Loans with no primary or collateral security requirements.
Loan tenure ranging from 12 to 48 months.
Flexible and customized loan payment options.
Quick approval with minimum documentation.
Legal and technical advice at every step.
The economic and social importance of the small and medium enterprise (SME) sector is well recognized in academic and policy literature. It is also acknowledged that these actors in the economy may be under-served, especially in terms of finance.This has led to significant debate on the best methods to serve this sector.Although there have been numerous schemes and programmes in different economic environments, there are a number of distinctive recurring approaches to SME finance.
Collateral based lending offered by traditional banks and finance companies is usually made up of a combination of asset-based finance, contribution based finance, and factoring based finance, using reliable debtors or contracts.
Information based lending usually incorporates financial statement lending, credit scoring, and relationship lending. Viability based financing is especially associated with venture capital.
SME finance is the funding of small and medium sized enterprises, and represents a major function of the general business finance market – in which capital for different types of firms are supplied, acquired, and costed or priced. Capital is supplied through the business finance market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity; and asset-based finance such as factoring and invoice discounting.
We offer a range of SME loans to help you to give your business the impetus it needs. Whether you require a business loan, a loan to expand capital, purchase equipment or machinery, you have the freedom to choose the most suitable loan for SME business that meets your financial needs. With flexible tenure, processes and minimum documentation, the SME loan is designed to provide the momentum for growing your business.
Limited Liability Partnership.
Private Limited Company.
An Enterprise should have at least five years of operations for the business.
Minimum turnover of Rs. 40 lacs in the manufacturing and trading industries, and Rs.15 lacs in the service industry.
Cash profit for the previous two years.
Clear banking and loan payment history.
Positive business net worth.
Demonstrated growth in turnover.
Generally Required Financial Documents
Incorporation documents and Bank statements for the past 6 months.
Proofs of age, address and signature of individuals (Parties involved in the agreement).
Validation proof and tax receipts for the current years turnover.
Financial statements from the last three years.
Proof of address for office and factory.
Bank statements of the last 6 months.
Relevant collateral documents
How much can I get as SME Loan?
Provided you have chosen the right provider, you can be awarded up to 80% of the total planned investment amount. However, the final amount would depend on your eligibility.
What about the tenure for the small business loan?
While the tenure may vary from one provider to another, loans for small business must be awarded for a minimum period of 6 months and to a maximum of up to 4 years. Providers who do not wish to extend their tenures to this limit are best avoided.
How long does the processing of a small business loan take?
The prime purpose of seeking business financing is to be able to receive the amount when you need it. Therefore, delayed disbursals of loan amounts could indeed be a problem. Remember, your loan for business can actually be processed within a period of 4 to 5 days from the date of completion of the documentation process. A customer oriented loan provider would certainly speed up the process for your convenience. Do not settle for anything less.
How soon can I prepay my business loan?
Ideally, you would be allowed to prepay after an initial period of 6 months. Prepayment or foreclosure charges will apply with some banks.
If I have no collateral, can I still qualify for a business loan?
Business loans from banks generally do not require collateral. No need for co-signer or guarantor willing to guarantee the loan either. This is irrespective of whether you are a start-up business or are looking for a larger loan.
Do I need a business plan when applying for a business loan?
If your existing business in operation for more than three years, you may need to compile and submit a summary of the nature of your business. If you are looking to expand your business in some way, you will have to explain expansion plans and how the expansion will positively affect revenue and company growth.