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SBI SME Loan Scheme

Nov 02, 2014


Know about SBI's funding scheme for SMEs

  • 1. SME Products State Bank of India has been playing a vital role in the development of small scale industries since 1956. The Bank has developed a wide array of products to meet the changing needs of the industry. It provides end -to -end solutions for the financial needs of the industry. To service the specific credit needs of small and medium enterprise (SME) the Bank established the Small & Medium Enterprise business unit in 2004. Apart from the general working capital requirements (like Cash credit, Bill Discounting limits, LC, BG etc) to meet the day to day requirements and term loans to take care of investment needs for acquiring fixed assets, Bank has an array of products/schemes to cater to the enterprise specific require-ments of SME Units both in Manufacturing and Trade and services sectors. Brief details of some of the schemes are as under:
  • 2. SME Loan ProductsFor Micro Enterprises and SSIs For Traders SME Credit Card (Up to Rs.10 Lakh) Traders Easy Loan SME Smart Score (Up to Rs.50 Lakh) Flexi Loan for Trade and ServicesFor Startups For Doctors SBI SMILE (Interest Free Loan as equity) Doctor PlusTerm Loans for SSIs For Schools & Institutes General Purpose Term Loan for SSI Sector (Up to School Plus Rs.50 Lakh) Open Term Loan (Up to Rs.2.5 Cr) For Shop Owners Corporate Loan (Fro Rs.25 Lakh up to Rs.10 Cr) SBI Shoppe SBI Shoppe PlusAdd Ons SME Credit Plus For Restaurant owners Standby Line of Credit for Working Capital Finance to RestaurantsFood processing For Transport Operators Rice Mill Plus Transport Plus Dal Mill Plus For skill based businessesCollateral Free Loan Artisan Credit Card SME Collateral Free Loan For Vendors and Dealers: Supply Chain FinanceMiscellaneous Rent Plus Electronic Vendor Finance Scheme SME Construction Equipment Loan Electronic Dealer Finance Scheme SME Car Loan Loans to Women Entrepreneur Stree Shakti Scheme
  • 3. SME Liability and TransactionProducts SBI Power SAHAJ Current Account Surabhi Deposit Account B2B Payment Solution Power Jyoti Current Account
  • 4. For Micro Enterprises and SSIs SME Credit Card (Up to Rs.10 Lakh) Product provides loans for the micro enterprises including SSI units, small business enterprises, professional and self employed persons, small retail traders, transport operators etc for meeting any kind of credit requirement including purchase of shops, maximum limit being Rs 10 lakhs including term loan & working capital loan. The loan will be sanctioned for 3 years with an annual review. This product has simplified sanction process without requirement of elaborate financial data. The borrower will be provided a photo identity card and a passbook giving details of the limit and validity of the facility. A cheque book marked as SME Credit Card and a pass book would be issued to the customer. SME Smart Score (Up to Rs.50 Lakh) The Loan product is for units in Micro and Small Enterprise sector in manu-facturing trade and services segments to meet working capital needs and for acquisition of fixed assets. A simplified appraisal model has been de-veloped to standardize the appraisal process for loans upto Rs 50 lakhs in SSI sector and upto Rs 25 lakhs for trade and services sector available with attractive interest rates. The loan will be sanctioned for 2 years with an an-nual review. Back
  • 5. For Startups SBI SMILE (Interest Free Loan as equity) The scheme envisages grant of interest free loan as equity assistance to-wards part of margin requirements of the project, to assist eligible profes-sional and technically qualified entrepreneurs setting up new Micro and Small enterprises and units covered under the Banks Project uptech for technology upgradation. Equity assistance is up to a maximum of Rs.10 lakhs. Professional and Technically qualified persons will cover doctors including dentists, engineers, and management graduates etc. The interest free loan is repayable in 3 years with a moratorium period of 5-7 years. Back
  • 6. Term Loans General Purpose Term Loan for SSI Sector (Up to Rs.50 Lakh) This product is for existing borrowers for any general commercial purpose such as shoring up of Net Working capital, substitution of high cost debt, R&D, ISO certification etc, subject to disbursement being made in line with the specific purpose approved. Maximum loan available is Rs 50 lakhs repayable in maximum period of 5 years. Open Term Loan (Up to Rs.2.5 Cr) A pre-sanctioned term loan with limit upto Rs 2.5 crore for existing or new corporate or non- corporate customers in manufacturing sector and upto Rs 1 crore for hotels, hospitals, educational institutions in service sector. The scheme provides option of multiple disbursements for multiple purposes like expansion/modernization, substitution of high cost debt, up-gradation of technology, energy conservation system, acquisition of software, hardware, visits abroad for acquiring technology, finalizing deals, participation in fairs, market promotion etc. The sanctioned limit is valid for 1 year. Margin requirement is 10%. The borrower can utilize pre-approved sanction to plan capital expenditure and negotiate with suppliers of machinery and finalize best possible contract. Corporate Loan (Fro Rs.25 Lakh up to Rs.10 Cr) The scheme provides term loan for all existing customers and established non customers (subject to takeover norms of the Bank) in manufacturing sector for repayment of high cost debt, VRS scheme expenses, on going capital expenditure such as replacement of parts of machineries, upgradation and renovation, shoring up of net working capital, R&D expenses, acquisition of tools jigs etc. Quantum of Finance is minimum Rs.25 lakhs and maximum Rs.10 crores for non Corporate and no cap for Corporate borrowers. No Margins are required under the scheme. A maximum of three corporate loans can be outstanding per borrower at any point of time. Back
  • 7. Add Ons SME Credit Plus For existing and new borrowers this scheme provides a clean cash credit facility to meet contingencies, sudden and unforeseen expenditures like repairs, meeting bulk orders, tax payments, mismatch in cash flows etc. Under the scheme 20% of aggregate WC or max Rs.25 lakhs fund based limit can be availed. Margins are not required and interest rate will be same as applicable to cash credit limit. The facility is repayable in 2 months and can be availed for 12 times a year Standby Line of Credit for Working Capital For existing units including export units, an additional Working Capital(Fund based & non Fund based) limit by way of cash credit, packing credit and bills discounting against stock, receivables to meet contingencies like bunching of orders, delay in shipment, sudden increase in raw material prices, mismatch in cash flows. Under this 15% of aggregate Working Capital or max Rs.5 crore can be availed. Margins as applicable to original limit. The facility is repayable in 2 months and can be availed any number of times in a calendar year Back
  • 8. Food processing Rice Mill Plus Term loan for acquisition of machinery/factory building for modernization/ expansion and working capital needs of Rice Mills engaged in milling, sorting, grading and polishing. No upper ceiling on loan amount. Dal Mill Plus Term loan for Dal mill owners for acquisition of machinery, factory building, modernization and all working capital needs. Back
  • 9. Collateral Free Loans SME Collateral Free Loan (SMECFL) Collateral free loan for viable projects of micro and small enterprises in manufacturing and service sector with maximum guarantee cover up to Rs.1.00 crore under CGTMSE guarantee scheme for working capital & Term Loan (FB+NFB) facilities. Back
  • 10. For Traders Traders Easy Loan Easy loan for specific business needs of traders, wholesalers and professionals, self-employed, small business enterprises, agents engaged in pur
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