SME OPEN TERM LOAN

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SME OPEN TERM LOAN
  • Features
  • Eligibility
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Purpose : Any genuine commercial purposes in the same line of activity, with regular business, of the customer. These would include:

  • Up gradation of technology, Expansion and modernization.
  • Substitution of high cost debts/high cost term debts of other banks/FIs
  • Design and introduction of new-layouts in the factory to enhance productivity
  • Energy conservation / efficiency schemes/ machinery, Solar Rooftop etc.
  • Financing to export oriented manufacturing units to enhance their capacity.
  • Acquisition of hardware, consumable tools, jigs, fixtures, vehicles, equipment, furniture upholstery.

The above list is only illustrative. Loans for any legitimate requirement connected with the business activity of the applicant borrower (s) should be considered.

Features

  • Target Group : All units under manufacturing sector and;
    Under Service Sector: Healthcare Industry (Hospitals, Doctors, Pathological Labs and Nursing Home), Hospitality Industry Hotels, Restaurants, etc), and Transport operators with minimum 25 vehicles
  • Facilities Available :  Term Loan
  • Quantum of loan : 
    • Both manufacturing and services sector enterprises: 25% of total limit sanctioned with a minimum of Rs 25.00 lakhs and maximum of Rs. 10.00 crores
    • (For expansion, modernization, technology up-gradation and for the purpose of creation of tangible assets only).
  • Pricing : 
    • Attractive Interest rates based on rating of the Borrower/ External Rating or as per Scheme Specific Rating (if applicable) or as per extant guidelines of the Bank. EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) & 6 months MCLR linked (for Non-MSMEs)
  • Borrower’s Margin / Contribution : 25%
  • Repayment Period : Maximum up to 8 years (including moratorium period). Interest has to be serviced as and when applied.
  • Processing Fee/ Upfront Fee : Up to 1.40% of the loan amount
  • Other Charges: As per Bank Guidelines which will be appraised to the borrower before sanction of loans
  • Special Feature
    • The product will be extended to existing customers of the Bank. Non-customers /Units not having borrowing arrangements with SBI shall not be eligible.

Eligibility

  • The product will be extended to existing customers having CRA rating up to SB-6/ CUE-6 and better or ECR of BBB (if available) and above.
  • However, in respect of customer banking with us for more than 5 years with satisfactory track record, i.e. the account has not slipped to category SMA-1 and below in the previous 12 months (irregular for 31 to 60 days) will also be eligible for finance under SME Open Term Loan subjected to 2) CRA rating of SB-8 / CUE-8 & better or ii) ECR of BB & above.

Non-customers /Units not having borrowing arrangements with us shall not be eligible. 


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Last Updated On : Friday, 09-02-2024

Interest Rates

8.50%* p.a. onwards

w.e.f. 05.04.2024

*T&C Apply.

 

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