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FAQs on Commercial Loans

  1. Who can apply for Commercial Loan?
    • Individuals: Self-employed professionals, single proprietors, and partnership firms 
    • Businesses: Private limited corporations, public limited companies, and Limited Liability Partnerships (LLPs)
  2. What documents need to be submitted for a Commercial Loan?
    • Common Documents:
      • Duly filled loan application form
      • Proof of Identity: Aadhaar Card / Voter’s ID Card / Passport / Driving License / PAN Card
      • Proof of residence: Aadhaar Card / Electricity bill, property tax receipt /Passport / voter’s ID Card of Proprietor, partner or Director (if a company)
      • Proof of business Address.
      • Memorandum and Articles of Association of the Company / Partnership Deed of partnership firms, etc.
      • Assets and liabilities statement of promoters and guarantors along with latest income tax returns.
    • Additional documents based on activity undertaken
      • UDYAM registration certificate
      • 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.
      • Last three years balance sheets Firm, Company, etc
      • Copies of lease deeds/ title deeds of all the properties being offered as primary and collateral securities
      • Certificate of incorporation from RoC in case of company (CIN No. and DIN no. of directors)
      • Bank Account details wherever applicable (with details of outstanding in case of existing loans / limits)
      • GSTN No., GST returns, if applicable.
    • There are certain documents, licensees, etc which are required based on the nature of the business entity such as manufacturing, trading, export-import, IT, service sector, etc
  3. Do the Bank provide any checklist of documents required?
    • We will provide you with a checklist of the documents to be submitted (compliant with legal and regulatory requirements) along with the loan application form to enable you to submit the application complete in all respects. If required, we will assist you in filling up your loan application form.
  4. Do the Bank provide any acknowledgement for loan application?
    • Yes, we provide you with an acknowledgement of your loan application, whether submitted online or manually, indicating therein the time frame within which the application will be processed.
  5. Are there any specific loan products for Start Ups?
    • We are actively engaged in the growth of Start Ups by developing dedicated loan products.
    • Schemes for catering to the needs of the Start Ups are added below.
      • Stand Up India
      • Prime Minister Employment Generation Programme (PMEGP)
  6. Is there any product promoting gender diversity?
    • DAY-NRLM (Deendayal Antyodaya Yojana - National Rural Livelihoods Mission)- For women SHG members
    • Stand Up India
      • The scheme facilitates bank loans between 10 lakhs and 1 crore to at least one women borrower per bank branch for setting up a greenfield enterprise.
  7. Are there any government schemes specific to MSME/Start Ups under which Banks extend loan?
    • We extend loans under the following schemes:
      • Pradhan Mantri Mudra Yojana
      • Stand Up India
      • Prime Minister Employment Generation Programme (PMEGP)
      • PM Vishwakarma
      • PM SVANidhi
  8. Is it mandatory to provide Collateral security to avail a loan from Bank?
    • Bank extend collateral free loan to the tune of Rs.100 lakhs by availing credit guarantee for CGTSME under CGS-I.
    • Bank extend collateral free loan upto Rs 20 Lakhs under PMMY Scheme by availing credit guarantee coverage under CGTME/ CGFMU Scheme.
    • Bank extend collateral free loan upto Rs 10 Lakhs under PMEGP Scheme by availing credit guarantee coverage under CGTME Scheme.
    • Bank extend collateral free loan upto Rs 0.50 Lakhs under PM SVANIdhi Scheme by availing credit guarantee coverage under CGTME Scheme.
    • Bank extend collateral free loan upto Rs 3.00 Lakhs under PM Vishwakarma Scheme by availing credit guarantee coverage under CGTME Scheme.
    • Bank also provide collateral free supply chain finance for Vendors of Small, Mid and Large Corporates on comfort of financial stability of Corporate.
  9.  Does Bank take very long to sanction a Commercial Loan
    • Time taken from the receipt of complete documents from the borrower to the sanction of loan is 5 working days for Govt sponsored loans.
  10. Is there any recourse in case Bank resorts to undue delay or arbitrary rejection of loan proposal?
    • Every bank has a customer grievance redressal mechanism and in case of undue delay or arbitrary rejection of the loan, the complaint can be filed with bank’s Grievance Officer.
    • If case of non-redressal, complaint can be escalated to Internal Ombudsman
    • Complaint can also be lodged with RBI Ombudsman.

Note :- All the above is subject to merits of the proposal.