SBI SME Loan For Restaurant Owners

Loans to the Owners of Restaurants and Fast food chains for purchase of kitchen equipments, investment in interior decoration, purchase of furniture and fixtures, purchase of land and construction of buildings etc. The loans are repayable in maximum period of 7 years. Simple sanction process.

SBI SME Loan For Restaurant Owners

Eligibility for Restaurant Loan

Individuals / partnership firms / corporate / trusts

Purpose of Restaurant Loan

  • For purchase of Kitchen equipment
  • For investment in Interior decoration
  • For purchase of furniture and fixtures
  • For purchase of land and construction of buildings

Type of facilities

Term Loan or overdraft

Quantum of Finance:

Investment in the Restaurant for the aforementioned purposes less margin / promoters contribution whichever is lower.

Margin

25%

Rate of Interest Restaurant Finance

Interest is floating and linked to Base Rate*.

Repayment

Repayment period of up to 7 years when land and building cost included in loan, otherwise 5 years.

Security for Restaurant Finance

  • Primary: Hypothecation/ Pledge of the assets financed by the Bank.
  • Collateral:
    • Personal guarantees of proprietors / partners / promoters
    • Extension of charge over current assets, Fixed assets and otherexisting collateral if any
    • Additional tangible security such as immovable property, bank deposits, etc.
  • Loans upto Rs.25 lacs are to be covered under CGTMSE scheme. Further eligible loans above Rs.25 lacs upto Rs.1 crore may be covered under CGTMSE guarantee scheme.

Insurance

The assets created out of Bank’s finance are to be insured for the full value.

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