Types of Loans

• Working Capital Loans
• Business Expansion Loans
• Equipment Financing Loans
• Invoice Financing & Bill Discounting
• Machinery Loans
• Professional Loans
• Personal Loans for Business
• Government-Sponsored Loans(CGTMSE/MSME)
• Merchant Cash Advance
• Line of Credit/OD
• Secured Business Loans
• Unsecured Business Loans

Eligibility

Business Type:  Most lenders provide loans to various types of businesses, including sole proprietorships, partnerships, limited liability companies (LLCs), corporations, and more.
Credit Score:  A good credit score is often required to qualify for a business loan. Lenders use your credit history to assess your ability to repay the loan.
Business Age:  Some lenders require a minimum operational history for your business, usually ranging from a few months to a year or more.
Annual Revenue:  Lenders may have a minimum annual revenue requirement to ensure your business has a stable income.
Collateral:  Secured loans might require assets as collateral to secure the loan. Collateral can be real estate, equipment, inventory, or other valuable assets.
Cash Flow:  Lenders often evaluate your business’s cash flow to determine your ability to repay the loan.
Age Criteria:     Min. 21 years at the time of loan application & Max. 65 years at the time of loan maturity.
Eligible Entities:  Individuals, MSMEs, Sole Proprietorships, Partnership Firms, Public and Private Limited Companies, Limited Liability Partnerships, retailers, traders, manufacturers, and other non-farm income-generating business entities engaged only in the services, trading, and manufacturing sectors
Business Vintage : Min. 1 year or above
Business experience:  Min. 1 year, business location to remain same
Annual Turnover:  Shall be defined by the Bank/NBFC
Credit Score:  700 or above (Preferred by most private and public sector banks)
Nationality:  Indian citizens
Additional Criteria:  Applicants must own either a residence, office, shop, or Godown.

Documents Needed

The list of documents to be submitted varies based on type of business entity. Submit the following documents to begin with the loan process:

●     ITR for the past 2-3 years

●     Current Bank Account Statement for the last 12 months

●     Photocopy of PAN Card

●     Address Proof for Residence such as Voter Card, Passport, Aadhaar Card, Telephone Bill, Electricity Bill

●     Address proof for Business such as the Telephone Bill or Electricity Bill

●     Last Financial Year’s provisional Financials and future year’s projections.

●     Company’s business profile on the letterhead

●     2 photographs of promoters and property owners.

●     Sanction letter and Repayment schedule of existing loan

●     GST registration certificate and GST returns of latest 2 years.

●     D-Vat/Sale tax registration copy

●     Udhayam Aadhaar registration certificate

●     Rent agreement copy of factory and residence (if property is rented)

●     Business Continuity proof of 3 years (3 years old ITR/Company registration etc)

●     Company PAN Card, Certificate of Incorporation, MOA, AOA, List of Directors, and Shareholding pattern for Pvt Ltd companies

●     Partnership Deed, Company pan Card for Partnership Companies

Other Terms & Conditions

Repayment Holiday/ Moratorium Period

Course period + 1 year.

Coverage of expenses for

• • Fee payable to College / Institution / University / Hostel / Mess charges
  • Examination / Library / Laboratory fee
  • Purchase of books / equipments / instruments / uniforms
  • Personal Computers / Laptops wherever required
  • Caution deposit, Building fund / Refundable deposit supported by institution bills / receipts, subject to condition that the amount does not exceed 10% of the total tuition fees for the entire course.
  • Purchase of computers, if essential for completion of the course.
  • Insurance premium for student borrower
  • Any other expenses required to complete the course – like study tours, project works, thesis, etc.
  • Travel expenses / passage money (to and fro)
  • Cost of external coaching / tution is NOT to be considered.

Repayment Period

• The loan is repayable in maximum 10-15 years after the completion of the moratorium period as mentioned above.
• For loans up to Rs. 7.5 Lakhs: Moratorium period + Maximum 120 instalments
• For loans above Rs. 7.5 Lakhs: Moratorium period + Maximum 180 instalments

Fees and Charges

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