• Edelweiss SME Business Loan

    Edelweiss Retail Finance offers three types of SME business loans to customers. The loan amount can vary from Rs.3.5 lakh to Rs.25 crore. Loan repayment period can go up to 10 years. Processing fee for these loans can be a maximum of 3.5% of the loan amount plus tax.

    Highlights of Edelweiss SME Business Loan

    The SME business loans offered by Edelweiss address the end-to-end financial needs of a business. This includes working capital requirements, machinery purchase, business expansion, property purchase, capital expenditure, and top-up of existing loans.

    The key benefits of choosing an SME business loan from Edelweiss are as follows:

    • Customised financing solutions for businesses – A Relationship Manager from the bank will assist borrowers by evaluating their funding needs and customising unique loan solutions for their profiles.
    • High Loan-To-Value ratio – Edelweiss offers loans that can go up to 125% of the property’s market value. This helps in getting the maximum out of the property value.
    • Speedy loan disbursal – The bank provides quick approvals for loan applications. The entire borrowing experience is also hassle-free.

    Types of SME Business Loans from Edelweiss

    Edelweiss offers the following types of SME business loans:

    Unsecured Business Loan

    The purpose of this loan is to fulfill the immediate funding needs of customers. These loans can also be availed to execute large orders and account for fund-flow mismatches.

    Key Features:

    • These are collateral-free loans that are disbursed within the shortest possible time.
    • These are fixed rate loans.
    Loan Amount Rs.3.5 lakh to Rs.50 lakh
    Loan Tenure Up to 4 years

    Eligibility Criteria:

    • The borrower should have a track record of at least 3 years in the business.
    • The business should have made profit for the previous 2 years.
    • The business should have a turnover of at least Rs.25 lakh.

    Documents Required:

    • KYC documents of the Firm/Partners/Proprietors/Directors
    • Financials and ITR for the previous 2 years
    • Bank statements for the preceding 6 months
    • Existing loan sanction letters

    Fees and Charges:

    Processing Fees
    • Multi Million and Super Million Loan – Up to 2% of the loan amount + Tax
    • Mini Million and E Million Loan – Up to 3% of the loan amount + Tax
    • Micro Million Loan – Up to 3.5% of the loan amount + Tax
    Late Payment Charges 24% p.a.
    Cheque Bounce Charge Up to Rs.500 + Tax (per bounce)
    Cheque Swap Charge Up to Rs.500 + Tax (per swap)
    Foreclosure or Part-Prepayment Charge 4% of the outstanding principal amount + Tax

    Equipment Loan

    The purpose of this fixed rate loan is to support the capital investments required to improve, upgrade, or replace equipment that is used in manufacturing or business expansion processes.

    Key Features:

    • There is no requirement for a secondary collateral under this loan; only machinery is hypothecated.
    • Loans are provided across a wide range of industries.
    Loan Amount Rs.5 lakh to Rs.2.5 crore
    Loan Tenure Up to 5 years

    Eligibility Criteria:

    • The borrower should have a track record of at least 3 years in the business.
    • The business should have made profit for the previous 2 years.
    • The business should have a turnover of at least Rs.25 lakh.

    Documents Required:

    • KYC documents of the Firm/Partners/Proprietors/Directors
    • Financials and ITR for the previous 2 years
    • Bank statements for the preceding 6 months
    • Machinery invoice
    • Existing loan sanction letters

    Fees and Charges:

    Processing Fees Up to 2% of the loan amount + Tax
    Late Payment Charges 24% p.a.
    Cheque Bounce Charge Up to Rs.500 + Tax (per bounce)
    Cheque Swap Charge Up to Rs.500 + Tax (per swap)
    Foreclosure or Part-Prepayment Charge 4% of the outstanding principal amount + Tax

    Secured Loan

    This floating rate loan provides the flexibility of a collateral to borrowers. Loans are offered for the purchase of new property or against existing property.

    Key Features:

    • These loans have high Loan-To-Value (LTV) ratio, i.e., up to 125% of the property’s market value.
    • Loans are offered against commercial, residential, or industrial properties.
    • Top-up and balance transfer options are available.
    Loan Amount Up to Rs.25 crore
    Loan Tenure Up to 10 years

    Eligibility Criteria:

    • The borrower should have a track record of at least 3 years in the business.
    • The business should have made profit for the previous 3 years.
    • The business should have a turnover of at least Rs.25 lakh.

    Documents Required:

    • KYC documents of the Firm/Partners/Proprietors/Directors
    • Financials and ITR for the previous 3 years
    • Bank statements for the preceding 6 months
    • Property documents
    • Existing loan sanction letters

    Fees and Charges:

    Processing Fees Up to 2% of the loan amount + Tax
    Late Payment Charges 24% p.a.
    Cheque Bounce Charge Up to Rs.500 + Tax (per bounce)
    Cheque Swap Charge Up to Rs.500 + Tax (per swap)
    Foreclosure or Part-Prepayment Charge 4% of the outstanding principal amount + Tax

    FAQs on Edelweiss SME Business Loan

    1. Can Trusts or Societies apply for this loan?

      No, these loans are only provided to partnership firms, sole proprietorship firms, and closely held private limited companies that have a decent credit history.

    2. What is SMERR?

      SME Reference Rate (SMERR) is a benchmark rate that is used for all SME lending products. The current SMERR is 20.50%.

    3. How long does it take to process an SME Unsecured Business Loan application?

      Edelweiss requires 5-7 working days (after all the required documents are submitted) for the loan processing.

    4. Can the SME Equipment Loan be used for refinance and new purchase of machineries?

      Yes.

    5. When refinancing machinery under the SME Equipment Loan, how old can the machines be?

      The machinery should not be more than 12 months old.

    6. Is there a moratorium period for Equipment Loans?

      No, there is no moratorium period under SME Equipment Loans.

    7. How long does it take to process an SME Equipment Loan application?

      It takes 7 to 10 working days to process an SME Equipment Loan application. Please note that the loan processing commences after all complete and correct documents have been submitted by the borrower.

    8. If a property is under construction, can it be used as a collateral for an SME Secured Loan?

      No, only completed properties can be used as collateral for this loan.

    9. Is there a moratorium period under an SME Secured Loan?

      No.

    10. How long does it take to process an SME Secured Loan application?

      It takes 7 to 10 working days to process an SME Secured Loan application, provided that all documents are accurately submitted.

    11. Is second charge on property accepted as collateral under the SME Secured Loan?

      Edelweiss SME Lending expects first charge on property as collateral.

    12. How can I get in touch with Edelweiss SME lending?

      You can contact Edelweiss SME lending at the email ID, SME.Loans@edelweissfin.com.

        

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