Business Loans India : Loan for Business Premises from State Bank of Saurashtra
Business property loan is one of the best options available for people who are in urgent need of finance for their business purposes. It helps individuals as well as business organizations to avail funds to start their business, or to meet other financial challenges.Business property loan is specially meant for business people who are free to avail it to satiate their various financial requirements. It can be taken easily for the reasons like, starting up a new business, purchasing business assets, and buying business equipments, etc. The amount can even be used to recover from the losses of last financial year.
Since, business property loan is normally secured, so borrower has to offer some short of collateral to lenders against the loan amount. Any worthwhile asset, such as, house, business premises, or your current bank account can be put as collateral. A presence of collateral enables borrower to borrow the amount at lower interest rate. Repayment option is also flexible in this loan.Information about Business Premises Loans from State Bank of Saurashtra is given here
Features of ‘SBS LOAN SCHEME FOR BUSINESS PREMISES’ are as under:
1. Eligibility
Individuals/Firms/Partnership/Trust/Franchises.
2. Purposes
* For purchase of new/old shops/establishment/offices.
* Modernisation/renovation/face lifting of shops
* Expansion/addition/alteration to shops
* Dealers showroom
* Building for training centers, service centers
* Repair center/garage
* Building for Consultant/Chartered Accountants
* All furniture/fixtures-electrical fittings and other accessories required for the showroom/offices/shops.3. Type of Facility
Term Loan facility (Medium Term Loan)4. Quantum of Advances
(a) Under SSI Segment
This will be a part of the total SSI project cost, maximum Rs.20 lacs which may include :-
* Premises/shop used for service operations/repairing/custom servicing units.
* Computer software development and software services
* Call Centre/back office processing for different purposes
* Units engaged in SSSBE (Small Scale Service & Business Enterprises)
* Setting up of cyber café etc.(However the list is an illustrative one & not an exhaustive one.)
(b) Under SBF sub-segment :
* Max. Rs.20 lacs under Small Business Enterprises and Max. Rs.10 lacs for Retail Traders/Professionals and self employed persons.
* Shops/premises/showroom/consultant office for the Professional and Self Employed Persons.
* Premises used for Business Enterprises viz. restaurants, laundry, barber, tailor etc.
* Service centers/hiring of sound system etc.
* Various establishments engaged in Small Business Finances.5. Interest Rate
Prevalent SSI/SBF Term Loan rates applicable for the activity.6. Security
(i) Primary Security – Hypothecation/mortgage/assignment of property purchased out of Bank’s finance including non-industrial assets.In case of leased property, mortgage/assignment of lease hold property will be obtained, NOC (no objection certificate) from the lessor be invariably obtained. But in any case repayment period has to be within the lease tenure. Loan period need to be lower than the remaining lease period.
1. ii) Collateral : Third party Guarantee having adequate worth and/post dated cheques.
2. iii)In case of SSI advance, it should be covered under the guarantee scheme of CGFTS, if eligible.
7. Margin25% (in respect of purchase of old property margin will be charged as 40%)
9. Up Front Fee
As per existing norms.10. DSCR
Minimum DSCR 1.7511. Repayment
Repayment of loan will be made between 3 to 7 years excluding moratorium period of 6 months.12. Takeover
Permitted subject to observance of takeover laid down norms.Sources : http://www.sbsbank.com/