Bank of Maharashtra Business Loan

Please Note: Bank of Maharashtra is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.

Bank of Maharashtra is a public sector bank that offers banking and financial products at competitive rates of interest to its customers. In addition to various lending products and MSME loans, the Bank of Maharashtra also offers loan schemes under the Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India in association with the Government of India.

The Bank of Maharashtra offers a variety of business loans for self-employed and entrepreneurs who might require urgent funding. Some of the prime features, interest rate and eligibility of various loan schemes are mentioned below:

Bank of Maharashtra – MSME Loan Schemes – January 2023

1) PM SVANidhi Scheme

PM Street Vendor’s AatmNirbhar Nidhi

Eligibility:

• · All vendors engaged in vending in urban areas as on or before March 24, 2020
• · Street Vendors having certificate of vending and ID card issued by Urban Local Bodies (ULBs)
• · Scheme Validity: Till 31st March 2022

Features:

• · Interest Rate: 9% p.a. onwards
• · Interest Subsidy: 7%
• · Loan Amount: Working Capital Loan Up to Rs. 10,000
• · Repayment Tenure: 12 months
• · Processing Fee:
• · Prepayment Charges: Nil
• · Moratorium: Nil
• · Margin: Nil
• · Security: Hypothecation of goods/assets financed under this scheme

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2) Stand-Up India

Eligibility:

• · Min. age of 18 years for SC/ST or women entrepreneurs
• · Loans available only for Green Field Projects
• · In case of non-individual enterprise, 51% of shareholding stake either by SC/ST and or women entrepreneur
• · Applicant should not have defaulted with any financial institution

Features:

• · Interest Rate: 10% onwards
• · Loan Amount: Min. Rs. 10 lakh & Max. Rs. 1 crore
• · Repayment Tenure: Up to 7 years with moratorium period of 18 months
• · Margin: Up to 25%
• · Security: Loan can be secured under the Guarantee of Credit Guarantee Fund Scheme for Stand-up India Loans (CGFSIL)

3) Mahabank Loan Scheme for Doctors, Chartered Accountants, Engineers & Architects

Features:

• · Loan amount for Doctors: Up to Rs. 5 crore
• · No collateral security for loans up to Rs. 2 crore (CGTMSE cover)
• · Security of assets purchased/created out of bank finance
• · Margin: 15% to 25%
• · Repayment period up to 7 years, including moratorium period
• · For doctors: To purchase/construction of building, maximum repayment period, including moratorium period up to 12 years

4) Maha MSE Collateral Free Term Loan Scheme

Features:

• · Maximum loan amount up to Rs. 1 crore
• · Repayment Tenure: Up to 7 years including moratorium period
• · Margin: Up to 25%
• · Security: As per CGTMSE, No Collateral Security (Mandatory CGTMSE Cover)

5) Liberalized Working Capital Assessment

Features & Eligibility:

• · Existing MSME borrower
• · No takeovers are sanctioned this loan scheme
• · Purpose: To provide renewal finance on liberalized assessment model/term for build-up of current assets
• · Loan Amount: Up to Rs. 5 crore
• · Interest Rate: As per existing guidelines

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6) Pradhan Mantri Mudra Yojana (PMMY)

Features of Mudra Loan:

• · Interest Rate: 8.50% onwards
• · Loan Amount: Up to Rs. 10 lakh
• · Repayment Tenure: Up to 5 years
• · Collateral: Not required
• · Processing Fee: Nil

7) Maha MSME Machinery and Equipment Scheme

Features:

• · Loan Amount up to Rs. 20 crore
• · Primary security of assets purchased/created
• · Collateral security for amount up to Rs. 1 crore is not mandatory
• · Repayment Tenure: Up to 7 years including moratorium period
• · Margin: 25%

8) Maha MSE Collateral Free Cash Credit Scheme

Features:

• Maximum loan amount up to Rs. 1 crore
• · Repayment Tenure: Up to 7 years including moratorium period
• · Margin: Up to 25%
• · Security: As per CGTMSE, No Collateral Security (Mandatory CGTMSE Cover)

9) Maha MSME Project Loan Scheme

Features:

• · Term loan to start various projects
• · Primary security of assets purchased or created
• · No collateral required for loan amount up to Rs. 50 lakh under CGTMSE coverage
• · Repayment Tenure: Up to 10 years, including 2 years of the moratorium period

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10) Maha MSE Collateral Free Cash Credit Scheme

Features:

• · Cash credit for working capital requirements
• · Primary security of current assets (Inventory and Receivables up to 180 days)
• · Margin: Min. 25%

11) Mahabank Vehicle Loan Scheme for Small Road Transport Operators

Features:

• · Loan Amount: Up to Rs. 2 crore (For the purchase of commercial vehicles)
• · Repayment Tenure up to 7 years, including moratorium period
• · Hypothecation of vehicles purchased to be the security
• · No collateral required for loan amount up to Rs. 1 crore under CGTMSE coverage

Note: The mentioned interest rates, fees, and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges.

Check and Compare – Business Loan Interest Rate of Popular Banks

Every business requires working capital for expansion or buying new equipment. At times, the company’s project/work halts due to a shortfall in the budget. So to continue with the work, the firms often opt for business loans that come with reasonable interest rates and flexible repayment tenure.

Best SME/MSME Loan offers are just a click away Apply Now

Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs – January 2023

Note: Business loan interest rates are updated as on January 2023.

Documents Required for Loan Application

To apply for a business loan at Bank of Maharashtra, the following documentation is required:

1. Proof of Identity – To apply for a business loan at the Bank of Maharashtra, you will need to submit any one identity proof from your PAN card, voter’s ID card, driving license or valid passport. Along with a proof of identity, you will also need to submit a passport-size photograph along with filled application form
2. Proof of Address – You will also need to submit one proof of address such as utility bills, rent agreement and a proof of sales or ownership
3. Proofs of Continuation – You will need to submit proofs of continuation such as trade license or your sales tax certificate.
4. Financial Documents for Sole Proprietorships and Self-Employed Professionals – ITR of the last 2 years, balance sheets, profit & loss accounts, 6 months’ bank statements, professional qualification certificate and/or your degree certificate.
5. Financial Documents for Partnership Firms – Partnership firms need to submit documents, such as partnership deeds, authority letters, and certificates of incorporation or records of stocks held by their company.

Business loans can be a boon, if you are starting a new business or expanding your existing business. Bank of Maharashtra business loans can be applied via online, as well as offline route through the bank’s branches.

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FAQs

Q. How to repay the Bank of Maharashtra business loan?

Ans. The loan can be paid in Equal Monthly Installments (EMIs) through the post-dated cheques. Electronic Clearing System and Standing Instructions are other alternatives for loan repayment.

Q. How can I check my business loan status?

Ans. You can check the status of your business loan either by contacting the customer care or through the official website of Bank of Maharashtra.

Q. How to apply for a start-up business loan?

Ans. The application form for a business loan can be downloaded from the Bank of Maharashtra website. Further, the applicant can contact the customer care or visit the nearest branch of the bank.

Q. What is the maximum amount of business loan that I can get sanctioned from Bank of Maharashtra?

Ans. Bank of Maharashtra provides the maximum amount of Rs 2 crore and also depends on sole discretion of bank and business requirements.

Q. What is the MSME loan interest rate offered by Bank of Maharashtra?

Ans. The MSME loan interest rate offered by Bank of Maharashtra depends on the applicant’s profile and business requirements.

Q. What are the eligibility criteria for an MSME loan?

Ans. The basic eligibility criteria for MSME loan is mentioned below:

• Age Criteria: Min. 21 years and Max. 65 years
• No previous defaults with any financial institutions
• Indian Citizen with no criminal background
• Annual turnover, business vintage, experience, ITR and profitability criteria shall be defined by bank and shall vary from case to case

Q. How to get a collateral-free MSME loan?

Ans. To get a collateral-free MSME loan, applicants shall have to avail unsecured business loans where the bank does not require any collateral or security.

Q. Does the bank require any security or collateral for MSME Loans?

Ans. No, the bank does not require security for the unsecured business loans. However, the collateral shall be required if the business loan is a secured loan.

Q. Does the Bank of Maharashtra look into my credit score while loan processing?

Ans. In most cases, it checks your CIBIL or credit score before loan processing and approval.

Q. What are some of the collateral securities accepted by the Bank of Maharashtra?

Ans. Some of the important securities accepted by Bank of Maharashtra include residential or commercial properties, equipment, machinery, raw materials, goods, gold, vehicles, etc.

Q. How much loan amount can I get from Bank of Maharashtra for my MSME business?

Ans. The maximum loan amount offered by Bank of Maharashtra for your MSME loan is up to Rs. 5 crores.