Saraswat Bank Business Loan

Saraswat Bank Business Loan Highlights
Interest Rate	10.25% p.a. onwards
Loan Amount	Rental Loans: 7 times of the annual rent, subject to maximum 65% of total rent receivables or 70% of the property’s realisable value, whichever is lower. Udyogini Loans: For micro enterprises: Up to Rs 10 lakh For small scale enterprises: Rs 10 lakh to Rs 1 crore For medium enterprises: Rs 1 crore to Rs 2 crore Commercial Automobile Loan: Up to Rs 1.5 crores Microfinance Loan: Up to Rs 1.5 lakh
Loan Tenure	Rental Loans: Up to 5 years or till the remaining lease period, whichever is earlier. The loan repayment is in the form of rent received Corporate Loans: Up to 7 years Udyogini Loans: For micro enterprises: 6 years For small scale enterprises: 6 years For medium enterprises: 7 years Commercial Automobile Loan: 4 years, with 3 months moratorium (for vehicle needing body building) Microfinance Loan: 1 to 3 years
Processing Fees	Rental Loans: 0.75% of the loan amount Corporate Loans: As applicable to term loan for existing or prospective borrowers Udyogini Loans: Micro Enterprises: Rs 5,000 Small Scale Enterprises: Rs 7,000(above Rs 10 lakh and Up to Rs. 25 lakh) and Rs 10,000 (above Rs 25 lakh) Medium Enterprises: Rs 15,000 or 1% of loan amount whichever is lower Microfinance Loans: Up to Rs 25,000: Nil Above Rs 25,000 and up to Rs 50,000: Rs 500 plus GST Above Rs 50,000 and up to Rs 1 lakh: Rs 1,000 plus GST

Note: Data as of 15th April 2024

Saraswat Bank Business Loan Interest Rates

The Saraswat Bank business loan interest rates start from 10.25% p.a. and is linked to the bank’s prime lending rate (PLR). The interest rates for the lender’s business loan schemes, for commercial exposure above Rs. 1.5 crore are as follows:

• For loans up to Rs 50 lakh: 12.50% p.a.
• For loans above Rs 50 lakh and up to Rs 1.5 crore: 12.75% p.a.
• For loans above Rs 1.5 crore:

Marks Scored in Credit Rating	Rating Scale	Interest rate applicable
90 and above	PRIME	15.50% p.a.
86 and above but less than 90	A+	15.75% p.a.
81 and above but less than 86	A	16% p.a.
76 and above but less than 81	B+	16.25% p.a.
71 and above but less than 76	B	16.50% p.a.
66 and above but less than 71	B-	16.75% p.a.
56 and above but less than 66	C	17% p.a.
40 and above but less than 56	D	17.25% p.a.
Less than 40	E	17.50% p.a.

• For loan/overdraft against property: 11.50% p.a.
• For commercial vehicle:

Loan Amount	Interest rate applicable
Up to Rs 50 lakh	For repayment period below 3 years: 10.75% p.a. For repayment period above 3 years: 11.75% p.a.
86 and above but less than 90	For repayment period below 3 years: 10.25% p.a. For repayment period above 3 years: 11.25% p.a.

• For Saraswat Bank Udyogini Loans: 11.50% p.a.
• For Saraswat Bank Microfinance loan scheme: 16% p.a.

Fees and Charges for Business Loans from Saraswat Bank

Particulars

Fees and Charges

Processing fees

Rental Loans: 0.75% of the loan amount Corporate Loans: As applicable to term loan for existing or prospective borrowers Udyogini Loans: Micro Enterprises: Rs 5,000 Small Scale Enterprises: Rs 7,000(above Rs 10 lakh and Up to Rs. 25 lakh) and Rs 10,000 (above Rs 25 lakh) Medium Enterprises: Rs 15,000 or 1% of loan amount whichever is lower Microfinance Loans: Up to Rs 25,000: Nil  Above Rs 25,000 and up to Rs 50,000: Rs 500 plus GST Above Rs 50,000 and up to Rs 1 lakh: Rs 1,000 plus GST

Types of Business Loans provided by Saraswat Bank

Saraswat Bank Working Capital Loans         

Purpose: Saraswat Bank Working Capital Loan enables business units to meet their business expenses. This business both fund and non-fund facilities like cash credit, working capital demand loan, bill discounting, packing credit/post shipment and letter of credit/bank guarantee.

Saraswat Bank Term Loans  

Purpose: Saraswat Bank Term Loans enables business units to procure funds for expanding their business, upgrading existing facilities, etc. The lender offers this facility to allow businesses meet their short-term and long-term funding requirements.

Saraswat Bank Rental Loans 

Purpose: Saraswat Bank Rental Loans is a business loan facility that enables individuals and business units procure funds against their rent receivables for their business requirements.

Interest rate: The interest rates are linked to the bank’s PLR. The lender will set the interest rates for their rental loan applicants based on their credit rating.

Loan Amount: 7 times of the annual rent, subject to maximum 65% of total rent receivables or 70% of the property’s realisable value, whichever is lower. Further, the rent receivables from a single lessee should not exceed 50% of the total rent receivable.

Loan Tenure: Up to 5 years or till the remaining lease period, whichever is earlier. The loan repayment is in the form of rent received.

Margin: 35%

Security: Equitable mortgage of the property given on rent or any other acceptable property having value of 35% more than the business loan amount, subject to the valuation certificate from a bank’s approved valuer.

Guarantors: The lender will require the personal guarantee of partners/directors of a partnership firm or a limited company.

Other Conditions:

• The mortgage of property and the Power of Attorney from landlord should be executed in favour of the bank for receiving the rent.
• The property should be rented out to a public sector undertaking, public limited company, other govt. or semi govt. organisations, banks, financial institutions, insurance company or multinational company

Saraswat Bank Corporate Loans

Purpose: Saraswat Bank Corporate Loans enables business units to procure funds for expansion, acquisition or setting up new business units. Some of the other objectives of availing this business loan facility include:

• Availing funds for capital expenditure like replacing machines, upgrading and renovation, etc.
• Increasing the net working capital and replacing high-cost debts
• Expenditures on research and development
• Acquiring tools and jigs, etc.
• Acquiring trademarks/patents/brand equity

Loan Tenure: Up to 7 years

Margin: 30%

Primary Security: Exclusive first charge on fixed assets or on pari passu basis with the other term lenders.

Collateral Security: Personal guarantee of the promoter directors, pledge of promoter equity shares of up to Rs 20 lakh, charge on the company’s unencumbered assets, promoter/director(s) independent tangible security, etc.

Saraswat Bank Udyogini Loans

Purpose: Saraswat Bank Udyogini Loans enables women entrepreneurs avail funds to fulfil their business requirements

Loan Amount: The loan amount for this business loan scheme is as follows:

• For micro enterprises: Up to Rs 10 lakh
• For small scale enterprises: Rs 10 lakh to Rs 1 crore
• For medium enterprises: Rs 1 crore to Rs 2 crore

Loan Tenure: The loan tenure for this business loan scheme is as follows:

• For micro enterprises: 6 years
• For small scale enterprises: 6 years
• For medium enterprises: 7 years

Interest Rate: 11.50% p.a.

Margin:

• Micro Enterprises: Nil
• Small Scale Enterprises: 20-25%
• Medium Enterprises: 20-25%

Security:

• Micro Enterprises: Hypothecation of firm’s assets and guarantee of spouse/family member wherever required
• Small Scale Enterprises: Hypothecation of firm’s assets, 2 guarantors and collateral security (20%)
• Medium Enterprises: Hypothecation of firm’s assets, 2 guarantors and collateral security (30%)

Saraswat Bank Commercial Automobile Loans

Purpose: Saraswat Bank Commercial Automobile Loans enables individuals, business entrepreneurs and commercial organisations procure funds for buying commercial vehicles for up to Rs 1.5 crores

Loan Amount: Up to Rs 1.5 crores

Loan Tenure: 4 years, with 3 months moratorium (for vehicle needing body building)

Interest Rate:

• Up to Rs 50 lakh: 10.75% p.a. (for repayment period less than 3 years) and 11.75% p.a. (for repayment period more than 3 years)
• Above Rs 50 lakh: 10.25% p.a. (for repayment period less than 3 years) and 11.25% p.a. (for repayment period more than 3 years)

Margin:

• Micro Enterprises: Nil
• Small Scale Enterprises: 20-25%
• Medium Enterprises: 20-25%

Security:

• Hypothecation of the vehicle
• Guarantors in case of zero collateral security
• Collateral security:
  • Up to Rs 10 lakh: Nil
  • Above Rs 10 lakhs up to Rs 25 lakh: 10%
  • Above Rs 25 lakh up to Rs 50 lakh: 20%
  • Above Rs 50 lakh: 30%

Saraswat Bank Microfinance Loans

Purpose: Saraswat Bank MicroFinance Loans enables families meet their working capital for their business activities, for purchasing consumer items, house repairs, medical expenses, education, etc.

Loan Amount: Up to Rs 1 lakh

Loan Tenure: 1 to 3 years

Interest Rate: 16% p.a.

Guarantors:

• Minimum 2 guarantors for a loan
• One person can guarantee up to a maximum of 2 loans
• Only 1 member from the family can be the guarantor

Eligibility Criteria for Saraswat Bank Business Loans

The business loan eligibility criteria for availing Saraswat Bank Business Loans are as follows:

For Saraswat Bank Commercial Automobile Loan

Individuals, entrepreneurs and commercial organisations are eligible for availing Saraswat Bank Commercial Automobile Loans

For Saraswat Bank Micro Finance Scheme

• Any family having a ration card can avail the Saraswat Bank Micro Finance Scheme.
• However, they are eligible for availing only a single loan facility even if they have multiple ration cards.
• The family should have a household income of up to Rs 3 lakh

Documents Required for Saraswat Bank Business Loans

The business loan documents required by Saraswat Bank for its loan schemes are as follows:

For Saraswat Bank Commercial Automobile Loan

• KYC documents of both the applicant and guarantor
• Duly filled application form
• Copy of contract
• Last 3 year’s P&L, balance sheet and ITR
• Last 3 months bank statement of the business account(s)
• For Self-employed: Copy of license and experience certificate.
• New Operators: Projected income
• Quotation for making the vehicle’s body
• Authorized dealer’s Proforma Invoice

Saraswat Bank Micro Finance Scheme

• Borrower(s)/Guarantor(s) photograph, Aadhaar Card/Voter ID, PAN Card
• Last 6 months bank statement (if account is maintained with another bank)
• Ration card (compulsory) / Income certificate / Income proofs / Bank passbook.
• Proforma Invoice in case of Asset creation
• Declaration for end use of the funds