State Bank of India provides a specialised loan that aims to cash in on the value of debentures owned by any apologies. This loan from State Bank of India allows individuals and non-individuals to utilise the power of their investments without having to lock out of or liquidate them. These loans can help out in business or personal financial needs.
This loan is provided to individuals or non-individuals for any purpose that is not explicitly speculative, for inter-corporate investments or for acquiring controlling interest in any company or set of companies. Banking on the power of the debentures owned by the applicant, this loan is a powerful aid in financial terms.
An unsecured loan as this is, so it has a few eligibility criteria to be met in order for the bank to be able to sanction the loan. The eligibility requirements can be mentioned as follows –
Loan against Debentures from SBI is a specific demand loan with optional overdraft facility.
Based on the credit-worthiness of the applicant, validity of documents and the debentures offered a security, State Bank of India can provide loans based on its discretion. The maximum limit of loans to be offered is INR 20 lakhs.
The scheme is offered currently at 50 centres of the bank.
Interest rates for a Loan against Debentures could depend on the base lending rate and is based on the discretion of State Bank of India. As of November 2015, the applicable rate of interest is Base Rate + 6.5% per annum. Further changes to the rates could be done by State Bank of India as and when required.
Interest is charged only on the amount that is actually utilised as a loan in case of overdraft facility, irrespective of the overdraft limit that is allowed. Overdrafts are annually renewable, while demand loans are to be repaid within 30 months.
The standard list of required documents for applying for this loan are mentioned as follows –
The above set of documents comprise the minimum required list. To aid in credit approval, State Bank of India might ask for extra documents if necessary.
The Loan against Debentures from State Bank of India is a good financing option for urgent financial needs on business or personal grounds.
Some key features of this specialised loan are as follows –
The loan can be applied for through State Bank of India’s website, as well as forms can be downloaded, filled and submitted along with relevant documents at a local branch. Additionally, one could call or mail State Bank of India requesting an executive assistance for application process.
One can also apply for State Bank of India Loan against Debentures through BankBazaar, wherein eligibility charts, EMI calculators and infographics can guide one through the application process.
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