Magma

Magma Business Loan

Years

Apply Magma Business Loan @ 13.50%
imozi

Interest Rate

13.50%-%

imozi

Processing fee

Upto 2%

imozi

Loan Tenure upto

4 years

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EMI per Lakh

2,708

Magma Business Loan

Magma Fincorp is a Kolkata-based company specialising in providing a bouquet of financial products that includes SME Loans, Car Loans, Construction Equipment Loans, and many others. Magma Fincorp has been an active player in commercial lending since its inception in 1988. In the three decades of their existence, Magma Fincorp has serviced more than a million customers through its dedicated branch network of more than 305 branches spread across 22 states in India. Magma Fincorp has more than 9400 employees ready to serve the business needs of SME units all over India. 

About Magma Business Loan

Magma possesses a diverse loan product portfolio that includes financing for commercial vehicles, construction equipment, SME businesses, tractors, and used vehicles. Besides catering to the business community, Magma has forayed into the retail sector as well by providing loans for the purchase of cars, houses, and mortgage finance. Over three decades, Magma Fincorp has earned a reputation for becoming the largest retail financing company in India.  

Magma Fincorp offers an array of Business Loans that includes SME Loans with no primary security or collateral requirements. Magma Fincorp provides Business Loans for bridging working capital needs, business expansion, and funding margin money requirements. Magma Fincorp specialises in offering automobile leasing facilities to small, medium, and large business and corporate entities in need of fleet financing.

Why Choose Magma Business Loan?

Magma offers SME Loans ranging from INR 3 lakhs to up to INR 2 Crores to enable their business clientele to meet their requirements.

Some of the exciting aspects of Magma Business Loans are as follows:

  • Loans ranging from 3 Lakhs to 2 Crores
  • Magma offers the largest collateral-free loans in India
  • Magma Business Loans cater to a variety of business purposes
  • Magma Business Loans have reasonable repayment tenure of 12 to 48 months
  • Get the advantage of easy pre-payment options
  • Magma Business Loans are characterised by quick processing and flexible documentation
  • Magma offers the most competitive SME Loan interest rates in the country
  • Avail the advantage of knowledgeable and well-trained Magma personnel

How to Apply for Magma Business Loan?

Applying for a Magma Business Loan is easy through the following means:

  • Online application: Visit the official website of Magma Fincorp and click on the 'Apply Now' option. Enter your details on the application form to request a call from the Magma Fincorp representative.
  • Visit branch: Magma Fincorp has more than 300 branches in India. Visit any of their offices to submit your funding requirements.
  • Apply online through MyMoneyMantra: MyMoneyMantra offers facilities to their customers to apply for Magma Fincorp Business Loan online. Submitting the details at the MyMoneyMantra website will divert the customer to the official website of Magma Fincorp. The advantage of using our services is that we help you with the compilation of documents and assist you in choosing the ideal lending options.

Why Apply for Magma Business Loan on MyMoneyMantra?

Applying for a Business Loan on MyMoneyMantra is beneficial in various ways:

  • Our loan experts have decades of experience in handling credit matters. We help you with the compilation of documents and provide valuable guidance in choosing the appropriate product depending on your customer profile.
  • Our website allows you the convenience of applying for a Business Loan from the privacy of your home.
  • Our dedicated representatives are always available to assist you with the documentation and picking up documents from your place.
  • We offer free services to our clients

How to Apply for Magma Business Loan on MyMoneyMantra?

Visit our official website for making any enquiries on Business Loans.

  • On accessing the menu bar, choose to apply for the Business Loan by selecting the 'Business Loan' tab under Loans section.
  • Provide the details required, as they enable us to study your profile
  • We generate an OTP and send it to your registered mobile number
  • You have to enter the OTP to verify the genuineness of the application
  • On completing the verification, you get access to the best matching offers for a Business Loan
  • Choose Magma Business Loan and click on the Apply option
  • Our dedicated customer service executive will be in touch with you to help you complete the documentation formalities and explain the loan procedure.
  • You get the maximum support of our customer service team until you obtain the Business Loan.

Documents Required Magma Business Loan

The documents needed for Magma Business Loan vary from one loan type to another depending on the category of loan applied for by the borrower. However, all SME and Business Loans require certain essential documents as listed below:

  • KYC documents: It includes the standard identity and address proof documents
  • Company financials: These documents comprise of the profit and loss statements, balance sheets, and other financial reports.
  • Banking and loan repayment history: It includes the details of all loans and credit facilities availed by the business entity as reported in the financial statements.
  • Property ownership proof: Applicable only in cases where Magma requires collateral
  • Loan obligation statement

Types of Magma Business Loans

Here are the different kinds of Magma Business Loans on offer:

Magma SME Loan Products and Services

Unsecured SME - Collateral Free Business Loans for SME units up to 2 Crores

Purpose

Almost all kinds of business activities in the manufacturing and service sectors.

Features

  • Loans available without stipulation of primary security or collateral
  • Amounts ranging from 3 Lakhs to 2 Crores
  • Repayment tenure between 12 and 48 months

Who are eligible for this loan facility?

Proprietorship concerns, partnership firms, private limited companies, listed companies, closely held limited companies, societies, and trusts are eligible to avail SME Loans.

Manufacturing sector

Loans available for all manufacturing sectors that include automobiles, pharmaceuticals, engineering, chemicals, agricultural products, food and dairy, packaging industry, fertilisers, and jewellery.

Services sector

Consists of a variety of service providers such as hospitality, education, private and government contractors, clearing and forwarding agents, logistics providers, chartered accountants, doctors, consultants, and healthcare.

Traders

Retailers, distributors, stockists, and super-stockists

Eligibility criteria

  • The business should be in operation for a minimum of five years
  • The minimum turnover required for the manufacturing industry and the trading sector is 40 Lakhs, whereas it is 15 Lakhs for the services sector.
  • The business entity should have made a continuous profit for the previous 2 years
  • The banking and loan repayment history should be clean
  • The business should show positive net worth with steady growth in the turnover

Documentation

  • Respective KYC documents for ID and address proof
  • Company financial statements including P/L statement and Balance Sheet
  • Banking and loan repayment history
  • Property Ownership proof
  • Loan obligation statement
Express Business Loans - Unsecured loans up to 10 Lakhs for Microenterprises

Purpose

To meet working capital requirements, purchase of fixed assets like machinery, and business expansion.

Features

  • No need for providing primary security or collateral
  • Loans available from 3 Lakhs to 10 Lakhs
  • Repayment tenure from 12 to 36 months

Who are eligible for this loan facility?

Self-employed professionals as well as non-professionals engaged in manufacturing or trading activities.

Manufacturing sector

Includes manufacturing enterprises in industries like engineering, chemicals, automobiles, dairy, packaging, pharmaceuticals, food and agricultural products, fertilisers, and jewellery

Traders

Retailers, wholesalers, distributors, stockists and super-stockists

Eligibility criteria

  • A minimum requirement of 3 years of business activity
  • Impeccable banking and loan history
  • Have a positive net worth with steady growth in turnover
  • Good CIBIL rating

Documentation

  • Necessary KYC documents
  • Company financial statements
  • 6 months bank statement
  • Ownership proof of property
  • Loan Obligation Statement
Loans for Self-employed doctors - Zero Collateral loans up to 30 Lakhs

Purpose

Setting up a clinic and purchasing medical equipment

Features

  • No primary security or collateral stipulations
  • Loans available for amounts ranging from 2 Lakhs to 30 Lakhs depending on the location.
  • Flexible loan repayment tenure of 12 to 60 months

Who are eligible for this loan facility?

  • Self-employed practising doctors
  • Clinics, hospitals, and nursing homes where qualified doctors comprise 60% of the directors or partners.
  • Allopathic doctors possessing valid IMA accredited degrees
  • Postgraduate doctors with a minimum post-qualification experience of five years
  • Graduate doctors with minimum post qualification experience of eight years

Self-employed doctors

  • Self-employed doctors practising from their own clinic, nursing home, or hospital
  • Doctors with salary or consultancy income

Companies and partnership firms

A minimum of 60% of directors or partners should be qualified doctors

Eligibility criteria

  • Should have a certificate of practice for at least four years
  • The minimum age should be 25 years with a maximum of 65 years at the maturity of the loan.
  • Clean banking record and payment history
  • Display positive net worth for the last two years
  • Good CIBIL rating

Documentation

  • Standard KYC documents like ID and address proof
  • Company financials, if applicable
  • Bank statement for the previous six months
  • Ownership of property, if applicable
  • Proof of qualification
  • Certificate of practice
  • Registration certificate issued by IMA

Construction Equipment Loans

The features of Magma Construction Equipment Loans are as follows:

  • Depending on the grading of the customer, Magma offers loans between 80% and 100% of the asset value.
  • Loans are available to all customer profiles, including first-time buyers and first-time users
  • Depending on KYC documents, loans are available up to 65% on selective assets
  • Magma caters to customers in an operating radius of 200 km from its nearest branch
  • Magma has a fantastic reach, whereby they cover the entire geographical area of the states and union territories where they operate.
  • These loans have a flexible repayment tenure
  • Magna promises to offer the following facilities to borrowers availing loans for construction equipment:
  • Easy processing of loans along with flexible documentation procedure
  • A high degree of transparency with no hidden charges
  • Funding is available for customers of almost all profiles
  • Attractive and customer-friendly repayment options like ECS, auto debits, PDCs, and monthly cash payments.
  • Doorstep collection is available
  • Get the benefit of trained personnel to handle your loan applications
  • A competitive interest rate structure

Eligibility Criteria for Construction Equipment Loans

First-time users

  • Experience is not necessary
  • Requires 2 trade references
  • External guarantor necessary
  • Ownership proof of property required

First-time buyers

  • Experience of 1 year
  • A requirement of 2 trade references
  • External/internal guarantor necessary
  • Provide evidence of property ownership

Small business customers

  • Experience of 2 years is essential
  • An additional condition of prior ownership of a minimum of 1 construction equipment
  • Required to provide a live track record of 12 months
  • Requirement of internal guarantor

Medium-sized business customers

  • Experience of 3 years
  • Minimum asset ownership should be more than 1 Crore
  • 12-months live track record necessary
  • Internal guarantor required

Strategic customers

  • Experience of 3 years
  • Minimum turnover should be 7.50 Crores
  • Minimum asset ownership should be greater than 1.50 Crores
  • Live track record of 12 months
  • Requirement of internal guarantor

Magma Commercial Vehicle Loans

  • Magma Commercial Vehicle Loans are available at more than 305 branches across India
  • Depending on the grading of the customers, vehicle loans are available, ranging from 80% to 100%.
  • Loans are available to all customer profiles that include first-time users and first-time buyers
  • Magma Fincorp caters to customers in a radius of 125 km from the nearest branch location
  • The loan processing and approval procedure is transparent
  • Customers get the advantage of hassle-free documentation
  • Magma Fincorp grants prompt approvals for commercial vehicles
  • Borrowers get the benefit of competitive and reasonable interest rates

Eligibility Criteria for Commercial Vehicle Loans

First-time users

  • Requirement of deployment letter for proposed commercial vehicle
  • Trade references necessary
  • External guarantor necessary
  • Provide proof of ownership of property
  • Residence stability of two years

First-time buyers

  • Submit proof of experience
  • Requires proof of property ownership
  • Stable resident for a minimum of two years
  • Requirement of trade references
  • External guarantor necessary

Small fleet operator

  • Proof of ownership of vehicle needed
  • Good repayment track record
  • Residence stability proof required
  • Either external or internal guarantor necessary
  • Require trade references

Medium fleet operator

  • Vehicle ownership proof of three years
  • Excellent track record of repayment
  • Requirement of external or internal guarantor
  • Trade references needed

Large fleet operator

  • Vehicle ownership proof of five years
  • Impeccable track record
  • External or internal guarantor necessary
  • Requirement of trade references

Magma Fincorp Auto Lease

  • Magma provides this unique financing facility to small and medium businesses that require fleet financing facility for catering to the needs of large corporate entities.
  • Magma meets the fleet acquisition needs of these business concerns and provides a variety of other related services as well.
  • These services increase efficiency and employee satisfaction levels while reducing costs and maximising the value of the company's vehicles.
  • Magma has a presence in 22 states in India. It uses its 305 branches to finance and manage more than 5,000 cars in India while catering to more than 140 medium and large company's fleets.

Features and Benefits of Magma Fincorp Auto Lease Facility:

  • Risk-free and cost-effective fleet financing solution
  • Get the advantage of vehicle insurance with Magma's chosen insurance partner
  • Expert guidance available from the Magma Team to find and acquire vehicles
  • The team manages the entire process from selection to ordering of vehicles
  • Takes care of all fleet management services like registering documents, informing insurance renewal due dates, and other tailored services.
  • Magma offers employee attrition solutions where the employee retains the vehicle after cessation of employment or the end of the lease agreement.
  • Magma also helps in remarketing the vehicles by helping you get excellent returns for the same
  • Customised solutions depending on the needs of the individuals
  • Effective operational practices
  • Excellent manufacturer and dealership relations
  • Quick process and flexible documentation
  • Beneficial insurance options
  • Affordable and flexible ownership
  • Services available across all 305 branches

Who are eligible for this facility?

Small, medium, and large business corporate entities and multinational companies are eligible for this facility.

Eligibility criteria

  • Minimum of 5 years of business operations
  • Generate cash profit for the last 2 years

Documentation - Corporate

  • Previous 2 years' audited financials and provisional statements for the current year
  • Memorandum of Articles
  • Article of Incorporation
  • Proof of address
  • Authorisation documents
  • Valid ID proof of authorised signatories
  • Any other documents required on a case-to-case basis

Documentation - Leasing

  • Master Lease Agreement
  • Tax invoice or Transfer of Title
  • Vehicle request letter along with lease schedule
  • Instructions for repayment of rent
  • Any other documents, if required

 Magma Loans under SME Government Schemes

Magma Fincorp is a member lending institution under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). All SME Loans without any collateral are eligible for CGTMSE cover depending on the loan size and eligibility of the borrower. As on date, CGTMSE covers collateral-free loans provided by member financial institutions up to an amount of 1 Crore.

Factors That Affect Eligibility for Magma Business Loan

  • Age factor: Loans to individuals such as self-employed doctors and proprietorship concerns have minimum and maximum age criteria. The borrowers should not be less than 25 years of age, and the maximum age at maturity of the Business Loan should not exceed 65 years.
  • Positive growth: Non-individuals such as partnership firms, companies, and corporate entities should display positive growth for a minimum of 2 years.
  • Clean record: All borrowers should have a clean banking and loan repayment record
  • Experience: Some loan products require borrowers to be experienced in the respective field
  • Miscellaneous factors: Other factors that affect eligibility are the provision of trade references and guarantors of sizeable worth.

Tips to increase Magma Business Loan Eligibility

  • Provide appropriate documents: Documentation is an integral part of the Magma Business Loan approval process. Magma has a flexible and straightforward documentation procedure. Providing accurate documentation makes your job of getting Magma Business Loans easy.
  • Maintain impeccable credit record: Your CIBIL score or credit rating determines your loan eligibility at Magma Fincorp. Maintain an excellent credit record to increase the chances of getting Business Loans.

Magma Business Loan Charges

Loan Product Applicable charges and interest rates

SME Loans

Most competitive interest rates depending on the activity and credit rating of the borrower

Construction Equipment Loans

  • Rate of interest ranges between 13% to 15% per annum depending on various factors
  • Penalty for late payment is 3% per month for the delayed instalment
  • Processing fees of 3,850

Commercial Vehicle Loans

  • Rate of interest depends on the customer profile and asset category
  • ROI is between 12% to 18%
  • Late payment charges are applicable
  • Processing fees depend on the facility and customer profile

Auto Lease

  • Rate of interest depends on factors like credit evaluation of borrowers, fleet requirement size, and ongoing market rates.
  • Foreclosure charges amount to 3% of the outstanding acquisition cost of the vehicle on the date of the foreclosure.
  • Lease management fee is 0.5% of the lease amount.

Tips for Deciding the Right Amount of EMI

Generally, Magma Business Loans are available for repayment tenures up to 48 months. The loans for self-employed doctors have repayment tenure extending up to 60 months. Determine your EMI liability before you apply for the loan and ensure that you can pay it on time.

Use the loan EMI Calculator available on the official website of Magna Fincorp to determine your probable EMI. Entering the loan amount, interest rate, and loan repayment tenure give you the loan EMI. This calculator also shows you the break-up of principal and interest. It also provides a loan amortisation schedule.

MyMoneyMantra Business Loan EMI Calculator

MyMoneyMantra has a simple Business Loan EMI Calculator. Access the official webpage of MyMoneyMantra, click on the EMI Calculator under Financial Tools and enter the loan details such as amount, rate of interest, and loan tenure. Click on the Calculate button to get the accurate EMI. This table helps you to verify whether the EMI stipulated by the financier is correct.

Change in Business Loan EMI with a Change in Prepayment

Magna Fincorp allows the borrowers to foreclose the loan or make partial prepayments. Under such circumstances, borrowers can choose between servicing the same EMI and calculating a fresh EMI based on the amount outstanding in the loan account after the partial prepayment.

MyMoneyMantra offers the facility of calculating the altered EMI after prepaying the Business Loan. This facility is available on the home page under the heading, 'Financial Tools'.

Magma Business Loan Customer Care

  • Toll-free number: 1800-266-3202
  • Email contact: customercare@magma.co.in
  • SMS contact facility: Type HELP and send message to 8425857590
  • Magma offers an online service request form to enable customers to contact them for providing feedback, making general enquiries, and registering complaints. Provide the details asked for and submit your query for action.
  • Customers can also connect to Magma Fincorp using their social media profiles

Magma Business Loan - FAQs

What is the loan procedure for Magma SME Business Loan?

The loan procedure is a simple one comprising of four steps:

  • Submission of loan application form along with the necessary documents
  • Personal visit and inspection from the credit manager
  • Clarification of queries raised by the credit department, if any
  • Approval of the loan and disbursement after completing documentation formalities and submitting PDCs.

Is there a prepayment option available for Magma Business Loan?

Yes, customers have an option of prepaying their Business Loans after 6 months. It entails paying a prepayment fee as detailed in the loan agreement.

Is a bank account necessary to avail Magma SME Business Loan?

Yes, Applicants have to include bank statement for the previous 6 months as part of the documents necessary for the processing of the loan proposal.

Is CGTMSE guarantee available for Magma SME Business Loan?

Magma Fincorp is a member lending institution under CGTMSE. Hence, loans up to 1 Crore without any collateral are eligible for CGTMSE cover.

What is the maximum loan available under the Magma Construction Equipment Loan?

The loan amount depends on customer profiles. The maximum loan under the retail category is 1.50 Crores, whereas it can go up to 10 Crores for strategic customers depending on specific factors and customer segments. 

Do loans for procuring construction equipment require guarantors?

Yes, a guarantor is compulsory for all loans for purchasing construction equipment.

What are the margin requirements for the different segments in a Magma Commercial vehicles loan?

First-time buyers have to provide a margin in the range of 5% to 20% depending on the customer profile. Small fleet operators have a margin stipulation of 0% to 10%, whereas medium and large fleet operators need not pay any margin money. They can avail 100% finance from Magma Fincorp.

What type of vehicles can customers buy with Magma Commercial vehicles loan?

Customers can purchase small and large commercial vehicles. Magma finances for medium and heavy commercial vehicles as well.

How do I benefit when I apply for Magma Business Loan from MyMoneyMantra?

MyMoneyMantra enables customers to access a variety of loan products before finalising their choice. We have tie-up arrangements with more than 90 banks and NBFCs, thereby ensuring to cater to a vast clientele. Our representatives are available to help you at every step in the loan application process.

How do I contact MyMoneyMantra for Magma Business Loan Query?

It is possible to contact MyMoneyMantra in three ways:

  • Access our official website and submit your loan application through our portal
  • Our dedicated customer service executives are available at 1800-104-4004
  • Dropping an email to contactus@mymoneymantra.com is the easiest way to contact us

How do I benefit from prepaying my Magma Business Loan?

Prepaying your Magma Business Loans allows you to save on the interest. MyMoneyMantra offers a Business Loan prepayment calculator on its home page. Use it to determine the benefits that accrue from prepaying your Business Loan.

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