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The prospects of small business loans are probably the best financial support for your business. You can use the loan amount in any form to cater your business requirements. Straight from satiating your fund needs for establishing your own business firm to manage your routine business financial requirements of clearing unpaid bills, buying furniture, office accessories, paying labor ant etc, everything can be easily performed through the assistance of small business loans. If in case you want to apply for this loan, the size and productivity of your business firm will not set a criterion. In fact, it is your own personal financial status that will considered for the approval of the loan. The lenders will only check for repayment ability. So if your business is running in loss or you are encountering any economic hurdle in your business organization, you can easily demand for this loan. These loans are easily accessible through several financial companies and banks.

Union Trade Loan from Union Bank of India

UNION TRADE
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
- RATE OF INTEREST * ( w.e.f 11.04.2007)

(Present BPLR = 13.25%)
Rating

Rate of Interest(%)For Working Capital

Rate of Interest(%)For Term Loan
CR-1 to CR-2     BPLR -0.50 = 12.75     BPLR =13.25
CR-3 to CR-5     BPLR + 0.25= 13.50     BPLR + 0.75 =14.00
CR-6     BPLR+ 1.00= 14.25     BPLR+ 1.50 =14.75
CR-7 to CR-8     BPLR+ 2.75= 16.00     BPLR +1.50 =16.50
CR-9     *     *

PROCESSING CHARGES (EXCLUDING SERVICE TAX AS APPLICABLE)
NEW PROPOSALS     CHARGES
Upto Rs 25000/-     Nil
Rs 25001 to Rs 2 lacs     Rs. 254/- per Proposal
>Rs 2 lacs upto 10 lacs     Rs. 201 – Per lac
> Rs 10 lacs and upto Rs 1 crore     Rs. 154/- per one lac subject to miminum of Rs. 2504/-
> Rs 1 crore     Rs. 100/-per lac subject to minimum of Rs.15000/=

Renewal/Modifications — For renewal/modification the charges as stipulated for general advance applicable
SECURITY

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

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

No Prepayment penalty if the loan is adjusted by the borrower from his own verifiable legitimate sources or genuine sale. However, 2% charged on an average o/s. balance of last 12 months if loan is closed on take over by other Banks / Financial Institutions

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