Business Loans India : Trade Finance Loan from Vijaya Bank

The main option is to take out a business loan from bank. Generally speaking, if you have a good business idea, and a sound business plan, then getting finance from a ban can generally be quite straightforward. The advantages of this are immediate, as you retain full control of the business and do not have to promise away a share of the future profits of the business.

A bank loan will not give a bank a say in the running of the business, although they will be interested in how you are doing as they have put faith in you. They also will not have a claim on your profits each year. You will however, have to make all your repayments on the loan and keep repayments on time and up to date. This will be the case whether or not the business is making money so you have to be confident that you have enough reserves on hand to continue with your repayments during lean months, especially at the beginning of the business.Information about Trade Finance Loan from Vijaya Bank is given here

Trade Finance Loan from Vijaya Bank

Eligibility

Individuals/proprietary concerns/partnership firms, private limited companies or any legal entity engaged in business – retail trade, distributors, stockists, commission agents, etc., are eligible for finance under this scheme, for a period of 1 year, with the provision for yearly renewal.

Quantum of finance

Need based credit limit subject to a maximum of Rs 25 lakhs.
Nature of Loan : Cash credit(miscellaneous)

Rate of Interest

with effect from 16.04.2007 :

[BPLR = 13.00%]
Amount Slab     Rate of interest per annum – Floating
Any amount           13.00% [BPLR]

Guarantor

A guarantor acceptable to the bank.

Repayment

Loan will befoe a period of 3years subject to riview every year.
Security

Immovable property @ 25% margin and/or other securities like NSC,Kvp and Govt.securities,SV of policies to the extent of the Limit.

For limits and Rs.10 Lakhs – Collateral security of stock is taken(insured and inspected annually)

Sources : http://www.vijayabank.com

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