Finance Solutions

The main objective of SIDBI is to promote the Manufacturing Activities of the Micro, Small and Medium Enterprises. And to achieve that SIDBI gives hosts of benefits to the borrowers.

Key Benefits of SIDBI Loans:

1. Collateral Free Loans (No Additional Security in the form of Land, Building or LIC Policies)

2. No CGT Premium

3. One of the Lowest Rate of Interest (Currently, the ROI is as low as 7.50% per annum), which is Repo Rate (6.50%) plus the Spread of 1%

If such borrower starts a business, loan up to 1 Crore can be granted under Stand Up India scheme in which No Collateral is Required because the government is directly giving guarantee to the Bank on behalf of the client.

Upto 6 months of starting the business can be covered in this scheme. And both Term Loan and OD Limit is provided in Stand Up India.

Under Stand Up India scheme, three categories of borrowers are covered:

1. Borrowers from Scheduled Class.

2. Borrowers from Scheduled Tribe.

3. Women Borrowers.

For small businesses with turnover up to 30-40 Lakhs, it may be worthwhile to give loans under Mudra Scheme. This is also one of the Government Guaranteed Scheme, where loans up to 10 Lakhs is guaranteed directly by Govt of India.

Under Mudra Loan both term loans and OD limits are available. The ROI of Mudra Loan is higher than CGTMSE Loans but where the business size is smaller, we recommend to do such loans under Mudra Scheme.

Every Business which has to carry inventory or give credit to its clients would need working capital finance. We specialize into working capital finance and arrange different kind of working capital funding to suit business requirements.

For some businesses, OD suits Better than CC, whereas in some businesses CC is better. In some situation, LC based limit is much more cost effective than drawing CC. Since we are expert in the subject matter, we can find more cost effective solutions to the client, which he might be missing because of lack of expertise.

Our Promoter CA Bhuvan Singhi was National Credit Head of Unsecured Business Loans in Kotak Mahindra Bank and because of his rich experience in Unsecured Business Loan, he has done many turnaround proposals.

Unsecured Business Loans are 36 months repayable, EMI Based Loans. These are easy to get and comfortable to repay if you have a profitable business purpose. The Rate of Interest in this product varies from 14 to 21% and the Median Rate is 18%. Apart from this, there is a Processing Fees of 2% and also the Credit Cover Cost of 1-1.50%.