Business Loans India : Union Trade Loan from Union Bank of India

December 25th, 2007 admin Leave a comment Go to comments

It is worth noting the fact that all big things have their roots in some basic small beginnings that were made by people who are called as mentors in the present day world. With people dreaming of big empires, it would be viable to start with some small opportunities that come their way. If money is your constraint, then you can easily take up small business finance for overcoming it.

With any small opportunities that are falling in place for the businessman, it would be a good start even if he has to take up Small business finance for his monetary requirements. If it is starting a new business or even resetting up an older one, money is available easily to them.

In a business, money may be required for any purpose relating to the business. This may be payment of labor, getting raw materials, buying new machines, marketing, transportation etc. All these needs can be easily fulfilled with the help of these loans.

The borrower can take up these loans in the form that is suitable for him. If he wants a big amount or is intent on a low rate of interest, then he should go for the secured form of the finance. The borrowers have to pledge an asset for this form with the lender.
If the borrower wants a smaller amount or does not have any asset to pledge with the lender, then the unsecured form of the loan is the best for him. Through these loans, the borrower does not require to pledge any asset for the loan.

Small business finance is a ready source of money for the businessmen who are in need. They can now establish themselves easily with the help of this money.Information about Union Trade Loan from Union Bank of India is given here

Union Trade Loan from Union Bank of India
ELIGIBILITY

Borrower should be in possession of registration / licences as applicable under local law e.g.
1. Shop Establishments Act.
2. Sales Tax Registration.
3. Drug Licences for Retail Trade.
4. Ration & Civil supplies.
5. Licence to deal in petroleum products/LPG

TARGET GROUP

I. The target group under Union Trade scheme include:

1. All Retail Traders
2. All Wholesale Traders

Including Supermarkets, Malls, Departmental Stores, dealers in groceries, consumer durables, co-operative stores

II. Service traders like, restaurants, entertainment etc. maintaining required quantum of stock and/or book debts.

QUANTUM
Working Capital     Term Loan
Minimum     Rs. 2.00 lacs     Rs. 2.00 lacs
Maximum     Rs. 500 lacs     Rs. 100.00 lacs

MARGIN

FOR WORKING CAPITAL LIMIT:-

Upto Rs.10 lacs – NIL

- Rs.10.00 lacs to upto Rs.500.00 lacs – 20% (For arriving of Drawing Power only)

- Limits above Rs.500.00 lacs 25%

FOR TERM LOAN:-

25% margin irrespective of amount of loan. (out of total cost of assets/equipment/construction, 25% has to be brought by the borrower)
REPAYMENT
For Term Loan: Upto Maximum of 84 EMIs, subject to review every year

For Working Capital: to be reviewed and renewed every year

SECURITY

- Primary : Charge over stock and Book Debts (not older than 90 days)

- Above Rs.500.00 lacs – not less than Rs.500.00 lacs subject to approval of the sanctioning authority

Sources : http://www.unionbankofindia.co.in/