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    Magma Fincorp SME Loan

    Overview about Magma Fincorp SME Loan

    Magma Fincorp provides unsecured loans that are ideally aimed to provide financial aid towards business needs of self-employed professionals, business owners typically those who would be falling under the category of Micro and Small Enterprises in rural, semi-urban, urban and metro areas. These loans can help out in the growth or in meeting urgent financial demands of any business.

    Usage of Magma Fincorp SME Loan

    This secured loan is provided to self-employed individuals or entrepreneurs for the sake of furthering their business through the purchase of plant and machinery, equipment or other moveable assets. Long repayment terms allow the loan to function as an effective working capital tool.

    Eligibility Criteria for Magma Fincorp SME Loan

    An unsecured business loan as this has a few eligibility criteria to be met in order for the financial institution to be able to sanction the loan. The eligibility requirements can be mentioned as follows –

    1. Applicants can be individuals, professionals, sole proprietorships, partnership firms and private limited companies (including closely-held public limited companies)
    2. The minimum turnover per financial year should be INR 40 lakhs in the manufacturing and trading industries and INR 15 lakhs in the service industry in case of Proprietorship, Partnership Firm, Private Limited Companies, Limited Companies (closely held), Societies and Trusts
    3. The minimum occupational stability for individuals and non-individuals needs to be 5 years prior to the application of the loan and the business should be having a positive trend in profit for 2 years

    Types of Financing under Magma Fincorp SME Loan

    SME Loan from Magma Fincorp is a specific term loan with repayment period of up to 3 years (lowest 1 year).

    Loan limits under Magma Fincorp SME Loan

    Based on the credit-worthiness of the applicant, placement of the enterprise and validity of documents, Magma Fincorp can provide loans from INR 7 lakhs up to INR 2 crores.

    Interest rates for Magma Fincorp SME Loan

    Interest rates for a SME Loan could depend on the base lending rate and is based on the discretion of Magma Fincorp. Further changes to the rates could be done by Magma Fincorp as and when required. As per November 2015, the interest rate could start from 16% per annum.

    Documentation required during applying for BOI SME Loan

    The standard list of required documents for applying for this loan are mentioned as follows –

    1. Photographs of each individual applicant and co-applicant, directors and promoters, in case of a company & Trusts, partners in case of a partnership firm or authorized person as applicable in case of societies
    2. Instalment letter
    3. IT Returns, Audited Profit and Loss Account statement and Balance Sheet for the last 2 years, six months bank statement of the primary current account, business proof, latest year provisional, sundry creditors and debtors list
    4. Know Your Customer (KYC) documents
    5. Partnership deed, Memorandum of Association (MOA) and Articles of Association (AOA) or License issued under the Shops and Establishments Act of the respective states for business proof
    6. Other connected documents applicable for Demand/Term Loans as per extant guidelines

    The above set of documents comprise the minimum required list. To aid in credit approval, Magma Fincorp might ask for extra documents if necessary.

    Features of Magma Fincorp SME Loan

    The SME Loan from Magma Fincorp is a good financing option for urgent financial needs on business grounds.

    Some key features of this specialised loan are as follows –

    1. Loan tenure or repayment period can be as high as 36 months
    2. Minimal documentation and faster approval
    3. Availability of financial aid in rural areas
    4. High loan amounts up to INR 2 crores

    Applying for Magma Fincorp SME Loan

    The loan can be applied for through Magma Fincorp’s website, wherein relevant forms can be filled out and requisite documentation provided to initiate the process of availing the loan. Additionally, one could call or mail Magma Fincorp requesting an executive assistance for application process.

    One can also apply for Magma Fincorp SME Loan through BankBazaar, wherein eligibility charts, EMI calculators and infographics can guide one through the application process.

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