Professional loan

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.

Eligibility:

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.

Age Limit:

Applicants within the ages of 21 to 60 years can apply for professional loans.

Margin:

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

Professional loan applications typically ask for further documentation, mainly pertaining to proofs that the applicant is indeed a self-employed professional in a particular field.
1.Membership certificate copies issued by relevant professional authorities to individuals or individual partners.
2.Firm registration certificate copies for registering with applicable professional authorities.
3.Papers or documents that help in judging the repayment capacity of the borrower, such as Last 3 Months' Salary Slips & Last 2 Years IT Returns along with Computation of income, Balance Sheet, Profit & Loss Account and Capital Account statement/Form 16 for salaried personnel expenditure and income statements from 3 fiscal years, balance sheet statements, assessment order copies/tax return copies of individual, firm, partners or guarantors, apart from debt service obligations particulars etc.
4.Recent utility bill showing name and address, or any other similar identity document (KYC documents).
5.Educational Qualification/Degree Certificates
6.KYC of borrower as well as guarantor’s
7.Duly filled prescribed application form.
8.Latest photograph/ residence proof of the applicant.
9.Legal documents for creating mortgage/ quotation of equipment to be purchased/ renovation cost (quotations)/ furniture cost.
10.License to practice
11.Latest 1 year bank statement
12.Project Report consisting of projection of financial statements for five years if required.
13.Shop establishment license/ Udyog Aadhar registration copy.
14.List of Debtors & Creditors (Age wise).
15.Stock and book debt statements for last 3 month. 

Maximum Amount of Finance & Interest Rate:

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.

Membership:

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/-

Loan Tenure:

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.

Security:

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.

Guarantee:

One Guarantor with Competent income.

Prepayment Penalty: Nil

Other Conditions: PDC Cheques / ECS (as per bank policy)