Business Loan - Jana Small Finance Bank

Securing funds for a startup is one of the toughest challenges an Entrepreneur's faces while starting a new business. A bank loan is a perfect option for entrepreneurs starting a business in the traditional business like service/manufacturing/trading sectors. Jana Small Finance Bank offers business loan at attractive interest rates and has secure repayment options of equated daily/weekly/monthly instalment, along with user-friendly features specially designed to help businesses fulfil their existing needs, as well as achieve their business goals and future expansions. In this article, we will look at the Jana Small Finance Bank's Business Loan in detail.

About Jana Small Finance Bank

Jana Small Finance Bank, erstwhile Janalakshmi Financial Services, is headquartered in Bangalore. It is one of the ten financial institutions which had received in-principle approval from Reserve Bank of India in 2015, to set up a Small Finance Bank. The bank also received the final banking license in April 2017 and started banking operations by March 2018. It has a range of 500 branches across 19 states of India.

Loan Amount

The loan amount provided under Business Loan by Jana Small Finance Bank ranges between INR 1 Lakh and INR 3 Lakhs (without collateral security) based on the performance of the firm.
The Bank also offers business loan in the range between INR 3 Lakhs and INR 10 Lakhs with collateral security.

Tenure Details

The repayment period fixed for the borrower is up to 36 months (Unsecured). Also, Jana Small Finance Bank offers 12 to 60 months under the secured condition.

Features of Loan Account

Zero balance Current account is provided
Credit Life Insurance for applicant and co-applicant can be availed

Interest Rates

The entrepreneur can get the Jana Small Finance Bank business loan at a highly competitive interest rate of 24% per annum.

Doorstep banking facility

The Jana Small Finance Bank provides following doorstep banking facility:

Onboarding of customer
Doorstep daily collection

Eligibility Criteria

The following persons are eligible to get the business loan for the entity from the Jana Small Finance Bank:

Existing customers of Jana Small Finance Bank
Customers new to Jana Small Finance Bank with a current business venture having a minimum of 3 years vintage is eligible for a business loan
All business units and entities covered under MSME category are eligible to apply for a loan.

Documents Required

The supporting documents required for the Jana Small Finance Bank business loan for an entity is listed as follows:

Aadhaar and PAN card are the mandatory documents
Business Entity Proof - Any one document (Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / Certificate of Incorporation / Partnership Deed)
Business Address Proof - Any one document such as Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement)
Signature Proof
Other documents as per the policy of the Bank
A letter certifying end use of the business loan funds on Business Letterhead
Passport Size Photographs of all applicants and co-applicants

Service Charges and Fees

The service charges and fees details for the Jana Small Finance Bank Business Loan for Entity are tabulated here:

Sl.No	Particulars	Business Loan for Entity
1	Loan Processing Charges	3% + GST
2	Documentation charges	Nil
3	Prepayment charges	5% of the amount Pre-Paid
4	Late payment charges	24% per annum
5	Foreclosure charges	5% on the amount prepaid prior to completion of 75% of sanctioned tenure
6	Cheque/AD/ECS bounce charges	Rs.500 + GST

Application Process

The entrepreneur needs to visit the nearest branch of Jana Small Finance Bank, and the Relationship Manager will guide the application process.
You can also contact the Jana Small Finance Bank Limited and the bank Customer Care Executive will fix a service appointment with the Relationship Manager to help the entrepreneur with the application process.
The entrepreneur can also apply for Business Loan for entity through the official website of Jana Small Finance Bank.

Image 1 Jana Small Finance Bank Business Loan for Entity

From the home page, click on Enterprise and from the list of loan select the Business Loan for entity option.

Image 2 Jana Small Finance Bank Business Loan for Entity By clicking on Apply now option, the application form for the loan will be displayed. Provide the personal details and click on submit.

Image 1 Jana Small Finance Bank Business Loan for Entity On submission of the application form, the customer care executive will call you to assist the application process.

Back to Learn

Frequently Asked Questions

Common questions about Business Loans from Jana Small Finance Bank in India.

Jana Small Finance Bank offers business loans ranging from INR 1 Lakh to INR 3 Lakhs without collateral security, based on the performance of the firm. For loans between INR 3 Lakhs and INR 10 Lakhs, collateral security is required.

The repayment period for unsecured business loans from Jana Small Finance Bank is up to 36 months. For secured business loans, the tenure ranges from 12 to 60 months.

Some key features of the business loan account from Jana Small Finance Bank include a zero-balance current account, credit life insurance for the applicant and co-applicant, and doorstep banking services like onboarding, daily collections, and loan processing.

Jana Small Finance Bank offers business loans at a competitive interest rate of 24% per annum.

Existing customers of Jana Small Finance Bank, new customers with a current business venture having a minimum of 3 years' vintage, and all business units and entities covered under the MSME category are eligible to apply for a business loan from Jana Small Finance Bank.

The required documents include Aadhaar and PAN cards, business entity proof, business address proof, signature proof, a letter certifying the end-use of loan funds, and passport-size photographs of all applicants and co-applicants, among others as per the bank's policy.

Some of the charges and fees include loan processing charges (3% + GST), prepayment charges (5% of the prepaid amount), late payment charges (24% per annum), foreclosure charges (5% on the prepaid amount before 75% of the tenure), and cheque/ECS bounce charges (Rs. 500 + GST).

An entrepreneur can apply for a business loan from Jana Small Finance Bank by visiting the nearest branch and meeting with a Relationship Manager, contacting the bank's customer care for a service appointment, or applying online through the bank's official website.

To apply for a business loan online with Jana Small Finance Bank, the entrepreneur needs to visit the bank's website, select the 'Business Loan for Entity' option under the 'Enterprise' section, fill out the application form with personal details, and submit it. A customer care executive will then assist with the remaining application process.

Yes, Jana Small Finance Bank offers doorstep banking services for business loan customers, including onboarding of customers, daily collections, and loan processing at the customer's doorstep.