If you are in the transportation business and planning to buy new vehicles, this update can be useful for you.
The State Bank of India (SBI) is offering business loans of up to ₹5 crore for purchasing commercial vehicles.
This loan is designed to help transport operators expand their fleet and grow their business.
The loan can be used to buy trucks, buses, tankers, trailers, tipper trucks, and even electric or hybrid commercial vehicles.
Who Can Apply for This SBI Loan?
This loan is mainly for experienced transport operators. To be eligible, you must meet these conditions:
You should be a fleet operator with at least 10 vehicles
Minimum 3 years of experience in transport or a related business
Must have a valid national or state route permit and required licenses
You must be an income tax assessee
The CIBIL score of the promoter or director should be 680 or above
How Much Loan Can You Get?
SBI offers flexible loan amounts based on your requirement:
Minimum loan amount: ₹50 lakh
Maximum loan amount: ₹5 crore
The final amount depends on your business profile and SBI’s internal scoring.
How Much Money Do You Need to Pay Yourself?
The margin amount depends on the vehicle type and your score:
Chassis:
0% margin for score above 60%
5% margin for score between 50–60%
Vehicle Body:
30% margin in all cases
Fully Built Vehicle:
5% margin for score above 60%
10% margin for score between 50–60%
Road tax and insurance:
At least 50% to be paid by the borrower
Loan Repayment Period
The repayment period depends on your score:
Score between 50–60%:
Up to 60 months, including a 2-month moratorium
Score above 60%:
Up to 66 months, including a 2-month moratorium
Interest Rate and Processing Fee
The interest rate is linked to:
EBR (Repo Rate + 2.65%), or
6-month MCLR
Processing fees can be up to 1.5% of the loan amount.
How to Apply for the SBI Commercial Vehicle Loan
Follow these simple steps to apply:
Visit your nearest SBI branch
Submit business documents, income tax returns, bank statements, and vehicle permits
SBI will assess your application using a scoring model
A minimum score of 50% is required
The loan will be covered under CGTMSE guarantee (charges to be paid by the borrower)
Final Words
If you have a stable transport business and a good repayment record, this SBI loan scheme can help you expand your fleet quickly and efficiently.
It is a strong option for transport operators looking to grow their business with bank support.
