To Purchase equipment/machineries/apparatus/Branded computers, vehicle/ambulance/ furniture & fixtures/interiors/repairs/renovation, solar water/ electricity systems (only for the office premises acquired under the Scheme), purchase of tools, working capital requirements, Purchase of site and construction of office premises (it must be ensured that land is not used for any other commercial purpose.), acquiring/ repairing business premises, setting up office/ clinic modernization/ repayment of old debts/ up gradation of skills, Foreign Language, Designing Fine, arts etc.
Type of loan
Term Loan/ Overdraft / CC- For WC facilities shall be sanctioned for a period of one year and shall be reviewed / renewed annually.
The eligibility criteria for professional loans are:
1.People who are already practicing their trades or Fresher in different professions, with licenses issued by state or central legislations.
2.Copy of professional certificate denoting that they practice the said profession.
3.Professionals can include people having a diploma/degree who are sufficiently qualified or possess the skills to practice professions such as: Lawyers, Solicitors, Journalists, Chartered Engineers, Doctor’s, Dentist’s, Chartered Accountants, Cost Accountant, Company secretary, Architectures, Surveyors, person trained / qualified in chosen vocation in which employed, Govt. sponsored scheme, proprietorship firm, Software Engineers, Management consultants and similar fields. The person who possesses the skill which has been estimated as professional in the opinion of the bank shall be considered for financial assistance.
4.The applicant shall not have any outstanding statutory dues.
5.Spouse having regular/independent income may also join as co applicant to supplement repayment capacity.
6.Businessmen are not eligible for finance under this Scheme.
7.Must have own residence.
Applicants within the ages of 21 to 60 years can apply for professional loans.
Generally 15% to 25%, which may vary according to requirement and assessment. (depending upon loan proposal)
Maximum Amount: (as per bank policy)
Depending upon requirement / repayment capacity Maximum 75% of cost of premises as per bank policy. On cost of equipment –As per bank policy (case to case basis.)
Documents required to apply for a professional loan
Maximum Amount of Finance & Interest Rate:
|Amout of Loan||Tenure (Months)||Rate of Interest|
|Upto 25 Lacs||60||11.25%|
Processing and service charges as per existing service charges circular.
Charges for legal opinion & search report if any, valuation charges of banks empanelled Valuer, CIBIL report, mortgage deed, franking etc.
Borrower & co Borrower: 2.5% of share linkage of sanctioned loan amount. (Max. 5 lacs)
Guarantors: Nominal membership / Regular member with minimum share capital of Rs. 1,250/-
Flexible repayment schedule from 60 months to 120 months (as per bank policy)
Moratorium to be considered depending upon the requirement & as per the gap between obtains loan and function of business (max 6 months), interest to be charged during this period.
Primary: Hypothecation of machinery/ Equipment/ Apparatus / Tools/ Computers/ Other office equipment, furniture and interiors, vehicle, acquired out of bank finance, Equitable Mortgage of the Office Premises, land and building. Age of the building to be mortgaged shall not exceed 30 years. However, residual /balance life of the building shall be at least 5 years more than the repayment tenor. (Subject to structural engineers report)
Collateral: NSC/ KVP/ LIC Policies, Govt. bonds, our bank deposits, Land & Building etc. subject to satisfaction of the bank.
One Guarantor with Competent income.
Prepayment Penalty: Nil
Other Conditions: PDC Cheques / ECS (as per bank policy)