This loan helps businesses in the Micro, Small and Medium Enterprises (MSME) sector meet their capital expenditure and working capital requirements.

Features of Star Laghu Udyami Samekit Loan

Why this Loan?

·        This Bank of India Laghu Udyami Samekit Loan is meant for all types of businesses in the MSME sector who need financial assistance to meet their working capital and capital expenditure needs

·        The maximum loan amount sanctioned under this loan depends on the location of the business

Loan Amount

·        The maximum loan amount sanctioned under this loan is Rs. 5 lakh for businesses in the rural areas, Rs. 10 lakh for businesses in the semi-urban areas, Rs. 50 lakh for businesses in the urban areas and Rs. 1 crore for businesses in the metro areas

Interest

·        Loans up to Rs. 50,000: The effective rate of interest for this loan is 10.20%

·        Loans Above Rs. 50,000 up to Rs. 5 lakh: The effective rate of interest for this loan is 11.20%

·        Loans Above Rs. 5 lakh up to Rs. 10 lakh: The effective rate of interest for this loan is 12.20%

·        Loans Above Rs. 10 lakh: The effective rate of interest for this loan is 12.95%

Repayment

·        These loans need to be repaid within 5 years including the moratorium period of 3 to 6 months

Security Needed

·        The bank asks for hypothecation of assets acquired or created under the loan as prime security

·        The bank also asks the borrower for equitable mortgage of land and/or building as collateral

·        The bank may ask for guarantee under CGTMSE coverage

Eligibility

·        This term loan is for all Small and Micro enterprises in the metro, urban, semi-urban and rural areas

Borrower Contribution to Total Cost (Margin Money)

·        The bank charges minimum 15% of the total loan amount as margin

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, you will have to contribute 20% which comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing and Other Charges

·        Loan amount up to Rs. 1 lakh: The processing fee levied by the bank on this loan is Rs. 500

·        Loan amount Above Rs. 1 lakh up to Rs. 5 lakh: The processing fee levied by the bank on this loan is Rs. 1,000

·        Loan amount Above Rs. 5 lakh up to Rs. 10 lakh: The processing fee levied by the bank on this loan is Rs. 1,500

·        Loan amount Above Rs. 10 lakh up to Rs. 50 lakh: The processing fee levied by the bank on this loan is Rs. 5,000

·        Loan amount Above Rs. 50 lakh: The processing fee levied by the bank on this loan is Rs. 10,000

Documents Needed for Individuals

·        Loan Application Form duly filled and signed by the applicant and co-applicant, if any

·        Two Passport Size Photographs of applicant and co-applicant

·        Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issuing Letter is must

·        Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport

·        Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement

·        Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant

·        Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

·        A4 size copies of the aforementioned documents

Documents Needed for Proprietorship and Partnership Firms

·        Loan Application Form duly filled and signed

·        Partnership Deed and Partnership Registration Certificate

·        ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter

·        Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement

·        Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors

·        Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account

·        Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

·        Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

·        All A4 size copies of the aforementioned documents

Documents Needed for Private Limited and Public Limited Companies

·        Application Form duly filled and signed

·        Company ID Proof: Company’s PAN Card

·        Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement

·        Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change

·        Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate

·        Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account

·        Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

·        Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

·        All A4 size copies of the aforementioned documents