FAQS on SME Loans

1. FAQs on SME Loans Who can avail of SME Secured Loans? Self-employed doctors in the age group of 24 to 65 years (at the end of the loan tenure). Partnership Firms & Private Ltd. Companies. How much finance can I avail of? You can borrow up to 80% of your planned investment in plant and machinery, based upon your loan eligibility. What are the tenure options? Business loans range from a minimum of 6 months up to a maximum of 4 years. How long will it take to process the loan? Loans are processed within 4-5 working days of completing the documentation. Do I need a guarantor? For sole applicant – one adult family member to be co-applicant. Partners /Promoter Directors will be taken as co-applicant in case of Partnership/Pvt Ltd co. respectively. Do I have the option of pre-paying the entire loan amount? Yes. One can pre-pay the loan at any time after 6 months of availing of the loan. Foreclosure charges would be applicable. How do I repay the loan? You can make part pre-payments of a minimum amount of Rs 50,000 after 6 months from the date of first disbursement of the SME loans. This payment can be made only once in a financial year subject to a maximum of 25% of the balance outstanding against your loan amount at the start of the financial year. How do I repay the loan? Electronic Clearing System (ECS) OR Post dated cheques (PDCs)

2. What are the stages involved in availing a loan? The stages involved are: Application Processing Documentation Sanctioning of the loan Disbursement Source: http://sme-business-loans.blogspot.in/2013/11/faqs-on-sme-loans.html