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IDBI Business Loan

Business is always risky and the main problem that the owners of the business face is the liquidity. To handle such a situation, the IDBI bank also provides business loans to the business owners. There are however certain terms and conditions laid down by the bank. The applicants need to fulfill every single criterion before they are actually counted eligible for the loan.

Eligibility:

Chain partners for distribution are eligible for this loan. They can include: distributors, stockists, dealers etc.

Facilities of IDBI Business Loan:

• Overdraft

• Cash credit

• Term loan

• Working facilities and others

Purpose of IDBI Business Loan:

The IDBI Business loan can be used for the following purposes:

 Overdraft or cash credit can be used to meet any kind of mismatch in the funds temporarily. It can also be used as working capital.

 Term loan is used for the purpose of fixed asset acquisition and also premise renovation. The other use of the term loan can also be the retiring of debt which has high cost.

Loan Amount:

The loan amount can vary as the requirements of businesses can vary. However, the minimum allowed loan amount is INR 10 lacs and the maximum allowed is INR 500 lacs.

Tenor:

The tenor of the loan varies from one year to a maximum of three years.

Security:

 Every single asset of the borrower comes under exclusive charges.

 The borrower needs to provide a personal guarantee.

 If the bank thinks it to be necessary, it can ask for a collateral security as well.

Processing Charges:

The processing charge can be up to 1% of the loan amount.

Comments

hi i want to know that is what is the terms of business loan . means ,,, turnover(maximum & minimum ) , income , IT return , statement....etc.. even m looking the amount 50lacks ...so what sud our turnover....?/

I am Nanthakumar sir,We are doing on business on Electrical material contract bas we will need for mony on term loan on we summitted on the day purchase order (work order),you can help me sir ,we are request 10lac amount we can business development sir please help again.

we are the reputed business houses having turnover of 5crores, now trying to expand our business in the field of distributions and logistics, for this new expansion we need to exceed our working capital by 3crore rupees, for which we are trying for the cash credit loans, if your bank is interested then contact us Firm - HITESHH TRADERS,Beside old post office Ranjhi JABALPUR. PH NO.- 07612632343,9425325450

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