SBI Traders Easy Loan Scheme – Eligibility, Mortgage, Amount of loan
SBI Traders Easy Loan Scheme: Getting a bank loan sanctioned for a business is very big deal. With the increasing bad debts, even the banks are left with no alternatives except tighten the credit sanction process. However, there are certain schemes especially designed to cater the financial needs of certain group of audience. State Bank of India (SBI)’s SBI Traders Easy Loan Scheme is one of such schemes. It was launched by SBI with an objective of providing hassle free loans to the traders.
Following are the salient features of this scheme:
1. Eligibility for SBI Traders Easy Loan Scheme:
- The applicant should be existing customers of the SBI with a satisfactory track record
- New connections including takeovers
- First generation entrepreneurs are eligible
- Promoters of existing units in case they want to start a new unit
- Applicants engaged in following areas are also covered:
- Small business enterprises
- Professional and self-employment
- Retail and whole traders engaged in agricultural or industrial commodities
- Commission agents engaged in purchase and sale of food grains and other commodities, oil/rice mils and cold storages.
- Loans under this scheme are sanctioned against equitable mortgage of property. The property can be either residential or commercial
- And the property mortgaged should be in the name of applicant/ his business/business partner/ close relatives.
- Agricultural property and properties outside urban limits are not accepted.
3. Amount of loan:
- Minimum loan one can avail is ₹25,000 and the maximum is ₹ 5 crore
- While approving the loan, bank ensures that the quantum of loan shall not be more than the least of the below 3:
- 20% of the annual turnover projected
- 75% of the capital costs to be incurred for business
- 65% of the realizable value of property mortgaged.
- For exiting borrowers, loan will be sanctioned up on meeting the below criteria:
- Satisfactory credit record with respect to the existing loans
- Outstanding loan amount and proposed loan amount together should not exceed the 65% of the realizable value of property mortgaged.
4. Margin money:
35% of the realizable value of the property to be mortgaged or 25% of the costs to be incurred whichever is higher.
5. Interest rates:
- In case of Cash credit: 0.25% below SBAR
- For term loan: 0.25% above SBAR
- Interest is calculated and applied monthly on daily reducing balance
- Rate of interest may change from time to time. Please check the bank’s website.
|SBAR = State Bank Advance Rate or the prime lending rate|
Primary: Hypothecation of stocks and receivables
Collateral: Please refer point number 2 with heading mortgage
7. Processing fee:
|For loans of working capital requirement*|
|For loans up to ₹ 2lakhs||₹ 250|
|For loans above ₹ 2lakhs||₹ 250 per lakh or part there of
( Maximum ₹ 10 lakhs)
|For term loans above to ₹ 2lakhs|
|Up-front fee of 1% of the loan amount is recovered*|
* Processing fees may vary from time to time. Please check the bank’s website.
8. Repayment tenure:
Loan can be repaid monthly, quarterly, even half yearly based on the receivable of the business. However it should be cleared within a maximum tenure of 60 months.
9. Application form:
Please download the below link to apply for the loan under Traders Easy Loan Scheme.