Bank of Maharashtra Business Loan

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Types of Bank of Maharashtra Business Loans 

Credit Facilities to Entrepreneurs

Purpose – Bank of Maharashtra offers Credit Facilities to Entrepreneur Scheme to allow entrepreneurs to raise capital for setting up new enterprises. Additionally, the bank finances the industrial sector for modernization, upgradation, expansion and diversification.

Types of Credit Facilities to Entrepreneurs

Funded Facilities – The bank provides term loans to business units for the acquisition of machinery and fixed assets. The scheme also offers the cash credit facility to new enterprises to raise working capital.
Non Funded Facilities – The bank offers non-funded facilities in the form of Letters of Guarantee and Letters of Credit.
Rate of Interest – The bank has not mentioned any details regarding the interest rate.

Collateral Free Term Loan facility

Purpose – Bank of Maharashtra provides Collateral Free Term Loan facility to offer term loan for businesses without any collateral.
Loan Amount – Up to Rs 5 Crore
Margin – At least 25%
Repayment – Up to 7 years including moratorium period
Security – Collateral security is not required as the borrowers are mandatorily covered under the  CGTMSE scheme
Rate of Interest – The bank has not mentioned any details regarding the Rate of Interest.

Collateral Free Cash Credit Facility

Purpose – Bank of Maharashtra offers Collateral Free Cash Credit facility for working capital with no collateral involved.
Loan Amount – Maximum Rs 5 Crore
Security – Assets of the borrower as stated by the CGTMSE
Margin – Minimum 25%
Rate of Interest – The bank has not mentioned any details regarding the Rate of Interest.

Regular Cash Credit Facility

Purpose – Bank of Maharashtra provides Regular Cash Credit Facility in the form of Cash Credit facility to businesses to support the working capital needs of the business.
Margin – Minimum 25%
Security – Current Inventory & Receivable up to 180 days
Rate of Interest – The bank has not mentioned any details regarding the Rate of Interest.

Mahabank GST Credit Scheme

Purpose- The Bank of Maharashtra offers Mahabank GST Credit Scheme aims to fund the needs based on working capital requirement for trading/ manufacturing / service activity based on GST returns.

Margin – 25% of paid stock & receivables

Rate of Interest –

• CGTMSE cover is available for loan up to Rs 5 crore
• Lower interest rate will be charged, if collateral is provided

Loan Amount-

Rs 10 lakh – Rs 25 Crore

Security –

• Primary – Hypothecation of receivables & inventory
• Guarantee- No third party collateral or guarantee security, only if the advance is covered under CGTMSE.

Mahabank Scheme for units engaged in Hospitality

Purpose –  Bank of Maharashtra offers ‘Mahabank Scheme for Units Engaged in Hospitality’ to hospitality businesses to finance their purchase of land & construct/premises for running small hotels or restaurants. The finances for the purchase should not exceed 25% of the whole amount. The business can use the amount to get new furniture or fix the old ones, kitchen equipment, interior decoration, purchase new vehicles or boats for activity or to modernize the existing facility. Additionally, the loan can also help to increase the working capital of the business unit.

Loan Amount –

• Term Loan: Rs 10 lakh – Rs 10 Crore
• Working Capital: Rs 10 Lakh – Rs 2 Crore

Rate of Interest – Based on RLLR

• Lower interest rate will be charged, if collateral is provided
• CGTMSE cover is available for loan up to Rs 5 crore

Margin-

• Micro & Small Enterprise: Minimum 20%
• Medium Enterprise: Minimum 25%

Mahabank Scheme for Contractors

Purpose – Bank of Maharashtra offers  Mahabank Scheme for Contractors allowing contractors to raise working capital through Cash Credit, Bank Guarantee and FLC/ILC BG facility. Contractors can also avail this facility in the form of term loans to finance their equipment/vehicle/machinery purchases.

Loan Amount – Rs 10 Lakh – Rs 10 Crore

Rate of Interest – The interest rate offer is related to the RLLR of the bank. The bank charges lower interest rates in case collateral is provided. CGTMSE cover is also available for loan up to Rs 2 crore.

Mahabank Vehicle Loan Scheme for Small Road Transport Operator

Purpose – Bank of Maharashtra offers term loan to small road transport operators to purchase commercial vehicles.
Margin – 15%
Repayment – 7 years including moratorium period

Loan Amount – Up to Rs 2 Crore
Lower interest rate will be charged, if collateral is provided

CGTMSE cover available for loan up to Rs 2 crore
Security – Hypothecation of the vehicle(s) financed through the loan is used as security by the lender

Maha MSME Project Loan Scheme

Purpose- Bank of Maharashtra offers MSME Project Loan Scheme to MSMEs  for financing various kinds of projects.
Margin – At Least 25%
Repayment – 10 years including moratorium period of up to 2 years.
Security –The assets created or purchased through the loan amount will be covered as security by the bank. Also, CGTMSE cover available for loan up to Rs 2 crore.

Interest Rate – The bank has not disclosed any information regarding the interest rate charged for the MSME Project Loan Scheme. However, the bank has mentioned that a lower interest rate will be charged from the applicants offering collateral.

Maha MSME Machinery/ Equipment Scheme

Purpose – Bank of Maharashtra offers MSME Machinery/ Equipment Scheme in the form of term loan facility to purchase machineries and equipment.
Margin – 25%
Repayment – 7 years including moratorium period.
Loan Amount –  The bank has not disclosed any information regarding the interest rate charged for the MSME Machinery/ Equipment Scheme . However, the bank has mentioned that it will charge lower interest rates from the applicants offering collateral.

Security – The assets created or purchased through the loan amount will be covered as security by the bank. Also, the loan applicants are eligible for CGTMSE for loan amounts up to Rs 2 crore.

Bank of Maharashtra Business Eligibility Criteria

The business loan eligibility criteria set for availing Bank of Maharashtra Business Loans are as follows:

Mahabank Scheme for Contractors

• The borrower should be a civil contractor, mining contractor, engineering contractor, transport contractor, road contractor, irrigation contractor etc. established as Partner Firm/ Proprietorship/ Limited company.
• The business units can be in the form of proprietorship, partnership and limited companies.
• The business units should be classified as MSME under the MSMED Act, 2006 with Credit Rating (external and internal) of BBB and above.
• The MSME Units should have a business vintage of at least 3 years.
• The loan applicants should have audited finances for the last 2 years and be in profit for the last 3 years
• Required CIBIL Score –
  For Individuals viz., partners and proprietor 700 and above
  For Commercial report the CMR ( CIBIL MSME Rank ) CMR 1 to CMR 5

Mahabank Scheme for units engaged in Hospitality

• Only the existing or prospective owners of restaurant, hotels, fast food centers, pizza center ( franchise), caterers, water sports, motels ( dhaba ) bakeries, tour operations etc are eligible for the loan.
• The business unit should be in Proprietorship,Partnership firm, LLP & corporate.
• The owner of the property will act as the personal guarantor to the credit facilities.

Mahabank GST Credit Scheme

• The MSME units involved in trading/ manufacturing / services activity, irrespective of the business form, with a vintage of at least 1 year.
• The business unit should have a valid registration under the GST Act i.e., Final Registration (GST REG -06) or Provisional Registration (GST REG-25)
• The MSME unit should have GST returns i.e., GSTR – 1 (Regular) for at least 3 months/GSTR-4 (Composition) for the latest quarter.
• Only Sole Banking is available under the Scheme.