Business Loans India : Trade Finance from Indian Bank
Before you apply for these loans, ensure that you have your credit report. The lenders first study it in detail for assessing the risks for them. Therefore, make sure that all your past payment details find correct mention in the report.
Secondly, keep all the documents related to your trade ready. Your past tax records, bank statements, cash flow records etc are crucial for the loan approval.
Small business loans come in secured or unsecured options. The secured loan will require you to pledge your residential or commercial property as collateral. The loan amount will depend on value of the property and so you can have access to greater funds. These loans carry a lower interest rate. You can choose to repay the loan anywhere from five to 30 years. However, a longer duration will result in you ending up paying high interest.
The unsecured loans are of smaller amount as you get it without collateral. In the absence of collateral, the interest rate goes higher. Your repayment ability and credit history are generally the two main parameters for the loan approval. Its repayment duration ranges shorter from few months to 15 years.
As far as your blemished credit history of making late payments in the past, having arrears, defaulting on payments or having CCJs is concerned, while the secured loan option is easier to avail, the unsecured loan will depend on the lenders’ faith on your trade prospects and repayment ability.
Make sure that you have first applied for rate quotes of as many small business loans offers on internet. If you take the loan through online, then the interest rate will be competitive as compared to higher rates of banks and financial institutions. Repay the loan on time for escaping any debt accumulation.
Trade Finance from Indian Bank
Working capital needs of stock in trade, receivables/infrastructure
Term Loan:
* Showcases, Basic Office amenities like Computer Hardware
* Furniture layout for storage/display of goods traded, cold storage facilities
* Neon Lighting, Hoarding, Display panels
* Billing Equipment, Safety Equipment etc.
* Front elevation and beautification of layout
* Other facilities aimed at Customer convenience like Air-conditioning, purchase of Delivery Van, Trolley etc.
Security
Scheme I
Secured OD upto Rs.10 lakh
Against immovabale property, NSC, KVP, IVP
(The securities viz., immovabale property, NSC, KVP, IVP
lodged for the full limit has to be retained with the Bank till complete adjustment of the facility)
Collateral : stocks in trade
Personal Guarantee of Directors for loans to Private and Public Ltd. companies
Scheme II
OCC Above Rs.10 lakhs upto Rs.100 lakh
Primary: Against Stocks and Book Debts
Collateral: 100% of OCC limit in terms of value of Immovable property, NSC/ KVP/ IVP/Agricutural Land.
Personal Guarantee of Directors for loans to Private and Public Ltd. companies
Term Loan:
Max. upto Rs.10 lakh
Hypothecation of items purchased/infrastructure created, Collateral 100%
Personal Guarantee of Directors for loans to Private and Public Ltd. companies
Interest Rate:
Working Capital
BPLR
Presently 12.50%
Term Loan
BPLR+TP
Presently 13.30%
Margin
I Working Capital:
For limits upto Rs.10 lakh:
Immovable Property – 33%
NSC/KVP/IVP etc. – 10%
Agricultural Land – 50%
For limits above Rs.10 lakh and upto Rs.100 lakh:
Primary Security – 15% on paid stocks/book debts (90 days)
Collateral Security – 100%
II Term Loan: 20%
Repayment:
Term Loan: Repayable in 48 equated monthly instalments
Service Charges:
Rs.250/- per lakh or part thereof
Sources : http://www.indianbank.in