SBI Loan for Snapdeal Sellers
SBI Loan for Snapdeal Sellers
State Bank of India (SBI) has a scheme for financing of Snapdeal sellers in India by providing them working capital finance for selling online. State Bank of India has developed a wide array of products and services to cater to the SME sector and has over 1.3 million SME loan accounts. The process for becoming a Snapdeal Seller can be read here. In this article, we look at the SBI loan scheme for Snapdeal Sellers.
Purpose of Loan
The purpose of providing loan for Snapdeal sellers is to provide financial assistance to authorized sellers of Snapdeal engaged in selling products through online portal of Snapdeal. To be eligible for the loan, the applicant must first be a Snapdeal seller by completing the Snapdeal seller registration process and having a minimum tenure of 6 months.
To be eligible for the SBI loan, the seller must be registered on Snapdeal as a seller for a minimum of 6 month. The entity can be a company or LLP or partnership firm or proprietorship firm. However, VAT registration is mandatory and the applicant must submit a copy of VAT registration and VAT returns filed.
Amount of Loan
SBI provides loan of upto Rs.25 lakhs and a minimum of Rs.1 lakh for Snapdeal sellers as working capital limit based on amount of transaction conducted by the seller on Snapdeal. The maximum eligible loan amount would be the average of last 3 month net-sales routed through Snapdeal platform multiplied by 2 or 3. Hence, if a Snapdeal seller sold an average amount of Rs.5 lakhs in the last three months, he/she would be eligible for a loan of upto Rs.15 lakhs. The seller would have to contribute a margin of 20% of the loan amount at all times.
Rate of Interest
For loan of less than Rs.10 lakhs sanctioned under the MUDRA scheme, the interest rate chargeable is as follows:
Manufacturing Units: Bank Base Rate + 2%
Trading Units: Bank Base Rate + 2.3%
For loans above Rs.10 lakhs, the interest rate chargeable is as follows:
Manufacturing Units: Bank Base Rate + 1.7% – 3.7% (based on applicant risk profile)
Trading Units: Bank Base Rate + 2.2% – 4.2% (based on applicant risk profile)
Note: The base rate of SBI at the time of writing of this article was 9.3%.
Women Entrepreneurs who are sellers on Snapdeal enjoy a concession of 0.25%. Other sellers who are willing to provide collateral security with value of 50% – 100% of loan amount can enjoy a concession of 0.50%.
Further, processing charges of 0.399% + Service tax of loan amount is applicable on all loans sanctioned under this scheme.
There is no requirement for collateral security if the loan sanctioned is less than Rs.10 lakhs. In case of loan over Rs.10 lakhs, 25% collateral is required.
The following documents must be submitted by the seller for availing loan under the scheme:
- PAN Card of Directors/Proprietor/Partners and business unit
- Address Proof
- VAT registration copy or last filled VAT Return
- 6 month bank account statement
- Collateral documents (in case of loans above Rs. 10 Lakhs)