Bandhan Bank - MSME Loan Application

Bandhan Bank offers working capital and term loan for Small and Medium Enterprises engaged in the manufacturing and service sectors. In this article, we look at the MSME Loans from Bandhan Bank in detail. To know about the MSME Loan Restructuring 2019

Bandhan Bank Business Loan Details

There are 2 types of loans available:

Working Capital Loan
Term Loan

The following are the details of Interests, charges, fees and Commissions:

S.No.	Type	Loan Details
1.	Interest Rate	12.35% per annum to 18.18% per annum
2.	Loan Amount offered	As per assessment and bank’s internal exposure policy
3.	Margin	Inventories 25% Receivables 30% LC and BG 25%
4.	Loan Tenure	Repayable on demand
5.	Processing Fee	Minimum of 1.0% of the loan amount including service tax as applicable

Eligibility Criteria for Working Capital Loan

Existing profit making MSME units are all eligible to apply for the loan.

Eligibility Criteria for Term Loan

New as well as existing Micro, Small and Medium Enterprises (MSMEs) who are engaged in the process of manufacturing activity
Minimum age of the beneficiary should be strictly above 23, and the maximum age during the period of loan maturity should not be beyond 60 years
Minimum of 2 years of experience in the same line of activity is expected
For non-individuals, 2 years of track record is expected

Documents Required

The below listed are the pre-sanction documents that need to be furnished at the time of applying for business loans in Bandhan Bank:

Identity Proof: PAN Card, Driving License, Aadhar Card, Voter ID Card, Proprietor, partner of Director (if a company), etc.
Address Proof: Legal Passport, Utility bill, Property tax bill, etc.
KYC documents for promoters/units
3 passport size photographs of the individual borrower
2 photographs of the Guarantor
Trade License
Ownership documents
Copy of partnership deed / Copy of MOA and AOA
Copy of IT Returns of promoters / Firm for the last three years
Details of the capital expenditure

Business Loan Application Procedure

Kindly follow the below procedure to apply for the Bandhan Bank MSME Loan online. Step 1: Approach the nearest Bandhan Bank branch in your locality for applying for a business loan. Step 2: Then the applicant needs to get the application form from the bank office and have to fill out the business loan application form in a prescribed format. The application form can also be downloaded from the official website. The application form is reproduced below for the ready reference: Step 3: Submit the application business loan form in the prescribed format to the concerned bank official along with all the supporting certificates mentioned above. Step 4: After applying, you have to attach the specified KYC proofs along with the business loan application form.