Term Loan

FAQs

• • For whom is the Term Loan product useful?
    The target segment includes manufacturers, retail/wholesale traders and service providers
  • What is the maximum tenure of the term loan?
    Depending on the purpose of the term loan, the tenure varies from 5-15 years, however it can be lower depending on the customer’s cash flow. Specific details will be provided by the sales officer.
  • What are the minimum documents I need to submit for sanction?
    • Audited financials of previous 3years
    • Bank statements of last 6 months
    • Net-worth statements and tax returns of the borrowers/promoters and guarantors
    • Identity and address proof
    • Proof of underlying invoice on the purchase of assets
    • Specific details will be provided by the sales officer
  • What is the rate of interest charged on Term Loan?
    The rate of interest charged varies from case to case based on the strength of financials, facilities offered, tenure etc. Specific details will be provided by the sales officer
  • What is the minimum and maximum loan amount offered under Term Loan?
    The minimum amount is Rs. 30 lakhs
    The maximum amount is Rs. 75 crores. Subject to conditions that will be explained by the sales officer
• • Which entities are eligible for Term Loans?
    • Self-employed individuals and professionals
    • Sole proprietors/proprietorship firms
    • Partnership firms
    • Private-limited companies (including closely-held limited companies)
    • Listed public-limited companies with the promoter holding greater than or equal to a 51% holding
  • What are different types of Term Loans offered?
    The different types of Term loans offered to the target segment are:
    • Acquisition of property
    • Business expansion
    • Purchase of fixed assets
    • Construction of factory premises, warehouses and branches etc
  • What is the minimum and maximum turnover required to be eligible for a Term Loan?
    The turnover requirement ranges from Rs. 1-185 crores
  • What is the minimum amount of security that needs to be given as collateral?
    The collateral required depends and varies from case to case