Business Loan 

Small Business Loans SME: Information

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A business needs funds for its set up as well as to run its daily operations. The business loans give the entrepreneur a chance to overcome this hurdle. The business loans is a sort of relief to small entrepreneurs for whom managing finances for their business would have been a very tedious task. There are a number of banking and non-banking financial institutions in India that offer small business loans. These loans can be obtained for short term as well as long term and the rate of interest may vary from 16-20%.

Let us have a close look at some of the small business loans of different banking and non-banking financial institutions:

Axis Bank- Axis Bank has a diverse range of SME fast track Loans under the following schemes:

  1. Financing to Non-Priority Sector Entities
  2. Overdraft against property
  3. Lease rent Discounting
  4. Zero collateral loans to SSI units
  5. Business Loans for property
  6. Smart Swipe Credit Line
  7. Cash Credit
  8. Working Capital Demand Loan
  9. Short Term Loan
  10. Term Loan
  11. Clean Bill Discounting
  12. LC Backed Bill discounting
  13. Credit facilities against Guarantee

Bank of Baroda – Bank of Baroda has different schemes for small and medium enterprises-

SME short term loan (SSL)-

  • Loan amount – Min. Rs 10 Lacs and maximum Rs 250lacs.
  • Repayment period -180 days – min. 90 days

SME Medium Term Loan-

  • Loan Amount – Min. Rs 25 lacs and max. Rs 500 lacs
  • Repayment period – 36 months.

Kotak Mahindra Bank Business loan-

  • Loan amount ranging from Rs 1lac  to 75lac
  • Flexible repayment options.

ING Vysya – Mpower Business Loan Trade

  • These loans are available for small business entrepreneurs, retailers, shop owners, contractors, commission agents and transport operators as well as practicing professionals like Doctors, Lawyers, Consultants, Women Entrepreneurs and any others with a credit requirement.
  • Loan amount Rs.5lakhs up to 200lakhs.

Federal Bank

  • They offer- demand loan, Demand Loan, Cash Credit, Overdraft, Cheque/Bill Purchase Limit and BG/LC limit for working capital requirements and term loan for setting up a service related business / Refurbish an existing unit.
  • Repayment period  -Term Loan – Maximum 84 months, Working Capital – 30 months, Non Funded(BG/LC) – 30 months.

ICICI Bank

  1. Secured Loans
  • Cash credit /Overdraft for meeting working capital finance requirement.
  • Export credit to provide pre-shipment and post shipment finance.
  • Letter of credit to facilitate trade.
  • Bank guarantees for meeting performance and financial obligations.
  • Term loans for purchase of commercial assets and business expansion needs.
  • Loan amount- up to Rs 50.0 million for working capital and capital expenditure needs.
  • Interest rate is linked to ICICI Bank’s base rate for fund based facility.
  • Low collateral requirement and lending available upto 3 times of the value of collateral.
  1. Business Loans by CGTMSE ( Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme of  SIDBI and Ministry of Small and Medium Enterprises-

Features –

  • Cash credit /Overdraft for meeting working capital finance requirement.
  • Letter of credit to facilitate trade.
  • Bank guarantees for meeting performance and financial obligations.
  • Term loans for purchase of commercial assets and business expansion needs.
  • Loan amount- upto Rs 10.0 million for working capital and capital expenditure needs.
  • Interest rate is linked to ICICI Bank’s base rate for fund based facility.
  • No collateral is required.

HDFC Bank

Features-

  • Designed to help businessmen involved in manufacturing, trading and the service industry.
  • Loan amount up to Rs15 lakhs and this amount can be up to Rs 30 lakhs in some selected locations.
  • No collateral /guarantor /security required.
  • Rack interest rate range 17.5% to 22% .

HSBC Bank –

  • Can choose from a range of finance options like export/import financing, discounting of export receivables, bank guarantees for business requirements, treasury line to manage cross currency transaction risk.
    • Maximum loan amount upto Rs 10 crores
    • MSE (Micro and Small Enterprise) can avail loans  upto Rs 10 lakhs without collaterals.
    • Flexible quantum and tenor of loans.
    • Interest rate is calculated on the prevailing base rate at the time of processing.

SBI (State Bank of India)

SBI has an array of loan products for small and medium business enterprise-

Manufacturing

 SBI SME Collateral Free Loan-

  • Borrowers eligible under the scheme will be covered under CGTMSE guarantee scheme.
  • No collateral required.
  • Max Loan amount up to Rs 1 crore.
  • Repayment period- Max 7 years including moratorium period.

SME Smart Score

  •   Available to small and medium enterprise units engaged in manufacturing, trade or services.
  • For manufacturing units the maximum loan amount is Rs 50lakhs and for trade     and services units the total limit is up to Rs 25lakhs.
  • Repayment period 5 years excluding moratorium not exceeding 6 months.
  • The interest rate is floating rate of interest and is linked to base rate.   

SMFG India

  • Maximum Loan up to 30lacs without any collateral for self-employed businessman involved in Manufacturing, Trade and service.
  • Repayment period 12 to 48 months.
  • Pre-payment facility.

Bajaj Finserv

  • Maximum loan amount up to Rs 45 lacs
  • No collaterals or guarantors required.
  • Repayment period – 12 to 36 months.

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