Reliance Business Loan
Last Updated : Dec. 3, 2016, 6:16 a.m.
With the aim to make India a self – reliant nation, the Reliance Commercial Finance (a division of Reliance Capital Ltd.) provides a loan to the Small and Medium Sized Enterprises for the business growth and expansion. The company offers funds up to 80% of the projected investment in plant and machinery. However, the disbursal amount depends on the individual’s eligibility, company structure and repayment capacity. No financials are required for the equipment loan up to Rs. 60 lacs and no secondary collateral is to be presented for the equipment loan up to Rs. 2 crores. The loan can be prepaid after 6 months at the applicable charges. To know about fees and charges read the details below:
Reliance Business Loan Details
| Particular | Details |
|---|---|
| Interest Rate | Customized |
| Loan Amount | 80% of the planned investment in plant and machinery, depending on the eligibility |
| Tenure | 6 months to 4 years |
| Processing Fee | As per company's policy |
| Foreclosure Charges | 5% + Service Tax within |
| 12 months of disbursement, | |
| 2% + S.T thereafter | |
| Repayment Option | Through Electronic Clearing System (ECS) or Post Dated Cheques |
| Cheque Bounce Charges | Rs. 450 |
| Cheque Swapping Charges | Rs. 500 |
How To Apply
Once you have gone through the details and decided to take the business loan from Reliance you need to apply for the same. To avail the benefit of a business loan from the Reliance Capital Ltd. apply online or contact the customer care. The company executives will revert the important details on the registered contact number. They will inform you about the loan process and the documents to be submitted at the time of application.
Reliance Business Loan EMI Calculator
The Business Loan EMI Calculator is a calculator designed to make the calculation of EMI quick and simple. It computes the real results in the shortest time. The calculator helps the user to know his/ her EMI value and plan for the future payments accordingly. The user can also learn about the amount of interest he/ she has to pay on the loan amount taken. The calculator works on a simple principle. The user only needs to enter the loan amount, the rate of interest and the tenure of the loan. Once these values are inserted, using the interest formula the calculator computes the total interest amount and the total repayment amount.
For Example, a person takes a loan of Rs. 50,00,000 from the company to enhance his business for the period of 4 years. He will repay the loan amount in 48 monthly installments along with the interest charged. His monthly instalment amount or EMI will be Rs. 1,46,875 at the rate of interest say 18% p.a. The total amount he will be paying by the end of tenure will be Rs. 70,50,000.
Table Showing EMI, Total Interest Amount and Total Repayment
| Loan Amount (in Rs.) | Interest Rate (p.a.) | Tenure (in years) | EMI (in Rs.) | Total Interest Amount (in Rs.) | Total Repayment Amount (Principal + Interest) (in Rs.) |
|---|---|---|---|---|---|
| 50,00,000 | 18% | 1 | 4,58,400 | 5,00,800 | 55,00,800 |
| 50,00,000 | 18% | 2 | 2,49,621 | 9,90,892 | 59,90,892 |
| 50,00,000 | 18% | 3 | 1,80,762 | 15,07,431 | 65,07,431 |
| 50,00,000 | 18% | 4 | 1,46,875 | 20,50,000 | 70,50,000 |
Amortization Table
| Year | Principal (in Rs.) | Interest (in Rs.) | Balance Amount (in Rs.) |
|---|---|---|---|
| 1 | 9,37,336 | 8,25,164 | 40,62,664 |
| 2 | 11,20,695 | 6,41,805 | 29,41,969 |
| 3 | 13,39,925 | 4,22,575 | 16,02,044 |
| 4 | 16,04,215 | 1,60,463 | 0 |
Eligibility Criteria :
- Self-employed doctors in the age group of 24 to 65 years (at the end of the loan tenure).
- Partnership Firms & Private Ltd. Companies
| Parameters | Self- Employed Individuals | Partnership Firms & Limited Companies |
|---|---|---|
| Age | 24 Years - 65 Years (on Maturity of Loan) | - |
| Business Continuity | - | -Profitable Operations for 3 years |
| -Stability of Operations (Geography) for at least 2 years | ||
| Turnover | Turnover of More than 2.5 crores | Turnover of More than 2.5 crores |
| Profit (PAT) | Positive for the past two years | Positive for the past two years |
Documents Required :
- Passport sized photographs of all applicants / co-applicants
- Passport copy / PAN Card / Ration Card
- Office Address Proof
- 2 years audited financials
- 2 years ITR of directors/partners
- Certified copies of MOA / AOA / Partnership deed
- Repayment track record
- 6 months bank statement of main operating account
- Professional qualification certificate in case of Doctors / CA/ Lawyers/Architects
- Proforma invoice to the equipment to be financed
Features and Benefits
The benefits of taking the loan from Reliance company are as follows :
- Borrow up to 80% of the planned investment in plant and machinery
- Loans processed within 4-5 working days of document completion
- No financial security required for equipment loans up to Rs. 60 lacs
- No secondary collateral required for equipment loan up to Rs. 2 crore
Stages Involved in Availing a Loan
- Application
- Processing
- Documentation
- Sanctioning of the loan
- Disbursement
Factors Affecting Business Loan Eligibility:
The loan eligibility of the candidate depends on various factors. The factors affecting the eligibility are mentioned below :
- Loan Repayment track
- Debt servicing ability of the customer
- Business Vintage
- Credit Performance / Credit Bureau Update
- Financial Ratios
- Existing relationship
Reliance Loan Customer Care
To clear your doubts and gather more information about the loan, contact the customer care executives. Call on the toll – free number active from Monday to Saturday between 9:30 A.M. – 5:30 P.M. except on public holidays and 2 nd & 4 th Saturdays . The contact numbers are :
- For Service Queries : 1800 200 3838
- For New Loan : 1800 210 3030