What is the need for a Business loan?
Money is the life blood of every organization. There is a huge amount of working capital required to start up a new business and for the rapid growth of existing successful business.
Who all can avail a Business loan?
• Self Employed Individuals/Professionals
• Sole Proprietorship Firms
• Partnership Firms
• Private Limited Companies
Who can apply for a Business Loan?
• Minimum Age (24 Years)
• Maximum Age (65 Years)
• Current Business Exp. (Min.3 Years)
• Total Business Exp. (Min 5 Years)
• Minimum Annual Income: Rs.1,50,000 p.a.(For working professional Rs.1,00,000 p.a.)
What all document are required for applying for a Business loan?
• Identity Proof
• Address Proof
• Bank Statement (Latest 6 months)
• Latest ITR along with other relevant docs like Balance Sheet, P&L, Audit Report (Certified by a CA)
What are the stages involved in availing a loan?
• Sanctioning of the Loan
What are the tenure options available for the repayment?
Business loans range from min. of 1 year up to a max of 4 years
How much time does it take for the disbursement of the loan?
The processing of the loans usually takes 4 working days after all the documents are submitted.
Can I make part pre-payment?
You can make a part pre-payment with a min. amount of Rs.50,000 after 6 months from the date of disbursement of the loan. This part pre-payment can be made only once in a financial year.
What are the options available for repayment of the loan?
The loan can be repaid through Electronic Clearing System or Post Dated Cheques.
Can I pre-pay my loan?
Yes you can pre-pay the loan after repaying a min. of 6 EMI’s. Foreclosure charges would be applicable as per the banks term and condition.
What are the prepayment Charges?
Pre payment charge of 4% to 6% is levied on balance principle outstanding.For what Purposes are Business loans given? Business loans are given towards Working Capital,Short Term Cash Need, Business Expansion,New inventory,Buying Machinery/equipment etc.
What are the Eligibility Criterias?
Entity should be Self Employed with Min Age 25 yrs & Max Age 65 yrs.
Should have vintage of at least 3 years. Should be profit making for the past 2 years Co-applicant required as a Guarantor:
Who can avail a Business loan?
Business installment loan can be availed by: Self employed individuals / professionals Sole proprietorship firms Partnership firms Private limited companies and closely held limited companies
What are the benefits of Business loans?
Speedy loan processing – 4 to 7 business days Fast and easy documentation . Hassle-free loans Loans From 5 Lakh to Rs.3 Crore Repay with easy equated monthly installments.
What is the minimum annual turnover eligibility?
Minimum turnover required is Rs.1 Crore P.A. What is the interest rate charged on BIL? Rate of interest vary from 18 % to 22% depending on loan amount, credit assessment and other parameters.
What are the basic documents required for applying?
Photographs Identity, Age & Signature verification proof
Business Bank statements for last 6 months 2 year audited financials including Profit & Loss, Balance sheet and IT returns 3 years Business existence Proof Address proof – Residence and Office.
What is the turnaround time for the disbursal of the loan?
Disbursal of the loan may take a minimum of 7 working days from the time of submission of loan related documents as requested by the Bank.
What parameters are looked into before sanctioning a BIL?
• Liquidity• Solvency
• Asset Owned
• Track record
• Business model
•Industry and product/service