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Q. For whom is the Term Loan product useful?
The target segment includes manufacturers, retail / wholesale traders and service providers.
Q. Which entities are eligible for Term Loans?
- Self Employed individuals and professionals
- Sole Proprietors / Proprietorship firms
- Partnership Firms
- Pvt. Ltd. Companies (including closely held limited companies)
- Listed public limited companies with promoter holding greater than or equal to 51% holding are within target segment
Q. What is the maximum tenor of the term loan?
Depending on the purpose of the term loan, the tenor varies between 5-15 years. It can be lower than this depending on the cash flows of the customer. Specific details would be provided by the sales officer.
Q. What are different types of term loans offered?
The different types of Term loans offered to the target segment are
- Loan for acquisition of property
- Business expansion
- Purchase of fixed assets
- Construction of factory premises, warehouses and branches etc
Q. What is the minimum and maximum turnover range to be eligible under Term Loan?
The turnover requirement ranges from Rs. 1 crore to Rs. 110 crores.
Q. What is the minimum and maximum loan amount offered under Term Loan?
The minimum amount is Rs. 30 lakhs and maximum amount is Rs. 22 crores subject to conditions that will be explained by the sales officer.
Q. What is the minimum amount of security that needs to be given as collateral?
The collateral required depends and varies from case to case.
Q. What are the minimum documents I need to submit for sanction?
- Audited financials of previous three years
- Bank statements of last six 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 would be provided by the sales officer
Q. What is the rate of Interest that would be charged on Term Loan?
The rate of interest charged would vary from case to case based on the strength of financials, facilities offered, tenor etc. Specific details would be provided by the sales officer.
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Note: The FAQs have been prepared for general information only and are subject to change. The ultimate aim of the FAQs is to extend the availability of the information about the product in simple and readable manner and should not be construed as a comprehensive feature of the product.
