Under SBI Small Business Finance, the SBI extends loans to transport operators in different forms. The bank offers working capital products as well as term loans for purchase of vehicles. The bank finances up to 10 vehicles irrespective of the loan amount. All transport operators whether individuals or associations of not more than six persons are eligible for SBI Small Business Finance - Transport Operators mode of finance.
For requirements up to Rs 25,000, no margins are involved. For needs above Rs 25,000, the margin may range from 15 per cent to 25 per cent.
- Loan upto Rs.25,000:
- Primary security: Charge over the assets purchased out of Banks finance.
- Collateral Security: Nil
- Loan Above Rs.25,000:
- Primary Security: Charge over the assets purchased out of Banks finance.
- Collateral Securtity: Charge over the immovable/movable assets/third party guarantee as per RBI guidelines.