Srinagar, Feb 27: With the arrival of wedding season in April, to support businesses the State Bank of India is offering SME Gold Loan at ‘very attractive’ interest rates. Under the SBI SME Gold Loan offer, SBI customers can borrow from Rs 1 lakh to 50 lakh.
To announce the offer, India’s largest public sector bank took to microblogging site Twitter.
“Grow your business with SBI’s SME Gold Loan at very attractive rates. Apply now and avail the loan. Process is simple and hassle free. Visit our branch today!” tweeted SBI.
Here are the top features of the SBI SME Gold Loan
1. Target Group & Eligibility
As per a blog post by SBI, it is available for existing MSME Units (Proprietorship Firm only), both borrowing & non-borrowing units of our Bank, who want to avail loan against Gold Ornaments/ Jewellery. However, the business should be with running activity and shouldn’t be in NPA status.
2. SBI SME Gold Loan: Purpose
To provide hassle free financial assistance to existing MSME units (Proprietorship Firm only) against Gold Ornaments/ Jewellery held in the name of Proprietor, for fund-based requirements for general business purpose & augment working capital, acquiring machinery/ equipment/ tools for repairs, renovations etc.
3. Loans will not be granted against Gold Bar/Bullion
No financial documents are required to avail the loan, says SBI. Only self-declared projected turnover to be submitted.
4. Nature of facility and quantum of loan
The loan will be issued as an Overdraft (OD) or Demand Loan (DL). The minimum amount is Rs. 1 lakh and the maximum is Rs. 50 lakh
5. Repayment period
Overdraft & Demand Loan: Maximum 12 months.
6. Processing Fee
For loans up to Rs 10 lacs, the processing fee is Rs. 500 plus applicable taxes. For loans above Rs 10 lacs, Rs. 1000 plus applicable taxes.
