SBI Fleet Finance Scheme

SBI fleet finance scheme is aimed at providing loan for transport operators owing fleet of commercial vehicles like trucks, trailers, tankers and buses. State Bank of India, a premier Bank with over 200 years of history, is the largest commercial bank in India in terms 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.

Purpose of the Loan

SBI fleet finance scheme provides loan for new four wheelers like trucks, trailers, tankers, tippers, luxury buses and cars. Finance for fully built vehicles, chassis, body building, road tax, registration and insurance is also available under the scheme. The loan under the scheme is provided as a term loan.

Eligibility Criteria

To be eligible for the SBI Fleet Finance Scheme, the following conditions must be satisfied by the applicant:

Existing fleet operator (goods or passengers) having a minimum experience of 5 years or more in the industry.
Fleet operator having an existing fleet of minimum 10 vehicles.
Small Road Transport Operators will not be eligible under this scheme.
Loan will be provided for a minimum of 10 new vehicles or minimum loan amount of Rs.50 lakhs.
Transport operator must hold national or state route permit and other necessary permits / licenses / approvals.
Satisfactory track record with existing bank or financial institution.
Income tax payer (Personal & Business).

Amount of Loan

A minimum loan of Rs.50 lakhs to a maximum loan amount of Rs.10 crores can be sanctioned under the Sbi Fleet Finance Scheme as a term loan. The repayment period for the loan can be upto a maximum of 66 months. The loan facility would be valid for 6 months from the date of sanction. Collateral security is not required in case of borrowers with excellent track record. In case collateral is required as per bank sanction terms, unencumbered vehicles in the existing fleet (at current resale value) can be offered as collateral. Vehicles having a tracking device are allowed an additional concession of 0.25% in processing fee. Though tracking device is not mandatory, the capital cost of the tracking device and recurring cost of service providers can be financed under the scheme.

Download Sbi Fleet Finance Scheme Application

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Frequently Asked Questions

Common questions about SBI Fleet Finance Loans for Commercial Vehicle Operators.

Answer: The SBI Fleet Finance Scheme provides loans for new four-wheelers like trucks, trailers, tankers, tippers, luxury buses, and cars. It also covers financing for fully built vehicles, chassis, body building, road tax, registration, and insurance.

Answer: To be eligible, you must be an existing fleet operator (goods or passengers) with a minimum experience of 5 years in the industry. You should also have an existing fleet of at least 10 vehicles and hold the necessary permits and licenses. Small road transport operators are not eligible for this scheme.

Answer: The minimum loan amount that can be sanctioned under the SBI Fleet Finance Scheme is Rs. 50 lakhs. The maximum loan amount is Rs. 10 crores, provided as a term loan.

Answer: The repayment period for loans sanctioned under the SBI Fleet Finance Scheme can be up to a maximum of 66 months (5.5 years).

Answer: Collateral security is not required in case of borrowers with an excellent track record. However, if collateral is required as per the bank's sanction terms, unencumbered vehicles from the existing fleet (at current resale value) can be offered as collateral.

Answer: Yes, vehicles having a tracking device installed are allowed an additional concession of 0.25% in the processing fee. The capital cost of the tracking device and recurring service provider costs can also be financed under the scheme.

Answer: The loan facility sanctioned under the SBI Fleet Finance Scheme is valid for a period of 6 months from the date of sanction.

Answer: One of the eligibility criteria for the SBI Fleet Finance Scheme is that the transport operator must be an income tax payer, both personally and for their business.

Answer: The loan amount can be used for financing fully built vehicles, chassis, body building, road tax, registration, and insurance costs, in addition to purchasing new vehicles.

Answer: No, the SBI Fleet Finance Scheme is not available for small road transport operators. One of the eligibility criteria is that the applicant should have an existing fleet of at least 10 vehicles.