TRADERS EASY LOAN SCHEME FORM
This scheme is launched by SBI to provide hassle free loan to Traders.Any business man/ entrepreneur/ Professional and self employed person can avail this loan. Loan under the scheme can be availed to meet normal business requirements and is sanctioned against equitable mortgage of property. Any residential or commercial property in the name of unit/ proprietor/partner OR their close relatives is acceptable. Agriculture property or property outside urban limits is not accepted.
The advance can be availed by way of Loan or Cash Credit limit. It can also be availed for Non Fund Based requirements (for issuance of Bank guarantees or LCs). Cash Credit limit or non fund based limit is renewable every 12 mths.Loan can be repaid in monthly or quarterly, even half yearly installments - as may be suitable to the borrower – in a period upto 5 years.
Minimum and maximum amount of loan is Rs 25,000/- and Rs 5.00 Crore. Margin is 35%. i.e. loan can be upto 65% of the realizable value of the property or the business requirement- whichever is less. Business requirement is assessed on the basis of projected business turnover. Interest at floating rate is charged at monthly intervals on daily reducing balance.
No Third party guarantee is required to avail the loan.
Frequently asked Questions
1. What is this Scheme?
· The Scheme is to provide loan to the Traders/ professionals/ entrepreneurs etc for their business needs on easy terms against property.
2. Who can take this loan?
· Any business man/ entrepreneur/ Professional and self employed person can take loan under the scheme
3. What is the amount of loan?
· The amount of loan is Minimum Rs 25,000/-and Maximum Rs 5.00 Crore
4 What type of property is accepted?
· Any residential or commercial property in the name of unit/ proprietor/partner OR their close relatives is accepted. Agriculture property or property outside urban limits is not accepted
5 What is the margin? How much loan is given?
· The Margin is 35%. i.e. loan can be upto 65% of the realizable value of the property. However, if business requirements are less, the lower of the two amounts will be sanctioned.
6 How is business requirement calculated?
· It is based on projected business turnover.
7 What is the interest rate? Is it floating or fixed rate?
· The interest rate in linked to SBAR. It would increase/ decease with changes in SBAR (floating rate). For cash credit it is 0.25% below SBAR and for loans 0.25% above SBAR. Presently it is 13% for term loan and 12.50% for the Cash Credit limit based on present SBAR of 12.75%
8 What is the method of calculating interest?
· Interest is calculated and applied monthly on daily reducing balance
9 Can I get Cash Credit limit also? Can I get Guarantee/ LC limits also?
10 Is there any processing charges?
· Yes.1% of the loan amount.
11 What is the repayment period?
· In case of Cash Credit it is reviewed by the Bank every 12 mths.Loan is to be repaid in maximum 5 yrs.
12 Whether repayment is monthly or quarterly
· It can be monthly, quarterly, even half yearly depending upon the requirement of the borrower.
13 Is there any guarantor required for the loan?
· NO. If property is owned by somebody else, than only owners’ guarantee is required.
14 Whether I will have to take insurance of the property?
15 I have a loan account with other bank. Can I shift this to SBI under this scheme?
16 What documents I would have to submit
· Usual documents for identification and copy of the latest balance sheet, last income tax return etc and Advocate’s search report, title certificate and valuation certificate of the property that are normally required for creation of mortgage.