Normally Few Financial Institution gives Unsecured Business Loan where other give Secured Business Loan.

A) Unsecured Business Loan
B) Secured Business Loan.

A) Unsecured Business Loan:
It is normally based on financial eligibility and profile (Previous loan track record and CIBIL Report) of customer where property is not required as collateral or security. This loan can be used for Business or personal Use.

Loan amount : Loan Amount ranging from 5 lacs to 200 lacs

Tenure : Tenure up to 60 months.

Eligibility Criteria Business Loan :

• Loans Based on Profit
• Loans Based on Turnover
• Loans on EDC Swipes
• Loans on Used Cars
• Loans on Professional Receipt

Fees & Charges : Processing time to disburse Business Loan is normally 10-15 days. In some case it may increase. Processing fees charged up to 2.50% of the total loan amount by financial institution.

Documents Requirement :

• 1 Photo & Signed Application Form
• KYC Documents (Proof of identity, DOB, Signature Proof and Residence Proof)
• KYC Documents of Firm/Company (Pan Card and Address Proof, GST No.)
• Last 2 Years ITR Copy, Computation of income (Self & Company or Firm)
• 2 Yrs. Profit and Loss A/c and Balance Sheet Copy (CA certified)
• 6 Months Saving A/c statements & 12 Months Current A/c statements

B) Secured Business Loan:
It is normally taken by borrower against his existing residential/ commercial immovable property or It is backed with security of inventory, raw materials and machinery. This loan is considered as Secured Business Loan or SME Loan also.

Secured Business Loan is normally given against below mentioned property :

• Existing Residential Property
• Existing Commercial Property
• Existing Residential/ Commercial Plot

Purpose of Secured Business Loan

• Working Capital
• Term Loan
• OD, CC & BG Limit
• Equipment Finance
• Project Financing etc.
• To close existing higher Interest business loan

Business Loan can be taken on the name of firm/company also with the owner or directors to join as co-borrower in the loan.

Loan amount : Loan Amount ranging from 20 lacs to 20Cr

Tenure : Tenure up to 10 Yrs.

Eligibility Criteria Business Loan :

• Borrower must be involved in his own business from last 3 years.
• Borrower must be adult and should not be less than 21 Yr. at the time of submitting the loan application
• Should have sound business concept/ model to repay bank EMI on time.
• Property should be dully registered and there shouldn’t be any encumbrance or mortgage or litigation on the property.
• More than one applicant can be part of the loan (could be a blood relative or spouse)

Fees & Charges : Processing time to disburse Business Loan is normally 10-15 days. In some case it may increase. Processing fees charged up to 2.50% of the total loan amount by financial institution.

Documents Requirement :

• 1 Photo & Signed Application Form
• KYC Documents (Proof of identity, DOB, Signature Proof and Residence Proof)
• KYC Documents of Firm/Company (Pan Card and Address Proof, GST No.)
• Last 2 Years ITR Copy, Computation of income (Self & Company or Firm).
• 2 Yrs. Profit and Loss A/c and Balance Sheet Copy (CA certified)
• 6 Months Saving A/c statements & 12 Months Current A/c statements.
• Property Documents (for Secured Business Loan)

Team FinancialDistributor will be glad to offer you expert advice and guidance in order to help you choose the right bank/financial institution to get the cheapest rate of interest with maximum tenure along with maximum savings.