MAKE YOUR AMBITIONS SOAR
BUSINESS LOANS RANGING FROM ₹ 50 LAKH TO ₹ 3 CRORE
SME Finance
Are you are a trader, manufacturer, service provider or a professional in need of capital for a personal venture? If you fit the profile, IndoStar Capital Finance has got you covered. We have solutions for all your business financing needs such as working capital, business expansion or any other financing requirement you may have, with our various product offerings. Our products are tailor-made to be relevant and competitive and suit all your business requirements. We also have a host of income assessment programmes that will help you avail the highest eligibility for your loans. Climb the ladder to success with our SME Finance solutions.
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Key Features
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Documents
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FAQs
Key Features
- Get loans ranging from ₹ 50 lakh to ₹ 3 crore with a tenure of up to 15 years.
- Avail loans against residential and commercial properties from 60% to 70% (loan-to-value ratio depending on the type of collateral).
- Enjoy maximum loan eligibility with different lending options such as an ITR-based assessment programme, turnover- and banking-based programme, existing loan repayment track-based loan programme and lots more.
- Enjoy top-ups on existing loans proposed for balance transfer.
- Get credit shield available with insurance companies.
- Enjoy doorstep service, simple, fast and transparent processes.
Documents
Keep the following documents handy to enjoy a simple and hassle-free loan application process:
Proof of Identity
- PAN card
- Passport
- Voter ID card
- Driving license
- Government identity card
- Aadhaar card
Proof of Age
- PAN card
- Passport
- Birth certificate
- Driving license
- Aadhaar card (if your date of birth is mentioned)
Address Proof
- Passport
- Voter ID card
- Driving license
- Latest utility bills such as electricity bill, telephone bill, gas pipeline bill and water bill.
- Aadhaar card
- Ration card
Proof of Signature
- PAN card
- Passport
- Driving license
- Government identity card
Proof of Relationship
- PAN card
- Passport
- Voter ID
- Ration card
- Marriage certificate
- Aadhaar card (if relationship is mentioned)
Proof of Business Address
- Certificate under Shops and Establishment Act
- Certificate of registration
- Latest utility bills such as electricity bill, telephone bill, gas pipeline bill and water bill.
- Active bank account statement or passbook
- Property tax receipt
- Index II of property
- Registered rent agreement
- Certificate issued by professional body incorporated under relevant statute.
Proof of Business Continuity
- Certificate under Shops and Establishment Act
- Certificate of registration
- Certificate issued by professional body incorporated under relevant statute.
Other KYC Documents
- Partnership firm: Partnership deed
- Company: Certificate of incorporation, Memorandum of Association, Articles of Association, latest CA-certified list of directors and shareholding pattern.
- Trust: Registration certificate and deed of trust
- Professionals: Qualifications and registration certificate
Proof of Income
- Last 2 years audited CA-certified financials along with schedules, sub-schedules/tax audit report (if applicable), computation of income, ITR acknowledgement provisional financials (if applicable), along with VAT returns/GST returns to validate provisional sales figures.
- Last 3 months salary slip along with their reflection in your bank account (in case of salaried individuals).
- Form 16 for last two years.
Banking
- Last 12 months bank statements of all active bank accounts.
- Last 12 months saving bank account of partners and directors (in case of partnership firm/company).
Proof of Existing Loan
- Sanction letter of all existing facilities availed from existing bankers/financial institutions/repayment track record for last 12 months (statement of accounts/banking reflections) of all existing loans/statement of accounts for the last 12 months (mandatory in the case of BT for the facility to be taken over).
- Copy of property papers proposed to be offered as collateral.
- List of documents and foreclosure letter (mandatory in the case of BT for the facility to be taken over).
- Any other information required on case-to-case basis.
Property-related Documents
- Copy of complete chain documents of the property (as applicable).
- Copy of agreement to sell (if executed).
- Copy of allotment letter/buyer agreement (if applicable).
- Copy of receipt/s of payment/s made to the developer (if applicable).
Disclaimer: The above list is indicative and may require additional documents depending on your case.
FAQs
What are the different types of loan against property provided by IndoStar Capital Finance (ICF) SME Finance?
The different types of loan against property that can be availed are:
- Residential: Given against the residential property (self-occupied/rented/ vacant).
- Commercial: Given against rented and self-occupied commercial property.
Am I eligible to apply for loans under ICF SME Finance?
Yes, you are eligible to apply for ICF SME Finance loans if you are a proprietor, partnership firm, limited liability partnership, private or public limited company engaged in the business of manufacturing, trading or services sector.
Furthermore, self-employed professionals such as doctors, engineers, chartered accountants, company secretaries and architects with their own practice/consultancy are also included in the SME self-employed professional customer category.
You have to be at least 25 years old to apply for a SME loan with ICF.
Is a co-applicant mandatory? Am I eligible to be a co-applicant?
Yes, a co-applicant is mandatory to apply for a SME loan. All owners/co-owners of the property to be financed will have to necessarily be co-applicant(s) to the loan. The co-applicant must be a part of the immediate family - spouse, father, mother, son/daughter or brother. Your brother can only be added as a co-applicant if he is a part of your business or if your property is jointly owned or you live together. You have to be at least 18 years old to be a co-applicant.
What does rate of interest and margin mean?
Rate of Interest is the interest rate that’s charged for a loan on a reducing balance basis. The rate of interest is linked to the ICF-Prime Lending Rate and quoted as ICF PLR + margin. Margin is the difference between the ICF-PLR (currently 16% per annum) and the rate of interest.
For example: If your rate of interest is 10% per annum then it would be quoted as 16% - 6%, wherein 16% is the ICF-PLR and 6% is the margin.
What is EMI and pre-EMI?
An EMI or Equated Monthly Instalment is the monthly payment that you make to your lender. This payment is due on specific dates such as the 5th of every month in case of ICF. The EMI consists of two parts: the interest to be paid on the loan and the principal component. Thus, with every EMI that you pay, you are repaying a part of the loan as principal repayment along with the interest due on the amount borrowed.
Pre-EMI is collected as a cheque upfront during the disbursement process. As the EMI starts on a specific date, there is a gap between when the loan is disbursed and when the EMI payment begins. The interest charged during this period is called as pre-EMI.
Can I choose my EMI cycle date?
Currently, we are offering only one EMI date which is the 5th of every month.
How do I pay my EMI/pre-EMI?
You can pay your EMIs by providing us a National Automated Clearing House (NACH) mandate form. This is an instruction that authorises the direct deduction of the EMI amount from your bank account (from which you would repay your loan) on specified dates. In case your bank is not registered for NACH, then you may have to open a new bank account in a registered bank and give us the form.
What is market value of the property?
Market value is the fair value of the property that you intend to mortgage with us. This is determined by ICF empanelled valuers.
What is the Loan-to-Value (LTV) ratio?
Loan-to-Value ratio is the amount of loan that will be provided compared to the market value of the security, in this case, property. For example: If you want to take a loan against your property with market value of Rs 1 crore and ICF quotes LTV as 65%, then ICF is ready to fund Rs 65 lakh against your property. The LTV ratio excludes any taxes and statutory levies.
What type of properties will be accepted as collateral?
All properties within the approved geographical limit will be accepted subject to properties meeting the norms defined by ICF. Do note that farmhouses, Land/Plots, Factories etc will not be accepted as collateral.
Can I make a part payment anytime during the tenure of the loan? Will I have to incur a part payment penalty?
Yes, you can make a part payment of your loan. However, part payment penalty will be charged to non-individual borrowers where the part payment is made within 48 months from the date of disbursement. Click here to know about all the charges applicable for Business Loan and SME LAP
Where can I find all the charges applicable to the loan and additional services?
Click on the provided links to know about all the charges applicable for Business Loan and SME LAP
How can I contact ICF customer service?
You can email us at contact@indostarcapital.com or visit any of our branches. To know our branch locations, click here.
Customers Speak
Happy customers make us happy, especially when they let us know how we helped their dreams get off the ground.
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I run plywood business in Hyderabad. I took loan from IndoStar for funding my working capital. I had good experience with IndoStar team. They understood my business requirement and provided me with financial assistance when I needed it the most.
Read moreArvind Gada, Chandan Ply N wood
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I run a boutique agency for production of animated videos. I had approached IndoStar for financing my business and I was happy to choose IndoStar as my finance partner. They ensured that the loan process is smooth. Their relationship manager is constantly in touch with me and he reminds me every month of my EMI due date
Read morePankaj Sharma, Astute Media Vision
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I am distributor of life saving medicines. I approached IndoStar for business loan to stock more medicines and for infrastructure development. I would like to highlight that they provided me with excellent services. They made documentation process easier and faster and helped me to get the loan processed in short span.
Read moreRavikant Sriram,
