All About Loan
Content
Personal Loan : Overview
Personal Loan as the name clearly indicates is the loan sanctioned to a person or an individual to meet his or
her Personal immediate cash requirement. It is also known as ‘Signature Loan’. It is an unsecured loan
because the lending authority or institution does not require any collateral security or mortgage. Personal
Loans are granted on the basis of past payment or debt history, credit ratings, borrower’s income &
repayment ability etc. though the credit rating is not at all mandatory. This is an informal method to raise
funds as it involves lesser documentation and the sanctioning process is faster. Even borrowing from a
friend or relative is also considered as obtaining personal loan.
Personal loan is preferred to settle old debts, purchase of consumables, festivals, holidays etc. The rate of
interest is generally high.
Personal Loan : Documents
PRE SANCTION DOCUMENTS :
Age Proof : Pan Card/ Passport/ Driving License.
Residence Proof: Electricity bill/ Passport/ Telephone bill/ Mahanagar Gas.
Income documents for :
1.
Self employed -- 3 yrs Income Tax Returns.
2.
Salaried -- Form 16 for last 3 yrs & Salary certificate for previous three months.
Copy of bank statement for previous six months, reflecting salary or the regular business
transactions.
Work Experience :- Minimum two years for salaried as well as self employed.
4 Photos.
POST SANCTION DOCUMENTS :
Post Dated Cheques (PDCs) or ECS Mandate form or Standing Instruction Request.
Personal Loan : Eligiliblity
Minimum age of Applicant should be 21 Years.
The maximum age of applicant be 58 years for salaried applicant and 60 years for self employed.
The minimum income of self employed the net income after tax should be Rs. 1, 00,000/-.
The applicant should be in business for a minimum period of three years.
The applicant should fill the application form and should submit the form along with all the self
attested documents and photograph.
Personal Loan : Process
These are following steps taken by banks during process of loan.
Application form is login.
Personal Discussion is done by bank officer with customer.
Bank's Field Investigation (All documents are Verify by bank which given with application form)
Bank cheques CIBIL report.
Sanction Letter.
Signing of agreements and submitting post-dated cheques.
Disbursement.
Car Loan : Overview
Car Loan or Automobile Loan is used to purchase a vehicle. The vehicle includes two-three wheelers, cars,
commercial passenger and cargo vehicles. The vehicle purchased is hypothecated with the lending
institution till the entire liability is settled. Once the liability is fully settled the vehicle becomes lien or
hypothecation free.
The borrower has a flexible option to make a down payment of certain percentage of the vehicle value
mentioned in the quotation. The balance amount is to be paid in stipulated no. of EMI with interest. Generally
the vehicle loan is available on 2-5 years term and the interest rate is between 9-15 %. On defaulting on the
repayment the lending institute can seize the vehicle and auction it to recover the dues.
In select cases this loan is also available on used cars or vehicles.
Car Loan : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Car Loan Application. Certain documents may be demanded by the bank or the
lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Partnership deed in case of partnership firms.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Copies of the Invoices.
Car Loan : Process
1.
Personal interview /discussions is held with the customers by the bank’s officials.
2.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are Verified by the bank with the originals so as to ensure the
authenticity of the same.)
3.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
4.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
5.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Home Loan : Overview
Home Loan / Housing loans which is sanctioned to buy or purchase or to own a house or residence is a
known as a Home Loan / Housing loan. Any qualifying individual can avail housing loan subject to the
purpose of owing a residence only. Home loans are not sanctioned to purchase any commercial premises
like shop, office, warehouse or factory etc. Home Loan / Housing Loan is a type of secured loan as the house
or residence purchased is mortgaged to the lending institution till the full & final Payment of the loan
amount. This is a long term loan and the home loan repayment period could be anywhere between 5 years to
30 years. The rate of interest generally varies within the range of 8 % to 13% depending upon institution to
institution. Floating interest and Fixed interest are the available interest calculation options to the borrower
of Home Loan / Housing Loan in India. The government policies also impact the rate of interest on Home
Loan. Generally it is a practice of lending institutions to grant up to 90% of the cost of the premises where
the rest 10% of the cost of the premises are involved by the borrower. In certain cases the lending institute
may sanction 100% home loan though it is at sole discretion of said institute.
A borrower may buy its prime residence by availing home loan or he or she may buy excess residential
property. Borrower repays this loan in form of EMI – Equated Monthly Installments. A Borrower can also avail
the facility of premature settlement of the loan or transfer of housing loan to other residential premises.
Home loans are also avaible for NRI.
Home Loan : Documents
There are some Documents for Home Loan / Housing Loan Mandatory like Pan Card. Age proof, Residence
proof, Income Papers, bank statement.
1.
Pan Card is Mandatory.
2.
For proof of Identity : Pan Card/ Passport/ Voting I Card/ Driving license.
3.
Age Proof : Pan Card/ Passport/ Driving License.
4.
Residence Proof : Electricity bill/ Passport/ Telephone bill/ Mahanagar Gas.
5.
Income documents
6.
o
Self employed : 3 yrs Income Tax Returns.
o
Salaried : Form 16 for last 3 yrs & Salary certificate for previous three months.
Copy of bank statement for previous six months, reflecting salary or the regular business
transactions.
7.
Minimum two years for salaried as well as self employed.
8.
All payment receipts.
9.
Sale agreement (Agreement between Seller and Buyer)
If Property is Resale then following documents are required :
Registration and stamp duty receipt.
Original share certificate of the Society.
Allotment letter from the society in your name.
Lease deed, if executed.
Certificate of the registration of the society.
No-objection certificate (NOC) from the society.
1.
7/12 extract or property register card in the society's name.
N.A (permission for the land from the collector)
Order under the ULC Act (Urban Land ceiling Act)
Building plans sanctioned by the authority.
Corporation/Nagar Palika granted Commencement certificate.
The latest receipts of taxes paid.
Original Agreement to assign/Deed of assignment.
Occupation Certificate (OC).
2.
Possion Letter on builder s letter head in case of property purchased from builder.
3.
4 Photos.
4.
Cheque will be in the name of seller in case of resale and builder if purchased from builder.
POST SANCTION DOCUMENTS for Home Loan / Housing Loan
1.
Post Dated Cheques (PDCs) or ECS Mandate form or Standing Instruction Request.
2.
Margin money receipt.
Home Loan : Eligibility
Everyone wishes to buy a property get a home loan and repay the loan can get Home Loan. Bank / lender has
a set certain Eligibility criteria that you need to meet before getting Home loan / Housing Loan. Your age
should be minimum 21 yrs and Maximum 58 yrs for salaried applicant and 60 years for self employed.
Applicant should have stable soure of Income (The minimum take home pay of the applicant should be Rs.
1,00,000/- in case of salaried applicant & in case of self employed the net income after tax should be Rs.
1,00,000/-). The applicant should be in cumulative service for a minimum period of two years or should be
self employed for a minimum period of three years. (Work Experience).
Home Loan : Tax Benefit
Interest of Rs. 1,50,000/- or an actual amount of interest paid for Housing Loan whichever is less is deducted
from Income Tax under section 24 and the repayment of principal of Rs.1,00,000/- is also eligible for
deduction from Income Tax under section 80C. If Customer has availed home loan.
Home Loan : Process
In
India
there
are
many
Banks
Lender
who
provide
Home
Loan
/
Housing
Loan.
Process of this bank / lender is same.
Application form is login.
Personal Discussion is done by bank officer with customer.
Bank's Field Investigation (All documents are Verify by bank which given with application form).
Bank cheques CIBIL report.
Sanction Letter.
Signing of agreements and submitting post-dated cheques.
Disbursement.
Home Loan : Hidden Charges
There are hidden charges Or Other Charges for home loan or say other charger for home loan these charges
are :
Processing Fees : For Handling and processing loan Documents.
Legal fees : Customer has to pay to there Institution or Legal consultants of Institution.
Valuation charges : Customer has to pay to there Institution or his Valuator.
Stamp duty on creation of mortgage of property.
Prepayment Charges : If money is paid by customer from his account then there are no prepayment
charges. If Home loan is taken over by some other bank, lender, institute then customer has to pay
prepayment Charges.
Loan Against Property : Overview
Loan against Property / Mortgage loan is obtained by the way of mortgaging the asset with the lending
institute. The value of an asset or property should be enough to qualify the sanction of the loan amount as
needed by the borrower. Loan against Property (Mortgage loan) is opted for when the amount required is
considerably more and cannot be raised by the means of unsecured loans and the repayment period is
comparatively more than 5 years. Generally the properties having appreciating value in market are
considered good for mortgage Loan like Land, Residential or commercial premises etc.
The lending institutions follow the procedure of assessing or the valuating the property to ascertain its
market & future value and also the authentication of ownership. The borrower cannot mortgage the property
not owned by him or her. In that case the owner of the said property can be a co-borrower and share the
liability towards repayment of the loan. This mortgaged property may be liquidated by the lending institute in
case a borrower fails to pay the loan.The interest rates are higher than Home Loan but cheaper than Personal
Loans or Loans against Securities.
Loan Against Property : Documents
Documents required for applying for loan against property (MORTGAGE LOAN) are same to those for home
loans there are some additional documents for loan against property. List of documents for loan against
property are as follows.
PRE SANCTION DOCUMENTS for Loan against property / Mortgage loan :
1.
Pan Card is Mandatory.
2.
For proof of Identity : Pan Card/ Passport/ Voting I Card/ Driving license.
3.
Age Proof : Pan Card/ Passport/ Driving License.
4.
Residence Proof : Electricity bill/ Passport/ Telephone bill.
5.
Income documents for :
6.
o
Self employed -- 3 yrs Income Tax Returns.
o
Salaried --- Form 16 for last 3 yrs & Salary certificate for previous three months.
Copy of bank statement for previous six months, reflecting salary or the regular business
transactions.
7.
Work Experience :- Minimum two years for salaried as well as self employed.
8.
4 Photos
POST SANCTION DOCUMENTS For Loan Against Property / Mortgage Loan :
1.
Post Dated Cheques (PDCs) or ECS Mandate form or Standing Instruction Request.
This are following steps taken by banks during process of loan.
Application form is login
Personal Discussion is done by bank officer with coustomer
Bank's Field Investigation (All documents are Verifif by bank which given with application form)
Bank cheques CIBIL report
Sanction Letter
Signing of agreements and submitting post-dated cheques
Disbursement
Business Loan : Overview
Business Loans is also an individual loan taken to mitigate the business requirements or to raise working
capital. Business Loans sanctioning authorities generally seek a professional project report with immediate
and future projections of business transactions, cash flow and gross profit. No collateral security, mortgage
or group members’ guarantee is needed against the business loan.It is an unsecured loan. Business Loan is
type of personal loan only but sanctioned to serve the purpose of running a small business. The criterion to
get a business loan is not the status of the business but the personal status of finance or capacity of
repayment.
Many established business persons too sometimes find themselves in the need of funds and opt for
business loan to raise the same. The lending institutions do not prefer to provide startup or seed capital to
new business ventures and avoid risk, but are willing to provide funds to those who already have a running
business. Generally this type of loan (Business Loan) is provided for business growth purpose.
Business Loan : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Business Loan Application. Certain documents may be demanded by the bank
or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Business Loan : Process
1.
Personal interview /discussions is held with the customers by the bank’s officials.
2.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are Verified by the bank with the originals so as to ensure the
authenticity of the same.)
3.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
4.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
5.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken from the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Lease Rent : Overview
Lease Rent Discount is another method to obtain finance from bank or other lending institutes. Lease Rent
Discount (LRD) consideration is between the borrower who owns the premises, the tenant who has rented
the said premises or taken on lease and the bank or financial institute or Corporate. The rent is considered
as fixed income over a stipulated time ie. Lease or rent period or tenure. The agreement is between the
borrower and lender and the major term of repayment is the rent is directly deposited with the lender and not
with the borrower. The Borrower is sanctioned a loan based upon the rent to be collected over the period of
lease.
Lease Rent : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting the Lease Rent Discount Loan Application. Certain documents may be
demanded by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Lease Rent : Process
1.
Personal interview /discussions is held with the customers by the bank’s officials.
2.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
3.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
4.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
5.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Heavy Vehicle Loan : Overview
Loans for purchase of heavy commercial vehicles in India are granted to transport operators. The vehicles
purchased are hypothecated to the bank. The bank finances up to 75% of the cost of the vehicle. The
customer has to bring in the margin amount from his own sources. This loan is then repaid on EMI basis.
The Transport Operator in India should have been in business for the last 3 years.
In certain cases the lending institution may sanction 100% loan to buy the chassis. The funding for body
building can also be availed but solely at the discretion of lending institutions. The facilities like balance
transfer or top up financing can equally be availed.
Any individual or firm or a company from Transport or Industrial segment can avail Heavy Vehicle Loan
subject to having minimum 3 years exposure to business.
Heavy Vehicle Loan : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting the Heavy Vehicle Loan Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Heavy Vehicle Loan : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted).
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Cash Credit : Overviews
Cash Credit is also known as Working Capital .Cash Credit is a facility to withdraw the amount from the
business account even though the account may not have enough credit balance. The limit of the amount that
can be withdrawn is sanctioned by the bank based on the business cycle of the client and the working
capital gap and the drawing power of the client. This drawing power is determined, based on the stock and
book debts statements submitted by the borrower at monthly intervals against the security by hypothecating
of stock of commodities and/ or book debts.
The excess withdrawal of cash is made generally on demand from the customer and the customer has to pay
interest on the excess amount he/she has withdrawn. The Cash Credit facility is quite useful to those
businesses where cash payment like wages, transportation, cash purchases are to be made and the
receivables are not realized in time.
Cash Credit : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Cash Credit Application. Certain documents may be demanded by the bank or
the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Cash Credit : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Post Shipment Finance : Overview
Generally exporters who have availed Packing Credit need finance to clear the packing credit availed. This
can be done by availing the Post Shipment Finance from the lending institutes or banks. This advance or
finance is made available by the lending institutes or banks in the form of Export bill discounting facility on
raising bills along with the shipping documents and according to the terms and conditions of the L/C issued
in favor of the exporter. The usage period generally is between 90 to 180 days starting with the date of
shipment. Seller's Credit (extended to exporter) or Buyer's Credit (Overseas Buyer) is the two options
available under post shipment finance.
It is a most preferred method to finance or fund the Export Receivables
Post Shipment Finance : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Post Shipment Finance Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Post Shipment Finance : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are Verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau(CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter ,is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Term Loan : Overview
Term Loan is a loan borrowed for fixed amount over the fixed period of repayment and floating rate of
interest. The borrower is offered a predefined schedule of repayment by the lending institution comprising of
principal amount and interest thereon. Term Loan is secured by a collateral security. Term Loan facilitates
the borrower to raise a stipulated amount one time and plan the business expenditure or investment or
purchases on his or her own. Term Loan is normally preferred by small and medium scale businesses to
meet the needs of working capital or to buy assets or infrastructure which is required to run the business on
day to day basis. It may include purchase of machinery or buying an office or workshop premises The
maturity period or term is between 1 – 10 years.
The term Loan can be availed to :
1.
Purchase of Fixed Assets :
The term loan can be used to purchase fixed assets like premises, plant & machinery etc. The usage
or performance of assets increases the business performance and hence the profit and makes the
repayment of the loan easier. Even the term loan is settled the assets procured continue the
productivity as asset life span is certainly longer than the term loan span. If a premises is purchased
then the value of premises is always appreciated and in that case the business leverages higher
value of premises which further can be used to raise funds for business expansion or
diversification.
2.
Switching of Higher Interest Loans :
Many a time’s business owners opt to raise business loans at higher rate of interest. Such loans are
processes and sanctioned faster but result in heavy burden interest. This interest payment becomes
a fixed monthly expenses and starts leaking the profit. To arrest the growing rate of interest and
penalties the higher interest loan can be switched to lower rate of interest loans or term loans. This
way a borrower reduces the growing burden of interest on business loan and can save a
considerable amount of money. It also benefits in maintaining the credit rating as the borrower
closes one loan liability and opens another in form of term loan with lower rate of interest and easier
repayment conditions.
3.
Mortgage Term Loan :
A Term Loan can be availed by mortgaging a kind of security like home, office premises etc. This
type of loan is borrowed for longer period of time that is 10, 15 or 20 years. The repayment of the
principal amount and interest may be fixed in nature or it may vary over the course of repayment.
The borrower may avail the revised rate of interest later and may be benefited by saving in interest.
Term Loan : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Term Loan Application. Certain documents may be demanded by the bank or
the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Copies of the Invoices of the Assets to be purchased .
The Life of the machinery approved by the authorized valuer in case of second hand or reused
machinery is to be purchased .
Term Loan : Process
1.
Personal interview /discussions is held with the customers by the bank’s officials.
2.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are Verified by the bank with the originals so as to ensure the
authenticity of the same.)
3.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
4.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
5.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
LC Discounting : Overview
Letter of Credit Discount (LC Discount) The Letter of Credit from the prime banks or financial institutions is
considered as a complete security. A borrower can offer the LC to the lender and get the loan sanctioned.
The loan amount may be up to 100% of the LC value. Once the Letter of Credit is executed the amount
against LC is settled by the lender against the loan disbursed to the borrower.
Letter Of Credit Discounting helps the businesspersons to raise finance quickly for a shorter period of time.
LC Discounting : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Letter of Credit Discount Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Bill Discounting : Overview
Bill Discounting is a process where the financial institution gets the Bill of Exchange (Cheque / PO /DD etc.)
before its maturity date and below its par value. Hence the amount or cash realized may vary depending
upon the number of days until maturity and the risk involved.
Discounting the bill of exchange is practiced to get the same immediately encashed before the maturity date.
The liability in case of dishonor of the bill remains with the person in whose favor the bill is generated.
A commercial bill discount is an act by which the legal holder of a commercial bill (including banker's
acceptance draft and commercial acceptance draft) transfers it to bank to acquire cash before its maturity
date.
Just4uloan help you with the list of the banks and the contact details, which provides Bill discounting.
Bill Discounting : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Bill Discounting Application. Certain documents may be demanded by the bank
or the lending institutions in post sanction phase or on periodical basis
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant
wherever applicable)
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Bill Discounting : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
NON FUND LIMIT
Bank Guarantee: Overview
Unlike the Letter of Credit, the Bank Guarantee is comfort to the buyer or seller for recovering the losses or
damages, if the CLIENT, on whose behalf the guarantee is issued, fails to complete or conform to the terms
of agreement. By issuing this guarantee, the issuing bank is assuring payment of the certain amount of
money (as specified in the bank guarantee) to the beneficiary in case of non-performance of a certain
contract according to the terms and conditions contained in the same.
A bank guarantee might be revoked by the seller (beneficiary) when the buyer fails to pay the seller for the
goods supplied. In such a situation, the bank pays the beneficiary to the extent of the amount of Bank
Guarantee. Similarly, on the other side if the Seller fails to deliver the goods or complete the terms of
agreement, the bank guarantee may be cancelled by the buyer.
This instrument or method is often used in Selling, Buying or Service Providing contracts across countries
and / or where both the parties have no established business relationships.
Bank Guarantee is non fund based limit.
Performance Guarantee: Overview
The seller issues a Performance Bank Guarantee to ensure or give concrete commitment to the buyer
through its bank. This method ensures the buyer the timely execution of an agreement to have the goods
exported or delivered or services performed. In case the seller defaults on execution of the terms agreed
upon the Performance Bank Guarantee ensures the buyer the payment of the guarantee amount by the
issuing bank. Generally the performance Bank guarantee is 10 percent of the total assignment or project
value.
Performance Guarantee: Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Performance Bank Guarantee Application. Certain documents may be
demanded by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Performance Guarantee: Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Financial Guarantee: Overview
Financial Bank Guarantee is a bond which is not cancelable and ensures the payment of the interest and
repayment of the principal amount as per the schedule agreed upon by both the borrower and the lender. A
guarantor to this debt security is liable to pay off the liability in case the first party or the issuer of the
Financial Bank Guarantee fails to make the payment.
Financial Guarantee: Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Financial Bank Guarantee Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Financial Guarantee: Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Letter of Credit : Overview
Letter of credit is an instrument or a letter of comfort issued by the Buyer’s bank on behalf of buyer for the
benefit of the seller. This letter guarantees the payment to the seller so that the seller can manufacture and
supply the goods or provide the services to the buyer without any inhibitions. The seller has to ensure that
the all the terms and conditions of the Letter of Credit (LC) is strictly followed. The seller presents the Letter
of Credit and raises money from his bank to meet the working capital requirements viz. purchase of raw
materials, payment of wages, manufacturing expenses etc. After manufacture, the goods (as per
specifications mentioned in the Letter of credit) are shipped to the destination as required by the buyer. The
shipping documents along with all the other documents are presented by the seller to his banker and the
amount of pre shipment loan/facility is settled and the balance is realized by the seller.
This instrument or method is often used in Selling, Buying or Service Providing contracts across countries
and / or where both the parties have no established business relationships.
Revolving Letter of Credit : Overview
Revolving Letter of Credit is used when the delivery of goods is in form of partial/ multiple shipments.
Revolving Letter of Credit keeps on revolving and is not restricted to a single transaction. Revolving Letter of
Credit (LC) can be utilized for subsequent business transactions over a period of time on a continuous basis
to the extent of limit sanctioned.
The seller/buyer does not have to go to the bank for sanction of fresh limits every time he gets a new order
for executing the same.
Revolving Letter of Credit : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Revolving Letter of Credit Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Revolving Letter of Credit : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Back to Back : Overview
A Letter of Credit (LC) is a mode of making payments for trade transactions. An Letter of Credit is a highly
popular payment mode because it allows an importer or buyer to make secure payments to the exporter or
seller.
Back to Back Letter of Credit, one Irrevocable Letter of Credit facilitates the seller to obtain another Letter of
Credit. To obtain the Back to Back Letter of Credit the permission of the Buyer or the applicant of the first
Letter of Credit is not required. Back to Back Letter of Credit is generally used by the middleman or agencies
to hide the identity of the real suppliers or manufacturers. The seller can utilize this Back to back Letter of
Credit as a security for his bank, to issue a back to back Letter of Credit in “favour of his suppliers” in order
to get a very competitive rate for his purchases and increase his profit margin in the process. Thus this can
very well be used by the seller to raise quick funds and complete his orders in the scheduled time.
Such transactions originate when a seller receives a letter of credit covering goods which must be obtained
from a third party who in turn requires a letter of credit. The “second” issuing bank looks to the first issuing
bank
for
reimbursement
after
paying
under
the
second
letter
of
credit.
Just4uloan help you with the list of the banks and the contact details, which provides Back to Back Letter of
Credit.
Back to Back : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Back to Back Letter of Credit Application. Certain documents may be demanded
by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Back to Back : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Revocable LC : Overview
Revocable Letter of Credit means the payment against this L/C can be revoked by the issuing bank. The
buyer may either amend the Letter of Credit or cancel it without the approval of the seller. The payment
against Revocable Letter of Credit is not for sure and hence this type of Letter of Credit is not commonly
used.
The Seller has meager chances to get loan against Revocable Letter of Credit.
Revocable LC : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Revocable Letter of Credit Application. Certain documents may be demanded
by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Revocable LC : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Irrevocable LC : Overview
Irrevocable Letter of Credit cannot be cancelled. This seller is assured of payment for his supply of
goods/services provided all terms and conditions of L/C are conformed to. This mode of payment is
generally used in international trade transactions.
As the payment against this Irrevocable Letter of Credit is guaranteed by the issuing bank and the holder of
this Irrevocable Letter of Credit (seller) can borrow short term finance from any other bank or lending
institution at a very low rate of interest and within a very short time.
Irrevocable LC : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Irrevocable Letter of Credit Application. Certain documents may be demanded
by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Irrevocable LC : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Buyer Credit: Overview
Buyer Credit is a credit facility provided by an Indian Bank or Lending Institution to the overseas buyer
(Importer) to purchase Goods or Machinery from Indian Exporter. Buyer Credit facility is extended for a
specific period of time.
Buyer Credit facility ensures safety and security of the payment to be received by the Indian exporter and the
buyer or importer can have an agreement with the Indian bank or lending institution to settle the credit within
a stipulated period of time at mutually agreed rate of interest and other terms.
Buyer Credit: Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Buyer Credit Application. Certain documents may be demanded by the bank or
the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Buyer Credit: Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Line of Credit : Overview
Line of Credit is usually an agreement between the lending institution (generally a bank) and a customer
wherein the bank permits a defined maximum amount of loan to it's customer. This amount can then used by
the buyer to buy goods or services from vendors. The borrower can withdraw money till he or she reaches
the limit defined and agreed upon with the bank.
The advantage of the Line of Credit is unlike regular loans the borrower is not supposed to pay any interest
on the part of the Line of Credit which is unused. It means that the lending institution would calculate the
interest only on the portion of the credit Line used or drawn by the customer. Obtaining the line of credit is
much sought after method by the business community where frequency of payments is higher.
Line of Credit : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Line of Credit Application. Certain documents may be demanded by the bank or
the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Line of Credit : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Personal Loan as the name clearly indicates is the loan sanctioned to a person or an individual to meet his or
her Personal immediate cash requirement. It is also known as ‘Signature Loan’. It is an unsecured loan
because the lending authority or institution does not require any collateral security or mortgage. Personal
Loans are granted on the basis of past payment or debt history, credit ratings, borrower’s income &
repayment ability etc. though the credit rating is not at all mandatory. This is an informal method to raise
funds as it involves lesser documentation and the sanctioning process is faster. Even borrowing from a
friend or relative is also considered as obtaining personal loan.
Personal loan is preferred to settle old debts, purchase of consumables, festivals, holidays etc. The rate of
interest is generally high.
Personal Loan : Documents
PRE SANCTION DOCUMENTS :
Age Proof : Pan Card/ Passport/ Driving License.
Residence Proof: Electricity bill/ Passport/ Telephone bill/ Mahanagar Gas.
Income documents for :
1.
Self employed -- 3 yrs Income Tax Returns.
2.
Salaried -- Form 16 for last 3 yrs & Salary certificate for previous three months.
Copy of bank statement for previous six months, reflecting salary or the regular business
transactions.
Work Experience :- Minimum two years for salaried as well as self employed.
4 Photos.
POST SANCTION DOCUMENTS :
Post Dated Cheques (PDCs) or ECS Mandate form or Standing Instruction Request.
Personal Loan : Eligiliblity
Minimum age of Applicant should be 21 Years.
The maximum age of applicant be 58 years for salaried applicant and 60 years for self employed.
The minimum income of self employed the net income after tax should be Rs. 1, 00,000/-.
The applicant should be in business for a minimum period of three years.
The applicant should fill the application form and should submit the form along with all the self
attested documents and photograph.
Personal Loan : Process
These are following steps taken by banks during process of loan.
Application form is login.
Personal Discussion is done by bank officer with customer.
Bank's Field Investigation (All documents are Verify by bank which given with application form)
Bank cheques CIBIL report.
Sanction Letter.
Signing of agreements and submitting post-dated cheques.
Disbursement.
Car Loan : Overview
Car Loan or Automobile Loan is used to purchase a vehicle. The vehicle includes two-three wheelers, cars,
commercial passenger and cargo vehicles. The vehicle purchased is hypothecated with the lending
institution till the entire liability is settled. Once the liability is fully settled the vehicle becomes lien or
hypothecation free.
The borrower has a flexible option to make a down payment of certain percentage of the vehicle value
mentioned in the quotation. The balance amount is to be paid in stipulated no. of EMI with interest. Generally
the vehicle loan is available on 2-5 years term and the interest rate is between 9-15 %. On defaulting on the
repayment the lending institute can seize the vehicle and auction it to recover the dues.
In select cases this loan is also available on used cars or vehicles.
Car Loan : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Car Loan Application. Certain documents may be demanded by the bank or the
lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Partnership deed in case of partnership firms.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Copies of the Invoices.
Car Loan : Process
1.
Personal interview /discussions is held with the customers by the bank’s officials.
2.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are Verified by the bank with the originals so as to ensure the
authenticity of the same.)
3.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
4.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
5.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Home Loan : Overview
Home Loan / Housing loans which is sanctioned to buy or purchase or to own a house or residence is a
known as a Home Loan / Housing loan. Any qualifying individual can avail housing loan subject to the
purpose of owing a residence only. Home loans are not sanctioned to purchase any commercial premises
like shop, office, warehouse or factory etc. Home Loan / Housing Loan is a type of secured loan as the house
or residence purchased is mortgaged to the lending institution till the full & final Payment of the loan
amount. This is a long term loan and the home loan repayment period could be anywhere between 5 years to
30 years. The rate of interest generally varies within the range of 8 % to 13% depending upon institution to
institution. Floating interest and Fixed interest are the available interest calculation options to the borrower
of Home Loan / Housing Loan in India. The government policies also impact the rate of interest on Home
Loan. Generally it is a practice of lending institutions to grant up to 90% of the cost of the premises where
the rest 10% of the cost of the premises are involved by the borrower. In certain cases the lending institute
may sanction 100% home loan though it is at sole discretion of said institute.
A borrower may buy its prime residence by availing home loan or he or she may buy excess residential
property. Borrower repays this loan in form of EMI – Equated Monthly Installments. A Borrower can also avail
the facility of premature settlement of the loan or transfer of housing loan to other residential premises.
Home loans are also avaible for NRI.
Home Loan : Documents
There are some Documents for Home Loan / Housing Loan Mandatory like Pan Card. Age proof, Residence
proof, Income Papers, bank statement.
1.
Pan Card is Mandatory.
2.
For proof of Identity : Pan Card/ Passport/ Voting I Card/ Driving license.
3.
Age Proof : Pan Card/ Passport/ Driving License.
4.
Residence Proof : Electricity bill/ Passport/ Telephone bill/ Mahanagar Gas.
5.
Income documents
6.
o
Self employed : 3 yrs Income Tax Returns.
o
Salaried : Form 16 for last 3 yrs & Salary certificate for previous three months.
Copy of bank statement for previous six months, reflecting salary or the regular business
transactions.
7.
Minimum two years for salaried as well as self employed.
8.
All payment receipts.
9.
Sale agreement (Agreement between Seller and Buyer)
If Property is Resale then following documents are required :
Registration and stamp duty receipt.
Original share certificate of the Society.
Allotment letter from the society in your name.
Lease deed, if executed.
Certificate of the registration of the society.
No-objection certificate (NOC) from the society.
1.
7/12 extract or property register card in the society's name.
N.A (permission for the land from the collector)
Order under the ULC Act (Urban Land ceiling Act)
Building plans sanctioned by the authority.
Corporation/Nagar Palika granted Commencement certificate.
The latest receipts of taxes paid.
Original Agreement to assign/Deed of assignment.
Occupation Certificate (OC).
2.
Possion Letter on builder s letter head in case of property purchased from builder.
3.
4 Photos.
4.
Cheque will be in the name of seller in case of resale and builder if purchased from builder.
POST SANCTION DOCUMENTS for Home Loan / Housing Loan
1.
Post Dated Cheques (PDCs) or ECS Mandate form or Standing Instruction Request.
2.
Margin money receipt.
Home Loan : Eligibility
Everyone wishes to buy a property get a home loan and repay the loan can get Home Loan. Bank / lender has
a set certain Eligibility criteria that you need to meet before getting Home loan / Housing Loan. Your age
should be minimum 21 yrs and Maximum 58 yrs for salaried applicant and 60 years for self employed.
Applicant should have stable soure of Income (The minimum take home pay of the applicant should be Rs.
1,00,000/- in case of salaried applicant & in case of self employed the net income after tax should be Rs.
1,00,000/-). The applicant should be in cumulative service for a minimum period of two years or should be
self employed for a minimum period of three years. (Work Experience).
Home Loan : Tax Benefit
Interest of Rs. 1,50,000/- or an actual amount of interest paid for Housing Loan whichever is less is deducted
from Income Tax under section 24 and the repayment of principal of Rs.1,00,000/- is also eligible for
deduction from Income Tax under section 80C. If Customer has availed home loan.
Home Loan : Process
In
India
there
are
many
Banks
Lender
who
provide
Home
Loan
/
Housing
Loan.
Process of this bank / lender is same.
Application form is login.
Personal Discussion is done by bank officer with customer.
Bank's Field Investigation (All documents are Verify by bank which given with application form).
Bank cheques CIBIL report.
Sanction Letter.
Signing of agreements and submitting post-dated cheques.
Disbursement.
Home Loan : Hidden Charges
There are hidden charges Or Other Charges for home loan or say other charger for home loan these charges
are :
Processing Fees : For Handling and processing loan Documents.
Legal fees : Customer has to pay to there Institution or Legal consultants of Institution.
Valuation charges : Customer has to pay to there Institution or his Valuator.
Stamp duty on creation of mortgage of property.
Prepayment Charges : If money is paid by customer from his account then there are no prepayment
charges. If Home loan is taken over by some other bank, lender, institute then customer has to pay
prepayment Charges.
Loan Against Property : Overview
Loan against Property / Mortgage loan is obtained by the way of mortgaging the asset with the lending
institute. The value of an asset or property should be enough to qualify the sanction of the loan amount as
needed by the borrower. Loan against Property (Mortgage loan) is opted for when the amount required is
considerably more and cannot be raised by the means of unsecured loans and the repayment period is
comparatively more than 5 years. Generally the properties having appreciating value in market are
considered good for mortgage Loan like Land, Residential or commercial premises etc.
The lending institutions follow the procedure of assessing or the valuating the property to ascertain its
market & future value and also the authentication of ownership. The borrower cannot mortgage the property
not owned by him or her. In that case the owner of the said property can be a co-borrower and share the
liability towards repayment of the loan. This mortgaged property may be liquidated by the lending institute in
case a borrower fails to pay the loan.The interest rates are higher than Home Loan but cheaper than Personal
Loans or Loans against Securities.
Loan Against Property : Documents
Documents required for applying for loan against property (MORTGAGE LOAN) are same to those for home
loans there are some additional documents for loan against property. List of documents for loan against
property are as follows.
PRE SANCTION DOCUMENTS for Loan against property / Mortgage loan :
1.
Pan Card is Mandatory.
2.
For proof of Identity : Pan Card/ Passport/ Voting I Card/ Driving license.
3.
Age Proof : Pan Card/ Passport/ Driving License.
4.
Residence Proof : Electricity bill/ Passport/ Telephone bill.
5.
Income documents for :
6.
o
Self employed -- 3 yrs Income Tax Returns.
o
Salaried --- Form 16 for last 3 yrs & Salary certificate for previous three months.
Copy of bank statement for previous six months, reflecting salary or the regular business
transactions.
7.
Work Experience :- Minimum two years for salaried as well as self employed.
8.
4 Photos
POST SANCTION DOCUMENTS For Loan Against Property / Mortgage Loan :
1.
Post Dated Cheques (PDCs) or ECS Mandate form or Standing Instruction Request.
This are following steps taken by banks during process of loan.
Application form is login
Personal Discussion is done by bank officer with coustomer
Bank's Field Investigation (All documents are Verifif by bank which given with application form)
Bank cheques CIBIL report
Sanction Letter
Signing of agreements and submitting post-dated cheques
Disbursement
Business Loan : Overview
Business Loans is also an individual loan taken to mitigate the business requirements or to raise working
capital. Business Loans sanctioning authorities generally seek a professional project report with immediate
and future projections of business transactions, cash flow and gross profit. No collateral security, mortgage
or group members’ guarantee is needed against the business loan.It is an unsecured loan. Business Loan is
type of personal loan only but sanctioned to serve the purpose of running a small business. The criterion to
get a business loan is not the status of the business but the personal status of finance or capacity of
repayment.
Many established business persons too sometimes find themselves in the need of funds and opt for
business loan to raise the same. The lending institutions do not prefer to provide startup or seed capital to
new business ventures and avoid risk, but are willing to provide funds to those who already have a running
business. Generally this type of loan (Business Loan) is provided for business growth purpose.
Business Loan : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Business Loan Application. Certain documents may be demanded by the bank
or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Business Loan : Process
1.
Personal interview /discussions is held with the customers by the bank’s officials.
2.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are Verified by the bank with the originals so as to ensure the
authenticity of the same.)
3.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
4.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
5.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken from the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Lease Rent : Overview
Lease Rent Discount is another method to obtain finance from bank or other lending institutes. Lease Rent
Discount (LRD) consideration is between the borrower who owns the premises, the tenant who has rented
the said premises or taken on lease and the bank or financial institute or Corporate. The rent is considered
as fixed income over a stipulated time ie. Lease or rent period or tenure. The agreement is between the
borrower and lender and the major term of repayment is the rent is directly deposited with the lender and not
with the borrower. The Borrower is sanctioned a loan based upon the rent to be collected over the period of
lease.
Lease Rent : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting the Lease Rent Discount Loan Application. Certain documents may be
demanded by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Lease Rent : Process
1.
Personal interview /discussions is held with the customers by the bank’s officials.
2.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
3.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
4.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
5.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Heavy Vehicle Loan : Overview
Loans for purchase of heavy commercial vehicles in India are granted to transport operators. The vehicles
purchased are hypothecated to the bank. The bank finances up to 75% of the cost of the vehicle. The
customer has to bring in the margin amount from his own sources. This loan is then repaid on EMI basis.
The Transport Operator in India should have been in business for the last 3 years.
In certain cases the lending institution may sanction 100% loan to buy the chassis. The funding for body
building can also be availed but solely at the discretion of lending institutions. The facilities like balance
transfer or top up financing can equally be availed.
Any individual or firm or a company from Transport or Industrial segment can avail Heavy Vehicle Loan
subject to having minimum 3 years exposure to business.
Heavy Vehicle Loan : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting the Heavy Vehicle Loan Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Heavy Vehicle Loan : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted).
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Cash Credit : Overviews
Cash Credit is also known as Working Capital .Cash Credit is a facility to withdraw the amount from the
business account even though the account may not have enough credit balance. The limit of the amount that
can be withdrawn is sanctioned by the bank based on the business cycle of the client and the working
capital gap and the drawing power of the client. This drawing power is determined, based on the stock and
book debts statements submitted by the borrower at monthly intervals against the security by hypothecating
of stock of commodities and/ or book debts.
The excess withdrawal of cash is made generally on demand from the customer and the customer has to pay
interest on the excess amount he/she has withdrawn. The Cash Credit facility is quite useful to those
businesses where cash payment like wages, transportation, cash purchases are to be made and the
receivables are not realized in time.
Cash Credit : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Cash Credit Application. Certain documents may be demanded by the bank or
the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Cash Credit : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Post Shipment Finance : Overview
Generally exporters who have availed Packing Credit need finance to clear the packing credit availed. This
can be done by availing the Post Shipment Finance from the lending institutes or banks. This advance or
finance is made available by the lending institutes or banks in the form of Export bill discounting facility on
raising bills along with the shipping documents and according to the terms and conditions of the L/C issued
in favor of the exporter. The usage period generally is between 90 to 180 days starting with the date of
shipment. Seller's Credit (extended to exporter) or Buyer's Credit (Overseas Buyer) is the two options
available under post shipment finance.
It is a most preferred method to finance or fund the Export Receivables
Post Shipment Finance : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Post Shipment Finance Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Post Shipment Finance : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are Verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau(CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter ,is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Term Loan : Overview
Term Loan is a loan borrowed for fixed amount over the fixed period of repayment and floating rate of
interest. The borrower is offered a predefined schedule of repayment by the lending institution comprising of
principal amount and interest thereon. Term Loan is secured by a collateral security. Term Loan facilitates
the borrower to raise a stipulated amount one time and plan the business expenditure or investment or
purchases on his or her own. Term Loan is normally preferred by small and medium scale businesses to
meet the needs of working capital or to buy assets or infrastructure which is required to run the business on
day to day basis. It may include purchase of machinery or buying an office or workshop premises The
maturity period or term is between 1 – 10 years.
The term Loan can be availed to :
1.
Purchase of Fixed Assets :
The term loan can be used to purchase fixed assets like premises, plant & machinery etc. The usage
or performance of assets increases the business performance and hence the profit and makes the
repayment of the loan easier. Even the term loan is settled the assets procured continue the
productivity as asset life span is certainly longer than the term loan span. If a premises is purchased
then the value of premises is always appreciated and in that case the business leverages higher
value of premises which further can be used to raise funds for business expansion or
diversification.
2.
Switching of Higher Interest Loans :
Many a time’s business owners opt to raise business loans at higher rate of interest. Such loans are
processes and sanctioned faster but result in heavy burden interest. This interest payment becomes
a fixed monthly expenses and starts leaking the profit. To arrest the growing rate of interest and
penalties the higher interest loan can be switched to lower rate of interest loans or term loans. This
way a borrower reduces the growing burden of interest on business loan and can save a
considerable amount of money. It also benefits in maintaining the credit rating as the borrower
closes one loan liability and opens another in form of term loan with lower rate of interest and easier
repayment conditions.
3.
Mortgage Term Loan :
A Term Loan can be availed by mortgaging a kind of security like home, office premises etc. This
type of loan is borrowed for longer period of time that is 10, 15 or 20 years. The repayment of the
principal amount and interest may be fixed in nature or it may vary over the course of repayment.
The borrower may avail the revised rate of interest later and may be benefited by saving in interest.
Term Loan : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Term Loan Application. Certain documents may be demanded by the bank or
the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Copies of the Invoices of the Assets to be purchased .
The Life of the machinery approved by the authorized valuer in case of second hand or reused
machinery is to be purchased .
Term Loan : Process
1.
Personal interview /discussions is held with the customers by the bank’s officials.
2.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are Verified by the bank with the originals so as to ensure the
authenticity of the same.)
3.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
4.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
5.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
LC Discounting : Overview
Letter of Credit Discount (LC Discount) The Letter of Credit from the prime banks or financial institutions is
considered as a complete security. A borrower can offer the LC to the lender and get the loan sanctioned.
The loan amount may be up to 100% of the LC value. Once the Letter of Credit is executed the amount
against LC is settled by the lender against the loan disbursed to the borrower.
Letter Of Credit Discounting helps the businesspersons to raise finance quickly for a shorter period of time.
LC Discounting : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Letter of Credit Discount Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Bill Discounting : Overview
Bill Discounting is a process where the financial institution gets the Bill of Exchange (Cheque / PO /DD etc.)
before its maturity date and below its par value. Hence the amount or cash realized may vary depending
upon the number of days until maturity and the risk involved.
Discounting the bill of exchange is practiced to get the same immediately encashed before the maturity date.
The liability in case of dishonor of the bill remains with the person in whose favor the bill is generated.
A commercial bill discount is an act by which the legal holder of a commercial bill (including banker's
acceptance draft and commercial acceptance draft) transfers it to bank to acquire cash before its maturity
date.
Just4uloan help you with the list of the banks and the contact details, which provides Bill discounting.
Bill Discounting : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Bill Discounting Application. Certain documents may be demanded by the bank
or the lending institutions in post sanction phase or on periodical basis
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant
wherever applicable)
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Bill Discounting : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
NON FUND LIMIT
Bank Guarantee: Overview
Unlike the Letter of Credit, the Bank Guarantee is comfort to the buyer or seller for recovering the losses or
damages, if the CLIENT, on whose behalf the guarantee is issued, fails to complete or conform to the terms
of agreement. By issuing this guarantee, the issuing bank is assuring payment of the certain amount of
money (as specified in the bank guarantee) to the beneficiary in case of non-performance of a certain
contract according to the terms and conditions contained in the same.
A bank guarantee might be revoked by the seller (beneficiary) when the buyer fails to pay the seller for the
goods supplied. In such a situation, the bank pays the beneficiary to the extent of the amount of Bank
Guarantee. Similarly, on the other side if the Seller fails to deliver the goods or complete the terms of
agreement, the bank guarantee may be cancelled by the buyer.
This instrument or method is often used in Selling, Buying or Service Providing contracts across countries
and / or where both the parties have no established business relationships.
Bank Guarantee is non fund based limit.
Performance Guarantee: Overview
The seller issues a Performance Bank Guarantee to ensure or give concrete commitment to the buyer
through its bank. This method ensures the buyer the timely execution of an agreement to have the goods
exported or delivered or services performed. In case the seller defaults on execution of the terms agreed
upon the Performance Bank Guarantee ensures the buyer the payment of the guarantee amount by the
issuing bank. Generally the performance Bank guarantee is 10 percent of the total assignment or project
value.
Performance Guarantee: Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Performance Bank Guarantee Application. Certain documents may be
demanded by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Performance Guarantee: Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Financial Guarantee: Overview
Financial Bank Guarantee is a bond which is not cancelable and ensures the payment of the interest and
repayment of the principal amount as per the schedule agreed upon by both the borrower and the lender. A
guarantor to this debt security is liable to pay off the liability in case the first party or the issuer of the
Financial Bank Guarantee fails to make the payment.
Financial Guarantee: Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Financial Bank Guarantee Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Written & approved confirmation of having No Legal Suit filed against any of the directors. If any
such legal suit or proceedings are pending then the details of such legal suit or proceeding.
Financial Guarantee: Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Letter of Credit : Overview
Letter of credit is an instrument or a letter of comfort issued by the Buyer’s bank on behalf of buyer for the
benefit of the seller. This letter guarantees the payment to the seller so that the seller can manufacture and
supply the goods or provide the services to the buyer without any inhibitions. The seller has to ensure that
the all the terms and conditions of the Letter of Credit (LC) is strictly followed. The seller presents the Letter
of Credit and raises money from his bank to meet the working capital requirements viz. purchase of raw
materials, payment of wages, manufacturing expenses etc. After manufacture, the goods (as per
specifications mentioned in the Letter of credit) are shipped to the destination as required by the buyer. The
shipping documents along with all the other documents are presented by the seller to his banker and the
amount of pre shipment loan/facility is settled and the balance is realized by the seller.
This instrument or method is often used in Selling, Buying or Service Providing contracts across countries
and / or where both the parties have no established business relationships.
Revolving Letter of Credit : Overview
Revolving Letter of Credit is used when the delivery of goods is in form of partial/ multiple shipments.
Revolving Letter of Credit keeps on revolving and is not restricted to a single transaction. Revolving Letter of
Credit (LC) can be utilized for subsequent business transactions over a period of time on a continuous basis
to the extent of limit sanctioned.
The seller/buyer does not have to go to the bank for sanction of fresh limits every time he gets a new order
for executing the same.
Revolving Letter of Credit : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Revolving Letter of Credit Application. Certain documents may be demanded by
the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Revolving Letter of Credit : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Back to Back : Overview
A Letter of Credit (LC) is a mode of making payments for trade transactions. An Letter of Credit is a highly
popular payment mode because it allows an importer or buyer to make secure payments to the exporter or
seller.
Back to Back Letter of Credit, one Irrevocable Letter of Credit facilitates the seller to obtain another Letter of
Credit. To obtain the Back to Back Letter of Credit the permission of the Buyer or the applicant of the first
Letter of Credit is not required. Back to Back Letter of Credit is generally used by the middleman or agencies
to hide the identity of the real suppliers or manufacturers. The seller can utilize this Back to back Letter of
Credit as a security for his bank, to issue a back to back Letter of Credit in “favour of his suppliers” in order
to get a very competitive rate for his purchases and increase his profit margin in the process. Thus this can
very well be used by the seller to raise quick funds and complete his orders in the scheduled time.
Such transactions originate when a seller receives a letter of credit covering goods which must be obtained
from a third party who in turn requires a letter of credit. The “second” issuing bank looks to the first issuing
bank
for
reimbursement
after
paying
under
the
second
letter
of
credit.
Just4uloan help you with the list of the banks and the contact details, which provides Back to Back Letter of
Credit.
Back to Back : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Back to Back Letter of Credit Application. Certain documents may be demanded
by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Back to Back : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Revocable LC : Overview
Revocable Letter of Credit means the payment against this L/C can be revoked by the issuing bank. The
buyer may either amend the Letter of Credit or cancel it without the approval of the seller. The payment
against Revocable Letter of Credit is not for sure and hence this type of Letter of Credit is not commonly
used.
The Seller has meager chances to get loan against Revocable Letter of Credit.
Revocable LC : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Revocable Letter of Credit Application. Certain documents may be demanded
by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Revocable LC : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Irrevocable LC : Overview
Irrevocable Letter of Credit cannot be cancelled. This seller is assured of payment for his supply of
goods/services provided all terms and conditions of L/C are conformed to. This mode of payment is
generally used in international trade transactions.
As the payment against this Irrevocable Letter of Credit is guaranteed by the issuing bank and the holder of
this Irrevocable Letter of Credit (seller) can borrow short term finance from any other bank or lending
institution at a very low rate of interest and within a very short time.
Irrevocable LC : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Irrevocable Letter of Credit Application. Certain documents may be demanded
by the bank or the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Irrevocable LC : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Buyer Credit: Overview
Buyer Credit is a credit facility provided by an Indian Bank or Lending Institution to the overseas buyer
(Importer) to purchase Goods or Machinery from Indian Exporter. Buyer Credit facility is extended for a
specific period of time.
Buyer Credit facility ensures safety and security of the payment to be received by the Indian exporter and the
buyer or importer can have an agreement with the Indian bank or lending institution to settle the credit within
a stipulated period of time at mutually agreed rate of interest and other terms.
Buyer Credit: Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Buyer Credit Application. Certain documents may be demanded by the bank or
the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors.
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Buyer Credit: Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
Line of Credit : Overview
Line of Credit is usually an agreement between the lending institution (generally a bank) and a customer
wherein the bank permits a defined maximum amount of loan to it's customer. This amount can then used by
the buyer to buy goods or services from vendors. The borrower can withdraw money till he or she reaches
the limit defined and agreed upon with the bank.
The advantage of the Line of Credit is unlike regular loans the borrower is not supposed to pay any interest
on the part of the Line of Credit which is unused. It means that the lending institution would calculate the
interest only on the portion of the credit Line used or drawn by the customer. Obtaining the line of credit is
much sought after method by the business community where frequency of payments is higher.
Line of Credit : Documents
The borrower and/or the guarantors have to provide the following documents to the banks or the lending
institutions while submitting Line of Credit Application. Certain documents may be demanded by the bank or
the lending institutions in post sanction phase or on periodical basis.
Address Proof : Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid
Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence
or Office Premises.
Identity Proof : Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by
Government Agencies.
Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration
Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease
Agreement along with the latest Rent paid Receipt.
Business Profile on Company’s Letterhead.
Partnership deed in case of partnership firms.
Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds,
Form 32 in for Addition or Deletion of Directors in case of companies.
Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered
Accountant wherever applicable).
Last one years’ Bank statement of the Firm.
If existing loan, then sanctioning letter and repayment schedule of the same.
Firm/Company’s PAN Cards.
Individual Income Tax Returns of the Individual/Partners/Directors for last three years.
Last one years’ Bank statement of Individuals, Partners, Directors .
SEBI formalities in case of listed companies.
Share Holding pattern of Directors duly certified by a Chartered Accountant.
List of the Existing Directors of the company from the Registrar of the Companies.
Line of Credit : Process
The following are the sequence of steps taken by the banks on receipt of completed application forms.
1.
Application form is accepted and acknowledged.
2.
Personal interview /discussions is held with the customers by the bank’s officials.
3.
Bank's Field Investigation team visits the business place/work place of the applicant.
(All the documents submitted are verified by the bank with the originals so as to ensure the
authenticity of the same.)
4.
Bank verifies the track record of the applicant with the common information sharing bureau (CIBIL).
5.
In case of fresh projects the bank analyses the back ground of the applicant/firm/company and the
Technical feasibility/financial viability of the project based on various parameters and also the
existing market conditions.
6.
Depending on the size of the project the file is put up for sanction to the appropriate level of
authority.
SANCTION AND DISBURSEMENT :
1.
On approval/sanction, the sanction letter, is issued specifying the terms and conditions for the
disbursement of the loan. The acceptance to the terms of sanction is taken From the Applicant.
2.
The processing charges as specified by the bank have to be paid to proceed further with the
disbursement procedure.
3.
The documentation procedure takes place viz.Legal opinion of various property documents and also
the valuation reports.(Original Documents to title of the immovable assets are to be submitted)
4.
All the necessary documents as specified by the legal dept., according to the terms of sanction of
the loan of the bank are executed.
Disbursement of the loan takes place after the Legal Dept. Certifies the Correctness of execution documents.
