Bandhan Bank - MSME Loan Application

Bandhan Bank offers working capital and term loan for Small and Medium Enterprises engaged in the manufacturing and service sectors. In this article, we look at the

MSME Loans from Bandhan Bank in detail. To know about the MSME Loan Restructuring 2019

Bandhan Bank Business Loan Details

There are 2 types of loans available:

Working Capital Loan
Term Loan

The following are the details of Interests, charges, fees and Commissions:

S.No.	Type	Loan Details
1.	Interest Rate	12.35% per annum to 18.18% per annum
2.	Loan Amount offered	As per assessment and bank’s internal exposure policy
3.	Margin	Inventories 25% Receivables 30% LC and BG 25%
4.	Loan Tenure	Repayable on demand
5.	Processing Fee	Minimum of 1.0% of the loan amount including service tax as applicable

Eligibility Criteria for Working Capital Loan

Existing profit making MSME units are all eligible to apply for the loan.

Eligibility Criteria for Term Loan

New as well as existing Micro, Small and Medium Enterprises (MSMEs) who are engaged in the process of manufacturing activity
Minimum age of the beneficiary should be strictly above 23, and the maximum age during the period of loan maturity should not be beyond 60 years
Minimum of 2 years of experience in the same line of activity is expected
For non-individuals, 2 years of track record is expected

Documents Required

The below listed are the pre-sanction documents that need to be furnished at the time of applying for business loans in Bandhan Bank:

Identity Proof: PAN Card, Driving License, Aadhar Card, Voter ID Card, Proprietor, partner of Director (if a company), etc.
Address Proof: Legal Passport, Utility bill, Property tax bill, etc.
KYC documents for promoters/units
3 passport size photographs of the individual borrower
2 photographs of the Guarantor
Trade License
Ownership documents
Copy of partnership deed / Copy of MOA and AOA
Copy of IT Returns of promoters / Firm for the last three years
Details of the capital expenditure

Business Loan Application Procedure

Kindly follow the below procedure to apply for the Bandhan Bank Msme Loan online.

Step 1: Approach the nearest Bandhan Bank branch in your locality for applying for a business loan. Step 2: Then the applicant needs to get the application form from the bank office and have to fill out the business loan application form in a prescribed format. The application form can also be downloaded from the official website. The application form is reproduced below for the ready reference:
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Step 3: Submit the application business loan form in the prescribed format to the concerned bank official along with all the supporting certificates mentioned above. Step 4: After applying, you have to attach the specified KYC proofs along with the business loan application form.

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Frequently Asked Questions

Common questions about MSME Loans for Small Businesses.

Bandhan Bank offers two types of loans for MSMEs - Working Capital Loan and Term Loan. The Working Capital Loan is designed to meet the day-to-day operational expenses and cash flow requirements, while the Term Loan is meant for financing long-term assets and expansion plans.

The interest rates for MSME loans at Bandhan Bank range from 12.35% per annum to 18.18% per annum. The exact rate will depend on factors such as the loan amount, repayment tenure, and the applicant's creditworthiness.

The loan amount offered by Bandhan Bank for MSME loans is determined based on the bank's assessment and internal exposure policy. The bank evaluates the applicant's business, financial standing, and repayment capacity to arrive at the suitable loan amount.

Bandhan Bank requires a margin of 25% on inventories, 30% on receivables, and 25% on Letter of Credit (LC) and Bank Guarantee (BG) for MSME loans.

The Working Capital Loan from Bandhan Bank is repayable on demand, which means the bank can recall the loan at any time. However, the Term Loan may have a fixed repayment tenure, depending on the applicant's requirements and the bank's assessment.

Bandhan Bank charges a minimum processing fee of 1.0% of the loan amount, including applicable service tax, for MSME loans.

Existing profit-making MSME units are eligible to apply for a Working Capital Loan from Bandhan Bank.

Both new and existing Micro, Small and Medium Enterprises (MSMEs) engaged in manufacturing activities can apply for a Term Loan from Bandhan Bank. The applicant should be above 23 years of age and have at least 2 years of experience in the same line of activity.

Applicants need to provide identity proof, address proof, KYC documents, trade license, ownership documents, partnership deed (if applicable), IT returns for the last three years, and details of capital expenditure, among other documents.

You can apply for an MSME loan from Bandhan Bank by visiting the nearest branch, obtaining the application form, filling it out, and submitting it along with the required documents. The application form can also be downloaded from the bank's official website.