State Bank of India’s SME E-Smart Score Business Loan is designed to help businesses meet their financial needs effectively. Whether you need money for day-to-day operations ( means working capital) or you want to invest in acquiring new fixed assets, this SBI Business Loan Scheme is a flexible and tailored loan to meet your specific business needs. The objective of this SBI SME Loan is simple: to empower businesses with the financial support they need for their ongoing operations and growth initiatives. You can get more information about this SME E-Smart Score Business Loan from here.
SBI SME E-Smart Score Business Loan Types
| Loan Types | Description |
|---|---|
| Cash Credit | Flexible revolving credit line for working capital needs. |
| Term Loan | Structured long-term financing for capital expenditure and business expansion. |
Under SBI SME E-Smart Score Business Loan, you are given two types of loans. One is Cash Credit and the other is Term Loan. Details of both are given below.
Cash Credit:
Think of Cash Credit as a flexible credit line, similar to a credit card. This credit line under SME E-Smart Score Business Loan provides quick access to funds for your daily operations and working capital needs. You can borrow, repay and borrow again, making it a convenient solution to manage your ongoing business expenses.
Term Loan:
Term Loan under this E Smart Score SBI Business Loan Scheme is like a structured, long-term financial assistance for your business. This loan is designed for specific purposes such as capital expenditure (which includes purchasing equipment, machinery etc.) or business expansion. Unlike the flexible nature of cash credit, term loans allow you to plan and budget for the long-term growth of your business.
SBI SME Loan Amount Under E-Smart Score
| Loan Details | Loan Amount |
|---|---|
| Quantum of Loan | >₹10.00 lakh to ₹5 crore |
The statement “SBI SME E-Smart Score Business Loan is offering Quantum of Loan ₹10.00 lakh to ₹5 crore” indicates the range of loan amounts that eligible borrowers can apply for under the SBI SME E-Smart Score Business Loan program.
Quantum of Loan: This term refers to the total amount of money that can be borrowed through the loan.
The specific amount within this range that a borrower qualifies for will depend on various factors such as the borrower’s creditworthiness, business financials, and the purpose of the loan.
SBI Business Loan Interest Rate for E-Smart Score
| Pricing | Competitive Pricing Linked to EBR (External Benchmark Rate) |
|---|---|
| Benefits | Competitive rates for borrowers |
The External Benchmark Rate (EBR) is a reference interest rate used by financial institutions to determine the interest rates on floating-rate loans, especially in the context of loans linked to external benchmarks.
The External Benchmark Rate (EBR) is crucial for borrowers, as any changes in this rate directly impact the interest rates on their loans, making the overall lending process more transparent and responsive to market conditions.
| SBI Rate Type | Existing Rate | Revised Rate |
|---|---|---|
| EBLR | 8.90%+CRP+BSP | 9.15%+CRP+BSP |
SBI SME E Smart Score Business Loan: Borrower’s Margin/Contribution
| Loan Component | Borrower’s Margin/Contribution |
|---|---|
| Working Capital Component | 25% |
| Term Loan Component | 33% |
1. Working Capital Component (WC):
The Borrower’s Margin or Contribution for the Working Capital Component is set at 25%.
This means that the borrower is required to contribute 25% of the total amount needed for the working capital aspect of the loan. The remaining 75% would be financed by the lender.
2. Term Loan Component (TL):
For the Term Loan Component, the Borrower’s Margin or Contribution is set at 33%.
In this case, the borrower needs to provide 33% of the total amount required for the term loan, while the lender covers the remaining 67%.
These percentages represent the portion of the loan amount that the borrower is expected to contribute from their own funds. It’s important for the borrower to be aware of these contribution requirements as they plan for and apply for the SME E-Smart Score Business Loan from SBI.
SBI Business Loan Scheme E-Smart Score: Repayment Terms
| Loan Component | Repayment Period | Moratorium Period |
|---|---|---|
| Working Capital | Repayable on demand | – |
| Term Loan | Up to 7 years (including moratorium) | Moratorium not exceeding 6 months |
Working Capital:
Repayment Period: The working capital component is repayable on demand. This means that the borrower is expected to repay the borrowed amount whenever the lender (SBI) requests it. There is no fixed schedule for repayment; it is based on the lender’s demand.
Term Loan:
Repayment Period: The term loan component has a structured repayment period of not more than 7 years. This includes the time during which the borrower may not have to make regular repayments, known as the moratorium period.
Moratorium Period: A moratorium period of up to 6 months is allowed, during which the borrower is not required to make principal repayments. Interest may still accrue during this period.
These terms provide flexibility for businesses using the SBI SME E-Smart Score Business Loan, allowing for tailored repayment based on the specific needs of the working capital and term loan components.
SBI SME E-Smart Score Business Loan: Processing Fee/Upfront Fee
| Aspect | Details |
|---|---|
| Processing Fee/Upfront Fee | As applicable to MSME units as per the Bank’s latest Instruction |
The Processing Fee or Upfront Fee is a charge imposed by the bank when processing a business loan application under the SBI SME E-Smart Score scheme. This fee covers the administrative costs associated with evaluating and processing the loan request. The specific amount of the processing fee is determined based on the bank’s latest instructions and policies.
In simpler terms, when a business applies for the SME E-Smart Score Business Loan from SBI, they may be required to pay a processing fee. This fee varies and is in accordance with the bank’s guidelines for MSME (Micro, Small, and Medium Enterprises) units. The table provides a straightforward summary of this aspect, indicating that the exact fee would be as per the bank’s latest instructions. It’s essential for businesses to be aware of and understand these fees during the loan application process.
SBI SME Business Loan: Other Charges in E-Smart Score
| Aspect | Details |
|---|---|
| Other Charges | As per Bank Guidelines |
| (Will be appraised to the borrower before loan sanction) |
The term “Other Charges” in the context of the SBI SME E-Smart Score Business Loan refers to additional fees or costs associated with the loan, beyond the interest rate. These charges are not explicitly mentioned in the provided information, as they are subject to the guidelines set by the bank.
- Other Charges: These are fees or costs imposed by the bank for various services related to the loan, such as processing fees, administrative charges, or any other applicable fees.
- As per Bank Guidelines: The specific details of these charges are determined by the guidelines or policies set by the State Bank of India (SBI). These guidelines may vary based on the type of loan, borrower’s profile, and other factors.
- Appraised to the Borrower: Before the loan is officially approved and sanctioned, the bank will inform the borrower about the details of these charges. This ensures transparency, allowing the borrower to understand and agree to the complete cost structure associated with the loan.
In summary, borrowers will be made aware of any additional charges, as per the bank’s guidelines, during the loan appraisal process before the loan is sanctioned.
SBI SME E-Smart Score Business Loan: Collateral Security
| Loan Component | Collateral Security |
|---|---|
| Working Capital (WC) | As per Bank’s existing norms for Working Capital |
| Term Loan (TL) | As per Bank’s existing norms for Term Loan |
The SBI SME E-Smart Score Business Loan requires collateral security, which is a form of protection for the bank in case the borrower is unable to repay the loan. The collateral requirements differ for the two main components of the loan: Working Capital (WC) and Term Loan (TL).
In simple terms, collateral security could include assets or guarantees provided by the borrower to secure the loan. The specific requirements are based on the bank’s policies and guidelines for working capital and term loans. Borrowers should be aware of and comply with these norms to facilitate the loan approval process.
SBI SME Business Loan: Additional Details about E-Smart Score
For the Term Loan component of the SBI SME E-Smart Score Business Loan, a key special feature involves the submission and processing of a Project Report for the entire tenure of the loan. This is done in accordance with the norms and guidelines set by the bank.
When you apply for a term loan as part of the SBI SME E-Smart Score Business Loan, you need to provide a Project Report. This report outlines the details of your project or business plan and is crucial for the bank’s assessment. It covers the entire period for which you are seeking the loan.
| Loan Component | Special Feature |
|---|---|
| Term Loan | Project Report required for the entire loan tenure |
This table summarizes that for the Term Loan portion of the SBI SME E-Smart Score Business Loan, the special requirement is the submission of a Project Report covering the entire duration of the loan.
SBI SME E Smart Score Business Loan Eligibility Criteria
| Eligibility Criteria | Details |
|---|---|
| Age of the Borrower | Chief promoter/chief executive should be 18 to 65 years of age. |
| Minimum Overall Score | The applicant must obtain a minimum overall score of 60% in the internal scoring model. |
| Sub-head Scoring | Minimum 50% score required under each sub-head: Personal Details, Business Details, Collateral Details. |
The main person in charge (chief promoter/chief executive) should be between 18 to 65 years old. To be eligible, the applicant must achieve a minimum overall score of 60% according to the internal scoring model used by SBI. Within the overall score, there should be a minimum of 50% under each sub-head, including Personal Details, Business Details, and Collateral Details. However, as a borrower you can’t influence or change the score. If your business comply with the bank’s internal policies, scoring improves automatically.
| Target Group | Description |
|---|---|
| Individually Managed Proprietary/Partnership Firm | Businesses managed by a single individual or a partnership. |
| Closely Held Public/Private Limited Companies | Private or public limited companies with a close ownership structure. |
| Sector Focus | Small and medium businesses in the industrial and trading sector under C&I and SIB segments. |
The loan is intended for individually managed proprietary or partnership firms, as well as closely held public or private limited companies.
Specifically focuses on businesses in the small and medium industrial and trading sectors under C&I (Commercial and Industrial) and SIB (Small Industries & Business) segments.
