SME Banking

1. What are the available credit facilities under Small Business Loan (SBL)?
2. What is an overdraft facility?
3. What is term loan facility, and how can I pay it?
4. What is covered under Working Capital?
5. Can working capital loan be used to buy property/machinery/shares/stocks?
6. What is the minimum/maximum amount of OD given?
7. How is the loan amount decided?
8. Uptro what value of collateral security do I get loan?
9. Where can I get the application form? Is it available at the branches?
10. Will the customer's existing loans be considered?
11. Will a chequebook be issued?
12. Will a debit card be issued?
13. Can I get a loan for a sister concern?
14. Do I get a SMS banking service?
15. Can the loans be split into multiple accounts?
16. Can I get the account opened in the branch of my choice?
17. Do I get cheque book ?
18. Do I have to pay for cheque book?
19. What is the rate of interest that will be charged?
20. How can I know the prevailing interest rate applicable for my account?
21. Is interest charged on my entire loan amount?
22. What are the applicable charges for availing loans?
23. Do I have to pay prepayment fee in case of prepayment of loan?
24. What is the duration of the loan?
25. Will the end use of the funds be monitored?
26. Can I reinstate my term loan limits?
27. Can I get the limit enhanced in between the period`?
28. How do I apply for limit closure?
29. Is the rate of interest fixed or floating in nature?
30. What is the duration of the loan in case of Term Loan?
31. Who can avail loan?
32. What is the minimum required age of business?

1. What are the available credit facilities under Small Business Loan (SBL)?

Overdraft
Term Loan

2. What is an overdraft facility?
It is a credit facility, which allows borrowers to overdraw their current account up to the sanctioned limit. Interest is charged only on the amount utilized on a daily outstanding basis.

3. What is term loan facility, and how can I pay it?
It is a credit facility primarily allowed to finance capital expenditure. The repayment of this type of loan is done in Equal Monthly Installments (EMI) over a maximum period of sixty months.

4. What is covered under Working Capital?
Working Capital is funds invested in an entity’s debtors, and inventories less payables.

5. Can working capital loan be used to buy property/machinery/shares/stocks?
As the facility is only for working capital requirement of the entity, the same cannot be used for purchase of any long-term assets or investments

6. What is the minimum/maximum amount of OD given?
The minimum amount of loan is Rs 5 Lacs, and the maximum amount is Rs 1 crore

7. How is the loan amount decided?
There is detailed credit assessment process for deciding on the loan amount. Business, Security and Credibility of the applicant are some of the factors which are taken into account during deciding on the amount.

8. Uptro what value of collateral security do I get loan?
70% of fair market value of the real estate security.

9. Where can I get the application form? Is it available at the branches? Application forms are available in our Branches, can be obtained from the Relationship Manager or the Branch Manager.

10. Will the customer's existing loans be considered?
Yes, for working capital assessment calculation and setting up of the limit.

11. Will a chequebook be issued?
Yes, upon checking account opening.

12. Will a debit card be issued?
Yes, upon request

13. Can I get a loan for a sister concern?
Yes

14. Do I get a SMS banking service?
Yes if required, upon request.

15. Can the loans be split into multiple accounts?
No.

16. Can I get the account opened in the branch of my choice?
No, account is opened at the branch where the loan is booked. However can transact from any of the branches

17. Do I get cheque book ?
Yes, cheque book is issued after account is opened.

18. Do I have to pay for cheque book?
No, cheque book is issued without any charges. However for issuance of fresh cheque book in leue of lost cheque book, certain charges are applicable.

19. What is the rate of interest that will be charged?
The rate of interest depends on the size of loan. The interest rate ranges from 8.99% to 10.49% p.a.

20. How can I know the prevailing interest rate applicable for my account?
One can know the prevailing interest rate from offer letter and its subsequent variations letters.

21. Is interest charged on my entire loan amount?
Only on the amount utilized. Based on End of Day (closing) balance.

22. What are the applicable charges for availing loans?
One time processing fee upto 1% of the limit, management fee upto Rs. 5000.00 on every anniversery of the loan and documentation fee of Rs.5000.00.

23. Do I have to pay prepayment fee in case of prepayment of loan?
Yes, prepayment fee 2.50% flat of loan outstanding subject to only1% flat if prepaid after repayment of at least 50% of EMIs.is applicable.

24. What is the duration of the loan?
The duration of the credit can be a maximum period of 60 months months.

25. Will the end use of the funds be monitored?
Yes

26. Can I reinstate my term loan limits?
Yes, after two years.

27. Can I get the limit enhanced in between the period`?
Yes, upon satisfactory conduct of account of minimum of last 24 months.

28. How do I apply for limit closure?
Submit intent letter to the respective Relationship Manager & ensure that a/c is in credit balance enough to cover outstanding dues, and interest.

29. Is the rate of interest fixed or floating in nature?
Rate of interest is fixed but may be revised on time to time.

30. What is the duration of the loan in case of Term Loan?
Term loan will be provided for maximum of 60 months.

31. Who can avail loan?
A legally registered unit or a self- employed professional can avail loan.

32. What is the minimum required age of business?
A business must be successfully running for 3 years in profit. Or any individual who has minimum of 3 years of experience in line of business can avail loan for new limit