SBI SME Credit Card Loan Scheme

SBI has a good loan scheme, which is SME Credit Card Loan Scheme perhaps, the least publicised scheme in the credit card sector of SBI SME. It gives upto 10 lakhs under CGTMS and collateral free. This product is good for the units unable to provide elaborate financial data sought by banks for assessing credit needs.

Eligibility for SME Credit Card Loan

Customers of the following segment with satisfactory track record for last 2 years.

  1. Small industrial units
  2. Tiny units
  3. Small village industries
  4. Small retail traders
  5. Professionals & self employed
  6. Small business enterprises
  7. Transport operators located in metro, urban, semi urban or rural areas
  8. Eligibility will be void if customer holds any other SBI credit card like KCC, KGC

Purpose of SME Credit Card Loan

To meet any kind of credit requirements including purchase of shops, equipments. This product targets small enterprises that require working capital and term loan for the purchase of shops, equipments, other requirements but unable to provide elaborate financial data to bank.

Main Criteria and Features for SME Credit Card Loan

  1. Type of Facility: Cash Credit and / or Term Loan
  2. Loan Amount: Maximum - Rs. 10 lacs
  3. Margin Money: 20%
  4. Rate of Interest: Floating and linked to Base Rate*
  5. Repayment Period:

    1. Term loan repayable in maximum 5 years in suitable installments
    2. Working capital loan sanction valid for 3 years with annual review subject to satisfactory conduct of loan accounts
  6. Security:

    1. Primary: Hypothecation of stock in trade, receivables, machinery, office equipment
    2. Collateral: Nil (Eligible activities may be covered under CGTMSE guarantee scheme)
  7. Insurance: The assets created out of Bank’s finance are to be insured for the full value

Other Terms of SBI SME Credit Card Loan Scheme

  1. Stock statements for working capital loans are to be submitted once in a year only
  2. Working capital sanctioned is valid for 3 years subject to annual review.
  3. The Term Loan component should be repayable in a maximum of 5 years in suitable instalments.
  4. The bank has designed this product comprising of a photo identity card and a passbook giving details of the limit and validity of the facility.
  5. A cheque book marked as SME Credit Card and a pass book would be issued to the customer.