Saraswat Bank Business Loan
Last Updated : Nov. 2, 2016, 7:38 a.m.
In search of a bank that funds your business as per your requirement? Saraswat bank is the right choice, as the bank proffers several loan schemes targeting different requirements of the diverse categories. The bank provides loan for the maximum tenure of 7 years. The loan can be used to manage various business needs such as buying property, working capital and purchase of assets. No processing fee is charged for the credit limit up to Rs. 5,00,000. However, for the loan amount exceeding Rs. 5,00,000 minimal processing fee is charged.
Saraswat Bank Business Loan Details
| Particulars | Details |
|---|---|
| Interest Rate | 14.25% p.a. & above |
| Loan Amount | Up to Rs. 1 Crore |
| Tenure | 7 years |
| Processing Fee | No processing fee up to loan amount of Rs. 5,00,000 |
How To Apply
A business loan can be availed from Saraswat Bank by applying online. The customer can even locate a branch office in nearby vicinity to apply for the business loan.
Saraswat Bank 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 being 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.
For Example – If a borrower avails a loan of Rs. 50,00,000 for the period of 7 years at the prevailing rate of interest which is 14.25% p.a then the EMI will be
Table Showing EMI, Total Interest Amount, Total Repayment Amount
| 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 | 14.25% | 1 | 4,49,524 | 3,94,287 | 53,94,287 |
| 50,00,000 | 14.25% | 2 | 2,40,655 | 7,75,729 | 57,75,729 |
| 50,00,000 | 14.25% | 3 | 1,71,496 | 11,73,852 | 61,73,852 |
| 50,00,000 | 14.25% | 4 | 1,37,260 | 15,88,492 | 65,88,492 |
| 50,00,000 | 14.25% | 5 | 1,16,990 | 20,19,419 | 70,19,419 |
| 50,00,000 | 14.25% | 6 | 1,03,699 | 24,66,344 | 74,66,344 |
| 50,00,000 | 14.25% | 7 | 94,392 | 29,28,923 | 79,28,923 |
Amortization Table
| Year | Principal (in Rs.) | Interest (in Rs.) | Balance Amount (in Rs.) |
|---|---|---|---|
| 1 | 448,765 | 683,939 | 4,551,235 |
| 2 | 517,060 | 615,644 | 4,034,175 |
| 3 | 595,749 | 536,955 | 3,438,426 |
| 4 | 686,416 | 446,288 | 2,752,010 |
| 5 | 790,875 | 341,829 | 1,961,135 |
| 6 | 911,237 | 221,467 | 1,049,898 |
| 7 | 1,051,006 | 82,790 | 0 |
Features And Benefits
- Loan available to meet various business requirements
- Higher credit limit
- Quick loan approval
- Simplified documentation
Saraswat Bank Loan Schemes :
The bank provides business loan to several beneficiaries under various schemes that are as follows :
1. Udyogini (Business Loan for Women Entrepreneurs)
This scheme is introduced to benefit the women entrepreneurs who want to expand their business. The bank offers a loan up to Rs. 50,00,000 for the maximum period of 7 years. The loan is available against the security and two guarantors are required. The processing fee is 0.1% of the sanctioned loan amount.
2. Micro Finance -Self Help Groups Business Loan
A self- help group of 10 to 20 members can avail a loan of up to 4 times the amount available in the savings account or Rs. 2,00,000. The loan is available at a rate of interest 1% lower than the PLR. The loan is sanctioned for the maximum tenor of 60 months. The guarantee of all group members and the third party guarantor is required as security. The bank provides loan to self- help groups involved in following activities –
a) selling fruits, milk, vegetables, fish
b) making of brooms, baskets, and other bamboo products
c) Other professional activities such as hairdressing, plumbing, electrician etc.
3. Traders Business Loan
The bank provides the credit facilities to retail traders in the form of working capital and property loan. The loan is available for the amount ranging between Rs. 2,00,000 to Rs. 50,00,000. The repayment has to be made in 60 installments. The rate of interest is linked to PLR which is 14.5% p.a. at present. The benefit of this scheme can be availed by the following:
| Eligibility Criteria |
|---|
| -Salaried employees with a minimum net salary of Rs. 10,000 per month -Professionals, self - employed and others who are income tax assessee having a net annual taxable income of Rs. 1,50,000/- for at least 3 years continuously -Firms / companies having a net annual taxable income of Rs. 1,50,000 per annum and in operation for last 3 years making cash profit for last 3 years |
4. Small and Medium Enterprises Business Loan
Saraswat Bank provides a business loan to the SME units for the expansion and growth. The bank aids the units by providing funds to meet the working capital requirements, term loans, and property loans. The loan is available for the amount of & above Rs. 25,00,000. No processing fee is charged on the loan of up to Rs. 5,00,000 .
Saraswat Bank Business Loan Eligibility Criteria :
The loan is available for the candidates running business under following constitutions :
- Proprietary
- Partnership Firm
- Private Limited Company
- Limited Company
- Co-operative Society
Saraswat Bank Business Loan Application form
The application form is to be mandatorily submitted in order to avail the business loan from the bank. The application form comprises of the following sections:
- Name of the applicant and PAN details
- Office Address
- Date of establishment
- Details of promoters, proprietor, partners or directors
- Loan details
- Existing account and credit facility details
- Reason for taking loan
- Business Details
Documents Required
| Documents Required |
|---|
| 1. Proof of identity - Voter’s ID Card/ Passport/ Driving License/PAN Card/ Aadhar Card/ signature identification from present bankers of proprietor, partner or Director (if a company) |
| 2. Proof of residence - Recent telephone / electricity bill, property tax receipt / passport / Aadhar Card/ voter’s ID card of proprietor, partner or director ( if a company) |
| 3. Proof of business address |
| 4. Proof of SC/ ST/ Minority section, if applicable |
| 5. Certificates of incorporation/registration etc |
| 6. Memorandum and Articles of association of the company/Registered partnership / Trust Deed etc |
| 7. Assets and liabilities statement of promoters and guarantors along with latest income tax returns should be certified by C.A. |
| 8. Personal IT returns of Promoters/Partners/Directors etc & Guarantors (other than these) |
| 9. Rent Agreement/s (if business premises are rented) |
| 10. Licenses/Permissions applicable, if any |
| 11. Last three year's balance sheet and Profit & Loss (with schedules) of the unit (For all applications for Rs.2 lakhs and above) However, for fund based limits applied below Rs. 50 lakhs if audited Accounts are not available, then Unaudited balance sheets and Profit & Loss (with schedules) are acceptable. For cases of Rs.50 lacs and above, the audited balance sheets and Profit & Loss (with schedules) are mandatory |
| 12. Income Tax / Sales Tax returns of the applicant |
| 13. Projected balance sheets for the next two years in case of working capital limits and for the period of the loan in case of term loan |
| 14. In case of takeover of advances, sanction letters of all facilities being availed from existing bankers/ Financial Institution along with detailed terms and conditions |
| 15. Last three balance sheets of the Associate/ Group Companies, if any (Applicable For Cases With Exposure Above 50 Lakhs) |
| 16. Photocopies of lease deeds/ title deeds and valuation reports, if available, of all the properties being offered as primary and collateral securities |
| 17. Bank statement for last 6 months if banking with other Bank |
| 18. Statement of Loans in individual names of Promoters/ Partners / Directors, etc. |
| 19. Statement of Current/ Savings Account of Promoters/ Partners / Directors etc for last 6 months |
Saraswat Bank Business Loan Interest Rate
The rate of interest charged on the business loans is linked to the PLR (Prime Lending Rate) . It is the rate at which the company charges interest to it’s most efficient and creditworthy customer. At present, the PLR is 14.5% p.a.
Saraswat Bank Customer Care Number
Want to know more about the product or have any query regarding the product call at the customer care number. The toll-free number is active from Monday to Saturday. Place a call on Toll- Free No.: 1800229999 between 8:00 AM – 8:00 PM and get your queries resolved.