Business Loans India : SBI slashes interest rates for SME loans

The country’s largest lender, State Bank of India, cut lending rates on loans for small and medium enterprises and announced measures to improve credit flow to the fund-starved sector.
SBI has reduced lending rates for new SME loans up to Rs 5 lakh to eight per cent and that for loans of Rs 5-25 lakh to 10 per cent.

SBI used to offer SME loans up to Rs 5 lakh for 8.5-10.5 per cent and loans of Rs 5-25 lakh for 9-11 per cent.

For 2 years
Under the ‘SME Help’ scheme, existing customers can get term loans for a period of two years at 8 per cent interest.

The bank has also reduced the interest rate on working capital as well as term loans (provided they are covered by Credit Guarantee Fund Trust for Micro and Small Enterprises’ guarantee) for all new SME customers with loan requirements up to Rs 5 lakhs to 8 per cent. Currently, depending on an SME’s credit rating, the bank charges an interest rate of anywhere between 8.5-10 per cent.

Fixed rate

Further, for new SMEs with fund based loan requirements above Rs 5 lakhs but below Rs 25 lakhs, the bank is offering fixed rate of interest of 10 per cent. Currently, depending on an SME’s credit rating, the bank charges an interest rate of anywhere between 10 -11.5 per cent.

Both these interest concessions, the bank said, will be available for the next two years and will be available to those who obtain CGTMSE cover.

10 thoughts on “Business Loans India : SBI slashes interest rates for SME loans

  1. Dear Sir,

    Iam finished beautician certified course we needs to start a own beauty partlour.
    kindly provide the business loan and how can i apply for this.

    Thanks in Advance

    Sangeetha

  2. Iam a enterpriner of a two wheler spare parts shop in the state of orissa,dist-khurdha,bhubaneswar,chandrasekharpur,name-SAI AUTO PARTS.I want to be a business partner of your bank.Plese give me your hands to grow as like as your bank is over INDIA

  3. Dear Sir,

    I am aqualified D.Pharm student from 2000 now I can’t get a Govt job yet, So I am working now in a private sector. Presently I decide to start a Medicine Store at my end and will be self-dependant.So please suggest me and help to provide a business loan from SBI and how can I apply for this type of facility from you.

    With regards
    Balaram Jena.

  4. Dear sir,
    Iam suppliers of fruits to all over in india.We are supplying the fruits to juice factory also.Iam running my business successfully for past 8 years.Now i want export the fruits to foreign countries.
    Please kindly provide the business loan and how can i apply for this.
    Thanks in Advance,
    S.SENTHIL KUMAR.

  5. Dear Sir/Madam,
    i did ‘B.Tech in Hotel Management’ from Nagpur passed out in year 2006. i do have work experience of 3 years in hotel industry.
    now i want to start/run my own hotel(restaurant),
    kindly know me the procedure for business loan so that i can proceed.
    i will be greatful to you for giving me the detail of all the procedure and documentation so that i can avail the business loan.

    regards,
    Manmeet Singh.

  6. Dear Sir/Madame,
    I am a trader ,I deal in commodity (rice).I need Business loan for future trading.
    Need your guidance.Expecting your reply as soon as possible.
    Thanks & Regards
    Nitin

  7. Dear Sir/Madam,

    Iam beautician, 1 need to start a own beauty partlour.
    How can i apply loan for this.

    Thanks in Advance

  8. Dear Sir/Madam
    I am completed my M.B.A. on june 2009
    I want to start a old plastic chip company.
    so i want loan fro Sbi or Andhra Bank.
    How to i get loan from these Banks.
    I will be greatful to you for giving me the detail of all the procedure and documentation so that ican avail the business loan.

    Thanks & regards
    Raju.

  9. Dear Sir/Madam,
    I am working in a BPO in night shifts. I planning to start a supermarket in our area. As people has to go little while from our area to Supermarket. I request you to provide me the details to avail a loan.
    Regards,
    Shymala Devi
    Chennai
    Tamilnadu

  10. Hi ,I want to start up my beauty parlour or fashion boutique and want to have a loan in women self employment scheme.how can i avail it.

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