Business loans

Working capital requirement or project funding ?

Secured or unsecured loans ?

We can help you raise funds faster at best rates from suitable financial institutions.

Term Loan:

Term loan is generally financed for long term assets like building, land, machinery, infrastructure creation, purchase of building, renovation, purchase of machinery, equipment, capital infusion, etc.

Term loan comes with a fixed repayment schedule (monthly or quarterly). The rate of interest may be either fixed or floating. In case of secured loan maximum tenure is 15 years and in case of unsecured loan its 3-5 years. The quantum of the loan may vary according to the borrower’s need and eligibility.

Cash Credit Facility and overdraft Facility

On the security of borrower’s stock in trade/ raw materials/ process cash credit loans are granted. Limit on cash credit withdrawal (which is usually 70-80%) is based on your drawing power which is calculated after deducting margin fixed by banks over the stocks. Lender ensures that the drawing power of the borrower is not greater than the balance outstanding. The tenure for this loan is renewed every 12 months. For Working capital needs of inventory and receivables this facility is suitable. 

Bank overdraft is a facility wherein the bank allows you to debit your current account below zero up to a specified limit. The bank predefines the overdraft limit based on the securities such as property or other financial asset pledged by the customer/ account holder or his/her repayment capacity. Only on the amount utilized interest is charged. At short notice, the bank reserves the right to ask for repaying the money.

Loan against Propoerty(LAP):

Loan against property is a loan which you avail by keeping your commercial/residential property as a collateral. Another name for Loan against property is a secured loan. The security in this kind of loan is the property owned by the person applying for the loan. The value of your property decides the amount of potential loan you will be sanctioned.

In case LAP bank do not focus much on the end use of the funds

Loan against Security:

If you have invested in any financial security like mutual funds, fixed maturity plans, exchange traded funds, demat shares, insurance policies and saving bonds, you can avail loan against them to meet your financial requirements. By pledging financial securities the funds raised can be used for any purpose. Tenure of such loans is renewed every 12 months.

However, only those mutual funds, shares and insurance policies can be pledged to raise funds which are approved by the bank.Letter of Credit Facility and bank Guarantee: It is a type of credit facility wherein a bank provides letter to the seller guaranteeing him/her that a buyer’s payment will be received by the seller on time for the correct amount. The bank will cover the entire outstanding payment on certain conditions, if the buyer is unable to make payment for the purchase.

Non fund based credit limits:

Letter of credit facility is used for various domestic and international transactions to ensure that the seller receives the amount from buyer whom is he not knowing and even if they are operating in different nations.

On the contrary, bank guarantee facility reduces the loss if transactions don’t go planned. Bank guarantees also guarantee a certain sum to the beneficiary and pays that sum only when the opposing party doesn’t fulfill the obligations stipulated under the contract. This facility is used to insure buyers or sellers  from any loss or damage caused by non performance of the other party.

List of Documents required for Applying Business Loan:

  1. Identity Proof : PAN card, Voter’s ID, Passport, Driving License, etc.
  2. Address Proof: Ration Card, Electricity Bill, Trade License, etc.
  3. Bank Statement.
  4. Latest Income Tax Certificate.
  5. Past three years Audited Financials.

Eligibility to apply for Loan:

  • Any professional or self employed individual, sole proprietorship, Limited or private limited company and partnership firm.
  • The borrower should be between age of 25-65 years.
  • At the time of applying for a business loan, the borrowing business should be working in a profitable state since at least last 6 months or 1 year ( requirement varies from lender to lender) .

We deal with multiple financial institutions, we can hep you raise funds through right institition, right product at best rates.