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SME Loan for Small Businesses in India

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Grow your business with the funding it needs with small business loans. Know about SME Loans, its various types, benefits, providers etc.

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SME Loan for Small Businesses in India

  1. 1. Loans for Small & Medium Business
  2. 2.  About SME Loans  Types of SME Loan  Loan Process  Interest Rates  Eligibility Criteria  Documents Required  Features & Benefits  SME Companies
  3. 3.  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
  4. 4.  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
  5. 5. Application Processing Documentation Sanctioning of the Loan Disbursement
  6. 6.  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/
  7. 7. 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
  8. 8.  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
  9. 9.  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
  10. 10.  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

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