This scheme is launched by SBI to provide hassle free loan to Traders. Any business man/ entrepreneur/ Professional and self employed person can avail this loan. Loan under the scheme can be availed to meet normal business requirements and is sanctioned against equitable mortgage of property. Any residential or commercial property in the name of unit/ proprietor/partner OR their close relatives is acceptable. Agriculture property or property outside urban limits is not accepted.

The advance can be availed by way of Loan or Cash Credit limit. It can also be availed for Non Fund Based requirements (for issuance of Bank guarantees or LCs). Cash Credit limit or non fund based limit is renewable every 12 mths.Loan can be repaid in monthly or quarterly, even half yearly installments - as may be suitable to the borrower – in a period upto 5 years.

Minimum and maximum amount of loan is Rs 25,000/- and Rs 5.00 Crore. Margin is 35%. i.e. loan can be upto 65% of the realizable value of the property or the business requirement- whichever is less. Business requirement is assessed on the basis of projected business turnover. Interest at floating rate is charged at monthly intervals on daily reducing balance.

No Third party guarantee is required to avail the loan.

Retail Trade
The Bank finances Small Business activities that can be started with relatively lower investment and with no special skills on the part of the entrepreneurs.

In this category, the SBI extends loans to retail traders who act as a vital link between the manufacturers of goods or commodities and the consumer.

The bank offers working capital products as well as loans for purchase, renovation and repairing of equipment.

Retail trade finance is normally capped at Rs 5 lakh. Any individual or a firm (partnership or proprietorship) engaged primarily in buying and selling mercantile goods is eligible for this mode of finance.

For requirements up to Rs 25,000, no margins are involved. For needs ranging from Rs 25,000 to Rs 50,000, the margin is set at 20 per cent. In other words, the quantum of the loan will be restricted to 80 per cent of the unit's expenditure. For fund needs above Rs 50,000, a 25 per cent margin may be applied.

Security

	Primary	Collateral
Loan upto Rs.25000/-	Charge over the assets purchased out of Banks finance	Nil
Above Rs.25,000/-	Charge over the assets purchased out of Banks finance	Charge Over the immovable/movable assets/third party guarantee as per RBI guidelines

Flexi Loan
Eligibility

Should have earned a pre-tax profits in each of the immediately preceding 3 years
The trader should be well established and should have a proven record of profitability

Purpose
The loan can be considered for any general purposes like

Holding of stocks/book debts
Acquisition of land and building
Building construction/up gradation and renovation of offices, showrooms, godowns etc
Substitution of high cost debt
Shoring of networking capital
Computerization expenditure

Nature of facility
Term loan

Margin
20%

Tenure of Loan
3 to 5 years. Repayment to be made in monthly, quarterly installments as per the normal cash generation cycle.

Primary security
Hypothecation charge over the Current Assets and Fixed assets. Where finance is extended for acquisition of land and building, building construction, up gradation and renovation of offices, showrooms and godowns etc. equitable mortgage of relative fixed assets will be considered as the primary security.

Collateral security
Tangible security such as immovable property, bank deposits, NSC, RBI relief bonds etc to the extent of a minimum of 100% of the limits sanctioned personal guarantees of proprietor/partners/promoters to be invariably obtained.

Loan amount
Min Rs. 1 lakh
Max Rs. 10 lakhs

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