Do you need financial support to grow your company, invest in the office, buy advanced equipment or machinery, or expand the inventory? Because of the insufficient cash flow, does your company have setbacks?
If your answer is yes for above questions then A business loan is one of the best choices you can make, regardless of the intent of the funding requirements. Like a business loan, it might get you on track. The following is a list of some of the SBI Business Loan benefits:
- Online Loan Application: Almost everything is available online nowadays. You may apply for the SBI Business Loan online, too. This not only saves your time but also facilitates you with the comfort of home with a business loan.
- Competitive Interest Rate: One of the lowest business loan interest rates available in the capital market is the SBI business loan interest rate of 2021.
- Low Prepayment Fees: SBI Bank earns low prepaid or foreclosure fees on company loans.
- Timely Discounts: SBI business loans are provided with periodic discount deals. You can purchase different offers on SBI business loans, particularly during the festive season. Other discounts are also offered, apart from the festive deals, as per the applicant’s profile.
- No hidden costs: The procurement of SBI business loans is done with full transparency. For any of the SBI business loan schemes, this means that zero secret charges are paid.
- Fast Loan Procedure: Easy and fast SBI loan approval leads to the loan sum being easily accepted.
Why apply for a Business Loan from SBI?
To fit the diversified customer requirements, SBI provides a wide range of business loans. Below are some of the key reasons why SBI is considered to be among the best business loans in the financial market:
- Collateral-free Loan: SBI provides borrowers with an unsecured business loan.
- Flexible Loan Tenure: A State Bank of India business loan provides a borrower with a flexible tenure to repay the balance of the loan. Credit tenure of up to 5 years.
- Repayment mechanisms: Either through the ECS or NACH, a business loan taken from SBI may be repaid.
Factors that influence EMI Business Loan SBI
- Interest rate: The rate paid on the principal sum lent is known as the interest rate. The high sum of monthly EMI, which automatically raises the overall cost of the business loan, attracts higher interest rates.
- Loan Sum: The amount of business loan used plays an important role in the monthly EMI.
- Loan Repayment Tenure- The cumulative period a borrower will repay the lender’s business loan. Generally speaking, longer loan tenure corresponds to a small amount of EMI on loan. SBI provides a company loan of up to 60 months of the flexible repayment period.
SBI Business Loan Requirements for Eligibility
SBI business loan eligibility requirements differ depending on many factors, such as the amount of the loan, the type of loan scheme available, and others. Here are the conditions for SBI business loan eligibility:
- The organization should be in operation in the same locality/area for at least 5 years.
- The creditor should also meet the eligibility conditions in compliance with the Go/No Go Guidelines. If an answer is given as ‘No’ to any of the criteria, the unit is not considered qualified under this scheme and no deviation is allowed.
- A landlord should be the owner of the premises, or the owner of the premises should have a legitimate tenant agreement. (A residual duration of a minimum of 3 years in the case of leased premises).
- A minimum average monthly balance in the last 12 months of more than Rs. 1 lakh, with a monthly threshold balance of Rs. 1000.
Required Documents for SBI Business Loan
Based on the type of loan a borrower is seeking, the list of necessary documents for SBI business loans differs.
- PAN Card-for Business/Firm/Individual.
- A copy of some of the documentation as proof of identity:
- Aadhaar Card.
- Voter ID Card.
- The PAN Card.
- Driving License.
- A copy of any documents proving the address:
- Aadhaar Card.
- Voter ID Card.
- Driving License.
- Bank accounts for the previous six months.
- The last 2 years of ITR.
- Audit Report.
Factors impacting the Business Loan Interest Rate 2021
Based on the evaluation of the loan size, sales, other commitments such as a company for which she operates, the preferred loan repayment tenure, etc., you can get a lucrative interest rate on a business loan. Some of the key factors affecting the interest rate of business loans are listed below:
- Benefit- A company’s profit plays a significant role in the interest rate offered. It determines a borrower’s capacity to repay the sum of the loan. In general, the greater the benefit of the borrower’s corporation, the greater the probability of receiving business loans at a lower interest rate.
- Lender relationship – If a borrower has handled his/her accounts and has a strong track record of payments, he/she can take advantage of the business loan’s low-interest rate.
- Loan repayment capacity- The lender, through CIBIL, always tests the repayment capacity of the borrower.
- Loan sum- The amount of the business loan used plays an important role in the monthly EMI.
- Loan Repayment Tenure- It is a period granted to the borrower by the lender concerning repayment of the loan sum. The long repayment period usually attracts a low EMI yield.
on a final note we see above that the SBI business loan is among the most preferred loan schemes in the Indian financial market. And There are various reasons which makes it special which we have already highlighted in the article . We hope that this will help you in selecting and getting an SBI business loan at low interest in 2021.