ESAF Small Finance Bank Business Loan

Updated: 05-02-2024 06:17:12 AM

ESAF Business Loan Highlights
Interest rates	10.56% p.a. onwards
Loan amount	Up to Rs 5 crore
Repayment tenure	Up to 10 years
Processing fee	Up to 2 % of the loan amount

Interest rates as of 5 February 2024

ESAF Business Loan Interest Rates

Type of loan	Interest rate (p.a.)
ESAF FPO Finance	15.97% to 16.97%
Trade Receivables e-Discounting System	11.65% to 12.90%
Lease Rental Discounting	10.56% to 17.50%
Dairy Development Loan	19.58% to 20.83%
New Light Commercial Vehicle Loan	11.91% to 19.58%
Clean Energy Product Loan	14.08% to 22.91%
Secured Business Loan	12.75% to 26.00%

Fees and Charges of ESAF Business Loan

Processing fee

Type of loan	Fees
Dairy Development Loan	0.50% of the loan amount + GST
Lease Rental Discounting	1% of the loan amount + GST
New Light Commercial Vehicle Loan	1.5% of the loan amount + GST
Clean Energy Product Loan	2% of the loan amount
Unsecured Business Loan	Up to 1.5% of the amount (NIL, if amount is less than Rs 25,000)
Income Generation Loan	Up to 1.5% + GST (Nil if loan amount is less than Rs. 25,000)

Prepayment/Foreclosure charges

NIL for all products

Other fees and charges of ESAF Business Loan

Type of business loan	Cheque/NACH/SI Return Charges
ESAF Dairy Development Loan	Rs 300 per instance + GST
FPO Finance	Rs 500 per instance + GST
Lease Rental Discounting	Rs 500 + GST
New Light Commercial Vehicle Loan	Rs 750 + GST
Clean Energy Product Loan	Rs 500 + GST

 

Type of business loan	Penal interest on overdue amount
ESAF Dairy Development Loan	2% p.a.
FPO Finance	2% p.a.
Lease Rental Discounting	30% p.a.
New Light Commercial Vehicle Loan	30% p.a.
Clean Energy Product Loan	30% p.a.

Types of ESAF Business Loan

ESAF FPO Finance

• Purpose: It is a business loan offered to organisations/companies/ entities, etc for carrying out business activities of FPO (Farmer Producer Organizations) and/or for working capital requirements.
• Loan amount:
  • Term and working capital: Rs 3 lakh to Rs 1 crore
  • Demand loan: Rs 3 lakh to Rs 1 crore (over all limit inclusive of Term loan/ Working capital and Demand Loan)
• Tenure:
  • Working capital: 1 year with yearly renewal
  • Demand loan: Minimum 30 days & maximum 180 days

Trade Receivables e-Discounting System

• Purpose: TReDS is an electronic platform, which facilitates the financing/discounting of trade receivables of Micro, Small and Medium Enterprises (MSMEs) through multiple financiers. It facilitates the discounting of invoices and bills of exchange. The three direct participants are MSMEs (sellers), government departments, PSUs, corporates and other entities (buyers) and banks, NBFCs and other financial institutions as permitted by the RBI.
• Platforms for Invoice Discounting:
  • Receivables Exchange of India Ltd (RXIL)
  • Mynd Solutions Pvt Ltd (M1 XCHANGE)
  • TReDS Ltd (INVOICE MART)
• Loan amount: Rs 20,000 to Rs 2 crore
• Tenure: Up to 6 months

Lease Rental Discounting

• Purpose: It is a loan that borrowers can avail for financing their personal or business needs. Borrowers can get this loan against the monthly rent receivables from self-owned premises that they have let out on rent.
• Loan amount: Rs 5 lakh to Rs 5 crore
• Tenure: 3 years to 10 years (or remaining lease period, whichever is lower)

ESAF Dairy Development Loan

• Purpose:
  • For purchase and maintenance of good quality milch animals for milk production
  • For construction of sheds for keeping animals
  • For purchase of dairy machinery and equipment
• Loan amount:
  • Rs 1.6 lakh (without margin and collateral)
  • Rs 15 lakh (with 15% margin and collateral)
• Tenure: Up to 5 years

New Light Commercial Vehicle Loan

• Purpose: It is a commercial vehicle loan for purchasing new light commercial vehicles or refinancing against new self-owned vehicles.
• Loan amount: Rs 3 lakh to Rs 10 lakh
• Tenure: 3 to 5 years

Clean Energy Product Loan

• Purpose: It is a business loan for purchasing solar-based power generators, biomass-based power generators, non-conventional energy based public utilities like lighting systems, Solar inverter, etc.
• Loan amount: Up to Rs 10 lakh
• Tenure: 1 to 7 years

Secured Business Loan

• Purpose:
  • For asset purchase, business expansion, working capital requirement, etc.
  • For any long term or working capital requirement in the trading/manufacturing/service segment.
  • For production, processing and trading of agri/allied agri products
  • For any income generation activity
• Loan amount: Rs 10 lakh to Rs 25 lakh
• Tenure: 1 to 7 years

Unsecured Business Loan

• Purpose: It is an unsecured loan facility that comes with mandatory group guarantee and fixed interest rate.
• Loan amount: Up to Rs 25,000
• Tenure: 6 months to 2 years

Income Generation Loan

• Purpose: It is a type of unsecured business loan that borrowers can avail for carrying out income generating activities.
• Loan amount: Rs 10,000 to Rs 1 lakh
• Tenure: 1 to 3 years

MSME Loan

• Purpose: Borrowers can avail business loans for MSME for various needs including, but not limited to, working capital requirements, business expansion, managing business cash flow, installing machinery, etc. ESAF MSME loan comes with the facility of Cash Credit, Overdraft, Vendor Bill Discounting and Working Capital Term Loan (Renovation of an existing unit or for purchase of Machinery).
• Loan amount: Rs 10 lakh onwards
• Tenure: 1 to 7 years

ESAF Dairy Development Loan

• Purpose:
  • For purchase and maintenance of good quality milch animals for milk production
  • For construction of sheds for keeping animals
  • For purchase of dairy machinery and equipment
• Loan amount:
  • Rs 1.6 lakh (without margin and collateral)
  • Rs 15 lakh (with 15% margin and collateral)
• Tenure: Up to 5 years

Micro Energy Loan

• Purpose: It is an unsecured loan aimed for low income and unbanked segments of society for financing alternative sources of energy
• Loan amount: Rs 10,000 to Rs 1 lakh
• Tenure: 1 to 3 years

Eligibility Criteria of ESAF Business Loan

Eligibility Criteria for ESAF FPO Finance

• FPO Organization/ entity/ company, etc.

Eligibility Criteria for Trade Receivables E-discounting System

• Corporates
• Government Departments
• PSUs
• MSME
• Banks, NBFCs and other financial institutions as permitted by the RBI

Eligibility Criteria for Lease Rental Discounting

Landlords having rented income under a registered lease deed.

Eligibility Criteria for ESAF Dairy Development Loan

• Individuals undertaking dairying as subsidiary activity & Undertaking commercial dairy as main activity
• Age: Min 25- Max 65 Years
• Borrower should own land in their name (land tax receipt shall be obtained as proof)

Eligibility Criteria for Secured Business Loan

• Age : 18 – 65 yrs at the time of loan sanction.
• Domicile Status in the area (No. of Years): 3 Years
• Vintage in the line of business : 2 Years
• Cash flow to meet the proposed loan EMI’s
• Co-applicant required: Yes

Eligibility Criteria for New Light Commercial Vehicle Loan

• Salaried Individuals
• Self-employed Individuals
• Non- Resident Indians (Salaried)
• Non-Individuals (Firms)

Eligibility Criteria for Unsecured Business Loan

• Age Limit: 18 – 70 years (Age at the time of entry in the group should not be more than 65 years)
• Domicile Status: Own / Rented
• Domicile Status: Minimum 1 Year
• Potential customers with banking relationship with other MFIs will be preferred
• Should not belong to Geography/Industry/Profession mentioned in negative list
• No Co-applicant/guarantor required pre-sanction

Eligibility Criteria for Income Generation Loan

• Age Limit: 18 – 65 years
• Domicile Status: Own / Rented with Minimum 1 Year of stay
• No Co-applicant/guarantor required
• Nominee Required

Eligibility Criteria for MSME Loan

• Proprietorship
• Partnership
• Limited Liability Partnership (LLP)
• Private and Public Limited Companies or any other legal entity engaged in manufacturing/trading/service activities.

Eligibility Criteria for ESAF Dairy Development Loan

• Individuals undertaking dairying as subsidiary activity & Undertaking commercial dairy as main activity
• Age: Min 25- Max 65 Years
• Borrower should own land in their name (land tax receipt shall be obtained as proof)

Eligibility Criteria for Micro Energy Loan

• Age Limit: 18 – 65 years
• Domicile Status: Own/Rented with Minimum 1 Year of stay
• No Co-applicant/guarantor required
• Nominee Required

ESAF Business Loan Documents Required

KYC Documents (Common to all)

• Identity Proof: Aadhaar Card/ Voters ID Card/Passport/Driving License/Job card issued by NREGA duly signed by an Officer of the State Government/PAN Card
• Address Proof: Aadhaar Card/ Voters ID Card/Passport/Driving License/Job card issued by NREGA duly signed by an Officer of the State Government

Documents Required for Lease Rental Discounting

• Copy of registered lease agreement
• Bank account statements for 6 months evidencing the rent credited
• 2 Years ITRs with computation of income
• Balance Sheet/Profit & Loss account statements.

Documents Required for New Light Commercial Vehicle Loan

• Business proof/Ownership proof of LCV

Documents Required for Clean Energy Product Loan

• Proforma invoice/quotation (It should also be ensured that the dealer / supplier give installation certificate along with warranty)
• Feasibility certificate issued by the state electricity board.

Documents Required for Unsecured Business Loan

• Photograph
• KYC Documents

Documents Required for Income Generation Loan

• Photographs
• KYC Documents: Preferably aadhaar and voter ID

Documents Required for ESAF Dairy Development  Loan

• Application form
• DPN
• Hypothecation agreement
• 6-month bank statement from active bank account
• Proposed Project report (Must for more than 3 cattle)
• Copy of land/building documents –(for creation of mortgage)

Documents Required for MSME Loans

• GST Returns
• Bank Statement (latest 6 months bank)
• Last 2 Years ITRs (computation of income)
• Audited Balance Sheet and Profit & Loss a/c, if applicable

Documents Required for Micro Energy Loan

• Photographs
• KYC Documents: Preferably aadhaar and voter ID