IndiaFilings
Expert
Published on: Sep 16, 2026
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