SBI Commercial Vehicle Loan: If you are in the transport business and want to expand your operations by purchasing new vehicles, then this news is for you. India's largest public sector bank, SBI (State Bank of India), is now offering business loans of up to ₹5 crore for purchasing commercial vehicles (commercial vehicle finance SBI up to 5 crore).

This State Bank of India scheme aims to help businesses purchase trucks, buses, tankers, trailers, tippers, and even electric or hybrid commercial vehicles. The question is, who can apply for this loan, and what is the complete process? Let's understand the entire process step-by-step.

Who is SBI giving this loan to?
Eligibility    Details
Fleet Operator    : Existing fleet of at least 10 vehicles
Experience    Minimum 3 years in transport or related business
Licenses    , National/State route permits, and necessary licenses
Taxes    must be an income tax assessee
Credit Score    Promoter/Director's CIBIL score of 680 or more

How much loan will SBI provide?
Minimum Loan: ₹50 lakhs
Maximum Loan: ₹5 crores
Margin (How much you have to contribute)
Vehicle Type    50-60% Score    60%+ Score
Chassis    5%    0%
Body    30%    30%
Fully Built Vehicle    10%    5%
Road Tax/Insurance    At least 50%    At least 50%

How long do you have to repay the loan?
Score    Maximum Tenure
50-60%    60 months (including 2 months moratorium)
60%+    66 months (including 2 months moratorium)
How will the loan interest rate be determined?
The interest rate will be linked to the EBR (Repo Rate + 2.65%) or 6-month MCLR. Processing fees may be up to 1.5% of the loan amount.

What to do to apply for the loan? 1. Contact your nearest SBI branch.

2. Provide your business documents, IT returns, vehicle permits, and bank statements.

3. The bank will evaluate you using its scoring model.

4. A minimum score of 50% is required.

5. The loan will be covered under the CGTMSE guarantee (the borrower will pay the fee).

In short, if your transport business is stable and has a good track record, this scheme can provide an opportunity to rapidly expand your fleet.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.