• Equitas SME Loans

    Small and Medium Enterprise loans or SME loans are primarily used in the funding of small and medium-sized companies. Small and medium sized companies raise capital through these loans or avail of these loans to infuse additional capital into their existing business. SME’s can acquire these business loans as long as they have a good credit rating for the last three financial years and their performance in terms of sales and profits has been satisfactory.

    Equitas SME Loan Features

    Some of the main features of Equitas SME loans are:

    • Loan amounts can be availed from Rs 50,000 to Rs 5 Lakhs
    • The interest rate for loan amounts upto Rs 3 lakhs is 24%
    • The interest rate for loan amounts between Rs 3.1 lakhs to Rs 5 lakhs is 22%
    • A processing fee of 2% of the loan amount is chargeable
    • Additional finance charges are 36% per annum
    • Loan terms offered can range from 3 - 5 years
    • The loan is to be paid at a monthly repayment frequency
    • The preferred repayment mode is via the Electronic Clearing Service or ECS
    • It is mandatory to have a Term Life Insurance
    • Business premises insurance against fire, earthquake and other disasters is also mandatory

    Equitas SME Loan Fees and Charges

    Equitas SME loans entail the following fees and charges:

    • A processing fee of 2% of the loan amount will be charged plus additional service tax
    • Credit Shield and property insurance fees will be charged as per the company’s fee plan
    • A pre-closure fee of 3% of the principal outstanding in the first year will be charged
    • A part-prepayment charge of 3% of the principal amount that is prepaid will be charged
    • Bounced cheques will attract a fee of Rs 500
    • Additional finance charges are 36% per annum
    • CERSAI charges of Rs 250 plus service tax are applicable
    • Legal charges like Memorandum of Deposit of Title Deed charges are applicable and amount to 1% of the loan amount disbursed

    Verification of Equitas SME Loan

    Equitas SME loans require verifications to be carried out by the following authorities:

    • The Retail Sales Officer, Assistant Branch Manager or Branch Manager hold the authority to check and evaluate the credit and collateral worthiness of the applicant
    • The Branch Manager will be in charge of checking the Credit Bureau Check Report.
    • Tele verification and loan sanctions will be carried out by Credit Operations
    • The Credit Intelligence Team will carry out sample checks of field credit assessment
    • The In-house legal team will carry out collateral title verification
    • Loan disbursement will be carried out by Central Operations

    Documents Required for Equitas SME Loan

    While applying for Equitas SME loans the following documents are required:

    1. ID and Address Proof such as voter ID, ration card etc
    2. Application Form
    3. Loan application and sanction form
    4. Loan agreement
    5. Welcome letter
    6. Property documents

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