unit/shop must be actively running
• Existing borrowers with working capital arrangements with other banks will not be considered.

SME Marble Plus

Purpose: To offer convenient financial solutions to Marble, Felspar, Quartz, and other Stone Units for meeting their various needs such as regular working capital, capital expansion (capex), and other business-related requirements.

Loan Amount: > ₹10 Lakh to ₹10 Crores

Eligibility:

• Existing or new units engaged in marble and other stone-related activities, including manufacturing, processing, carving, polishing, mining, and trading, are eligible.
• Takeover of existing units from other banks or financial institutions with a satisfactory track record is permitted.

SME Car Loan

Purpose: Term loans to SME units for the purchase of new cars such as passenger cars, jeeps, multi-utility vehicles (MUVs), and sports utility vehicles (SUVs), exclusively for use by their promoters, partners, directors, and employees. The cars may have Petrol, Diesel, CNG, Hybrid, or Electric engines.

Loan Amount: Up to ₹3 Crores

Eligibility:
All MSME and non-MSME units that have an existing borrowing arrangement with our institution are eligible for this product, subject to their account not being classified as a Special Mention Account (SMA-1) or worse category during the last 12 months.

Healthcare Business Loan

Purpose: To provide financial assistance to qualified medical professionals who wish to establish clinics, nursing homes, or hospitals.

Loan Amount: > ₹10 lakhs to ₹50 crore

Eligibility:

• Individuals, proprietorship firms, partnership firms, corporations, and trusts (with borrowing powers).
• The applicant should have at least 2 years of operational experience in running a diagnostic center, pathological lab, hospital, nursing home, etc., irrespective of the legal constitution.
• For financing hospitals/nursing homes, the promoter should possess the required minimum qualification in the relevant discipline, such as MBBS, BDS, BHMS, etc.
• The borrower should have the necessary approvals/registrations from the statutory/regulatory authorities.
• Income Tax Returns (ITR) are mandatory for all existing units operating for more than one financial year.

Commercial Vehicle Loan

Purpose: To finance the acquisition of new commercial vehicles, electric vehicles, hybrid commercial vehicles, CNG vehicles, ambulances, and specially-built caravan vehicles for travel, leisure, and accommodation purposes, as well as commercial vehicles loan

Loan Amount: > ₹10 lakhs to ₹50 lakhs

Eligibility:

• Applicants must have a minimum of 2 years of experience in the transport industry, hospitality industry, or other related business enterprises/activities.
• A satisfactory track record with existing banks/financial institutions is required.
• The applicant should be an Income Tax assessee (both personal and business).
• MSME applicants must be registered on the UDYAM portal and possess a valid Udyam Registration Certificate.
• First-time users may also be considered as a special case.

SME Finance For CA Firm

Purpose: To provide financial assistance for covering payroll expenses to pay salaries to employees, as well as overhead costs and other office-related expenses.

Loan Amount: ₹2 Lakhs to ₹25 Lakhs

Eligibility:

• The Chartered Accountant (CA) firm must be registered with the Institute of Chartered Accountants of India (ICAI).
• The promoter's age should be between 25 and 65 years.
• The CA must possess a valid Certificate of Membership (CoM) or Certificate of Practice (CoP) issued by ICAI, with a minimum of 5 years since issuance.
• A minimum of 3 years of Income Tax Returns (ITRs) must be available.
• The applicant must score above 60% as per the scorecard under the scheme.
• The applicant must be registered as an MSME on the UDYAM portal.
• Applicants must have a CIBIL score above 650.

Finance to Start-ups (MSME UDAAN)

Purpose: To extend financial support to start-up enterprises in the Micro, Small, and Medium Enterprises (MSME) sector to meet their diverse business requirements.

Loan Amount: Starting from ₹50 Lakhs to ₹50 Crores

Eligibility:

• Constitution: Public or private limited company, registered partnership, or a limited liability partnership.
• Age: Up to 10 years from the date of incorporation/registration.
• Turnover: Not exceeding Rs.100 crores in any financial year since incorporation/registration.
• Attributes: Working towards innovation, development, or improvement of products/processes/services, or a scalable business model with high potential for employment generation or wealth creation.
• Others: Should not have been formed by splitting or reconstructing an existing business.
• The start-up should have the support of a recognized incubator, accelerator, or investor, as listed on the Start-up India portal.
• The equity portion of the start-up's capital must be fully tied up.

SBI Fleet Finance

Purpose: Financing for new commercial vehicles (e.g., trucks, tankers, trailers, tippers, buses) and passenger vehicles, including electric and hybrid commercial models.

Loan Amount: ₹50 lakhs to ₹50 Crs

Eligibility:

• The applicant should have at least 3 years of experience in the transportation industry and other businesses, and should currently operate a fleet of at least 10 vehicles.
• The requirement is for a minimum of 10 new vehicles or a minimum loan amount of Rs. 50 Lakhs.
• Transport operators must hold national/state route permits and other necessary permits, licenses, and approvals.
• A satisfactory track record with existing banks/financial institutions is required.
• The applicant must be an Income Tax Assessee for both personal and business taxes.
• Eligibility is determined by the scores obtained under the scoring model. The borrower must achieve a minimum score of 50% to be eligible for the SBI Fleet Finance Scheme.

Warehouse Receipt Finance from SBI SME Loan

Purpose: Providing financial support to traders, goods owners, manufacturers, and processors based on Warehouse Receipts issued by Collateral Managers (C.M) that we have partnered with.

Eligibility: Traders, owners of goods, and manufacturers can use their processing facilities in exchange for Warehouse Receipts issued by CM/CWC/SWC.

Benefits of SBI MSME loan

The SBI MSME loan offers several compelling benefits to support the growth and development of micro, small, and medium enterprises (MSMEs). These include:

• Competitive Interest Rates: Attractive interest rates compared to the market.
• Flexible Repayment Options: Choose from various repayment tenures to align with business needs.
• Minimal Documentation: Simplified documentation process for a hassle-free application.
• Quick Disbursal: Fast loan processing and disbursement to meet urgent financing requirements.

Documents Required for SBI SME Loan

The key documents required for obtaining an SME loan from the State Bank of India (SBI) are as follows:

• Loan Application Form: Duly filled with details such as the business information, loan amount requested, purpose, proposed repayment terms, etc.
• Identity & Address Proof: Identity and address proof documents like Aadhaar card, voter ID, passport, etc. for promoters and authorized signatories.
• Certificate of Incorporation/Registration: Registration certificate, partnership deed, or other relevant documents showing the date and place of business registration.
• Financial Statements for Last 3 Years: Audited financial statements, including profit & loss statements and balance sheets, for the last 3 years.
• Bank Statements for 6 Months: Latest 6 months' bank account statements of the business, reflecting cash flows.
• Ownership Proof: Property papers if an owned property is being offered as collateral. Title clearance proof is mandatory.

Steps to Apply for Business Loan

Securing an MSME Loan online can be a convenient and efficient way to access funding for your small or medium-sized business. You can also get business loans with Buddy Loan. Buddy Loan has a pool of RBI-approved loan lenders offering business loans.

Check the steps below to apply for a business loan.

Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).

Step 2: Open the Business Loan Application Page. Enter your mobile number and OTP.

Step 3: Specify the desired loan amount and email. Next, choose the Business Loan option.

Step 4: Choose if you have a Business Proof (Yes/ No)

• If ‘Yes’ (If you have a business proof), enter your business and personal details.Or
• If ‘No’ (If you do not have a business proof), choose the profession type and enter your personal details.

Step 5: Provide income details and Click the ‘Submit’ button.

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You can also check out more on loans offered by SBI with the links below:

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