A-Z Guidelines Criteria
A Acceptable Business Types

The bank will consider applications from business within the following industry types:

Business Services (B2B)
Professional Services
Any other business the relevant credit department deems appropriate

Acceptable Property Types

State Bank of India will accept applications for the following types of property:

Retail Units
Light Industrial Units
Retail Units with Residential Units attached

Adverse Credit

Please refer to SBI underwriters

Annual Review (Commercial Owner Occupier and Investment loans)

All customers with committed facilities, but which have yet to reach maturity are subject to an annual review which may require the customer to provide the following information:

Most recent years financial accounts
Up to date assets & liabilities statement for each Director/Shareholder involved in the application
Up to date full valuation report (needs to be revalued every three years)
Any other Financial Information deemed relevant and necessary by the approving Credit Committee such as lease covenant strength, up to date tenancy schedules, guarantee reminders etc
Any request for new/increased or renewal of facilities should contain details of current/future rent rolls.

Approved Accountancy Bodies

Accounts should be signed by a suitably qualified accountant who is an Associate or Fellow of one of the approved professional body's:

Institute of Chartered Accountants of England and Wales (ICAEW)
Institute of Chartered Accountants of Scotland (ICAS)
Chartered Accountants Ireland (CAI)
Association of Chartered Certified Accountants (ACCA)
Association of International Accountants (AIA)
Association of Authorised Public Accountants (AAPA)
Chartered Institute of Public Finance and Accountancy (CIPFA)
The Chartered Institute of Management Accountants (CIMA)
The Chartered Institute of Taxation (CIOT)
Association of Accounting Technicians (AAT)
Institute of Financial Accountants (IFA)
Association of Taxation Technicians (ATT)

C Capital Raising

Acceptable reasons for capital raising are:

Capital Expenditure (for example: the purchase of equipment, updating premises etc)
Expanding/Improving charged assets (the premises)
Working Capital (for example: wages, short term business costs)
Invoice Financing (for example: raising money against future payments from debtors)

Customer Documentation (Commercial Investment Mortgage)

The following documentation will have to be provided by the customer:

Last 2 Years Audited Accounts: To confirm that the applicants meet the minimum income requirements
Please Note: SBI can consider applications for Commercial Investment mortgages where the applicant has less than 2 years trading history on a case by case basis
Please Note: As the affordability of the Commercial Investment Mortgages is determined by the achievable rent, there is less need to make a detailed check of the applicant's accounts.
Existing Tenancy Agreement: To show current tenancy covenants, please not this is not required if there are no current tenants or if the applicant will be letting out within 3 months of completion but has not completed the Tenancy Agreement yet.
Underwriters retain the right to request further information or to perform checks in line with those outlined for Commercial Owner Occupier/Commercial Overdraft if they deem it necessary for the case, although under normal circumstances this is not expected to be the case

Customer Documentation (Commercial Owner Occupier and Commercial Overdraft)

The following documentation will have to be provided by the customer:


Last 2 Years Accounts: To ensure sustained profitability over a number of financial periods. Under exceptional circumstances less than 2 years accounts can be accepted, however this will have to be agreed on a case by case basis. For applicants who self certify their income, SBI will require their last 3 years HMRC SA302's
Last 6 Months Business Bank Statements: To ensure good account conduct, a lack of returns and excess charges as well as proof of business activity. The Bank statements provided must be those most relevant to the operation of the business, if the business uses more than one primary business account then statements should be provided for all relevant accounts.
Assets & Liabilities Statements for all Directors/Shareholders to show good standing and proof of assets for Personal Guarantee requests, this will usually be provided with the audited accounts, but can be requested if they are not
Business Management Information (where available): Showing up to date financial position of the company, which should include Profit and Loss, Balance Sheet, Aged Debtors and Creditors, Cashflow forecasts and any other information deemed necessary by SBI's credit committee
Forecasted Accounts Information: showing projected financial position for the next 2 financial years, as well as confirmation of the assumptions used to reach this conclusion

D Deposit

The deposit would be expected to be provided from one, or a combination, of the following sources:

The applicant's own savings or company's liquid assets.
Monies to be received from invoices due to be paid by debtors.
The sale of a previously owned property.
Equity release from an existing property.
A gift from close relatives (parents, grandparents, children, siblings)
Personal Guarantees from the directors/shareholders

Applicants must provide evidence that the deposit is coming from where they say it is; particular care should be taken where:

The amount of deposit raises suspicion due to the profile of the applicant(s).
There are concerns regarding how the deposit is being provided.
There are concerns that the deposit is being borrowed.
The acting solicitor informs the Bank that they will not have control over the payment of all of the purchase funds. The Bank will only accept a genuine gifted deposit if the gift is being provided by a close family member (spouse, parents, grandparents, children, siblings)

F Facility Renewal/Review

All facilities will need to be reviewed once a year. Overdrafts are subject to annual renewal.

I Income Requirements (Commercial Owner Occupier and Commercial Overdraft)

All companies applying for commercial lending with the State Bank of India in the UK must have been trading profitably for a minimum of 3 years preceding the application, subject to the following:

The balance sheet must confirm that the Company is solvent.
The Company must provide the last three years accounts, signed by a suitably qualified accountant who is an Associate or Fellow of an approved professional body (see Approved Accountancy Bodies)
The Company must have been actively trading for the periods covered by the last 3 years accounts. State Bank of India may consider applications from businesses that have been trading for less than 3 full years, but this will be looked at on a case by case basis.

L Listed Properties

Listed buildings are acceptable as security if there are no restrictions on alterations or use that would affect the property's marketability.

Loan Amount

The minimum and maximum loan sizes acceptable to the Bank are as follows:

Minimum Loan Size: £250,000
Maximum Loan Size: As per the approval limit of the sanctioning committee

Loan Types (Commercial Overdraft)

Commercial Overdraft

Working Capital Raising - Raising an overdraft facility using an unencumbered property as collateral for the drawdown of the facility

Loan Types (Commercial Owner Occupied Mortgage)

There are three main types of loan, all of which are acceptable to the Bank (subject to lending criteria):

Commercial Owner Occupied Mortgage

Purchase - Purchase of a commercial property for use as the customer's place of business, or for additional business use (such as separate warehousing or car parking, for instance)

Remortgage - Refinancing of an existing Commercial Owner Occupied Mortgage with another lender (this may include capital raising additional funds) Capital raising funds against a commercial property which is currently unencumbered.

Further Advance - Capital raising additional funds against a commercial property currently mortgaged with the Bank.

Loan to Value (LTV)
 Up to £1,000,000: 70% LTV 
 Above £1,000,001:  65% LTV

Please note LTV may be restricted by other factors on the application, please refer to SBI underwriters

Location of Company

All Company applications must be from Companies that are registered and based in the UK.

State Bank of India will not accept applications from any Company based in any offshore location or jurisdiction, including:

Isle of Man.
British Virgin Islands.
Any other offshore or tax haven location.

Location of Property

The State Bank of India will only consider property that is located in mainland England (including the Isle of Wight) and Wales.

M Maximum Age

Applicants age must not exceed 70 at the end of their selected loan tenure.
This can be extended to 80 under the following circumstances:

The Primary Business Operator can demonstrate they will be able to run the business past the age of the 70.
The business can demonstrate clear succession planning when Primary Business Operator/ Directors retires.
The underwriter can reasonably determine that the type of business being operated is the kind that is not age dependent (for example: It is unlikely that SBI would accept a Sole Trader operating a building firm past the age of 70, as the physical nature of their work means it is not reasonable to expect the applicant to able to operate the business beyond retirement age.)

Maximum Number of Borrowers

Maximum of one borrower on any application from an Sole Trader or four if an Ltd/LLP Company/Partnership application. 

Minimum Net Profit

Applicants must have a Minimum Net Profit of £25,000pa (taken as an average of last 2 years net profit, unless most recent year is lower, in which case the most recent years net profit figure will be used)

N Nationality

Non-EEA nationals can be considered but they must be resident and working in UK for last 2 years, and must have been granted indefinite leave to remain in the UK.

R Reductions in Rental Coverage amount (Commercial Investment Mortgage)

State Bank of India will consider using a lower rental calculation percentage in certain circumstance, please refer to SBI underwriters

Rental Income Cover

Rental income must be 125% of monthly mortgage payment at pay rate.

Repayment Methods

The State Bank of India accepts the following methods of repayment:

Capital and Interest Repayment

On a case by case basis and subject to the product selected by the customer, State Bank of India may offer the following incentives:

Interest Only for a fixed period (for up to 24 months) at the start of the loan
Payment holidays for up to 12 months following the loan completion

S Sales Incentives

Sales incentives must be identified and discounted from the purchase price where they are offered.
If seller is offering a 5% discount off of the value of the property the following rules would apply:

Property Value (No discount): £100,000
Property Value (Discount): £95,000
Maximum SBI Lending: £66,500 (70% of £95,000)

T Tenure

In England and Wales commercial property can be owned in one of the following ways:


Freehold industrial / warehouse and other commercial properties, including retail properties in High Streets.

To be considered suitable as security a leasehold property must meet the following criteria:

An unexpired lease term of at least 55 years at the start of the mortgage.
At least 30 years remaining on the lease upon expiry of the mortgage term.
Be free of any restrictive covenants that may affect the future value, marketability or sale of the property (our valuer will verify good leasehold title on behalf of the Bank)

U Undervalue Transactions

Please refer to SBI underwriters 

Your Buy-To-Let Property may be repossessed and/or a receiver of rent appointed if you do not keep up payments on your mortgage

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