Bandhan Bank - MSME Loan Application

Bandhan Bank – MSME Loan Application

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 Rate12.35% per annum to 18.18% per annum
2.Loan Amount offeredAs per assessment and bank’s internal exposure policy
3.Margin
  • Inventories 25%
  • Receivables 30%
  • LC and BG 25%
4.Loan TenureRepayable on demand
5.Processing FeeMinimum 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:

MSME-loan-application-form
 

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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Post by Sinduja Shankar

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.