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The hardest thing for a small business owner is often just obtaining the money needed to run necessary business operations. If you approach it correctly, your preparation for small and medium business loans can be very simple. It’s all up to you. When a bank receives a loan request from a new business owner or one starting over, they always consider the risk factors.

A continuous flow of cash is required to run any small business, but the finding of such cash is a very hard experience. Loans for small and medium businesses offer the perfect answer to this dilemma, however you must be fully prepared to obtain these loans. Lending institutions, such as banks, do a thorough assessment of the borrower’s risk factors before considering the approval of your business loan terms and application. For this reason, unless you can truly meet the requirements of the lender, your loan request will probably be denied.

Prospects for small and medium businesses are available in places ranging from the web to publications concentrating on smaller businesses. These opportunities come with the chance for small business loans that can make your visions become reality. There are countless amounts of small and medium business opportunities, given the right amount of time and research. Be sure that you are really interested. The next thing to do is seek small and medium business loans that will help you get started on your small business.
Baroda SME Loan Pack

Baroda SME Loan Pack provides single line of credit for meeting SME borrowers’ working capital as well as long term requirements within the overall limit approved by the bank.

PURPOSE :

* To provide hassle free credit for working capital (fund based and non-fund based) as also long term requirements, taking into account nature of business, cyclical trends, cash flow projections, peak time requirements and any eventuality of unforeseen spurt in the business.

ELIGIBILITY

* All Enterprises, i.e. Small and Medium Enterprises, and other entities (including Service Sector) with sales turnover upto Rs. 100/- Crores, exclusively banking with our bank/new borrowers desirous of having sole banking arrangement with our bank.

COMPOSITE LIMIT :

* 4 times of borrower’s tangible net worth as per last audited Balance Sheet, or, Rs. 2.00 Crores, whichever is lower.

MARGIN : 25%.

RATE OF INTEREST :

* As per credit rating of the borrower.

SECURITY :

1. Exclusive charge on the assets of the enterprise.

2. Personal Guarantees of all promoter Directors.

3. Charge on the unencumbered personal properties of the partners, promoter Directors, wherever applicable.

4. Third party guarantee in case of credit line above Rs. 25.00 Lakhs.

5. Any other collateral for the credit line above Rs. 25. 00 Lakhs to maintain asset coverage ratio above 1.25.

PERIOD :

* 12 months in case of Working Capital
* 3 to 7 years in case of Term Loan, depending upon the cash flow.

OTHER FEATURES :

* Loans upto Rs. 25/- Lakhs will be covered under Credit Guarantee Fund Trust Scheme.