Things you should know about SBI Business Loan

Things you should know about SBI Business Loan

Do you require some extra funds for expanding the business, investing in the office, buying advance equipment or machinery or expanding inventory? Is the business having setbacks due to the restricted cash flow? Regardless of the purpose of funds requirements, a business loan is one of the best choices a person can make. As business loan might put you on track.

Business is a tree in which the more you invested the more it will grow. Getting a business loan from the right lender is very crucial. SBI’s business loan is one of the most preferred choices made by the loan seekers. SBI’s business loan fits into the diversified need of the customers. A wide range of SBI business loan is offered to the borrowers. Whether one is looking for a loan for a Startup or looking for the Working Capital finance or requires funds to expand the business outreach, SBI offers more than a dozen business loans to cater to the needs of the borrowers.

SBI’s business loan benefits borrowers in various ways. Following are some of the advantages of the SBI Business Loan:

•    Quick approval of all types of business loans.

•    The applicant is not required to make any visit to the branch. As one can Apply online for the SBI business loan.

•    Fast loan processing which requires some basic details to get the loan approval.

•    The applicant is not required to do any of the paperwork for sanctioning the loans and financial assistance. The process for the application of business loans is completely online without the need for any paperwork.

•    The SBI provides a flexible loan repayment tenure option available up to 60 months.

•    The applicant is not required to perform the long-extended loan processing for periods like many weeks and months. Application for the business loan can be performed in a few basic simple steps.

•    SBI offers the maximum loan amount for the business loan.

SBI Business Loan Interest Rate

Business loans from SBI come at a lucrative rate of interest, based on the eligibility and the applicant profile.

SBI Business Loan EMI

The EMI or equated monthly installment is a fixed amount of money which is needed to be paid by the borrower regarding repaying the loan amount.

Factors affecting SBI Business Loan EMI

  • Interest Rate – The charged rate on the principal amount borrowed is termed as the rate of interest. Higher the interest rate attracts the high amount of monthly EMI which automatically increases the total cost of the business loan.
  • Loan Amount – The availed business loan amount plays a significant role in the monthly EMI.
  • Loan Repayment Tenure – The total time in which a borrower can repay the business loan to the lender. Generally, longer loan tenure leads to a low amount of EMI on loan. SBI offers a business loan with a flexible repayment tenure of up to 60 months.

Benefits of applying for SBI Business Loan Online

People applying for a business loan online to manage business expenses. In our busy lives especially the entrepreneurs, the benefits of an online loan application can be easily overlooked. However, we need to understand why online loan application has successfully helped people tide over their monetary issues.

A large number of people are choosing to apply online for a business loan counting on these advantages:


This is perhaps the primary reason why people have started inclining towards online loan processing. You can apply for a business loan while sitting at home. The digital loan processing whether it’s through a lender’s website or mobile app helps to save time and reduce a good deal of effort. For example, the application process at is completely digital. Starting from filling the online application form, to document uploads, to get the loan approval, every step can be done online.

Minimum Documentation

Since the entire application process for a business loan is done online, you have the privilege to upload the required documents. It saves valuable time, and paper as well. However, when you traditionally apply for a business loan from a bank, you may require to make multiple bank visits with your documents.

Easy Repayment Options

Repayments for loan amount were earlier done through cheques, but can now be done online. However, there are lenders in the market that offers the online feature a customized payment system through which you can choose the automatic debit EMI option.

Online EMI Calculation

This is among the best solutions for EMI calculation. If you traditional apply online for a business loan from a bank, the loan officer may follow some algorithms and come back to you with an EMI amount. However, when if you go for an online loan application, lenders also have a feature of an online EMI calculator. You just have to feed the required loan amount, income, and current EMIs (if any) and can then get a personalized loan quote. The results obtained through online EMI calculators are accurate, transparent, and error-free.

Why apply for SBI Business Loan?

SBI offers a host of business loans to match the diversified customer requirements. Some of the main reasons why SBI business loan is considered among the best loans in the financial market are mentioned below:

  • Flexible Loan Tenure: A business loan from the State Bank of India provides a borrower with a flexible tenure to repay the loan amount. The loan tenure up to 60 months.
  • Repayment Mechanisms: A business loan taken from SBI can be repaid either through the ECS or through NACH.
  • Collateral-free Loan: SBI gives an unsecured business loan to the borrowers.

Eligibility Criteria for SBI Business Loan

The eligibility criteria of SBI business loan vary based on several factors like loan amount, type of availed loan scheme and others. Here is the eligibility criteria for SBI business loan:

  • The business should be in existence for at least 5 years in the same locality/area.
  • The borrower should also fit into the eligibility criteria as per Go/No Go Criteria. If any of the parameters get a response as ‘No’, the unit will not be considered eligible under this scheme and no deviation to be permitted.
  • A borrower should be the owner of the premises OR should have valid tenant agreement with the owner of the premises (In case of rented premises, a residual period of minimum 3 years).
  • The current account holder at any bank for at least 2 years (proprietorship, partnership & corporate concerns).
  • The minimum average monthly balance of more than Rs. 1 lakh in the last 12 months, with the monthly threshold balance of Rs. 1000. 

Required Documents of Aditya Birla Business Loan

The list of required documents for Aditya Birla business loans differs based on the type of loan a borrower is seeking.

  • PAN Card – for Company/Firm/Individual.
  • A copy of any of the documents as identity proof:
  • Aadhaar Card.
  • Passport.
  • Voter’s ID Card.
  • PAN Card.
  • Driving License.
  • A copy of any address proof documents:
  • Aadhaar Card.
  • Passport.
  • Voter’s ID Card.
  • Driving License.
  • Bank statement of the previous 6 months.
  • Last 2 years ITR along.
  • Audit Report.