Category Archives: Credit Cards

SBI SME Credit Card – Eligibility, Interest Rates, Documents, Fee

SBI SME Credit Card – A person at Small and Medium Enterprise always wear lots of hats. But the time comes when the workload wears you out. This is when you may require more hands at work and for that, you might need extra funds. That’s where SBI business credit card comes at play.

Be it purchase of land or any machinery; business credit card acts as a treasury. You can track it, spend as per your requirement or invest in any fixed asset. SBI SME credit card lures you with its attractive interest rates and extended repayment period of cash credit/term loan facility.

Let’s have a look how to get SBI SME credit card:

Why SME (Small and Medium Enterprise) Credit Card?

To fulfil credit requirement such as the purchase of inventory, maintain cash flow, purchase shop, equipment etc.

Who is Eligible for SME Credit Card?

An individual who has a good track of last 2 years in one of the following industry:

  • Small Scale Industry units
  • Village units
  • Retail traders
  • Self-employed
  • Professional
  • Transport operator
  • Small business enterprises etc

Under SBCC, term loan can be sanctioned to purchase shop under small business enterprise.

What is the Rate of Interest?

  • MCLR + 2.50% p.a.
Tenor Existing MCLR (%) Revised MCLR (%)
Over night 8.15 8.20
1 month 8.15 8.20
3 month 8.20 8.25
6 month 8.35 8.40
1 year 8.50 8.55
2 year 8.60 8.65
3 year 8.70 8.75

What is the Loan Limit?

  • Up to ₹10 Lakh

What is the Margin?

The loan limit can be bifurcated into two segments:

  • Up to ₹25,000: No margin
  • Above ₹25,000: 20%

What is the Repayment Period?

  • Term Loan: 5 years (excluding moratorium not more than 6 months)
  • Working Capital Loan: 2 years (after reviewing annual performance)

What is the Processing Fee?

  • As per Small Scale Industry (SSI)/Small Business Financing (SBF) norms.

What is the Collateral Security*?

  • For SSI, no collateral is required (To be covered under CGTMSE)
  • For SBF, loans above ₹25,000 charge over movable/immovable property/third party guarantee.

*All loans that are eligible for guarantee cover under credit guarantee scheme of CGTMSE should be invariably covered under the scheme.