5 Tips to Get Business Loans from SBI
The State Bank of India is a leading public sector bank which is one of the largest banks in the country. The bank deals in a range of products whether it is for personal banking needs, agricultural or rural banking needs, NRI banking needs or business banking needs. In the corporate banking channel,SBI offers a range of business loans. These loans are designed to fulfil the varied requirements of businesses. SBI business loans are allowed for up to Rs.100 crores and the interest rates are also low. If you are planning to avail a business loan from SBI, here are five helpful tips which would help you in availing the loan easily and quickly –
1. Shortlist the type of business loan required
SBI offers a range of business loans like working capital finance, project finance, corporate term loans, deferred payment guarantees, equipment leasing, construction equipment loan, etc. Before you approach the bank for a business loan, understand which type of loan suits your financial needs. For instance, if you want to buy fixed assets for the business, corporate term loans are suitable. For meeting the daily financial requirements of the business, working capital loans are more apt. So, assess your business need, shortlist the loan required and then apply for it.
2. Check whether your business meets the loan’s eligibility criteria
SBI business loans have specified eligibility criteria which should be fulfilled by businesses to get the loan approved. So, before applying for the loan, you should check the required criteria and ensure that your business meets the criteria. Some common and important criterion include the following –
- The age of the applicant should be more than 21 years but below 65 years
- The minimum turnover of the business in a financial year should be at least Rs.20 lakhs
- The business should be in existence for at least the last 3 years so that it is assumed to be a stable entity
3. Have a good credit score
Your credit score is also an important criterion when you apply for a business loan. SBI offers business loans to those applicants only whose credit scores are 750 and above. So, before applying for the loan, you should check your credit score. If it is below 750, try and improve the score before loan application. If the score is improved, you can easily avail SBI business loans without any difficulty.
4. Assess the loan amount and its affordability
After you shortlist the type of loan you require and ensure that you meet the eligibility requirement of the loan, you should arrive at the appropriate loan quantum. The amount of loan should be sufficient for your business needs. You should also check whether you are eligible to apply for the said amount of loan or not. There are online loan eligibility calculators which help you find out the loan amount for which you are eligible. You can use these calculators to find the available loan amount.
After you decide the loan amount, based on your eligibility, you should also make sure that you would be able to repay the loan affordably. Loan repayments should not put a financial strain on the profitability of your business. So, before applying for the loan, find out if it is affordable or not. To find the loan affordability, you can use online business loan EMI calculators. These calculators let you calculate the EMIs of your business loan. See that the EMIs are affordable and only then apply for the loan.
When SBI, the lender, sees that the loan amount is within your eligibility qualification and loan repayments would be easy for the business, it would approve the business loan easily.
5. Keep all documents within reach
The last tip before loan application is to keep the relevant documents handy so that they can be submitted along with the loan application form. Some common documents required for SBI business loans include the following –
- Address proof of the applicant as well as the business
- Identity proof of the applicant
- A proof showing that the business has existed for a specified number of years
- The income tax returns of the last 2 to 3 years of the business and the applicant
- Bank statement of the last 6 months for both the business and the applicant
If you submit the documents with the application form, the loan would be approved without unnecessary delay.
So, look out for these tips before you apply for SBI business loans for your business growth, expansion or productivity.