Loans for Small & Medium Business

About SME Loans

Types of SME Loan

Loan Process

Interest Rates

Eligibility Criteria

Documents Required

Features & Benefits

SME Companies

SME finance is the funding of small and medium sized enterprises

A loan specially designed to meet the business needs

Image source: http://magma.co.in/wp-content/uploads/2014/01/SME-loan-960x320.jpg

SME plays important role by contributing 45% of industrial output &

1.3 million jobs every year

Definitions of micro, small and medium enterprises as per there

investment in plant and machinery as follow:

Enterprises Manufacture or Product Service

Micro Upto Rs. 25 lakh Upto Rs.10 lakh

Small Rs. 25 lakh to 5 crore Rs. 10 lakh to 2 crore

Medium Rs. 5 crore to 10 crore Rs. 2 crore to 5 crore

Application

Processing

Documentation

Sanctioning of the Loan

Disbursement

Working capital:

• To bridge the working capital gap & foster growth of businesses

Business Expansion:

• For expansion of manufacturing facilities

• Increasing product lines

• Geographical expansion

• Technology upgrades etc.

Margin Money Funding:

• Margin money required for machinery purchase/LC/BG

Source: http://magma.co.in/loans/sme-loans/

Bank Name Interest Rate Processing Fee Loan Amount

HDFC Bank 17% - 22% 2% - 2.5% 75K - 15 Lacs

ING Vysya Bank 15.25% - 19.25% 2% - 2.5% 2 Lacs - 20 Lacs

Magma Fincorp 16.5% 3% Upto 2 Crore

Bajaj Finserv 19% - 20% 2% 1 Lac – 45 Lacs

ICICI Bank 15% - 19% 2% - 2.5% 2 Lacs - 25 Lacs

Fullerton India 21% - 28% 2% - 3% 1 Lac - 20 Lacs

Source: http://www.deal4loans.com/apply-business-loans.php

Age Between 21 to 65 years

Turnover of the business

Profit of the business

Cash flow of the business

Track record and type of business

Professionals with stable income & business

Proofs of age, address & signature

Bank statements- past 6 months

Financial statements- last 3 years

IT returns- last two years

Ownership Proof of Residence or Office

Incorporation documents

Tax receipts for the current year turnover

Tax Benefits as per applicable laws

Hassle-free loans

No security/collateral required

Repay with easy EMIs

Simple procedure

Minimal documentation

Quick approval

Higher loan tenure

Flexibility of loan tenure