Overview about Bandhan Bank MSME Loans
The bank was founded in 2001, under the visionary leadership as BFSL is involved in giving loans to small borrowers with no access to formal banking services. In the past 15 years, BFSL has most deservingly earned credibility and accolades for helping to finance small entrepreneurs as well as approximately 6.7 million women borrowers. Bandhan Bank Limited was incorporated in December 2014 as a wholly-owned subsidiary of the Bandhan Financial Holdings Limited. Bandhan received the in-principle approval of the Reserve Bank of India (RBI) for setting up a universal bank in April in the same year. The banking regulator gave its final nod in June 2015. Incidentally, Kolkata-headquartered Bandhan is the first bank to be set up in eastern part of India after Independence. This bank offers several personal loans with reasonable interest rates and has a range of 5 products under MSME loans
- Samriddhi Business Loan
- Equipment Loan
- Commercial Vehicle Loan
- Working Capital Loan
- Term Loan
Purposes of Bandhan Bank MSME Loans
These personal loans help scale your small & medium enterprise to higher targets with creation of income-generating assets and improve liquidity. This loan intends to enhance your business to grow multifolds with timely access to funds that allow productivity with ease.
Eligibility of Bandhan Bank MSME Loans
Here are the main eligibility requirements to apply for Bandhan Bank MSME Loans
- For Individual / Proprietorship / Partnership firm, minimum age should be 23 yrs. and maximum age at the time of loan maturity should not exceed 60 yrs.
- Minimum of 2 years’ experience in same line of activity is expected. However, eligible new Entrepreneurs will also be considered.
- For Non Individuals, satisfactory two years track record in same business is required
Features and benefits of Bandhan Bank MSME Loans
The main features and benefits of Bandhan Bank MSME Loans include:
- Processing fees include 1% of the loan amount plus taxes if and when applicable.
- Insurance coverage with concessions based on the bank’s discretion.
- Margins for working capital loans are 25% and term loans are 25% as well.
- The interest rate is linked to the base rate.
- For term loans
the tenure can go up to 5 years which includes the moratorium period of maximum 3 months and for working capital loans, it is purely based on the bank’s demand.
- The maximum amount of money that can be borrowed under these plans is Rs. 25 lakhs.
Documents Required for Bandhan Bank MSME Loans
Here are the major documents that are required for these types of loans from Bandhan Bank:
- Duly filled application form
- 3 passport size photograph of the Individual Borrower/Directors/Partners
- 2 passport size photograph of the Guarantor, if required
- KYC documents
- Financial statement of last 2 years
- Trade license or any other regulatory license applicable to unit
- Statement of existing Bank account for last 6 months if any
- Ownership documents of security to be provided if any.
- Copy of Partnership deed/ Copy of MOA & AOA or other related documents in case of partnership firm / company
For working capital, stock statement to be submitted on monthly basis