Business Loans India : Business Property Loan from HSBC Bank

Business property loans are basically loans taken by the people involved in business for various reasons depending upon their needs. Generally the business property loans are taken for these purposes.

·For starting a new business venture
·To purchase an asset for the business
·To recover from the losses from previous financial year
·To use the loans as a working capital for the day to day running of the business

With a tendency to serve for all these purposes business property loans are an attractive proposition for all you business people.

To all the people who want to take these loans must know what is required to take business property loans. These loans are basically related to property and therefore to avail them every borrower is required to provide a security to the creditor. A security can be any worthwhile asset in the name of the person who is the bearer of the loan. It can be a house, the business premises or an active current bank account.

The only down side to it is that if by some way the borrower fails to make repayment on time the collateral is in very serious danger of being seized by the creditors.

Since the business property loans are secured loans once you are willing to provide the collateral you can get the loan even if you have bad credit history. The only difference will be that of the interest rate which you can negotiate.

You can apply for the loans by logging on line and by filling your information regarding the loan and you will get the verdict very quickly. What makes business expand and therefore successful is money and for people looking for it one of the better sources is business property loans as they provide all those things that are desired in a loan.

Business property loans  from  HSBC  Bank 

Eligibility
Loans offered to the following type of concernsLoans offered to the following type of concerns

* Sole Proprietorships
* Partnerships
* Private Limited Companies
* Unlisted Public Limited Companies.
Income requirements

* Net Income of the concern should be greater than Rs. 200,000 p.a.
* A maximum of two incomes of the partners/directors holding a minimum of 25% stake each can be clubbed to the income of the concern.
Turnover requirement

* Minimum turnover of the concern must be Rs. 1,000,000 p.a.

Age of the guarantor (wherever personal guarantee is applicable)

* Minimum age of the guarantor to be 21 years
* Maximum age of the guarantor to be 65 years at the time of the loan maturity

Sole Proprietorship

Proof of identity of the Sole Proprietorship Firm Proof of identity of the Sole Proprietorship Firm (any one of the following):

* Sales tax / VAT /Service tax / Excise registration OR
* Registration under Shops and Establishment Act OR
* PAN ID / IT return of the concern OR
* Water / Electricity / Municipal tax bill in the name of the concern OR
* MAPIN card in the name of the concern
Proof of individual identity to be submitted for the Sole Proprietor (any one of the following):

* Passport OR
* Voter’s identity card OR
* Photo PAN card OR
* Driving license OR
* MAPIN card
Proof of residence address to be submitted for the Sole Proprietor (any one of the following):

* Passport OR
* Voter’s identity card OR
* Driving license OR
* Ration card OR
* Society outgoing bill OR
* Life Insurance Policy OR
* Electricity bill OR
* Telephone bill (land / mobile)
PAN ID / PAN allotment letter / Form 60 of the concern
Financial documents  (all of the following):

* P & L and balance sheet for last two years audited by a C.A. AND
* Copies of IT returns for the last two years AND
* Bank statements for the last 6 months

Partnership
Proof of identity of the Partnership Firm (any one of the following):

* Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR
* PAN ID / IT return of the concern OR
* Water / Electricity / Municipal tax bill in the name of the concern OR
* MAPIN card in the name of the concern OR

Proof of individual identity to be submitted for the all Partners (any one of the following):

* Passport OR
* Voter’s identity card OR
* Photo PAN card OR
* Driving license OR
* MAPIN card

Proof of residence address to be submitted for all partners (any one of the following):

* Passport OR
* Voter’s identity card OR
* Driving license OR
* Ration card OR
* Society outgoing bill OR
* Life Insurance Policy OR
* Electricity bill OR
* Telephone bill (land / mobile)
Partnership Deed

PAN ID / PAN allotment letter / Form 60 of the concern

Financial documents (all of the following):

* P & L and balance sheet for last two years audited by a C.A. AND
* Copies of IT returns for the last two years AND
* Bank statements for the last 6 months

Private Limited Company
Proof of identity of the Limited Company (any one of the following):

* Sales tax / VAT /Service tax / Excise registration OR
* Registration under Shops and Establishment Act OR
* PAN ID / IT return of the concern OR
* Water / Electricity / Municipal tax bill in the name of the concern OR
* MAPIN card in the name of the concern

Memorandum and Articles of Association

Board resolution

Copy of annual return establishing the shareholding pattern

Proof of individual identity to be submitted for the authorised signatories and 2 Directors (including the managing Director) (Any one of the following):

* Passport OR
* Voter’s identity card OR
* Photo PAN card OR
* Driving license OR
* MAPIN card
List of directors
Copy of Form 32 filed with ROCCopy of Form 32 filed with ROC
PAN card / PAN allotment letter / Form 60 of the concern
Financial documents (all of the following):

* P & L and balance sheet for last two years audited by a C.A.AND
* Copies of IT returns for the last two years AND
* Board resolution for borrowing and creation of mortgage AND
* Bank statements for last 6 months for Business Credit upto Rs. 15 Lakhs and 12 months for Business Credit above Rs. 15 Lakhs

Features of Loan
a. Minimum loan amount    Rs. 500,000.

b. Maximum loan amount    Rs. 10,000,000.

c. Maximum loan tenor    10 years.

d. Loan value    Up to 50% of the property value.

e. Interest rate    For the interest rate applicable, contact the nearest HSBC branch.

f. Interest type    Choose between fixed and floating rate of interest.    Flexibility to change once every year without any penalty charges.

g. Interest calculation method    Interest calculated on a monthly reducing balance basis.

h. Processing fee (payable after loan is approved)    0.25% for sole proprietor and partnership firms.1.25 % for private and public limited companies.

i. Guarantor    Personal guarantee of partners in partnership firm and directors in private limited company.Not applicable to sole proprietorships.

j. Late payment charges    Rs. 300 plus applicable taxes.

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

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