Standard Chartered Bank Business Loan

Standard Chartered Bank provides business loans to Micro and Small Enterprises (MSEs). The loan amount can be used to establish or expand trade, service or manufacturing business. Standard Chartered offers business loans at an interest rate of 17.25% p.a. onwards.

Standard Chartered Bank Business Installment Loan
Category	Value
Maximum Loan Amount	Up to Rs. 75 lakh
Interest Rate	17.25% p.a. onwards
Repayment Tenure	Maximum up to 48 months
Collateral/Security	Not required

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

Comparison of Business Loan offered by Standard Chartered vs other Banks/NBFCs

Bank/NBFCs	Interest Rate
Axis Bank	10.75% p.a. onwards
Flexiloans	1% per month onwards
HDB Financial Services Ltd.	8% - 26% p.a.
HDFC Bank	10.75% - 25% p.a.
IDFC First Bank	10.50% p.a. onwards
Indifi	1.50% per month onwards
Kotak Mahindra Bank	16% - 26% p.a.
Lendingkart	12% - 27% p.a.
Mcapital	2% per month onwards
NeoGrowth Finance	15% - 40% p.a.
Tata Capital	12% p.a. onwards
UGRO Capital	9% - 36% p.a.
Bajaj Finserv	10% to 26%

Standard Chartered Bank Business Loan – Interest Rate & Processing Fees

The rate of interest and processing fees associated with Standard Chartered Bank business loan are:

Category	Fees & Charges
Interest Rate	17.25% p.a. onwards
Processing Fees	2% of the amount disbursed
Prepayment Penalty	5% of outstanding Principal
Penal Interest	24% p.a.

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.

Compare – Business Loan Interest Rate of top Banks in India

Standard Chartered Bank Business Loan – Eligibility

Applicants must fall under the following categories in order to be eligible for Standard Chartered Business loan:

• Sole proprietors or proprietorship firms
• Partnership firms
• Private limited companies
• Closely held and public limited companies
• Professionals – doctors, architects, chartered accountants, business consultants

Calculate Your Monthly EMI on – Business Loan EMI Calculator

Standard Chartered Bank Business Loan – Categories

Currently, Standard Chartered Bank offers two types of business loans; Business Installment Loan and Guaranteed Installment Loan, which are explained further.

Business Installment Loan

• The interest rate charged on Business Installment Loan starts from 17.25% p.a. onwards
• Applicants can avail Interest refunds of up to Rs. 50,000 in a year on making timely payments on the loan amount and maintaining the minimum balance in the current account
• Customers get access to various SME related offerings such as foreign exchange and cash management offerings, trade and working capital solutions, and other banking products

Guaranteed Installment Loan

• The interest rate charged on Guaranteed Installment Loan starts from 14% p.a. onwards
• It can be bundled with Business Installment loan. Hence maximum loan amount that can be applied for becomes Rs. 100 lakh
• The loan is covered under CGTMSE scheme. Customers only have to pay a nominal guarantee fee

Standard Chartered Bank Business Loan – Tenure

The maximum tenure offered on Standard Chartered Bank business loan is 4 Years.

Customers must pay the loan amount before the end of their repayment period or face hefty fines. Moreover, if customers fail to repay the loan amount then they may be labelled as Defaulter. This will greatly lower the customer’s credit score thus, lowering their ability to apply for a loan in the future.

Documents Required for Loan Application

Documents required when applying for Standard Chartered business loans are listed below:

• Bank statements for previous 6 months
• GST statements for the past 1 year
• Last 2 years balance sheet, income tax returns and financial statements detailing profit or loss

Additional documents required are:

Identity Proof	Aadhaar Card, Passport, Voter ID Card, PAN Card, Driving License
Address Proof	Aadhaar Card, Passport, Voter ID Card, Driving License

Also Know: What are the documents required for applying for Mudra loan?

FAQs

Who can apply for Standard Chartered Bank Business Loan?

Ans. Indian Residents who run Small Micro Enterprises (SMEs) can apply for Standard Chartered business loan

Can a customer pre-pay the loan?

Ans. Yes, customers can make prepayments on their loans. Do note that they can only do this after 12 months and will have to pay applicable pre-payment charges

What is the minimum loan tenure that a customer can avail if applying for Standard Chartered business loan?

Ans. The minimum loan tenure for Standard Chartered business loan is 1 Year. Also, the maximum loan tenure can go as high as 5 years.

Does Standard Chartered Bank seek collateral or security for business loans?

Ans. No, Standard Chartered Bank does not require collateral or security for its business Installment loans.

Can customers get a line increase on Standard Chartered bank’s existing loan?

Ans. Yes, customers can get a line increase on Standard Chartered business loan after making regular payments for 10 months.