Bandhan Bank Limited, is a new bank with operations approved by the Reserve Bank of India since June 2015. This is subsidiary of Bandhan Financial Holdings Limited, owned by the Bandhan Financial Services Limited (BFSL). Bandhan Bank Limited is the country’s the largest microfinance organization with their headquarters in Kolkata, which is the first to be established there, since India got independence. The Bandhan Bank Limited offers a loan for small and medium enterprises called the Samriddhi Business Loan, with this loan these enterprises can set up an enterprise, and also use the amount from the loan for working capital to ensure their enterprise runs smoothly.
What is the purpose of the Samriddhi Business Loan?
The Bandhan Bank Samriddhi Business Loan is meant for individuals who wish to set up their own enterprises, be it small or medium. With this loan they can start their business venture, which can be a manufacturing unit, trading company or even a service oriented business. The funds can be used towards capital investment as well as working capital.
The eligibility criteria the applicant must adhere to should be
- Any individual, partnership firm, or even proprietorship is eligible for this loan.
- The minimum age requirement should be 23 years of age while applying for the loan, and the applicant should not be over 60 years of age at the time the maturity of the loan.
- The person applying for the loan should have a minimum of 2 years of experience in their line of work.
- Subject to the bank’s discretion, even new entrepreneurs will also be considered.
- For any applicant who is applying on behalf of a proprietorship or non-individual applicant, must have a minimum of 2 years of good track record in the same business.
The features and benefits for this loan are
- The Samriddhi Business Loan from the Bandhan Bank Limited, will have a maximum loan amount of Rs. 25 lakhs.
- The loan repayment term for all kinds of applicant be it an individual, partner, or even proprietorship will be a period of 60 months or 5 years. This will include a 3 months moratorium period. If the loan is taken as a working capital then the repayment is payable on a demand basis.
- The applicant’s age must be a minimum of 23 years while application, and should not be over the age of 60 years at the time of maturity of the loan.
- The applicants applying for the Samriddhi Business Loan should have a minimum of at least 2 years of experience in their current business enterprise.
- New entrepreneurs or enterprises will also be considered for this loan but, will be subject to the bank’s discretion.
- Any non-individual applicant such as proprietorships, must have 2 years of good business at least.
- A processing fee of 1% plus taxes that are applicable, will be charged by Bandhan Bank Limited.
- The margin will be a 25% on both the term loan and on working capital requirement.
- The loan will processed and disbursed after verification of all documents within a span of 7 days.
- All assets purchased with the finance from this loan will have an insurance coverage as per the bank’s clause.
- The bank will charges an interest rate on this loan which will be linked to its base rate of 12%. This rate is subject to change at the bank’s discretion.
- There is a prepayment option available for the Samriddhi Business Loan.
The documents required for the Samriddhi loan will be as mentioned below
- The duly filled application form.
- The requirement of all the KYC or know your customer documents will need to be provided, these documents will be ID proof, address proof, etc.
- Balance sheets, profit and loss statements, and other related financial documents will need to be provided for the last 2 years.
- A copy of the Performa invoice should be provided.
- The Individual Borrower, Director or Partner applicant will need to provide 3 passport photographs.
- If there is a requirement of a then guarantor, then 2 passport photographs of the guarantor as well will need to be provided.
- All the documents related to the ownership of the enterprise will have to be given to the bank.
- Copy of the partnership deed, memorandum of association, and articles of association and other related documents must also be provided at the time of application.
- While the loan in under process, the bank can request the applicant for further information and documentation as well.