The equipment loan from Bandhan Bank Limited is meant for the purchase of equipment’s for small and medium enterprises so that they have the ability to enhance their businesses, with reducing the time and effort taken to manufacture their products. Investing in a machine required for your business and paying off the loan in a span of 5 years in 60 installments.
Features and benefits for the equipment loan
- The loan for equipment for Bandhan Bank Limited will have a maximum loan amount of Rs. 10, 00, 000.
- The repayment term will be for 60 months will be applicable for all individual, partner, proprietorships that are eligible for this loan.
- The applicant needs to be above the age of 23 years while applying for the loan, and at the time the maturity of the loan the applicant should not be over 60 years of age.
- The applicant must have at least 2 years of experience in their line of work.
- New entrepreneurs will also be considered, subject to the bank’s discretion.
- For proprietorship or non-individual applicant, they should have at least 2 years of satisfactory track record in the same business.
- Of 60 months or 5 years, which will also include a 3 month moratorium period.
- The Bandhan Bank Limited will charge a processing fee of 1%.
- The margin will be a 25%.
- The loan will processed and disbursed after verification of all documents within a span of 7 days.
- As per a bank clause all the equipment purchased with this loan will have an insurance coverage as well.
- The interest rate for this loan will be attached to the base rate of 12% and is subject to the bank’s discretion.
- The bank offers a prepayment facility for this loan.
- The application form that has been duly filled by the applicant.
- Know your customer (KYC) documents will need to be provided such as ID proof, address proof, etc.
- Financial statements, like balance sheets, profit and loss statements etc., for the last 2 years will need to be provided.
- Performa invoice copy must be provided.
- 3 passport photographs of either the Individual Borrower, Director or Partner must be provided.
- If required then 2 passport photographs of guarantor.
- Ownership documents for security purpose.
- Copy of the partnership deed, copy of memorandum of association, articles of association and other related documents must be provided.
- During the process of application, the bank can request for further information.
About Bandhan Bank
Bandhan Bank Limited, is a relatively new bank getting its operations approved by the Reserve Bank of India with their final nod only in June 2015. It’s a wholly-owned subsidiary of Bandhan Financial Holdings Limited, which is owned by the Bandhan Financial Services Limited (BFSL), and is the country’s the largest microfinance organization. The Bandhan Bank Limited offers a unique loan for the purchase of equipment, with these loan you can improve your business, and strive for scaling to greater heights, changing your small and medium enterprise to a large scale enterprise.