Overview about Bandhan Bank Working Capital Loan
Bandhan Bank Limited, a subsidiary of the Bandhan Financial Holdings Limited. Owned by the Bandhan Financial Services Limited (BFSL), with headquarters in Kolkata is the country’s largest microfinance organization. They are a relatively new bank with their operations being given the final green signal from the Reserve Bank of India in June 2015. The bank offers a working capital loan
to take care of all your needs to make sure your business runs smooth, without having the need of access to funds.
What is the purpose of the Bandhan Bank Working Capital Loan?
The Bandhan Bank Working Capital Loan is meant for individuals who focus of the smooth running of their business enterprises, making sure they have the required liquid capital to run the day to day activities and have easy access to funds to all the working capital requirements of your enterprise.
The eligibility criteria the applicant must adhere to should be:
- An owner of a small and medium enterprise from an individual, or a partnership firm, or even a proprietorship can take up this loan.
- The minimum age requirement should be 23 years of age, and should not be over 60 years of age when the loan has reached its maturity.
- The applicant must have a business which has a minimum of 2 years operations.
- Subject to the bank’s discretion, even new enterprises are taken into account when they would like to apply for this loan.
- All non-individual applicants or proprietorship applicant must have their operations of business with a successful track record of at least 2 years in the same line of business.
- There will be a margin of 25% on inventories, 30% on receivables, 25% on LC and BG.
The features and benefits for this loan are:
- The working capital loans offered by Bandhan Bank Limited will offer the amount of the loan subject to the customer’s assessment. After the submission of all the documents, the banks will provide the amount at their discretion.
- The repayment terms for all applicants, will be as per demand.
- The Bandhan Bank Limited offers their applicant a prepayment facility for this loan.
- The applicants must have a business enterprise with a minimum of 2 years of experience 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.
- 7 days after all documents are verified the loan will be disbursed to the applicant.
- Assets that are financed under this loan will have an insurance as per the bank.
- The interest rate 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 from the applicant.
- All the know your customer documents like the applicant’s ID proof, address proof, etc. need to be provided.
- All financial documents for the last 2 years of the enterprises existence will need to be provided, such as balance sheets, profit and loss accounts etc.
- Performa invoice copy must be provided to the bank.
- 3 passport photographs of the applicant will need to be submitted to the bank.
- Guarantor if required, will also need to provide 2 passport photographs.
- Ownership documents of the enterprise will have to be submitted to the bank.
- Partnership deed, memorandum of association, and articles of association etc will need to be provided to the bank at the time of application.
- The bank may request for further information, documentation during the application process, the applicant will need to oblige to the same