SBI Yojana: Loan up to 50 lakh will be available under this scheme, business will get boost!
SBI SME Smart Score Loan Yojana: Starting and growing a small or medium-sized business in the manufacturing, trading or service sector can be a challenging task. However, with the help of SBI’s SME Smart Score loan scheme, MSME units can now access the required funds to achieve their goals. The scheme allows easy loan access ranging from Rs 10-50 lakhs to meet any funding requirement, making it easy for business owners to focus on what they do best: growing their businesses.
In this article, we will learn about the details of SBI SME Smart Score Loan Scheme and how it can help small and medium sized businesses to take their operations to the next level.
Who will get the benefit of SME Smart Score Loan Scheme? (SBI SME Smart Score Loan Scheme)
The SME Smart Score loan scheme from State Bank of India is designed to benefit small and medium enterprises (SMEs) in the manufacturing, trading and service sectors. The scheme provides cash credit/term loan facility for working capital requirements or for purchase of fixed assets. The loan facility is available to public/private limited companies, partnership firms or individuals in the MSME sector, with a minimum loan amount of Rs. 10 lakhs and max. Rs. The loan amount is 50 lakhs.
The scheme also includes 20% margin for working capital and 33% margin for term loan. As per the information available on SBI website, Chief Promoter/Chief Executive of the business can apply for SME Smart Score Working Capital/Term Loan. The age limit of the applicant is between 18 to 65 years.
Interest Rates Linked to EBLR
The interest rates for SME Smart Score Loan offered by State Bank of India (SBI) are linked to the Bank’s External Benchmark Lending Rate (EBLR). This means that eligible borrowers will be able to get loans at very competitive rates. SBI’s EBLR is currently set at 8.90%+CRP+BSP from December 15, 2022, but it is subject to change by the bank. It is important to note that the actual loan interest rate will be determined during the loan application process, and more accurate information can be obtained from SBI during the application process.
As per the information provided on the SBI website, the SME Smart Score loan scheme includes the following terms and conditions:
- The working capital loan will be reviewed every two years.
- Term Loan/Dropline OD has a repayment period not exceeding 7 years, followed by a moratorium of 6 months.
- All types of loans will be reviewed annually.
- Collateral is not necessary for this scheme.
- All loans will be covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Borrowers will be required to pay a guarantee fee.
- Fees and charges on this loan can be up to 0.40% of the loan amount.
It is important to note that these terms and conditions are subject to change and the most accurate information can be obtained from SBI during the application process.
loan repayment time
As per the information given on the SBI website, the repayment tenure for SME Smart Score loan scheme is as follows:
- The working capital loan will be reviewed every two years and the repayment schedule will be discussed during the review.
- Term Loan/Dropline OD has a repayment tenure not exceeding 7 years, and thereafter, a moratorium of 6 months can be availed during which no repayment is due.
- Annual review will be done for all loan types to ensure that the borrower is on track with the repayment schedule.
- It is important to note that the loan repayment terms are subject to change and the most accurate information can be obtained from SBI during the application process.