Banks · State Bank of India

SME Laghu Udyami Laghu Udyami

SBI's collateral-free small business loan of up to ₹10 lakh for micro units, small shops and traders, professionals and the self-employed.

Last updated on 5 November 2026

Cost to apply: Processing fee of ₹1,000 plus GST
Status: Open
Run by: State Bank of India

Official website (external site)

What you get

Cash credit or term loan up to ₹10 lakh
For any business need, including buying a shop
No collateral. Loans are covered under the CGFMU guarantee, as with Mudra loans
No margin up to ₹50,000 and 10% above that
Term loans up to 5 years below ₹5 lakh, and up to 7 years from ₹5 lakh, with a moratorium
Working capital limit set at 20% of turnover through the account over the last 12 months

Who can apply

Businesses that are already running.
Open to businesses in manufacturing, services and trading.
Micro enterprises.
The most on offer is ₹10 lakh.
Satisfactory track record for the last 2 years
Units without a current loan limit may be considered if their record is excellent
At least 60% under SBI's scoring model

How to apply

Use Apply Now on the page to send your details to SBI through its online form, or visit a branch

In person, nearest SBI branch

In Kerala, any SBI branch in Kerala, or the Apply Now form on SBI's website

Where we found this

SME Laghu Udyami (external site) Official
SBI Small Business Loans (external site) Official

An independent guide by The Company of Four, not a government website. Schemes change often, so check every detail on the official website before you apply. Links marked ↗ open external websites that we do not run, and we are not responsible for their content. Seen something out of date? Tell us and we will look into it.