Business Loans India | Commercial Loans | Small Business Loans | Business Overdraft | Loan For Entrepreneurs | Loan For Self Employed

Business loans offer you an ample opportunity to display your business skills and prove your mettle.Business is such an occupation that you have to remain ahead in vision, perception and imagination. Study the market, undertake business research, perceive what the consumers want and then set new trends in the business. All these activities require a lot of money. An enterprising person would be able to strike a good balance between requisite business research and money constraints. Any help in the form of business loans may help you achieve higher goals. You are required to fulfil certain conditions before taking business loans.

Generel Purpose Term Loans For Small Scale Industries from state Bank of India
State Bank of India grants term loans to small scale industries for meeting general commercial purposes like substitution of high cost debt,research and development, shoring up net worth and funding business expansion.

The tenor of the loan is normally is 3 years, and the pricing is fine-tuned to suit the risk profile of the borrower. The repayment is structured in monthly or quarterly installments, according to the cash generation cycle.

Eligibility Criteria
The SSI unit that takes the loan should not have any history of defaults in payment of interest or installments of the principal. The unit should have a strong performance record and a respectable credit rating as per the bank’s own credit assessment scales ( In case of loan above Rs. 25 lakhs ) .

The type of security/guarantee required for the loan
Extension of hypothecation charge over the current assets and fixed assets is required as primary security. Further, the borrower whose aggregate loans with the Bank exceed Rs 5 lakh may explore the possibility of collateralizing tangible security such as immovable property and third party guarantee. In all cases, personal guarantees of proprietors/partners/promoters have to be furnished.

The margins
A minimum margin of 25 per cent is applicable for acquisition of land and building, building construction, renovation of offices, showrooms, godowns, purchase of equipment, vehicles etc. In other words, the quantum of the loan will be restricted to 75 per cent of the total expenditure.

Sources : http://www.statebankofindia.com/