Federal Bank Business Loan

Federal Bank Business Loan has been on offer for quite some time now, and since it was introduced, entrepreneurs and business individuals have taken advantage of the scheme to expand their business. This loan is designed to further the economic interests of Micro, Medium, and Small-Scale Business Enterprises. Issued at affordable interest rates, any business owner in need of fresh capital may apply for the loan. Here are some of the features of this Business Loan by Federal Bank.

• The loan is curated for SME's and MNCs got business expansion
• Speedy application processing and loan disbursal
• Interest rates range from11.35% - 17.95% p.a.
• Multiple repayment options for all customers
• Minimal documentation is required to apply for the loan

If you are a business owner looking to take up a business loan from Federal Bank, here are some of the advantages of doing so.

• Low Processing Fees: The processing fee for taking up this loan is quite affordable. Federal Bank will not charge you more than 0.5% of the loan amount as a processing fee. This will go a long way to reduce potential indebtedness.
• Seamless Application Process: The process of applying for this loan is relatively easy and straightforward. You can either go to any of their branches or go online to fill out and submit an application form.
• Minimal Documentation: The number of documents required is very few and easy to access.
• Affordable Interest Rates: Receiving a loan at single-digit interest rates is one of the positive features of this loan. The rates are affordable, hence repayment won't be difficult as long as your business enjoys regular cash flow.
• Extended Repayment window: Some of the business loans on offer have a tenure of five years, while others can last for as long as seven years. This opens up the opportunity to repay the loan in small installments without risking the financial health of your business.
• Flexible Repayment methods: You can take advantage of any of the various repayment methods available to customers, such as cheques, standing order, Mobile Banking, etc

To broaden the options available to Entrepreneurs and business establishments, Federal Bank currently offers as many as 8 different types of loan schemes. Each loan is designed for specific business purposes, and they are issued at different rates of interest and tenures. Some of the loans are meant for increasing trading investment or to boost cash flow. Others are essentially meant to procure equipment and machinery for production. There are also loans for business expansion or rent securitization. Whatever your business needs are, Federal Bank has got you covered. Some of the loan schemes offered under the Business Loan category are:

• SME Parametrized Scheme
• Business Loans for Professionals
• Federal Goldsmith Loan Scheme
• General Credit Card Scheme
• Commercial Vehicle Finance
• Loan to Mobile/DTH/Other Recharge Vendors
• SME Loan against Property
• Loan against Rent Receivables

To provide you with a clear picture of each loan type, skim through the table below to find out more. Also, make sure that you do your due diligence before deciding on any loan, in particular, to go for.

Before a business owner can receive this loan from Federal Bank, he or she must provide proof of eligibility. Below, we highlight some of them.

• The applicant must be at least 23 years of age
• A healthy credit history with minimal debt liability is a must to access this loan
• A healthy credit score
• Monthly Business income must be large enough to cover 40% EMI deduction
• The loan is solely for Salaried Professionals, Self-employed, and business owners
• The business must have been in existence for at least 3 years running

Here is a detailed shortlist of documents all applicants are expected to submit along with their loan application form.

Salaried Professionals

• Proof of Identity: PAN Card, Voter ID, Passport, Driver's License
• Proof of Address: Ration Card, Electricity Bill, Rent Agreement, Voter ID, Passport
• Proof of income: Bank Statement for the last 6 months, Salary Slip for the last 3 months, Form 16 for 2 years

Self-Employed/Business Owners

• Proof of identity: Voter ID, Passport, Driver's License, PAN Card
• Proof of Address: Ration Card, Telephone Bills, Electricity Bills, Passport, Trade License, Lease Agreement, Sale Tax Certificate
• Proof of income: Audited Balance Sheet and Profit and Loss A/C, ITR for 2 years, Income Computation by a Certified Accountant, Proof of business Continuation, Trade Tax, Sales Tax Certificate, Copy of tax receipts paid to local tax agencies