Last updated: February 26th, 2020 5:24 PM

Loan for Shop from SBI

State Bank of India (SBI) offers a loan scheme for present and prospective owners of shops or offices or show-rooms or service centres to avail a loan for the purchase of shop premises or furniture or modernization of existing premises. State Bank of India is India's largest bank with over 200 years of history with the highest amount of assets, deposits, profits, branches, customers and employees. SBI is the only Indian Bank to be featured in Fortune Global 500 list of companies in 2011 and is ranked 61st in the list of Top 1000 Banks in the World by 'The Banker' as on July 2011.

Eligibility

A person can avail the SBI loan for setting up of shop or office in present and prospective owners of shops, offices, showrooms, training centres, service centres, garages, Chartered Accountants, Company Secretaries, Consultants and other professionals. The scheme can also be extended for services such as travel agencies, caterers, hotels, eateries, beauty salons, etc. The applicant could be an individual, firm, partnership, trust, franchisee, company or LLP. The purpose of using the loan amount for the following purposes: • Purchase of new/old shops/establishments/offices. • Modernization/expansion of establishments/shops, etc. • All furniture/fixtures, electrical fittings and other accessories required for shops/showrooms/offices.

Nature of Loan

The SBI provides loan for shops and offices as a term loan for a quantum of upto Rs.20 lakhs. Promoters require to contribute margin of upto 25%, in case of purchase of new property and margin of upto 40% in case of purchase of the old property. The interest rate for the loan is floating based on the Base rate of the Bank. A person can avail the repayment tenure of upto 7 years including moratorium period of 6 months under the scheme. The asset purchased must be pledged to the bank under hypothecation/pledge/mortgage/assignment of the assets. Further, all assets for the loan must insure for the full value of the loan until repayment.