Sbi Asset Backed Loan

State Bank of India (SBI) offers asset backed loan for businesses engaged in engaged in the trading, manufacturing and services. SBI is the leading SME financing institution in India offering a wide array of financial products and services to over 1.3 million SMEs in India. In this article, we look at Sbi Asset Backed Loan or property loan in detail.

Loan Eligibility

Sbi Asset Backed Loan scheme is offered to provide a hassle free means for businesses to obtain loan against mortgage of property. Asset backed loan can be used for all business purposes like working capital requirement, purchasing of capital equipment, capacity expansion, modernisation, research and development, shoring up of net working capital or other short term requirement. Business units engaged in trading, manufacturing or services is eligible for financing under this scheme.

Amout of Loan

Loan of upto Rs. 20 crore can be provided under the Sbi Asset Backed Loan scheme. The maximum amount of loan provided would be upto 60% of the value of the property in case of loan of less than Rs.10 crores. In case of loan above Rs.10 crores, the maximum amount of loan provided would be upto 50% of the value of the property. In select cases, loan of more than Rs.20 crore can also be provided under this scheme. The loan is provided at attractive interest rates. Special reduction in rate of interest may also be applicable for MSME units having MSME registration or Udyog Aadhaar.

Sanction & Repayment

Loan sanctioned under this scheme can have a maximum tenor of upto 96 months with moratorium period. The loan is sanctioned as a dropline overdraft facility along with a SME Insta deposit card or SBI business debt card. A 2% fee of the limit sanctioned would be applicable in case of pre-payment of the loan.

Document Required to Apply for Sbi Asset Backed Loan

Partnership firms, Trusts, Societies, Private Limited Company and Public Limited Company can obtain loan under this scheme. The following documents are required for each type of business entity:

Partnership Firm - Partnership deed must be submitted
Trust - Trust deed must be submitted
Society - By laws of Society and Registration Certificate from the Registrar of Societies must be submitted
Private Limited Company - Certificate of Incorporation, memorandum of association and articles of Association
Public Limited Company -Certificate of Incorporation, memorandum of association and articles of Association

In addition to the above business registration documents, the following documents must be submitted by the business for loan appraisal:

Audited balance sheet of the last three year.
Brief detail of Proprietor / Partners / Promoters / Directors.
Identity and address proof of documents for promoters / units
Copy of IT Returns of promoters
IT return for the business for the last three years.
Copies of license, permission approval by regulatory authority , where applicable
Availability of utilities like power etc.
Pollution control clearance, if necessary.
Details of collateral security (including third party guarantee proposed to be offered.
Signed statement of Assets and liability from proprietor / partner guarantors.
Copies of other Bank’s sanction letter and statement of accounts (last 6 months).
Copy of the title deeds of the Factory / Shop/ Godown/ collateral security.
Details of the capital expenditure, if Term Loan is applied.
Cheque for processing and fees to be paid for Valuation & Title search reports on property/ (ies) offered as collateral.
ROC search (for companies).

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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.