SBI vs BoB Business Loan, 2026.
Reviewed by Jay Patel· Last reviewed: stale
A ledger-columns read on State Bank of India and Bank of Baroda— rate, EMI, fee, fine print. Which one wins your file, not the pitch deck.
SBI vs BoB — Business Loan Comparison
Key parameters compared side by side.
| Parameter | SBI | BoB |
|---|---|---|
| Interest Rate (p.a.) | 10.25% – 14.5% | 10.5% – 14.75% |
| Processing Fee | 1.00% (min Rs 5,000) | 1.00% (min Rs 5,000) |
| Max Loan Amount | Rs 5 Cr | Rs 5 Cr |
| Max Tenure | 7 Years | 7 Years |
| Bank Type | Public Sector | Public Sector |
| Founded | 1955 | 1908 |
| Headquarters | Mumbai | Vadodara |
Interest Rate (p.a.)
SBI
10.25% – 14.5%
BoB
10.5% – 14.75%
Lower/better: SBI
Processing Fee
SBI
1.00% (min Rs 5,000)
BoB
1.00% (min Rs 5,000)
Max Loan Amount
SBI
Rs 5 Cr
BoB
Rs 5 Cr
Max Tenure
SBI
7 Years
BoB
7 Years
Bank Type
SBI
Public Sector
BoB
Public Sector
Founded
SBI
1955
BoB
1908
Headquarters
SBI
Mumbai
BoB
Vadodara
Rates as of April 2026. Subject to change based on RBI policy and bank revisions.
EMI Comparison
Estimated EMI for Rs 20 Lakh business loan for 5 years at each bank's lowest rate.
SBI
BoB
Savings: Choosing SBI saves you approximately ₹247 per month, or ₹14,820 in total interest over the loan tenure.
Feature Comparison
Key features offered by SBI and BoB for business loan.
| Feature | SBI | BoB |
|---|---|---|
| MSME priority processing | ||
| CGTMSE cover available | ||
| No collateral up to Rs 50L | ||
| Pre-approved for existing SBI customers | ||
| Baroda Mudra Loan | ||
| MSME special schemes | ||
| CGTMSE coverage | ||
| Lower rates for Gujarat-based businesses |
MSME priority processing
CGTMSE cover available
No collateral up to Rs 50L
Pre-approved for existing SBI customers
Baroda Mudra Loan
MSME special schemes
CGTMSE coverage
Lower rates for Gujarat-based businesses
Which Is Better — SBI or BoB?
It depends on your priorities. Here is a quick guide.
Choose SBI If...
- Lower starting interest rate (10.25% vs 10.5%)
- Government-backed (public sector bank)
- Lower maximum rate (14.5% vs 14.75%)
Choose BoB If...
- Government-backed (public sector bank)
Still unsure? Contact Money Matrix Hub for a free personalised recommendation based on your income, credit score, and loan requirement.
Eligibility Comparison
General eligibility criteria for business loan at both banks.
SBI Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 10 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
BoB Eligibility
- Business vintage: 2+ years (ITR required)
- Min annual turnover: Rs 10 Lakh
- CIBIL score: 650+ preferred
- Valid GST registration
- Age: 21–65 years at loan maturity
Criteria may vary. Contact Money Matrix Hub for exact eligibility assessment.
Frequently Asked Questions
Common questions about SBI vs BoB business loan.
Which bank has a lower business loan interest rate in 2026 — SBI or BoB?
SBI currently offers a lower starting rate of 10.25% p.a. for business loan. However, the actual rate you receive depends on your credit score, income, and loan amount. Money Matrix Hub can help you get the best negotiated rate from both banks.
What is the maximum business loan amount I can get from SBI vs BoB?
SBI offers a higher maximum loan amount of up to Rs 5 Cr. SBI offers up to Rs 5 Cr while BoB offers up to Rs 5 Cr for business loan.
Which bank charges a lower processing fee for business loan — SBI or BoB?
SBI charges a processing fee of 1.00% (min Rs 5,000), while BoB charges 1.00% (min Rs 5,000). Processing fees are often negotiable, and Money Matrix Hub can help waive or reduce these charges.
Should I choose SBI or BoB for business loan in 2026?
The best choice depends on your specific needs. SBI offers rates from 10.25%–14.5% with a max tenure of 7 years, while BoB offers 10.5%–14.75% with 7 years tenure. Contact Money Matrix Hub for a personalised comparison based on your profile.
Can Money Matrix Hub help me apply for a business loan from both SBI and BoB?
Yes. Money Matrix Hub is an authorised DSA partner for both SBI and BoB. We can submit parallel applications at no extra cost and help you pick the best sanction offer. Our service is 100% free for borrowers.
Also Compare SBI vs BoB
Related Business Loan Comparisons
View Individual Bank Pages
Want Jay to compare your rate across 40+ banks?
Jay or Rushik will reply on WhatsApp — usually within a few hours. Free, no obligation.