Why business loans in the first place?

 

Sometimes the way towards ramping your business is through a business loan. People dream about business, they nurture it as their own child. The entire process of constructing a  business is a challenging one. In addition to that, businesses are known to have greater risks as compared to a lot of other enterprises as well. That is why IDFC has a varied range of business plans that support the idea brimming in your mind. With the multiple plans that the bank has; it is a certainty that your business idea will be realised into a reality. Business loans ease out the entire financial journey of the same. It is so because lending money at one time is always better than having it on multiple occasions. One time investments give the risk taker the backdrop to take upfront actions and march ahead. Business loans are for a long term plan. During the initial stage when the size of the business is small it can be self-funded through the individual, or even by borrowing money from here and there. Although upon maturity, the business capital is a desperate need. Without that some goals can not be realised.

 

Top reasons how you can utilize your business loan:

 

1.   Marketing

In this era of technological advancement and global connectivity it has become almost a norm to have your marketing done right. These involve keeping up an updated website, dedicated social media handles, campaigns and seminars. We do not live in a time where only the product will do the deeds. Of course the product is important, but the amount of reliability that individuals have on social media these days, marketing over there has become extremely crucial. The initial part of the loan can be used to market the product so that visibility is increased. It is also important to keep telling your target audience what you are up to.

2.   Investing in workforce

Often hiring is something that is directly proportional to the number of clients or work that will flow in. The more staff is there, the stronger are the teams, hence, attracting better clients. A strong team force is essential to ensure the clients that the brand is reliable. A good team will bring in results which is why one should invest in it.

3.   Purchasing inventory

In a business it is crucial to be prepared ahead of the need. If not, losses will flow. Purchasing required inventory is important so that production can match up the demand.

 

Just like a personal loan, a business loan can be used for several purposes. The only condition is that the amount of business loan should not be deployed on any other occasion.

4.   Investing in machinery

Businesses are dynamic, competitive and updated. As a result of this it is important that an investment is made in machines that shall render growth by keeping the entire ecosystem of the business up to date.

 

Advanced technology allows the employees some flexibility on their part. Their efforts when combined with the efficiency of machines produce excellent results.

 

Types of Business loans in SMEs loan

 

Unsecured- business loan

Loan tenure up to 48 hours

Collateral free funding up to 1 crore

Quick eligibility up to 50 lakhs basis banking

 

Who can apply:

 MSMEs/ non-individuals such as:

Private Ltd.

Partnership firms

LLPs

Sole proprietors, etc 

 

Each meeting the minimum requirements as below:

Minimum turnover of 1 crore

Minimum business vintage of 3 years

Documentation:

●Photo identity and address book : as per RBI defined KYC guidelines. Ownership proof of office and residence

●Business proof: Shop act Licence/ MOA & AOA/ GST/ registration/ ITR/ , partnership deed

●Any one of the traditional documents basis selected program

●Basis banking: Latest 2 years ITR and Net worth statements, latest 6 months  bank statements

●Or basis GST- latest 6 months banking, GST returns for the last 12 months, latest ITR and computation

●Or basis income- latest 2 years ITR7 computation

Unsecured - professional loan : given the fact that setting up a business is a huge task, loans have to come in for help.

 

Collateral free loan up to 1 crore

Instant loan up to 30 lakhs based on professional qualification

Extended loan tenor up to 34 months

Who can apply : we have detailed our professional loan eligibility as below

 

Loan to doctors:

●Can be availed by doctors ( MD, MBBS, BAMS, BHMS, MDS, BDS and veterinary, physiotherapist)

 

Loan to other professionals:

●Can be availed by engineers, chartered accountants, company secretaries & architects

 

Loan to non- individuals:

●Can be availed by diagnostic centres, clinics & hospitals

 

Documentation

Salaried professionals

●Photo identity proof, address proof, as per RBI defined KYC guidelines

●Education proof- degree certificate, degree registration

●3 months Bank statement

●Employee ID card

●Residence ownership proof

 

Self employed professionals and entities such as Hospitals, diagnostic centres

●Photo identity and address proof: as per RBI defined KYC guidelines

●Education prooof_ degree certificate, degree registration

●Ownership proof of residence or oofice as appliance

●Business proof: shop ACT license/ MOA & AOA/ GST registration / ITR. partnership deed.

 

Any one of the additional documents as per program

 

●Basis banking- 1 year ITR 7 computation, 12 months banking

●Or basis degree- 3 months banking

●Or basis income- 2 years ITR & financials, 12 months banking

Secured- loan against property

Your property can be your key to success. Yes at IDFC bank you have the freedom to use your previous asset to build new assets.

Unique loan transfer

Higher mortgage loan value up to 80%

Funding for all kinds if properties such as residential, commercial, industrial plots and godowns

 

Who can apply:

MSMEs/Non- individual entities such as:

Companies

partnership firms

LLPs

Sole Propertiership

 

Documents required

●Photo identity and address proof: as per RBI defined KYC guidelines

●Business proof: shop act licence/ MOA & AOA/ GST registration/ ITR and partnership deed

●Details of running loans if any: sanction letter/ Amort schedule/ statement of account

●Property document: complete chain of property title deeds, approved layout/ plan

Any one of the additional documents basis selected program

 

●Basis banking: latest year ITR along with the latest year’s financials, latest 6 months Bank statements for loans up to 2 crores, otherwise 12 months.

●Basis GST- last 1 year ITR, 1 year financials/ CA net worth statement, latest 3 months bank statements, GST returns for the last 12 months

●Or Basis Income- latest year ITR along with latest year’s financials, latest 6 months Bank statements for loans up to 2 crores, otherwise 12 months

Working capital loan

Benefits

●Wide range of products such as overdraft , cash credit, term loan, bank guarantee, letter of credit and other trade products.

●Working capital loan backed by property for MSME, manufacturers, traders and start up.

●Complete banking product suite available for MSME customers- current account, overdraft account, trade, FX, payment collection solution

 

FIRST Step micro business loan

24/7 agent service at doorstep

Seamless digital journey with up front eligibility

Loan amount up to 30 lakhs for the tenure of 240 months

 

SME accounts

You can apply if you meet any of the following requirements:

●Individual

●Hindu undivided family ( H.U.F)

●Sole proprietorship

●Partnership

●Limited company/ limited liability partnership

* the product will be applicable for MSME customers with annual turnover up to Rs250 crore and investment in plant and machinery of less than Rs 50 crore

Freedom current account

You can apply if you meet any of the following requirements:

●Individual

●Hindu undivided family ( H.U.F)

●Sole proprietorship

●Partnership

●Limited company/ limited liability partnership

 

Sole proprietorship

●2 documents in the name of entity

●Address proof in the name of entity

●Proprietor document- ( photo, PAN copy and 1 OVD document copy)

●Nature of industry proof ( in case not indicative in entity documents , please check for invoice copy, bill of entty, freight invoice, agreemnet copy)

 

Partnership

●Partnership deeds

●Partnership form declaration

●Entity PAN card copy

●Address proof in the name of the entity

●OVD copy of the partners / authorised signatories/ beneficial owners( including latest photographs and PAN card copy)

World business account

 

You can apply if you meet any of the following requirements:

●Individual

●Hindu undivided family ( H.U.F)

●Sole proprietorship

●Partnership

●Limited company/ limited liability partnership

 

Documentation:

Sole proprietorship

●2 documents in the name of entity

●Address proof in the name of entity

●Proprietor document- ( photo, PAN copy and 1 OVD document copy)

●Nature of industry proof ( in case not indicative in entity documents , please check for invoice copy, bill of entry, freight invoice, agreement copy)

 

Partnership

●Partnership deeds

●Partnership form declaration

●Entity PAN card copy

●Address proof in the name of the entity

●OVD copy of the partners / authorised signatories/ beneficial owners( including latest photographs and PAN card copy)

 

Merchant multiplier account

 

Benefits

 

●20X cash deposit limit of total POS+ UPI QR throughput

●No non-maintenance charges

●Preferential pricing on POS

●Free platinum debit card

●Free UPI QR and Virtual Account

●No setup and annual maintenance on payment gateway

●Free bulk payment through Netbanking

●Complementary doorstep banking

 

Who can apply : apply for our merchant multiplier account if you fall into the below mentioned criteria

 

●Individual

●Hindu undivided family (  H.U.F)

●Sole proprietorship

●Partnership

●Limited company/ limited liability partnership

●Trust /association/ club/ society

 

Documentation

 

Open a merchant account with ease once you have the following account at place:

 

Sole proprietorship

●2 documents in the name of entity

●Address proof in the name of entity

●Proprietor document- ( photo, PAN copy and 1 OVD document copy)

●Nature of industry proof ( in case not indicative in entity documents , please check for invoice copy, bill of entry, freight invoice, agreement copy)

 

Partnership

●Partnership deeds

●Partnership form declaration

●Entity PAN card copy

●Address proof in the name of the entity

●OVD copy of the partners / authorised signatories/ beneficial owners( including latest photographs and PAN card copy)

Startup current account

 

Features:

 

●Nil balance maintenance requirements for initial 3 years

●Best in class digital banking platform to monitor all accounts in single glance

●Free cash deposit up to Rs 30 lakh per month

●CMS services like bulk upload, maker- checker & virtual accounts with NIL charges

●Free setups & Nil AMC for payment gateway, UPI/QR, NACH and POS

●Preferred FX conversion rates and preferred pricing for LC/BG issuance

●Eligibility- date of incorporation must be up to 3 years & entity type must be Pvt. Ltd or LLP or OPC.

 

        Agri multiplier account

 

        Benefits

●To tackle the seasonal nature of business, get an option to maintain Quarterly Average Balance

●Free cash deposit limit: 20X of AMB ( max 1 Cr)

●Digital solutions for payment & collection

●RuPay platinum Debit card

●Host of beyond banking Offers with advisory & platform services

●Full bulk payment through net- marketing

●Complementary doorstep banking

●Export import solutions for Agri traders

●In app- one click UPI-QR

 

Eligibility

 

●Hindu undivided family ( H.U.F)

●Sole proprietorship

●Partnership

●Limited company/ limited liability partnership

●trust/ association/ club/ society

 

        

    Documents required

 

       Sole proprietorship

●2 documents in the name of entity

●Address proof in the name of entity

●Proprietor document- ( photo, PAN copy and 1 OVD document copy)

●Nature of industry proof ( in case not indicative in entity documents , please check for invoice copy, bill of entry, freight invoice, agreement copy)

●APMC/ Mandi license

Conclusion

Depending on a person’s CIBIL score, obtaining a business loan may be simple or challenging. Our executive at loanz99 assists you in working with the IDFC bank to secure a business loan at the most competitive interest rates.