Small and medium enterprises are the unsung heroes of our country, employing millions and contributing immensely to the growth of India. Capital Local Area Bank offers a product to aid such small and medium enterprises, helping them focus on business without having to worry about finances. Capital Local Area Bank is the largest local area bank in India, catering to the needs of over 3 lakh people in 3 districts of Punjab. With an emphasis to bring banking facilities to rural areas, CLAB primarily caters to the marginalised sections and small borrowers, focussing on the needs of the common man.
A loan under this scheme can be used by individuals or businesses which work under the ambit of small and medium enterprises. One can use this amount to improve or expand their business, purchase additional stock, pay existing dues, create new assets/purchase inventory, etc. It can be utilised to satisfy any financial need which is encountered while running a business.
Eligibility Criteria for Capital Local Area Bank Scheme for SME
Individuals who wish to avail credit under this scheme need to satisfy the following basic eligibility criteria.
Individual business owner – An applicant should be running a business or involved in a trade which comes under the SME category.
Firm/company – This loan can be availed be registered firms, private or public limited companies which are involved in business under the SME category.
Income – The borrowing individual/firm should have sufficient income to repay the loan.
Guarantor – A borrower needs to provide a third party guarantor acceptable by the bank.
Security – A borrower will have to provide security in the form of stock or collateral.
Features and Benefits of Capital Local Area Bank Scheme for SME
Some of the major features and benefits of Capital Local Area Bank Scheme for SME mentioned below.
Multipurpose loan – This loan can be used to cover any expense related to running, maintaining or expanding a small or medium enterprise.
Loan amount – There is no limit as to the amount one can avail as a loan, with an option to choose the amount which is required, subject to the repayment capacity of the borrower.
Margin – A 25% margin is required while availing this this loan.
Simple process – Availing a loan under this scheme is simple and fast, minus excessive paperwork and documentation.
Low prepayment charge – A prepayment charge of 1% will be imposed if a borrower opts to prepay the loan.
Flexible repayment – The loan can be repaid through flexible EMIs.
Documents required for Capital Local Area Bank Scheme for SME
Individuals who wish to avail Capital Local Area Bank Scheme for SME should submit the following documents.
Valid government approved ID proof (Driving license, passport, PAN card, etc.)
Proof of income (bank statement, income tax returns, etc.)
Proof of residence (telephone/electricity bill, lease document, etc.)
Financial records (account books, etc.)
The bank may ask for any other documents as per its discretion, depending on the applicant and individual circumstances.