Today’s generation has so many creative ideas which can be put into use for making a successful business venture. The ideas are all fresh, innovative and off-beat. And that’s the reason so many startups are flourishing in the country. Finance plays a very important role in the success of the business venture as it the main lifeline of any business. To start up or expand any business one requires funds to keep it running. This is where a business loan comes into the picture.
The market is flooded with many such products and it gets difficult to choose which one to avail. The lenders may be many but you have to choose the best one for you. Today, I will be telling you about a Bandhan bank business loan. The product is offered by one of the newest banks of India, Bandhan bank. Though, the bank is a newbie but all its products and services are well suited to take care of any financial requirement. If you are looking forward to enhance and boost your business, you can take a loan from the bank.
The incorporation of the bank took place on December 23, 2014 as a wholly-owned banking subsidiary. Reserve Bank of India gave the consent to Bandhan Financial Holdings Limited to open a bank in the month of April in 2014. The final nod was received in June 2015. The bank has set up its main headquarter in the capital of West Bengal, Kolkata. This was the first time since independence that a bank was headquartered in eastern part of India. The bank has kept a very unique name for its business loan- Samriddhi. Samriddhi is a hindi word meaning prosperity. One can avail a maximum of Rs. 25 lakhs from the bank as a loan. The tenure period for the product is up to five years. Tighten up your seat belts as I take you into details of the product.
Eligibility criteria
An interested loan borrower has to meet the eligibility criteria which is set by the bank.. Do remember you have to follow each of them to successfully obtain the product. The applicant should have obtained at least 23 years of age while applying for the loan. It doesn’t matter whether you are individual, proprietor or a partnership firm, the product is for everyone. This is what makes it different from other products in the market.
The loan has to be completely repaid along with the interest amount by the age of 60 years. The maximum age of maturity has been kept at 60 years. It is important for the applicant to be involved in the current business for a period of at least two years. However, this doesn’t mean new entrepreneurs are not eligible. They are welcomed with open arms by the bank. In case of non-individuals, a satisfactory track record of a minimum of two years is needed in the same business.
Documents Checklist for a Bandhan Bank Business Loan
Documentation holds a very important place in the successful disbursal of the product. Check out the list of essential documents to be submitted to the bank.
- Completely filled application form
- Proof of Identity- PAN card/Voter ID card/Driving License/Aadhar card/Passport
- Three photographs of passport size of the Individual Borrower/Directors/Partners
- Proof of Address- Passport/Rent agreement/Telephone bill/Electricity bill
- Ownership documents of security
- Financial statement of the past two years
- Copy of the following- Memorandum of Association and Articles of Association along with Partnership deed or any other related documents for any partnership firm or a company
- Two photographs of passport size of the guarantor, in case it is needed
- Trade license or any other such regulatory license which is applicable to unit
- Bank statement of the last six months
- For a working capital, stock statement has to be given every month
Margin of the loan
- Working capital- 25%
- Term loan- 25%
Interest rates and processing fee
Checking out the interest rates should be on the top of your list because they determine your monthly EMI that you will have to pay to the bank. Do remember my friend, higher rates simply mean higher EMIs. Bandhan bank has linked the interest rate to its MCLR from the April of 2016. The one year MCLR of the bank is 9.95%. A processing is also charged by the bank which is up to 1% of the sanctioned loan amount.
I hope you are now well versed with the key information about a Bandhan bank business loan. Do approach your nearest branch if you want to avail the product.
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