SBI Asset Backed Loan

The State Bank of India (SBI) offers asset-backed loans for businesses involved in trading, manufacturing, and services. As the leading SME financing institution in India, SBI provides a comprehensive range of financial products and services to over 1.3 million SMEs across the country. In this article, we explore the SBI asset-backed loan, also known as a property loan, in detail.

Loan Eligibility

The SBI asset-backed loan scheme provides a hassle-free means for businesses to secure loans against the mortgage of property. The loan can be used for various business purposes, including working capital requirements, purchasing capital equipment, capacity expansion, modernization, research and development, enhancing net working capital, or other short-term needs. Business units engaged in trading, manufacturing, or services are eligible for financing under this scheme.

Amount of Loan

Loans of up to Rs. 20 crore can be availed under the SBI asset-backed loan scheme. The maximum loan amount is 60% of the property's value for loans less than Rs.10 crore. For loans exceeding Rs.10 crore, the limit is 50% of the property's value. In select cases, loans exceeding Rs.20 crore can also be provided. These loans are offered at attractive interest rates. A special reduction in interest rates may also be applicable for MSME units with MSME registration or Udyog Aadhaar.

Sanction & Repayment

Loans sanctioned under this scheme can have a maximum tenor of up to 96 months, including a moratorium period. The loan is disbursed as a dropline overdraft facility, along with an SME Insta deposit card or SBI business debt card. A pre-payment fee of 2% of the sanctioned limit applies if the loan is paid off early.

Documents Required to Apply for SBI Asset Backed Loan

Eligible business entities such as partnership firms, trusts, societies, private limited companies, and public limited companies can obtain loans under this scheme. The specific documents required for each business type are outlined below:

Partnership Firm - Submit the Partnership deed
Trust - Trust deed must be submitted
Society - By-laws of the society and registration certificate from the Registrar of Societies must be submitted
Private Limited Company - Certificate of incorporation, memorandum, and articles of association
Public Limited Company - Certificate of incorporation, memorandum, and articles of association

Along with the above business registration documents, businesses must submit the following for loan appraisal:

Audited balance sheet of the last three years
Brief details of Proprietors/Partners/Promoters/Directors
Identity and address proof documents for promoters/units
Copy of IT Returns of promoters
IT returns for the business for the last three years
Copies of licenses, permissions, and approvals by regulatory authorities, where applicable
Availability of utilities like power, etc.
Pollution control clearance, if necessary
Details of collateral security (including third-party guarantees) proposed to be offered
Signed statement of assets and liabilities from proprietors/partner guarantors
Copies of other banks' sanction letters and statements of accounts (last 6 months)
Copy of the title deeds of the factory/shop/godown/collateral security
Details of capital expenditure, if a term loan is applied for
Cheque for processing fees and fees for valuation & title search reports on property/properties offered as collateral
ROC search (for companies) - Company annual filing

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Frequently Asked Questions

Common questions about SBI Asset Backed Loan for Indian SMEs.

The SBI Asset Backed Loan is available to business units engaged in trading, manufacturing, or services. It provides financing against the mortgage of property for working capital requirements, purchasing capital equipment, capacity expansion, modernization, research and development, or other short-term needs.

For loans up to Rs. 10 crores, the maximum loan amount is up to 60% of the value of the mortgaged property. For loans above Rs. 10 crores, the maximum loan amount is up to 50% of the property's value. In select cases, loans exceeding Rs. 20 crores can also be provided under this scheme.

The SBI Asset Backed Loan can have a maximum tenor of up to 96 months (8 years) with a moratorium period.

The loan is sanctioned as a dropline overdraft facility along with an SME Insta deposit card or SBI business debit card.

Yes, a 2% fee of the sanctioned limit is applicable in case of pre-payment of the loan.

Partnership firms, trusts, societies, private limited companies, and public limited companies can obtain loans under the SBI Asset Backed Loan scheme.

The required documents include audited balance sheets for the last three years, IT returns for the business and promoters, copies of licenses and regulatory approvals, details of collateral security, signed statements of assets and liabilities, and copies of title deeds for the mortgaged property, among others.

Yes, special reductions in the rate of interest may be applicable for MSME units having MSME registration or Udyog Aadhaar.

The SBI Asset Backed Loan provides a hassle-free means for businesses to obtain loans against the mortgage of property for various business purposes, such as working capital requirements, purchasing capital equipment, capacity expansion, modernization, research and development, or other short-term needs.

The SBI Asset Backed Loan offers businesses access to financing against their property, enabling them to meet their various financial requirements without the need for additional collateral. It provides attractive interest rates and special rate reductions for MSME units, making it a convenient and cost-effective financing option.