SBI SME Open Term Loan, the easy and hassle-free way to get finance for expansion or modernization of existing business, acquiring new technical know-how including international standards like ISO, participating international exhibitions conducted in abroad are the main utilization of Open Term Loan. SME Open Term Loan to be one of the must have loan facility for each and every existing SME Borrowers.
Features of SBI SME Open term Loan
Hassle free pre-approved line of credit; Max Loan Amount upto Rs. 250 lakhs for Manufacturing and Rs. 100 lakhs for Trade and Services; Validity of sanction - 12 months; Freedom to avail the facility at your own convenience, within the validity of sanction; Multiple disbursements allowed; No penalty on the unutilized amount even if completely unutilized.
Purpose of SBI SME Open Term Loan
The loan can be utilized for any genuine commercial purposes in line with the regular business activity of the customer. These would include term loans for:
- Expansion and modernization.
- Substitution of high cost debts / high cost term debts of other banks / Financial Institutions.
- Design and introduction of new layouts in the factory to enhance productivity.
- Up gradation of technology& energy conservation schemes / machinery.
- Acquisition of software, hardware, consumable tools, jigs, fixtures etc.
- Acquisitions of ISO & other similar certifications.
- Visits abroad for acquiring technology, finalizing business deals, participating in exhibitions/ fairs for market promotion etc.
Ideally SME units should apply for Open Term Loans along with their renewal requests for working capital facilities, so that the appraisal can be done simultaneously and line of credit made available for an entire year.