Overview about Bandhan Bank Term Loan
Bandhan Bank Limited, a newer bank with operation of less than a year, after they got the Reserve Bank of India’s final go ahead since June 2015. It’s a subsidiary of the Bandhan Financial Holdings Limited, which is also owned by the Bandhan Financial Services Limited (BFSL). Bandhan Bank Limited is the largest microfinance organization in the country, with headquarters in Kolkata. The Bandhan Bank Limited offers a term loan
for small and medium enterprises. Now with this loan no you can take your enterprise to the next level, and no dreams will be too big.
What is the purpose of the Term Loan?
The Bandhan Bank Term Loan is meant for individuals who wish to expand their enterprises that are already flourishing, with this secured term loan. This loan can be used for the huge capital investments required for your small and medium enterprises.
The eligibility criteria the applicant must adhere to should be
- Anyone who owns a small and medium enterprise be it an individual, a partnership firm, or even proprietorship are eligible for this loan.
- The age requirement for application should be a minimum of 23 years of age during the application, and must not be over 60 years of age when the loan has reached its maturity.
- The individual who is applying for the loan must be in the line of business for a minimum of 2 years at least.
- Subject to the bank’s discretion, new entrepreneurs will also be considered for this loan.
- Any non-individual or proprietorship who wishes to apply for this loan should have a successful track record of at least 2 years in the same line of business.
The features and benefits for Bandhan Bank Term Loan are
- The Bandhan Bank Limited offers their term loans with an amount based on the customer’s assessment. After the submission of all the documents, the banks will provide the amount at their discretion.
- The term of repayment for all applicants, such as individuals, partner, or even proprietorship will be a maximum period of 7 years, which will include a 3 months moratorium period.
- The bank will offer a prepayment facility for this loan.
- The applicants should have a minimum of at least 2 years of experience in their current business enterprise when they apply for the term loan.
- At the bank’s discretion, new entrepreneurs or enterprises will also be considered for the term loan.
- Any proprietorships and non-individual applicant, should have good business record of at least 2 years.
- The bank will charge a processing fee of 1% plus taxes that are applicable.
- The margin will be a 25% as per the bank.
- The loan after verification of all documents will be disbursed in a matter of 7 days.
- All assets financed with this loan will have an insurance coverage as per the bank’s clause.
The bank will charge an interest rate that will be linked to their base rate of 12%. This is subject to change their discretion.
The documents required for the Samriddhi loan will be as mentioned below
- The completely filled application form.
- All the KYC or know your customer documents such ID proof, address proof, etc. will have to be given to the bank.
- All financial related documents for the last 2 years of the enterprises existence will need to be provided.
- A Performa invoice copy will also need to be provided.
- 3 passport photographs of the applicant be it an Individual Borrower, Director or Partner applicant will need to be submitted to the bank.
- If a guarantor is required, 2 passport photographs of the guarantor will also need to be submitted.
- All ownership documents of the enterprise will have to be provided to the bank.
- Related documents such partnership deed, memorandum of association, and articles of association must also be provided to the bank at the time of application.
- The bank can request for further information and documentation as well which the applicant will need to provide.