A business loan is a loan given by banks or NBFCs for a period of one to three years. This loan is given with or without any collateral, hypothecation of assets or guarantor. Proprietorship companies, partnership businesses or private limited and public limited companies are eligible for this kind of loans. This capital may be used for working capital, business expansion, meeting short-term cash-flow requirements and purchasing plant & machinery, etc.

Here is the list of the documents one need to submit before getting the Term Loan: -

• You Must Have An Audited Financials For The Previous 3 Years
• Bank Statement Of The Last Six Months
• Identity Proof And Address Proof Is Compulsory
• Other Necessary Documents Include The Net Worth Statement And Tax Returns Of The Promoters/Borrowers And For The Guarantors
• Lastly, You Should Carry The Proof Of The Invoice On The Purchase Of The Assets

The minimum turnover requirement is INR 1 crore and the maximum turnover requirement is INR 100 crore for the business loan.

Business Installment Loan basically targets the entities that include proprietors, partnership firms, private limited companies and the professionals.

One of the biggest advantages of this loan is that no collateral or additional security is required.

Business Loan eligibility depends on the following factors: the Credit score of the loan applicant/co-applicant the last two years financials of the borrowing entity Information about the Debt Service Coverage Ratio: This information tells the lender whether the borrower will be able to service the EMI for the current loan.

Some banks have a lock-in-period of six months to one year for the business loan. While some others allow you to pre-close the loan even after the first EMI has been paid. Some banks may have a rule that a borrower can use his own funds to pre-close the loan and not use the balance transfer facility of another bank. Additionally, some banks allow pre-closure at no cost while some others charge an upfront fee of 2-5% of the pre-closed amount. Clarifications on this are to be sought from our business loan advisor during the processing of your application.

Some banks may allow partial payment while some others may have restrictions on how many times in a year you can part pay and also the minimum and maximum amounts you can part pay. Again, a clarification is to be sought from our loan advisor during the time of loan processing.

In normal situations, the minimum loan amount offered is INR 10,00,000. This may go up to a maximum of INR 50,00,000. Higher loan amounts may be considered after an in-depth discussion between the borrower and the bank willing to lend.

CapitalStreet disburse loan to you within 5-7 working days of your submitting the completed documents.

Borrowers PAN card, address proof, last two years financial statements including profit and loss account and balance sheet, last six months bank statements, VAT/Service tax returns, partnership deed/MOA, existing loans, repayment track record, partner/directors PAN card, KYC, own house proof, ITRs, etc. Additional documents may be required on a case by case basis.

All business loans are repaid through EMIs or equated monthly installments from the borrower's bank account. The borrower or customer is required to either give PDCs or sign an ECS mandate in favor of the bank disbursing the loan.

CapitalStreet will levy certain ECS bounce charges or penalties. Additionally, that will also get reported on your credit report. Depending on the severity and the regularity of the miss, it may have a serious impact on your future credit possibilities like in obtaining a home loan, car loan, etc. Additionally, CapitalStreet may also take legal action against the borrower.

The usual factors that are taken into consideration while deciding the qualification for the loan against property are:

• Being at least 21 years of age
• For a self-employed person, the maximum age at the time of closure of the loan is 65
• The person should hold at least three years of experience in work or business
• Should be an Indian resident
• The company should have 2 years of audited financials

The different individuals include manufacturers, doctors, and printers that are:

• Individuals that are self-employed
• Partnership firms
• Private Limited Companies

The process mentioned above can vary from bank to bank with some doing verification of documents, office, residence and a CIBIL check. But the basic stages are-

• Application
• Processing
• Documentation
• Equipment assessment
• Personal discussion
• Approval or sanction of the loan amount
• Disbursement of the loan amount

You can repay your loan over a span of 12 to 60 months.

For a self-employed person, they are as follows:

• An application form with photograph
• Proof of identity and address
• Proof of educational qualifications and business existence
• ITR (last three years)
• P&L and balance sheet (last three years)
• Bank statements (last 12 months)
• Fee cheque for processing
• Equipment invoice copies

The machinery or equipment is itself a security

After the submission of complete set of required documents, the loans usually take 5-7 days working days for processing.

You can choose to repay the loan from a variety of options like Equated Installments (depends on the needs of your business), ECS mandate, PDC, and Electronic Transfers.

Yes, you are allowed to prepay the loan. The Foreclosure charge mentioned in the sanction letter shall apply to the principal outstanding.

CapitalStreet disburse loan to you within 5-7 working days of your submitting the completed documents.

The repayment is carried out in two ways, i.e., cheques or NACH

The loan quantum is determined based on your requirements, repayment capacity and credit evaluation, turnover of the business, financials f the business and net worth of the business. However, the loan amount is restricted to Rs. 1 Crore.

CapitalStreet will levy certain ECS bounce charges or penalties. Additionally, that will also get reported on your credit report. Depending on the severity and the regularity of the miss, it may have a serious impact on your future credit possibilities like in obtaining a home loan, car loan, etc. Additionally, CapitalStreet may also take legal action against the borrower.

A personal loan is a loan that is usually taken without the strict need of security; it is an unsecured loan. A personal credit is also known as a signature loan is given by the borrowers banking history and capability to repay the amount taken from personal income. The bank or lender usually requires payments in fixed installments amounts over a specific given period. The personal loan is otherwise known as consumer loan.

A personal loan can and could be used on anything the borrower wishes to. Its use could include medical, education, and vacation, household or for private, commercial needs. It could even be used as a gift to someone whether in a wedding or as a charity donation. The lender has no restrictions on a personal loan taken.

It is always advisable to visit a variety of banks to be conversant with their terms as concerns personal loans, which include interest rates among others. A visit to the banks will also give you an opportunity to know what signatures and supporting documents are needful before the loan application is made.

This is an important factor and concern to many lenders. Loan eligibility relies upon many aspects which might not be standard to all the banks. Majorly, every bank is most concerned about the ability of the borrower to pay back the loan. Recently, most banks are also interested in your personal and work mobile and physical addresses, with a few others interested in your marital status too. These are some of the factors you should consider before taking a step to applying for that loan.

Personal loan, depending on the bank is not a long-term tenure loan. The majority of banks will give a maximum time of between three 3years and 5years.

As mentioned earlier, loan eligibility is pegged on many factors, the ability to repay the loan coming top of the list. This, therefore, suggests as long as you're proved able to repay the loan within the given time, the amount you want to take will depend on you. At the same time, no bank thrives on seeing you struggle to pay up your loan. Therefore the bank loan managers always give guidance towards this.

Apart from the interest fees charged depending on the amount of loan taken, a small fee charged when applying for the loan and during the closure of the loan period. This fee, the Processing fees vary depending on the bank, but it could always fall between two to three (2-3%) percent of the loan amount. This percentage might be low or high depending on your bargaining power. The other charge is the Prepayment penalty payable towards the end of your loan time. It also falls between 2-3% depending on your bargaining ability.

Your loan is process within a weeks time. This loan, however, is only disbursed upon submitting the required documents.

Emphatically yes. In fact, this could be an advantage, two of you would be able to apply for a higher loan amount and at the same time be able to pay it up in a compressed period.

There is usually an agreement between us and you the day you apply for the loan which you follow when paying back. It could be an installment payable every end month or every start of a month.