Any person aspiring to start a business or any individual who wants to expand their business requires funds. Individuals and entrepreneurs take loans at a previously agreed rate of interest. SBI offers loans to self-employed businessmen for financing the expansion or working capital requirements of their business.

SBI provides loans to self-employed business owners to fund business expansion or working capital requirements.

There are various advantages of taking a loan from SBI:

• You can prepay a portion of your loan at any time after paying 1% in prepayment fees.
• You can dispose of your complete
• Business loan anytime after.
• Paying 6 EMIs at foreclosure charges – 3%.
• Customers have rated SBI’s service quality at 4.0/5.0.
• SBI has approximately 22,405 branches in India where you can get service.

Factors into which SBI bank determines your interest rate.

Some of these criteria include:

• Loan amount: The larger the loan amount, the lower the interest rate. The bank provides a loan up to ₹500 crore. High loan amounts may result in cheaper interest rates and EMIs.
• CIBIL Score: SBI lends at a higher interest rate if your CIBIL score is low. However, in order to qualify for a loan from SBI, your CIBIL score must be at least 700. The higher the CIBIL score, the greater the likelihood of obtaining a loan with the lowest business loan interest rate.
• Time in Business: If you have extensive business expertise, SBI will provide you loans at a cheaper interest rate. SBI loans require a minimum of 36 months of firm operation.

Business Loan Eligibility Criteria for State Bank of India (SBI)

• Self-employed persons, proprietors, private limited companies, and partnership firms engaged in the business of manufacturing, trading, or services.
• Individuals who have been in their current business for at least three years.
• The firm should have a minimum annual income (ITR) of Rs. 1.5 lakhs per year.
• The applicant should be at least 21 years old and no older than 65 when the loan matures.