SBI Asset Backed Loan (SBI ABL)

Asset Backed Loan (ABL) against immovable assets or Mortgage of property brings business people a great flexibility showing they are not dependent to any other intermediaries. SBI caters asset backed loan facility to businesses units doing trading, manufacturing and services sectors.

Facility of SBI Asset Backed Loan

Hassle free business loan against mortgage of property to Business Units engaged in the Trading, Manufacturing and Services with finance upto Rs. 20 Crores (more available case to case), and repayment tenure upto 180 months. Only fund based facility in the form of Drop line Overdraft is available for buildup of current assets and fixed assets needed for business purpose, capacity expansion, modernization and short term working capital including shoring up of NWC.

Purpose of SBI Asset Backed Loan

Loan for all business purpose like working capital requirement, purchasing of fixed assets, capacity expansion/ modernization / technology up-gradation / R&D / shoring of NWC or any other short term requirement.

Special Features of SBI Asset Backed Loan

  1. Loan upto 60% of the value of property (LTV) for upto 10 crore and LTV may be reduced to 50% if loan amount goes above 10 crore upto 20 crore.
  2. Drop-line overdraft facility.
  3. SME Insta-Deposit Card and SBI Business Debit Card free of cost.
  4. Free Cash pick up facility
  5. Moratorium period will be available, provided maximum tenor does not exceed 96months.
  6. 2% of the limit will be charged as pre-payment penalty.
  7. Earnings Credit Rate (ECR) will be considered only for loan sanctioning above Rs. 10 Crores.
  8. Only 1% penalty charged on the entire outstanding if overdue more than 30 days.
  9. SBI Asset Backed Loan (SBI ABL) can be availed to all business who engaged in manufacturing and service activities covered under MSMED Act 2006, wholesale / retail trade and Professional & Self employed.
  10. Repayment period is 96 months. However, based on requirement the limit may be restored to original limit.
  11. Processing / upfront fee of 1% of the limits will be collected at the time of sanction, subject to a maximum of Rs.5 lakhs.
  12. Loan can be sanctioned by way of takeover from other banks.

Documents Required for SBI Asset Backed Loan (SBI ABL)

  1. If Partnership Firm: Partnership deed
  2. If Trust: Trust deed
  3. If Society: By laws of Society, Registration Certificate from the Registrar of Societies
  4. If Private Ltd. Company:  Certificate of Incorporation / memorandum and Articles of Association
  5. If Public Ltd. Company: Certificate of Incorporation / Memorandum and Articles of Association, Certificate of commencement of business.
  6. Audited balance sheet of the last three year.
  7. Brief detail of Proprietor / Partners / Promoters / Directors.
  8. KYC documents for promoters / units
  9. Copy of IT Returns of promoters / Firm for the last three years.
  10. Copies of license, permission approval by regulatory authority, where applicable
  11. Availability of utilities like power etc.
  12. Pollution control clearance, if necessary.
  13. Details of collateral security (including third party guarantee proposed to be offered.
  14. Signed statement of Assets and liability from proprietor / partner guarantors.
  15. Copies of other Bank’s sanction letter and statement of accounts (last 6 months).
  16. Copy of the title deeds of the Factory / Shop/ Godown/ collateral security.
  17. Details of the capital expenditure, if Term Loan is applied.
  18. Cheque for processing and fees to be paid for Valuation & Title search reports on property(ies) offered as collateral, ROC search (for companies).