Bandhan Bank – Small Enterprise Loan

Bandhan Bank initiated a new venture called ‘Small Enterprise Loan’ to assist small-scale entrepreneurs. Under the scheme, the bank offers working capital and term loan for Small Enterprises engaged in the manufacturing and service sectors. In this article, we look at the Small Enterprise Loans from Bandhan Bank in detail. To know about the

MSME Loan Restructuring 2019

Bandhan Bank Business Loan Details

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

S.No.	Type	Loan Details
1.	Interest Rate	The interest rates for loans up to INR 2 Lakhs will remain at 18% per annum and for the loans exceeding INR 3 Lakhs will remain at 16% per annum.
2.	Loan Amount offered	The loan amount provided under Small Enterprise loan by Bandhan Bank ranges between INR 1 Lakh and 10 Lakhs based on the performance of the firm.
3.	Loan Tenure	The repayment period is stated to be 3 years, including the moratorium period of maximum one month. While for loans acquired towards supporting the working capital of the firm, the repayment period is fixed based on entrepreneur’s or the business owner’s demand.
4.	Processing Fee	The processing fee to avail loans under this scheme accounts to 2% of the complete loan amount and is inclusive of the applicable taxes.

Purpose of the Loan

The Small Enterprise Loan is a drop-line overdraft facility offered to the business units engaged in manufacturing or service activities. This business loan can be taken to build fixed assets and current assets of the business.

Eligibility Criteria

The following are the eligibility criteria for availing Small Enterprise Loan from the Bandhan Bank:

Small Enterprise Loans are availed only for self-employed professionals or self-employed non-professionals who require business loans ranging between INR 1 Lakh to INR 10 Lakhs.
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.

Documents Required

The following are the documents which are necessary for processing your loan:

For Small Enterprise Loans up to INR 5 Lakhs:

Loan Application
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.
Stock Statement (In case the Loan is availed towards Working Capital)
Trade License, if available

For Small Enterprise Loans above INR 5 Lakhs:

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.
Legal Trade License/Shop & Establishment Certificate or any other Government Registration Certificate.
ITR (Income Tax Returns) including Balance Sheet and Profit and Loss Statement and Estimated Current Year (C.Y.) Self-Declared financial statement.

Application Procedure

Kindly follow the below procedure while applying online for the

Bandhan Bank Small Enterprise Loan:

Step 1: Approach the nearest Bandhan Bank branch in your locality for applying for a business loan.

Step 2: Then, the applicant has to get the Small Enterprise Loan form from the bank office and have to fill out the business loan application form in a prescribed format.

Step 3: Submit the loan application form in the prescribed format to the concerned bank official along with all the supporting certificates mentioned above.

Step 4: After completing, the bank official will process the request further.

Step 5: After completion of the post-sanction formalities the fund offered is transferred to the beneficiary at the earliest (within the working hours of the bank).

Back to Learn

Frequently Asked Questions

Common questions about Bandhan Bank Small Enterprise Loan.

The Bandhan Bank Small Enterprise Loan is designed to provide working capital and term loans to small enterprises engaged in manufacturing and service sectors. It aims to support the growth and operations of these businesses by offering financial assistance.

The interest rate for loans up to INR 2 Lakhs is 18% per annum, and for loans exceeding INR 3 Lakhs, the interest rate is 16% per annum.

The loan amount provided under the Bandhan Bank Small Enterprise Loan ranges from INR 1 Lakh to INR 10 Lakhs, depending on the performance and requirements of the firm.

The repayment period for the Small Enterprise Loan is 3 years, including a maximum moratorium period of one month. For loans acquired towards working capital, the repayment period is based on the entrepreneur's or business owner's demand.

The processing fee for the Bandhan Bank Small Enterprise Loan is 2% of the total loan amount, inclusive of applicable taxes.

Self-employed professionals or non-professionals who require business loans ranging from INR 1 Lakh to INR 10 Lakhs are eligible for the Small Enterprise Loan. The minimum age of the beneficiary should be above 23, and the maximum age during the loan maturity period should not exceed 60 years.

For Small Enterprise Loans up to INR 5 Lakhs, the required documents include a loan application, identity proof, address proof, stock statement (if the loan is for working capital), and a trade license (if available).

In addition to the documents mentioned above, for Small Enterprise Loans above INR 5 Lakhs, applicants need to provide a legal trade license/shop & establishment certificate or any other government registration certificate, income tax returns (ITRs) including balance sheets and profit and loss statements, and self-declared financial statements.

To apply for the Bandhan Bank Small Enterprise Loan, one needs to visit the nearest Bandhan Bank branch, obtain the loan application form, fill it out, and submit it along with the required supporting documents. After processing, the bank will disburse the loan amount to the beneficiary.

The moratorium period of maximum one month in the Bandhan Bank Small Enterprise Loan allows borrowers some time before starting the repayment process, providing them with flexibility to utilize the loan amount and potentially generate revenue before making the first repayment installment.