Loan for Shop from SBI

State Bank of India (SBI) offers a loan scheme for present and prospective owners of shops or offices or show-rooms or service centres to avail a loan for the purchase of shop premises or furniture or modernization of existing premises. State Bank of India is India's largest bank with over 200 years of history with the highest amount of assets, deposits, profits, branches, customers and employees. SBI is the only Indian Bank to be featured in Fortune Global 500 list of companies in 2011 and is ranked 61st in the list of Top 1000 Banks in the World by 'The Banker' as on July 2011.

Eligibility

A person can avail the SBI loan for setting up of shop or office in present and prospective owners of shops, offices, showrooms, training centres, service centres, garages, Chartered Accountants, Company Secretaries, Consultants and other professionals. The scheme can also be extended for services such as

travel agencies, caterers, hotels, eateries, beauty salons, etc. The applicant could be an individual, firm, partnership, trust, franchisee, company or LLP. The purpose of using the loan amount for the following purposes: • Purchase of new/old shops/establishments/offices. • Modernization/expansion of establishments/shops, etc. • All furniture/fixtures, electrical fittings and other accessories required for shops/showrooms/offices.

Nature of Loan

The SBI provides loan for shops and offices as a term loan for a quantum of upto Rs.20 lakhs. Promoters require to contribute margin of upto 25%, in case of purchase of new property and margin of upto 40% in case of purchase of the old property. The interest rate for the loan is floating based on the Base rate of the Bank. A person can avail the repayment tenure of upto 7 years including moratorium period of 6 months under the scheme. The asset purchased must be pledged to the bank under hypothecation/pledge/

mortgage/assignment of the assets. Further, all assets for the loan must insure for the full value of the loan until repayment.

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Frequently Asked Questions

Common questions about Business Loans for Shops and Offices.

To be eligible for the SBI Loan for Shop, you can be an individual, firm, partnership, trust, franchisee, company or Limited Liability Partnership (LLP). The loan is available for present and prospective owners of shops, offices, showrooms, training centers, service centers, garages, and professionals like Chartered Accountants, Company Secretaries, Consultants, etc. The loan can also be availed for services such as travel agencies, caterers, hotels, eateries, and beauty salons.

The SBI Loan for Shop can be used for the following purposes: purchase of new or old shops/establishments/offices, modernization/expansion of existing establishments or shops, and procuring all furniture, fixtures, electrical fittings, and other accessories required for shops, showrooms, or offices.

Under the SBI Loan for Shop scheme, you can avail a term loan up to Rs. 20 lakhs.

If you are purchasing a new property, you need to contribute a margin of up to 25% of the loan amount. For purchasing an old property, the margin requirement is up to 40% of the loan amount.

The interest rate for the SBI Loan for Shop is floating and based on the Base rate of the State Bank of India.

You can avail a repayment tenure of up to 7 years, including a moratorium period of 6 months, under the SBI Loan for Shop scheme.

The asset purchased using the SBI Loan for Shop must be pledged to the bank under hypothecation, pledge, mortgage, or assignment of the assets.

Yes, all assets purchased using the SBI Loan for Shop must be insured for the full value of the loan until the loan is fully repaid.

No, the information provided does not mention that the SBI Loan for Shop can be used for working capital requirements. It is specifically meant for purchasing or modernizing shop premises and related assets.

The SBI Loan for Shop is available for both individuals and businesses. As per the eligibility criteria, individuals, firms, partnerships, trusts, franchisees, companies, and Limited Liability Partnerships (LLPs) can apply for this loan.