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Business Loans

For business persons who require finance for starting a new business, expanding operations, purchasing equipment, or managing cash flow.

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

Particulars

Charges

Loan Processing Fees 2% to 4% of Loan Amount
Loan Cancellation 0 to 4% of Loan amount
Stamp Duty Charges 80/- to 500/-
Legal Fees Nil
Penal Charges Nil
EMI / Cheque Bounce Charges Rs 500/- 

 

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