1. COMMODITY BACKED WAREHOUSE
RECEIPT FINANCING
Purpose:
To finance traders/owners of goods against warehouse
receipts of warehouses managed by Central
Warehousing Corporations/ State Warehousing
Corporation and warehouse accredited by MCX by way
of Demand Loan/Cash Credit
Eligibility:
Any trader dealing in commodities
Eligible Amount of Finance:
Demand Loan: 75 % of the value of the warehouse
receipt, valued at the market value OR
80% of the minimum support price declared by
State/Central Government
Whichever is lower.
Cash Credit: 70 % of the value of the warehouse receipt,
valued at the market value OR
75% of the minimum support price declared by
State/Central Government, whichever is lower
Processing charges:
Cash Credit: Rs.300/- per lac for the facility sanctioned
Demand Loan: Nil where loan is sanctioned and
disbursed Rs. 300 per lac in case the loan is sanctioned
but the borrower does not avail.
Margin:
Demand Loan: 25% (minimum) of the value of the
warehouse receipt, valued at the market value OR
20% (minimum) of the minimum support price declared
by State/Central Government, whichever is higher
Cash Credit: 30% (minimum) of the value of the
warehouse receipt, valued at the market value OR
25% (minimum) of the minimum support price declared
by State/Central Government, whichever is higher
Insurance:
Comprehensive Insurance
Insurance cost to be borne by the warehouse receipt
owner.
Security:
Primary
Charge over warehouse receipt (resulting in charge over
underlying goods), with lien marked in favour of the
bank.
Collateral
Personal guarantee of partners or directors as the case
may be.
Repayment:
Demand Loan: The loan should be liquidated as and
when the produce is sold during the interim period not
exceeding 12 months.
Cash Credit: Repayable on demand. To be brought to
credit balance and DP made Nil/reduced when the
quality certificate expires.
Others:
a) The Warehouse receipt should be duly marked lien
in favour of the bank
b) The Branch should verify the authenticity of the
warehouse receipt and get its lien noted with the
warehouse before disbursal of the demand loan/ CC
facility.
c) The margin shall be topped up on a fortnightly
basis. However, it should be topped up immediately in
case the price of commodity moves by more than 10%,
in opposite direction, since last top up.
d) CC Limits and operating account will be different
for different commodities handled by the same
trader/customer. Interchangeability in limits can be
offered, if required.
SURABHI DEPOSIT SCHEME
SBI- SURABHI DEPOSIT -A new Savings Bank /
Current Account product,introduced by L&TP
Department of SMEBU, launched at all the Core
Banking Branches of the Bank to cover non-individual
customers like Corporates, Institutions, Trusts, PF
Funds etc who have surplus funds for investments,
but at the same time need the convenience of
liquidity. This is a value added savings Bank account
(for those who are permitted to open SB
account)/current account with sweep and reverse
sweep option.
o Surplus funds over athreshold limit (Minimum
– Rs. 50,000/-) with an initial deposit of
Rs.10,000/- and in multiples of Rs.1,000/- in
any one instance, is automatically swept
(auto-sweep)to CLTD (Corporate Liquid Term
Deposit)
o Customer has the flexibility to choose the
period of deposit from 1 year to 3 years.
o Rate of Interest for CLTD will be the card rate
applicable for the contracted tenure of the
deposit.No differential rate of interest is
applicable.
o Minimum Amount of deposit to be maintained
for Current Account is Rs.10,000/- and for SB
account is Rs.1000/-

2. o Whenever any cheque is presented by the
customer, in case of inadequate balance in the
savings / current account for payment of the
cheque, the shortfall amount is broken in ‘last
in first out’ basis from the CLTD and the
cheque is honoured, without any hassle to the
customer, through reverse sweep facility. At
present this is available only for withdrawal
through cheques, later the facility will be
available for withdrawal through ATM cards
also.
o No Loan /Overdraft Facility is available under
the Scheme.
o Rules applicable for premature withdrawal for
fixed deposit are applicable for the part
amount of deposit broken for withdrawal,
through reverse sweep.
o Usual formalities applicable for opening SB
accounts/Current accounts, including KYC
procedure, are applicable for opening accounts
under the Scheme.
DEBT RESTRUCTURING MECHANISM
Debt Restructuring Mechanism for Small and
Medium Enterprises (SME)
Salient Features of the Scheme:
i.
Eligibility:
The following entities, which are viable or
potentially viable:
a) All non-corporate SMEs banking with us
irrespective of the level of dues.
b) All corporate SMEs, which are enjoying
banking facilities only from our bank,
irrespective of the level of the dues to the bank.
c) All corporate SMEs, which have funded and
non-funded outstandings up to Rs. 10 crores
under multiple/consortium banking
arrangement.
d) In respect of BIFR cases, branches will
ensure completion of all formalities in seeking
approval from BIFR before implementing the
package.
e) Wilful defaulters, in exceptional cases, will be
considered as advised in para II below.
Exclusions:
• Accounts involving fraud and malfeasance or
diversion of funds with malafide intent will not
be eligible for restructuring under these
guidelines.
• Accounts classified by our Bank as “Loss
Assets” will not be eligible for restructuring.
ii.
Wilful Defaulters:
RBI has advised that 'While Corporates indulging
in frauds and malfeasance will continue to
remain ineligible for restructuring under the
Debt Restructuring Mechanism for SMEs as
hitherto, banks may review the reasons for
classification of the borrower as wilful defaulter
specially in old cases where the manner of
classification of a borrower as a wilful defaulter
was not transparent and satisfy itself that the
borrower is in a position to rectify the wilful
default provided he is granted an opportunity
under the Debt Restructuring Mechanism for
SMEs. Such exceptional cases may be admitted
for restructuring with the approval of the Board
of Directors of the Bank only.’
iii.
Viability Criteria:
The unit must become viable in 7 years and the
repayment period for restructured debt will not
exceed 10 years. For the purpose, all eligible
units will comply with the following:
(i) Debt Service Coverage Ratio: Should have
average DSCR of more than 1.25 and more
than 1.00 in any year
(ii) The breakeven analysis should be carried
out, and operating and cash break even points
should be worked out
(iii) The company's past performance for 3-5
years and future projections for the period of
proposed repayment would be examined.
(iv) Promoters' sacrifice and additional funds
brought by them should be a minimum of 15%
of creditor's sacrifice.
iv.
Procedure:
i. The borrowers shall submit a request to the
Branch/Small & Medium Enterprises City Credit
Centre (SMECCC)/Stressed Assets Resolution
centre(SARC) for restructuring his account in
terms of Debt restructuring Scheme for SMEs.
ii. In cases of eligible SMEs which are under
consortium / multiple banking arrangement the
borrower will submit his request to the Bank
having the maximum outstanding. However, the
restructuring package will be worked out with
the consent of the bank having the second
largest share.
iii. After receipt of sanctions, the
branch/SMECCC/SARC will complete
documentation and implement the restructuring
package.

3. iv. The whole process will have to be completed
within 90 days of the receipt of the application.
v.
Reliefs and Concessions:
The concessionary interest rate structure
applicable to debt restructuring package will be
as under:
Relief
measure
The
benchmark
interestrate
as
prescribed
by RBI
Minimum
rates
ofinterest
proposed for
restructuring
Funding of
unpaid
interest to
be
converted
into FITL
1.5% below
SBAR
3% below
SBAR
Conversion
of irregular
portion of
cash credit
account into
WCTL
1.5% below
SBAR
2% below
SBAR
Funding of
cash loss till
breakeven
level
1.5% below
SBAR
2% below
SBAR
Margin
money for
working
capital and
funds for
start up
expenses
1.5% below
SBAR
2% below
SBAR
Further, the additional working capital / term
finance, if any, will be provided at PLR as
prescribed by RBI for normal restructuring
schemes.
TRADERS EASY LOAN SCHEME
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.
Frequently asked Questions
1. What is this Scheme?
The Scheme is to provide loan to the Traders/
professionals/ entrepreneurs etc for their business
needs on easy terms against property.
2. Who can take this loan?
Any business man/ entrepreneur/ Professional
and self employed person can take loan under the
scheme
3. What is the amount of loan?
The amount of loan is Minimum Rs 25,000/-and
Maximum Rs 5.00 Crore
4 What type of property is accepted?
Any residential or commercial property in the
name of unit/ proprietor/partner OR their close
relatives is accepted. Agriculture property or
property outside urban limits is not accepted
5 What is the margin? How much loan is given?
The Margin is 35%. i.e. loan can be upto 65%
of the realizable value of the property. However,
if business requirements are less, the lower of the
two amounts will be sanctioned.
6 How is business requirement calculated?
It is based on projected business turnover.
7 What is the interest rate? Is it floating or fixed
rate?
The interest rate in linked to SBAR. It would
increase/ decease with changes in SBAR (floating
rate). For cash credit it is 0.25% below SBAR and
for loans 0.25% above SBAR. Presently it is 13%

4. for term loan and 12.50% for the Cash Credit
limit based on present SBAR of 12.75%
8 What is the method of calculating interest?
Interest is calculated and applied monthly
on daily reducing balance
9 Can I get Cash Credit limit also? Can I get
Guarantee/ LC limits also?
Yes.
10 Is there any processing charges?
Yes.1% of the loan amount.
11 What is the repayment period?
In case of Cash Credit it is reviewed by the
Bank every 12 mths.Loan is to be repaid in
maximum 5 yrs.
12 Whether repayment is monthly or quarterly
It can be monthly, quarterly, even half yearly
depending upon the requirement of the borrower.
13 Is there any guarantor required for the loan?
NO. If property is owned by somebody else,
than only owners’ guarantee is required.
14 Whether I will have to take insurance of the
property?
Yes.
15 I have a loan account with other bank. Can I shift
this to SBI under this scheme?
Yes.
16 What documents I would have to submit
Usual documents for identification and copy of
the latest balance sheet, last income tax return
etc and Advocate’s search report, title certificate
and valuation certificate of the property that are
normally required for creation of mortgage.
GENERAL PURPOSE TERM LOANS
State Bank of India grants term loans to small scale
industries for meeting general commercial purposes
like substitution of high cost debt,research and
development, shoring up net worth and funding
business expansion.
The tenor of the loan is normally is 3 years, and
the pricing is fine-tuned to suit the risk profile of the
borrower. The repayment is structured in
monthly or quarterly installments, according to the
cash generation cycle.
FAQs
What are the eligibility criteria for these term
loans?
The SSI unit that takes the loan should not have any
history of defaults in payment of interest or
installments of the principal. The unit should have a
strong performance record and a respectable credit
rating as per the bank’s own credit assessment scales
( In case of loan above Rs. 25 lakhs ) .
What is the type of security/guarantee required
for the loan?
Extension of hypothecation charge over the current
assets and fixed assets is required as primary
security. Further, the borrower whose aggregate
loans with the Bank exceed Rs 5 lakh may explore
the possibility of collateralizing tangible security such
as immovable property and third party guarantee. In
all cases, personal guarantees of
proprietors/partners/promoters have to be furnished.
What are the margins applicable?
A minimum margin of 25 per cent is applicable for
acquisition of land and building, building construction,
renovation of offices, showrooms, godowns, purchase
of equipment, vehicles etc. In other words, the
quantum of the loan will be restricted to 75 per cent
of the total expenditure.
LIBERALIZED CREDIT FOR SSI
State Bank of India extends production-linked
credit facilities to small-scale industries, ancillary
industrial units and village and cottage industrial
units on liberal terms and conditions.
Under this scheme, the quantum of advances is
not linked to the security furnished, but the
genuine requirements of the unit.
The pricing of the loan is based on credit
assessment, and the units with strong ratings may
be given finer rates.
No collateral security is required for loans up to Rs
5 lakh. Composite term loans can be sanctioned up
to Rs 25 lakh combining term loan and working
capital.
FAQs
Q. What are the types of financial assistance
under the Liberalized scheme?
A. The Liberalized scheme offers a range of
financial products including the following:
1. Term loans for acquisition of fixed assets
2. Working capital loans financing current

5. assets
3. Letter of credit for acquisition of machinery
and purchase of raw materials
4. Bank guarantee in lieu of security deposits
to be made with government
department/other departments for
execution of orders.
5. Deferred payment guarantees for purchase
of machinery on deferred payment basis.
6. Bill facility for purchase of raw materials
and for sale of finished goods.
7. Composite loans (term loans plus working
capital) up to Rs 25 lakh.
Q.What are the margins applicable?
A. For requirements up to Rs 25,000, no margins
are involved. For limits ranging from Rs 25,000 to
Rs 5 crore, the margin is set at 20 per cent.
For credit limits above Rs 5 crore, a 25 per cent
margin may be applied.
ENTREPRENEUR SCHEME
State Bank of India grants financial assistance to
technically qualified, trained and experienced
entrepreneurs for setting up new viable industrial
projects.
Loans are extended to technocrats who are unable to
meet the normal margin requirements under the
liberalized schemes.
FAQs
Q. What are the eligibility criteria for the
Entrepreneur scheme?
A.The borrower has to be a technically qualified
person (a degree/diploma holder in engineering or
technology), a craftsman with adequate experience
or training or a person possessing a degree in
business or industrial management, a chartered
accountant or a cost accountant with relevant
experience.
Q. What are the types of financial assistance
under the Entrepreneur scheme?
A. The bank provides:
 term loans,
 working capital and
 equity fund finance
Q.What are the margins applicable?
A. For requirements up to Rs 5 lakh, no margins are
involved. For needs ranging from Rs 5 lakh to Rs 20
lakh, the margin is set at 10 per cent.
EQUITY FUND SCHEME
Under the Equity Fund scheme, the SBI grants
financial assistance to entrepreneurs who are not
able to meet their share of equity fully, by way of
interest-free loans repayable over a long period.
This type of assistance fills in the gap between the
margin requirements in the project and the capital
contributed by the promoter. The Equity Fund
assistance can be normally repaid over 5 to 7
years after the moratorium period.
FAQs
Q. What are the eligibility criteria for the Equity
Fund scheme?
A. The bank extends Equity Fund assistance only to
new projects, which are also eligible for the SBI’s
Liberalized scheme and the Entrepreneur scheme.
The project cost has to be more than Rs 25,000.
Q. What type of security is required for the
equity fund assistance?
A. Security available for other loans should be
extended to cover equity assistance also.
STREE SHAKTI PACKAGE
The Stree Shakti Package is a unique scheme run by
the SBI, aimed at supporting entrepreneurship
among women by providing certain concessions. An
enterprise should have more than 50% of its share
capital owned by women to qualify for the scheme.
The concessions offered under the Stree Shakti
Package are:
1. The margin will be lowered by 5% as
applicable to separate categories.
2. The interest rate will be lowered by 0.5% in
case the loan exceeds Rs 2 lakh.
3. No security is required for loans up to Rs 5
lakh in case of tiny sector units.
SME OPEN TERM LOAN
Nature of Facility:
 The product is a pre-approved term loan facility
which can be disbursed over a period of 12
months depending on unit’s request.
 The units get comfort of preapproved sanction to
plan their capital expenditure and negotiate with
suppliers of machinery to finalize the best
possible terms and then get the loan disbursed.
Facility available for:
i. All units under manufacturing sector.
ii. Under Service sector: Educational Institution,
Healthcare Industry (Hospital, Doctors,
Pathological Labs, and Nursing Home),
Hospitality Industry (Hotels, Restaurants, and
Health Club etc), and Transport Operators
with minimum 25 vehicles.
Purpose of Loan

6. Any genuine commercial purposes in line with regular
business activity of the customer. These would
include
 Expansion and modernization.
 Substitution of high cost debts/ high cost term
debts of other banks/FIs.
 Design and introduction of new lay-outs in the
factory to enhance productivity.
 Up gradation of technology & energy
conservation schemes/ machinery.
 Acquisition of software, hardware, consumable
tools, jigs, fixtures, vehicles, equipment ,
furniture upholstery etc.
 Acquisitions of ISO & other similar certifications.
 Visits abroad for acquiring technology, finalizing
business deals, participating in exhibitions/ fairs
for market promotion etc.
 R&D activities of the units in overall business
development objective
Loan Amount
Maximum Rs 2.50 crore for both manufacturing and
services enterprises, subject to credit rating and
purpose of the loan.
Margin requirement:
Minimum 10%
Repayment Period
3- 5 years.
Interest Rate
Floating rate linked to Base Rate.
Security
Primary Security: Hypothecation / pledge of the
assets proposed to be purchased out of
the term loan.
Collateral Security: As per Bank’s norms.
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.
PARYATAN PLUS
Target Group
 Individuals, partnerships, Corporates, trusts
 All segments of tourism mainly:
- Hospitality Industry
- Transportation
- Travel agents
- Tour Operators
- Adventure tourism
- Religious tourism
Purpose
 Construction/Renovation/ Modernization/
Expansion of hotels, rest houses, Yatri Niwas
 Construction of office premises, purchase of
office equipment and computers by travel agents/
tour operators.
 Purchase of vehicles (Luxury buses, Coaches,
Cars, Vans) at tourist sites.
 Purchase of house boats and luxury boats
 Setting up of restaurants/ coffee houses/ ice-
cream parlours/ fast food centres, amusement
parks/rope ways, health clubs/ spas, etc.
Type of facilities
 Cash Credit (Hypothecation) for Working Capital
 Term Loan
 Letter of Credit/ Guarantee
Quantum of finance
 Minimum Rs.2 lacs
Margin
 Minimum 20%
Rate of Interest
 Interest is floating and linked to Base Rate*.
* Subject to change.
Insurance

7.  The assets created out of Bank’s finance are to
be insured for the full value.
Security
 Primary- Hypothecation of assets financed by
Bank
 Collateral- Tangible Collateral in the form of
immovable property, TDRs, NSCs, KVPs, LIC
policies etc equivalent to 50% of the total loan
amount may be obtained.
 Loans upto Rs.25 lacs are to be covered under
CGTMSE scheme. Further loans above Rs.25 lacs
upto Rs.1 crore may be covered under CGTMSE at
the discretion of the Bank. CGTMSE fees to be
borne by the borrower.
Processing Charges/ Upfront fee
 For Term Loan: Upfront fee ranges from 1.00%
to 1.50% of the loan amount.
TRANSPORT OPERATORS
Under small business finance, the SBI extends
loans to transport operators in different forms. The
bank offers working capital products as well as
term loans for purchase of vehicles. The bank
finances up to 10 vehicles irrespective of the loan
amount.
All transport operators whether individuals or
associations of not more than six persons are
eligible for this mode of finance.
For requirements up to Rs 25,000, no margins are
involved. For needs above Rs 25,000, the margin
may range from 15 per cent to 25 per cent.
Security
Primary Collateral
Loan upto
Rs.25000/-
Charge over
the assets
purchased out
of Banks
finance.
Nil
Above
Rs.25,000/-
Charge over
the assests
purchased out
of Banks
finance.
Charge over the
immovable/movable
assets/third party
guarantee as per
RBI guidelines.
AUTO LOAN
Eligibility
 Maximum age of the proprietor – 60 years
 Minimum of 1 year of existence for
proprietors and three years for corporates
and partnership firms
 Minimum net income of Rs. 1 lakh for last
two years
 Minimum turnover of Rs. 5 lakhs for
proprietorship, 10 lakhs for partnership
and Rs. 6 lakhs for Corporates.
Purpose
 Purchase of new car/ jeep/ MUV of any
model by non individuals
 Proprietors are eligible to purchase old
vehicles (not more than 4 years old)
Nature of facility
Term loans
Margin
 Term loan for new vehicle up to Rs 6
lakhs – 15%
 Term loans over 6 lakhs for old vehicles
up to 2 years – 30%
 Old vehicles of 2 to 4 years – 40%
Tenure of Loan
 Term loan
Repayable in 84 months for new vehicles
Repayable in 60 months for old vehicles up to 2
years old
Repayable in 36 months for vehicles more than 2
years and up to 4 years old
 Short term loan is repayable in 36 monthly
installments (new and up to 2 year old
vehicles only)
Primary security
Hypothecation of the vehicle by noting Banks charge
on in the books of SRTO
Collateral security
Tangible security of borrower or guarantor valued for
not less than 35% of the loan
Post dated cheques to be obtained for the EMIs
Personal guarantees of the MD and other directors in
case of corporates
Loan amount
 2 times the net annul income/annual cash
accruals less repayment obligations
 Maximum of Rs. 2 lakhs in the normal
course for new vehicles
Rate of Interest
SME SEGMENT
Artisan Credit Card
Size of credit limit Interest rate
Upto Rs 50,000 Base Rate + 2.50%
Over Rs 50,000 Base Rate + 3.50%
General Purpose Term Loan for SSI

8. Facility Interest Rate for period
upto 3 years
Working Capital
Loan & Term Loan
(Based on Credit
Risk Assessment
Model)
Ranging from Base Rate+
4.75% to Base Rate +
6.50%
Note: Appropriate tenor premium will be added for
term loans above 3 years.
SME Credit Card
Facility Interest Rate for period
upto 3 years
Working capital
and term loan
Base Rate + 3.25% to Base
Rate + 5.00%
Note: Appropriate tenor premium will be added for
term loans above 3 years
SME Smart Score
Facility Interest Rate for period
upto 3 years
Working capital
and term loan
Base Rate + 2.50% to Base
Rate + 5.00%
Note: Appropriate tenor premium will be added for
term loans above 3 years
SME Open Term Loan (SME OTL)
Facility Interest Rate for period
upto 3 years
Term Loan
(Based on Credit
Risk Assessment
Model)
Base Rate + 4.75% to Base
Rate + 6.50%
Note: Appropriate tenor premium will be added for
term loans above 3 years
Rice Mill Plus
Facility Interest Rate for period
upto 3 years
Working Capital
Loan & Term Loan
(Based on Credit
Risk Assessment
Model)
Ranging from Base Rate+
2.25% to Base Rate + 4.25%
Note: Appropriate tenor premium will be added for
term loans above 3 year
Doctor Plus Scheme
Amount Rate of Interest
Below Rs.25 Lacs Base Rate + 3.25% to
Base Rate + 4.25%
Rs.25 Lacs and above Base Rate + 3.25% to
Base Rate + 4.50%
Transport Plus
Term Loan Base Rate + 4.50%
Cash Credit Base Rate + 5.25%
School Plus
Base Rate + 3.50% to Base Rate + 5.25%
Rent plus
Tenure Rate of Interest
Upto 3 years Base Rate + 4.50%
Above 3 years upto 7
years
Base Rate + 4.75%
Above 7 years upto 10
years
Base Rate + 5.00%
PARYATAN PLUS
Amount Rate of Interest
Below Rs.25 Lacs Base Rate + 3.25% to
Base Rate + 5.00%
Rs.25 Lacs and above Base Rate + 4.25% to
Base Rate + 7.50%
Note: Appropriate tenor premium will be added for
term loans above 3 years
RICE MILLS PLUS
Eligibility
 Profit making existing units with credit rating
SB9 and above,
 Takeover of good units is also permitted,
subject to observance of take-over norms.
 New Units with CRA rating SB7 and above
Purpose
 Acquisition of machinery/factory building for
modernization/expansion,
 Working capital needs.

9. Nature of facility
 Term loans
 Cash credit
 Outward Bill limited
 Letter of credit
 Bank Guarantees,
 SME credit plus.
Margin
 Term loan - 15% - 25%
 Working capitals Stocks:-
 Paddy &Rice - 15%-20%
 Brokens-20%
 Bran-30%
 Gunny bags-40%
Book debts- 40 %( cover period – max.60days)
Margin for book debts can be lowered upto 25%
where adequate collateral is available. A lower
margin of 25% may be approved in deserving cases
by the controlling authority.
Loan amount
 Term loan based on project cost, no upper
ceiling
 Working capital needs, under both mundy type/
hypothecation sub limit covering outward bills
drawn on government departments/FCI/public
sector units may be liberally considered on need
based approach with a cover period upto 60
days.
Primary security
Hypothecation/ pledge over assets created out of
bank finance.
Collateral security
Loan over 5lakhs: Equitable mortgage of property/
tangible security belonging to borrower/ guarantor
valued not less than 75% of the loan amount.
Rate of Interest
As per the rating of the Firm/Company
Repayment
Working Capital: 12 Months, renewable after 12
months subject to satisfactory conduct of account .
Term loan will be paid between 5 to 7 years
excluding the maximum gestation period of 12
months.
SCHOOL PLUS
Target Group
 Primary and Higher secondary schools
 Graduation, Under-Graduation and Post
Graduation colleges
Eligibility
 Government Aided Schools/ Colleges
 Private schools/ colleges
 Schools/ colleges run by trusts of good standing
 Technical institutes recognized by AICTE / NBA /
MCI
Purpose
 Loan for purchase of land for building/
playground, construction of school building/
auditorium, purchase of computer, books,
furniture, repair/ renovation of existing building
etc.
Type of facilities
 Term Loan with fixed repayment schedule based
on repayment capacity and income streams.
Quantum of Finance :
 No cap
Margin
 15% of the project cost
Rate of Interest
 Interest is floating and linked to Base Rate*.
* Subject to change.
Security
 Primary- Hypothecation of Assets purchased out
of Bank finance.
 Collateral:
- Personal guarantee of Promoters/
Trustees/ any other persons acceptable to
Bank.
- For loans upto Rs 10.00 lac, equitable
mortgage of land and building or third
party guarantee for 20% of the loan
amount. For loan above this amount,
equitable mortgage of other immovable
assets of the institute/ guarantor.
Processing fee
 Processing fee ranges from 1.00% to 1.50% of
the loan amount.
Insurance
 The assets created out of Bank’s finance are to
be insured for the full value.
Repayment
 Loan amount up to Rs.2 lacs – Repayable in 36
equated monthly installments.
 Loan amount from Rs.2 lacs to Rs.5 lacs –
Repayable in 60 equated monthly installments.
 Loan amount above Rs.5 lacs – Repayable in 84
equated monthly installments.
SWAROJGAR CREDIT CARD
Eligibility
Individuals or group of individuals engaged in any
viable micro-enterprise.
SHGs can also be provided with the facilities.

10. Purpose
 To provide timely credit (working capital or block
capital or both)
 To meet the investment needs of the self-
employed persons
 A reasonable component of consumption needs can
also be included.
Nature of facility
Composite loan comprising of a term loan as well as
revolving cash credit account. The borrower can avail
the entire mount as term loan or for working capital
as per the actual requirement.
Margin
NIL
Loan amount
Rs. 25,000 per borrower as composite loan, which
can be increased to Rs. 30,000 in deserving cases.
Tenure of Loan
 The term loan is repayable in 5 years in suitable
installments.
 Cash credit should be normally repaid in 12 months
and renewed annually based on the conduct of the
account and the repayment of the term loan.
Primary security
Assets acquired for Bank finance
Collateral security
NIL
SBI SME COLLATERAL FREE LOAN
Eligibility
 New and existing Micro and Small Enterprises
engaged in Manufacturing and Service sector. For
Manufacturing sector, original investment in plant
& machinery should be upto Rs 5 crore and for
Service sector, original investment in equipment
upto Rs 2 crore.
Purpose
 Working capital needs (Fund Based+ Non Fund
Based).
 Term loan for construction of Building, office,
acquisition of machines / equipments including
expansion and modernization of the unit.
Nature of Facilities
 Cash Credit,
 Term Loan
 Letter of Credit,
 Bank Guarantee
Loan Amount
 Total Exposure to the unit : Upto Rs. 1.00 crore
(All facilities WC, TL & NFB facilities)
Interest Rate
 Attractive rates of interest.
Service Charges
 50% concession in processing and service
charges.
 Other charges as applicable.
Credit Guarantee Fund Trust for Micro & Small
Enterprises (CGTMSE) Guarantee
 Borrowers eligible under the scheme will be
covered under CGTMSE guarantee scheme.
 The Guarantee Fee & Annual Service Fee as per
the rates prescribed by CGTMSE from time to
time to be borne by borrower.
Security
 Security as defined by CGTMSE : “Primary
Security” in respect of credit facility shall mean
the Assets created out of the credit facility so
extended and / or Existing Unencumbered
assets which are directly associated with the
project or business for which the credit facility has
been extended. (i.e. Plant, Machinery, land &
building pertaining to the project or business).
 Guarantee: No third party guarantee is
required. However in case the constitution of the
borrower is proprietary or partnership, the
personal guarantee of proprietor /partner is not
treated as third party guarantee
Repayment
 Working Capital (WC): One year, repayable on
demand. Working capital limits will be renewed
every two year. However, performance of the unit
and conduct of account will be reviewed annually
for continuation of limits.
 Term Loan: Maximum Seven Years including
moratorium period.
SME CAR LOAN SCHEME (New Cars)
Target Group
 SME units banking with us/ SME current account
holders of the Bank or their family member either
in their own name or in the unit’s name.
 SME units banking with other Banks.
 Mid corporate units banking with us.
Purpose
 To provide term loan for purchase of passenger
cars, jeeps, multi utility vehicles (MUVs) and
sports utility vehicles (SUVs) etc.

11. Type of facilities
 Term Loans
Quantum of Finance
 Loan maximum upto 2.5 times of the Net Annual
Income (NAI)
Margin
 15% of the ‘on road price’ of the vehicle
Rate of Interest
 Interest is floating and linked to Base Rate*.
* Subject to change.
Security
 Collateral Security- Hypothecation of vehicle (s)
purchased.
Repayment
 Maximum 7 years
 No prepayment penalty.
Insurance
 The vehicles purchased out of Bank’s finance are
to be insured for the full value.
Processing Charges
 When loans are sanctioned: 0.50% of the loan
amount subject to minimum of Rs.500/- and
maximum of Rs.10,000/-.
 When loans are rejected: 25% of the ‘Processing
Fee’ will be retained if the application is rejected
after pre-sanction survey subject to minimum of
Rs.500/- and maximum of Rs.2500/-
FINANCE TO RESTAURANTS
Target Group
 Owners of restaurants/ fast food chains
Eligibility
 Individuals/ partnership firms/ corporate/ trusts
Purpose
 For purchase of Kitchen equipments
 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.
Repayment
 Repayment period of up to 7 years when land
and building cost included in loan, otherwise 5
years.
Margin
 25%
Rate of Interest
 Interest is floating and linked to Base Rate*.
* Subject to change.
Security
 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 other existing 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 loans above Rs.25 lacs
upto Rs.1 crore may be covered under CGTMSE at
the discretion of the Bank. CGTMSE fees to be
borne by the borrower.
Insurance
 The assets created out of Bank’s finance are to
be insured for the full value.
Processing fee
 Processing fee ranges from 1.00% to 1.50% of
the loan amount.
SME SMART SCORE
Simplified Loan For Small & Medium Enterprises
Eligibility:
Scheme is available to small and medium enterprise
units engaged in manufacturing, trade or services.
Purpose of loan
Working Capital requirements & Purchase of fixed
assets like land, building, plant & machinery
Type of Facility:
Working capital & Term loan
Loan Amount:
 For manufacturing units total limits upto Rs 50
lacs
 For trade & services units total limits upto Rs 25
lakhs.

12. Margin Requirement:
25% for working capital and 33% for Term Loan
Rate of Interest:
Floating rate of interest linked to Base rate.
Repayment:
 Term loan to be repaid in 5 years excluding
moratorium not exceeding 6 months
 Working Capital loan to be renewed every two
years and reviewed annually subject to
satisfactory conduct of account.
Security
 Primary: Hypothecation of stocks and assets
financed by Bank
 Collateral: As per bank’s norms.
Special Features:
 A simplified loan application format
 Concessionary rate of interest
 Quick and hassle-free loan sanction process
SBI OTS MSME, 2012
SBI SCHEME FOR ONE TIME SETTLEMENT OF
NPAs of MSME (SBI OTS - MSME, 2012) .
1. Salient Features :
i. This will be a non-discretionary and non-
discriminatory scheme.
ii. Last date of receipt of application :
31.07.2012
iii. Last date for Conveying sanction :
30.09.2012
iv. The scheme will be applicable to doubtful or loss
assets in MSME Sector as defined in the MSMED Act,
2006.
v. While arriving at OTS amount, the value of
tangible security will be the basic criteria, except in
loss assets.
2. Coverage :
i. It will cover all NPAs classified as “doubtful” and
“loss’’ in respect of Micro, Small and Medium
Enterprises as defined in the MSMED Act, 2006.
ii. Cases pending before Courts / DRTs / BIFR will be
eligible, subject to consent decree being obtained
from the Courts / DRTs / BIFR.
iii. Cases where Bank has issued notice u/s 13(2) or
taken action u/s 13(4) of the Securitisation and
Reconstruction of Financial Assets and Enforcement
of Security Interest Act (SARFAESI-2002) will be
eligible.
iv. Eligible accounts referred for Revenue Recovery
action under State Recovery Laws will be eligible,
subject to requisite charges, if any payable, being
recovered separately and remitted to the State
Authorities.
v. Accounts under Consortium or Multiple Banking
arrangements will also be eligible to be covered
under the proposed Scheme subject to approval by
75% of the lenders by amount.
vi. Decreed cases will also be eligible subject to
the consent by the DRT/Court.
2.1. Cases not eligible to be covered under the
scheme.
i. Cases of fraud, malfeasance and wilful defaults
(except where specifically permitted by the Bank )
will not be eligible.
iii. The accounts which were classified as ‘Not Readily
Realisable Account’ (NRR Account) at the time of
amalgamation of various banks in SBI (e.g. Kashi
Nath Seth Bank, Bank of Cochin etc.) will not be
covered under this scheme as the powers to
sanction compromises in such cases are vested with
ECCB.
iv. Central Govt. /State Govt. guaranteed accounts
will not be considered under this scheme as they are
covered by a separate scheme approved by the
Central Board.
3. Settlement Formula – OTS Amount:
While arriving at OTS amount, the value of security
available should be the basic criteria, except in ‘Loss’
assets. Accordingly, the OTS amount in respect of
NPAs (Doubtful and Loss) would be calculated as
under:
Sl.No Particulars
I. OTS for NPAs in Doubtful category
A Distress Sale Value
75% of the Market Realisable Value (MRV)
of all available securities (Immovable/
movable) to be treated as “Distress Sale
Value”.
(Two independent valuations are to be
done and 75% of higher valuation should
be taken) @
B Reference Recoverable Amount
i) Outstanding Balance as on the date of NPA
(i.e. Principal Outstanding + Interest +
Cost & Charges, if any)

13. ii) Add : Simple interest at documented rate
or Prime Lending Rate (PLR-2%) / Base
rate, whichever is lower, on reducing
balance, from the date of NPA till the date
of crystallization of OTS (i.e. up to the last
date of preceding month when the OTS
proposal is submitted)
iii) Add : Debits raised in the account on
behalf of the borrower for holding on
operations / additional finance on
account of restructuring, devolvement
LC/BG etc.
iv) Less : Cash recovery i.e. cash recovery
and amount of appropriation of liquid
securities, after the date of NPA till the
date of crystallization of OTS (i.e. up to the
last date of preceding month when the OTS
proposal is submitted).
v) Reference Recoverable Amount =
{(i)+(ii)+(iii)-(iv)}
C OTS amount would be higher of the
two amounts as worked out at A and
B.
II. OTS for NPAs in Loss category
A Reference Recoverable Amount
i) Outstanding Balance as on the date of NPA
(i.e. Principal Outstanding + Interest +
Cost & Charges, if any)
ii) Add : Debits raised in the account on
behalf of the borrower for holding on
operations / additional finance on
account of restructuring, devolvement
LC/BG etc.
iii) Less : Cash recovery i.e. cash recovery
and amount of appropriation of liquid
securities, after the date of NPA till the
date of crystallization of OTS (i.e. up to the
last date of preceding month when the OTS
proposal is submitted).
iv) Reference Recoverable Amount =
{(i) + (ii)-(iii)}
@ Valuation of properties
For accounts with outstandings upto Rs.1 cr,
valuations as recorded in the Bank’s books, will be
taken into account for arriving at OTS amount .
However, if the borrower has any objection, two
independent valuations by the Bank’s empanelled
valuer will be done, the cost of which will be borne by
the borrower. In all other cases , two independent
valuations will be a must. However, in case a
valuation has been carried out within six months
prior to the OTS proposal, only one fresh valuation
will be required. The cost of the valuations will be
borne by the borrower.
4. Incentive for Early Payments
To incentivise faster payments, incentive of
15% and 10% discount on OTS amount arrived
at as per the settlement formula given above,
would be allowed to those borrowers who make
full payment within one month and three
months respectively from the date of approval
of the OTS.
5. Payment Terms :
i. The borrower has to deposit 5% of the amount
outstanding as on the date of NPA at the time of
submission of the application to indicate his
willingness for OTS, failing which the application will
not be processed. In the event the application for
OTS is rejected by the Bank, such payment, which
shall be held in a separate account, will be refunded
without interest within three months.
ii. The borrower has to deposit 25% of the OTS
amount upfront on receipt of sanction letter. This will
include the amount deposited along with the
application for OTS.
iii. The balance 75% of the OTS amount is to be paid,
without interest, within six months from the date of
sanction of OTS.
iv. However, the balance amount can also be paid
within 12 months from the date of sanction of OTS
(the validity period) together with interest @ the
documented rate/(PLR-2%)/Base rate, whichever is
lower, failing which the OTS sanction will be rendered
infructuous.
For further queries, if any, nearby branches may be
contacted.
PROJECT FINANCE
Project Finance Strategic Business Unit
A one-stop-shop of financial services for new projects
as well as expansion, diversification and
modernisation of existing projects in infrastructure
and non -infrastructure sectors .
Expertise
 Being India's largest bank and with the rich
experience gained over generation, SBI brings
considerable expertise in engineering financial
packages that address complex financial
requirements.
 Project Finance SBU is well equipped to
provide a bouquet of structured financial

14. solutions with the support of the largest
Treasury in India (i.e. SBI's), International
Division of SBI and SBI Capital Markets
Limited.
 The global presence as also the well spread
domestic branch network of SBI ensures that
the delivery of your project specific financial
needs are totally taken care of.
 Lead role in many projects
 Allied roles such as security agent,
monitoring/TRA agent etc.
 Synergy with SBI caps (exchange of leads,
joint attempt in bidding for projects, joint
syndication etc.). In a way, the two
institutions are complimentary to each other.
We have in house expertise (in appraising
projects) in infrastructure sector as well as
non-infrastructure sector. Some of the areas
are as follows: Infrastructure sector:
Infrastructure sector:
 Road & urban infrastructure
 Power and utilities
 Oil & gas, other natural resources
 Ports and airports
 Telecommunications
Non-infrastructure sector:
 Manufacturing: Cement, steel,
mining, engineering, auto components,
textiles, Pulp & papers, chemical &
pharmaceuticals …
 Services: Tourism & hospitality,
educational Institutions, health industry
…
Expertise
 Rupee term loan
 Foreign currency term loan/convertible
bonds/GDR/ADR
 Debt advisory service
 Loan syndication
 Loan underwriting
 Deferred payment guarantee
 Other customized products i.e. receivables
securitisation, e.t.c.
Why Project Finance SBU?
Since its inception in 1995 the Project Finance SBU
has built-up a strong reputation for it's in-depth
understanding of the infrastructure sector as well as
non-infrastructure sector in India and we have the
ability to provide tailor made financial solutions to
meet the growing & diversified requirement for
different levels of the project. The recent transactions
undertaken by PF-SBU include a wide range of
projects undertaken by the Indian Corporates.
What's in it for you?
Single window solution
 Appetite for large value loans.
 Proven ability to arrange/syndicate
loans.
 Competitive pricing.
Professional team
 Dedicated group with sector expertise.
 Panel of legal and technical experts.
 Procedural ease
 Standardized information requirements.
 Credit appraisal/ delivery time period is
minimized.
Wide branch network ensuring ease of disbursement.
Eligibility
The infrastructure wing of PF SBU deals with
projects wherein
The project cost is more than Rs 100 Crores. The
proposed share of SBI in the term loan is more than
Rs.50 crores. In case of projects in Road sector
alone, the cut off will be project cost of Rs.50 crores
and SBI Term Loan Rs. 25 Crores, respectively.
The commercial wing of PF SBU deals with
projects wherein ;
The minimum project cost is Rs. 200 crores (Rs. 100
crores in respect of Services sector).
The minimum proposed term commitment is of Rs.
50 crores from SBI.
For project funding requirements below the amounts
indicated above, you may kindly contact the nearest
branch of the SBI Group.
Contact us
Our team is well known for innovation in tailoring
solutions for our clients. If you are seeking solutions
in project finance,We will be glad to assist you.
please contact us.
E mail id: milind.kalkar@sbi.co.in
Or Call at: +91 (022) 22841262
CORE CREDIT PRODUCTS
PurposeType of Loan Pricing
Rupee
Loans
Working
Capital
Cash Credit facility Based on credit
risk rating of the
Company
designed on the

15. lines of
internationally
accepted models,
ranging from
our Base Rate
(BR) upwards.
Project &
Capex loans
Medium Term
Loans 5-7 years or
longer in
exceptional cases
Same as above -
Base Rate (BR)
upwards.
Export Credits Packing Credit,
Postshipment ,
Forfaiting
RBI Defined
LIBOR linked and
Market
Determined
Foreign
Currency
Loans
Projects &
Work. Cap
External
Commercial
Borrowings(ECBs)
which include
Syndicated loans,
Stand-alone
loans,Buyers'Credit
and Seller's Credit,
Bilateral loans in
all major
currencies, ECA
backed credits,
FRNs/Euro
bonds(with
SBICAp), Pre-bid
and post bid
facilities for project
exports and
FCNR(B) Loans
LIBOR linked
OTHER STRUCTURED PRODUCTS
Purpose Pricing
Short Term Corporate
Loans
For Shoring up Net Working
Capital, Ongoing capital
expenditure, Repayment of
high cost debt, R&D
expenditure, implementation
of VRS
Based on the
Credit risk rating
-
Linked to our
Base Rate (BR)
Securitised loans- in
association with
SBICAP
Upfronting of assured cash
flow emanating from future
receivables viz. rentals,
Royalties, debtors, Lease
rentals etc.
Based on risk
rating
Channel Financing- in
association with other
SBI branches
Financing of downstream
marketing channels
Based on the
Credit risk rating
- Linked to our
Base Rate (BR)
Fee Based Products -
like Letter of
Credits(LCs),
Guarantees, Defferred
Payment
Guarantees(DPGs)
and Letter of Comfort
For import of goods including
capital goods participation in
international bids,
performance guarantees etc.
Large value
business -
negotiable.
TRADE FINANCES
 Issuance and advising of Domestic and
Foreign Letters of Credit.
 Confirmation of Export Letter of Credit.
 Issuance of Guarantees on behalf of Domestic
Customers
 In favour of Domestic Beneficiaries
and
 Foreign Beneficiaries.
 Issuance of guarantees on behalf of foreign
correspondent banks to beneficiaries in India.
 Deferred Payment Guarantees.
 Domestic and Foreign Bills discounting.
 SWIFT Interface.
 (e-TradeSBI) Front-end interface
(Internet Based) at the customer place.
Through e-TradeSBI, the customer can
request the Bank;
 To issue Letter of Credit and handle
related bill transactions
 To issue Bank Guarantee
 To send advice on Letters of Credit
received from others
 To lodge Export Collection Bills
 To enquire status of Trade Finance
transactions
 For negotiation of bills and track
negotiated bills
 For Advance against Export Bills on
Collection
 For Lodge of Bills where Full Advance
Payment has been received
 Delivery Platforms at all 6 CAG branches having
specialization to provide Trade Finance Services,
adhering to Six Sigma principles.
 While SBI is the most widely accepted Indian
Bank across the world with correspondent
relationship extending to a spectrum of
international banks numbering 876 at present our
LCs, Guarantees and DPGs are issued at the most
competitive rates.
 SBI is the only Indian Bank whose guarantee
is accepted by most of the Export Credit
Agencies globally without seeking
confirmation.
 SBI's Clean & Documentary Collections are
made at most competitive rates through our
Global Link Services.
 We also provide trade related information to
Indian corporates, their overseas
partners/buyers through our foreign offices.
INDUSTRIAL SECTOR

16. Working Capital Finance
SBI offers working capital finance to meet the entire
range of short-term fund requirements that arise
within a corporate’s day-to-day operational cycle.
The SBI working capital loans can help your company
in financing inventories, managing internal cash
flows, supporting supply chains, funding production
and marketing operations, providing cash support to
business expansion and carrying current assets.
SBI’s working finance products comprise a spectrum
of funded and non-funded facilities ranging from cash
credit to structured loans, to meet the different
demands from all segments of industry, trade and
the services sector. Funded facilities include cash
credit, demand loan and bill discounting. Demand
loans are considered also under the FCNR (B)
scheme. Non-funded instruments comprise letters of
credit (inland and overseas) as well as bank
guarantees (performance and financial) to cover
advance payments, bid bonds etc.
Project Finance
The SBI has formed a dedicated Project Finance
Strategic Business Unit to assess credit proposals
from and extend term loans for large industrial and
infrastructure projects. Apart from this, project term
loans for medium sized projects and smaller clients
are delivered through the CAG and the NBG.
In general, project finance covers greenfield
industrial projects, capacity expansion at existing
manufacturing units, construction ventures or other
infrastructure projects. Capital intensive business
expansion and diversification as well as replacement
of equipment may be financed through the project
term loans.
Project finance is quite often channeled through
special purpose vehicles and arranged against the
future cash streams to emerge from the project.
The loans are approved on the basis of strong in-
house appraisal of the cost and viability of the
ventures as well as the credit standing of promoters.
Deffered Payment Gaurantees
Q. What is the SBI deferred payment
guarantee?
SBI can extend deferred payment guarantees to
industrial projects for obtaining imported equipment.
The DPG is a standby credit guaranteeing deferred
payments, usually for payments for capital goods,
turnkey contracts etc.
Corporate Term Loan
The SBI corporate term loans can support your
company in funding ongoing business expansion,
repaying high cost debt, technology upgradation,
R&D expenditure, leveraging specific cash streams
that accrue into your company, implementing early
retirement schemes and supplementing working
capital.
Corporate term loans can be structured under the
FCNR (B) scheme as well, with the option of
switching the currency denomination at the end of
interest periods. This will help you take advantage of
global interest rate trends vis-à-vis domestic rates to
minimize your debt cost.
The bank’s corporate term loans are generally
available for tenors from three to five years,
synchronized with your specific needs.
SBI corporate term loans may carry fixed or floating
rates, as befits the exact requirement of the client
and the risk context. Again, these rates will be linked
to the bank’s prime lending rate.
SBI corporate term loans can have a bullet or
periodic repayment schedule, as required by the
client. The repayment mode may be linked to the
cash accruals of the company.
The Bank’s expert credit crew gauges the applicant’s
particular fund requirements and evaluates the
company’s credit worthiness, factoring in the cash
flows generated by it.
Structured Finance
SBI structured finance involves assembling unique
credit configurations to meet the complex fund
requirements of large industrial and infrastructure
projects. Structured finance can be a combination of
funded and non-funded facilities as well as other
credit enhancement tools, lease contracts for
instance, to fit the multi-layer financial requirements
of large and long-gestation projects.
Q. What is the SBI advantage in structured
finance?
Being India’s largest bank and with the rich
experience that it brings with it, SBI commands
formidable expertise in engineering financial
packages that address complex requirements with
minimum risk.
Further, SBI has firm relationships across the
financial map of the world, which can be leveraged to
structure solutions that may necessitate the
participation of several credit agencies.
Dealer Financing
SBI extends financial support to the corporate
distribution networks, by providing both working
capital finance and term loans to select dealers of
identified companies. This gives dealers to leverage
their business relationship with major corporates to
avail low cost credit. Also, this type of financial
solutions allows the corporate negotiate a better price

17. with dealers. Dealer financing may be extended in
the bill discounting form or simply as cash credit.
Channel Financing
Channel financing is an innovative finance
mechanism by which the bank meets the various
fund necessities along your supply chain at the
supplier’s end itself, thus helping you sustain a
seamless business flow along the arteries of the
enterprise.
Channel finance ensures the immediate realization of
sales proceeds for the SBI client’s supplier, making it
practically a cash sale. On the other hand, the
corporate gets credit for a duration equaling the
tenor of the loan, enabling smoother liquidity
management.
SBI has the world’s largest banking network of over
9,000 branches and this enables it to deliver the
financial solution at your suppliers’ doorsteps, across
the span of the country.
Equipment Leasing
The SBI’s has deployed a dedicated Strategic
Business Unit for lease financing that is richly
experienced in arranging lease contracts for
procuring expensive equipment for your project or
plant. At SBI, we arrange lease agreements as stand
alone contracts or as part of a structured package.
Loan Syndication
The SBI leverages its vast network of relationships to
arrange syndicated credit products for corporate
clients and industrial projects.
With its rich experience and strong reputation, SBI’s
syndication desk can assemble large loan packages
involving a ring of reputed financial entities, domestic
and international, that match the large credit
requirements of infrastructure projects.
TRADE and SERVICES SECTOR
Transport Plus
Purpose
To finance new trucks/tankers/trailers/tippers/luxury
buses including take over of existing similar loans
from other banks/institutions.
Eligibility
Profit making Corporates/Non-corporates (surface
transport operators) owning more than 10 well-
maintained vehicles (including the proposed).
Quantum of finance
Minimum Rs. 10 lacs and maximum Rs. 10 crores.
Repayment
Term Loan: Maximum 5 years.
Repayment will be in Equated Monthly Installments
(EMI), starting two months after disbursement. Cash
Credit: Repayable on demand, renewal every year.
Margin
20%
Eligible amount of finance
Term Loan: 100 % of the cost of the chassis,
inclusive of excise duty. Other expenses are to be
borne by the borrower. Where body building is not
required, 80 % of the cost of the vehicle will be
financed. An additional Term Loan limit, subject to a
maximum of 20% of the original limit may be
sanctioned for repair of the vehicle, on or after the
3rd year if the loan account is regular.
Cash Credit : 80% of receivables.
Prepayment
Term Loan: Maximum 1% p.a. on the pre-paid
amount, for the residual period.
Rate of Interest
For Term loans, 8.50% p.a. with monthly rests and
for Cash Credit, 11.75% p.a. with monthly rests.
Security
Primary: Hypothecation of vehicles financed as well
as book debts.Collateral :
i) At least 50% of the loan amount
ii) Personal guarantee of promoters and two third-
party guarantors.
Insurance
As per Banks guidelines.
Applicability
Metro/urban/semi-urban centers
Bill Finance
The bank’s bill finance product helps you bridge the
fund gap between the date of sale of products to the
receipt of payments.
The bank purchases the bill of exchange your
company receives against a product sale, at a
discount, thus doing away with the delay in realizing
the receivables.
The extent of discounting would amount to the
interest calculated till the payments for the original
sale are realized, and will be determined on the basis
of market interest rates as well as the credit rating of
the borrower.
Cash Credit for Traders
SBI cash credit can be in the form of a running
account, similar to an overdraft secured by a charge

18. on current assets, that meets the frequent cash
requirements of your trading cycle.
Term Loan for Asset Aquisition
The specialized product has been designed to help
you purchase plant, machinery, land or other physical
assets required during the growth and expansion of
the your company.
Letters of Credit
The SBI offers Letters of Credit to facilitates your
purchases of goods in trading operations, both
domestic and international. Backed by the SBI’s
strong reputation, you will be able to build better
trust in trade and forge business relationships faster.
The bank’s vast network of branches and
correspondent banks enables your enterprise to
sustain a seamless flow of business on a wide
platform.
Further, the bank’s informed trade finance crew can
provide you with sophisticated credit and trade
information and market knowledge, helping you
extract more value from business.
Bank Gaurantees
The SBI guarantees the creditworthiness or the
business capacity of its clients through its financial
and performance guarantees.
SPECIALIZED PRODUCTS
Cash Management Product
The bank offers a totally technology-driven cash
management product, based on the satellite-linked
SBI FAST (for Funds Available in the Shortest Time)
platform that connects 120 centers spread across the
country. Your cash collections can be pooled at these
centers at competitive rates.
Further, your cost centers at various locations can
have a daily limit with the SBI’s local branch which
can be swept automatically into your main account
located at your corporate center.
The SBI is planning to raise the number of its cash
management centers to 500, which then would cover
90 per cent the bank’s corporate clients’ financial
transactions.
Q. What are the benefits of the SBI cash
management product?
The cash management solution ensures a
comfortable liquidity position within your corporation
always and will significantly bring down transaction
time and cost. Further, the quicker, more efficient
and better-controlled cash circulation can actually
create profit opportunities for the company.
The company will be better placed to forecast its cash
positions and schedule related financial transactions
accordingly.
Channel Financing
Channel financing is an innovative finance
mechanism by which the bank meets the various
fund necessities along your supply chain at the
supplier’s end itself, thus helping you sustain a
seamless business flow along the arteries of the
enterprise.
Channel finance ensures the immediate realization of
sales proceeds for the SBI client’s supplier, making it
practically a cash sale. On the other hand, the
corporate gets credit for a duration equaling the
tenor of the loan, enabling smoother liquidity
management.
SBI has the world’s largest banking network of over
9,000 branches and this enables it to deliver the
financial solution at your suppliers’ doorsteps, across
the span of the country.
Construction Equipment Loan (CEL) :
Line of credit for financing the requirement of
existing construction companies, having credit rating
of SB-1 to SB-8 (new model), to purchase new
machines / equipments / vehicles for execution of
construction projects / standard construction
equipments.
 Quantum : Rs 3.00 crores to Rs 100.00 crores.
 Pricing : Linked to the Base Rate of the Bank as
per credit rating of the company.
 Tenure : upto 4 years
 Repayment : In monthly instalments. However,
variable repayment programme can also be
considered based on the cash flow of the company.
 Others : The loan may be disbursed in several
tranches, subject to minimum 10% of the
sanctioned amount for any tranche, within a period
of maximum one year from the date of sanction
depending on requirement of equipments /
machinery / vehicles within the specified time
frame.