The buy-to-let product is available in 10 branches across the UK, predominantly in the South, but plans are in place to distribute through brokers.
The lender, which also has Financial Services Authority permission to offer regulated mortgages, plans to launch residential products in 2012. The lender will launch through branch first and next to mortgage advisers and IFAs in the second phase, the lender confirmed.
The buy-to-let product is a tracker rate, offered at up to 60% LTV at base rate plus 3.99%.
The loan comes with an interest-only option and is available on loans worth between £50,000 and £1.5m.
The product has a £150 booking fee and £1,990 arrangement fee and no early repayment charge.
The Indian bank already offers savings accounts and investment products in the UK.
SBI, which is 59.41% owned by the Indian government, is the 50th largest bank in the world and has offices in 32 countries.
