Business Loans India : United Trade Credit Loan From United Bank of India
There are so many types of Business Loans like Small business loans, Government business loans, unsecured business loans, Secured business loans. Small business loans are particularly deliberate to congregate the financial desires of an individual who suffers a lack of finances while starting a new business or expanding the existing one. If you want small business loans at cheaper rates, you can go for secured loans. For this loan you have to offer some of your assets as collateral to secure the loan amount.
Unsecured business loans do not assert anything against the lending amount. The advantage of this loan is that the amount is more or less, free of risk. In this loan it has little higher rate of interest and shorter period of repayment. But at this juncture you do not have the apprehension of losing your property which you will place as collateral, if by chance you setback in repaying the amount. Secured business loans, collateral is placed against the amount that one desires a loan. It has lower interest rates and higher repayment period.
Government business loans are for the achievement of an existing business, working capital requirements, leasing of equipment, buying commercial property, for mounting the business globally or for export franchisees. Because of the greater risk that a business loan entails, the convention for acquiring these loans is fairly stern.Information about United Trade Credit Loan from United Bank of India is given here.
United Trade Credit Loan From United Bank of India
Are you a trader finding it difficult to expand your business? Interested in easy loans? Here comes United Bank of India with United Trade Credit Scheme to help you.
All types of traders- retailers/ wholesalers engaged in trading of commodities including readymade garments, medicines and other merchandise or acting as distributors/ dealers of consumer goods, automobiles, etc. are eligible for this credit line. No hassles of submitting regular statements or periodical calculation of Drawing Power.
Purpose of Loan:
Working capital as well as Block Capital finance for the purpose of business in the form of overdraft or Term Loan.
Eligibility:
If you are an existing trader/ business person/ service provider operating and earning profit for atleast two years, you may apply for the loan. If you are engaged in trade/ business/ service with any other activity like agriculture, manufacturing, construction or exports etc. you are also eligible for the scheme.
Amount of Loan:
Credit line may be in the form of overdraft or term loan and credit limit from Rs. 0.50 lac to Rs. 100 lacs may be sanctioned under the scheme.
Security:
* Mortgage of unencumbered and marketable immovable property and/ or securities like NSCs/ KVPs/ LIC policies etc.
* The inventories, receivables and other available movable fixed assets shall also be hypothecated to the Bank as collaterals.
Margin:
* 40% Margin on the value of mortgaged property, 20% on the value of NSC, KVP and LIP (surrender value), both for term loan and overdraft facility.
Interest Rate : 14.00% (i.e. BPLR + 0.75%) w.e.f. 09.04.07 (floating)
Concessions in Interest rate:
1. A concession of 0.25% p.a. in rate of interest shall be allowed for every 25% (of the limit) liquid security provided.
2. On satisfactory conduct of the account one-time incentive by way of reduction in the rate of interest to the extent of 0.25% p.a. shall be allowed at the beginning of 3rd year of operation.
Repayment:
* The term loan is to be repaid within a maximum period of 60 months by equal monthly installments commencing one month after the date of disbursement.
* In case of overdraft the limit shall be valid for 12 months and renewable thereafter upon review.
Bank do not charge penal fees for pre-payment of loans.
Sources : http://www.unitedbankofindia.com/