Understanding 5’Cs to Business Loan For HDFC & KALUPUR Bank

1. Group Members…
27. Radhika Gothi
28. Rimpal Gothi
32. Vishal Jadav
44. Dharmesh Korat
Submitted To…
Prof. Sonu Gupta
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2. Capacity
 Measures a borrower’s ability to repay a loan by comparing income against
recurring debts
 Can the borrower generate adequate cash to repay the loan?
Capital
 Refers to the net worth, or equity, of a business
 Is the borrower adequately capitalized within industry standards to withstand
unexpected loss?
Conditions
 The economic, industry, and market environment can and will change; the state
of the borrower or the state of the economy
 Is the borrower flexible enough to adapt? 2

3. Collateral
 Helps secure the debt.
 Is there an alternative source of repayment in case the primary source fails?
Character
 Personal integrity of business owners and officers
 Is management willing to repay the loan and will it attempt to do so under
adverse conditions?
(Continued…)
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4. Business Loan from HDFC Bank
Whatever be your need we have a loan for you. Over the years we have
won the trust of their customers and have become market leader in loan products.
Enjoy triple benefits when you take a Loan from HDFC Bank:
 Faster loan - they loan sanction and disbursal is one of the quickest with
easy documentation and doorstep service.
 Competitive pricing - they loan rates and charges are very attractive
 Transparency – All charges are communicated up front in writing along
with the loan quotation
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5. Features and Benefits of Business Loan
Features
 In Principle loan eligibility in online and across all branches
 Convenience of contacting us through SMS, Phone Banking and across all
Branches
 Business Loan is also available on the basis of repayment of home loans, auto
loans and credit cards.
 Loan Amount up to Rs. 15 Lakhs (Up to Rs. 40 Lakhs in selected locations).
 Flexible repayment options ranging from 12 - 36 Months.
 Credit protect insurance plan:
A Credit Protect Plan to cover your loan at a nominal premium.
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6. Key benefits of policy
 Protects the family by paying off the loan amount in case of death
of the customer
 Life Coverage – provides peace of Mind
 No need to use other savings to repay the loan
 Tax Benefits as per applicable laws
 One convenient package - loan + insurance
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7. Reduce your EMI, transfer your existing Business
Loan to us. Business Loan balance transfer offers special and
exclusive benefits.
 Interest rate as low as 14.99 % on existing loan transfer.
 Processing fees as low as 0.99%
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8. Self employed including individual proprietors, private ltd. Co. And partnership
firms involved in the Business of Manufacturing, Trading or Services.
 Minimum Turnover of Rs. 40 Lakhs.
 Years in business: Minimum of 3 years in current business and 5 years
total business experience
 Business must be profit making for the last 2 years
 Minimum Annual Income (ITR): Rs. 1.5 Lakhs p.a.
 Age of Applicant: Min 21 years & Max. 65 years at the time of loan
maturity.
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9.  PAN Card – For Company /Firm/ individual.
 Proof of your identity: Copy of Aadhaar Card/Passport/Voter’s ID card/driving
license.
 Proof of your address: Copy of Aadhaar Card/Telephone bill/Electricity
bill/Passport.
 Bank Statement (latest 6 months)
 Latest ITR along with computation of income, Balance sheet and Profit &
Loss a/c for the last 2 years. Financial should be CA Certified /Audited.
 Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate)
 Other Mandatory Documents (Sole Prop. Declaration Or Certified Copy of
Partnership Deed, Certified true copy of Memorandum & Articles of
Association (certified by Director) & Board resolution (Original)
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10.  Interest Rate Range: 17.00% to 22.00%
 Loan Processing Charges :Up to 2.50% of the loan amount subject to a
minimum of Rs. 1,000/- & Maximum of Rs. 75000/-
 Pre-payment charges :
 No pre-payment permitted until repayment of 6 EMIs,
 07-24 Months - 4% of Principal Outstanding
 25-36 Months - 3% of Principal Outstanding
 >36 Months - 2% of Principal Outstanding
 Charges for late payment of EMI : @ 24 % p.a on amount outstanding
from date of default
 Stamp Duty & other statutory charges : As per applicable laws of the
state
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11.  Project Finance: If you are seeking funding for a new project or new
avenue in your business, then don't stretch your current financial constraints.
With the easily available financial aid at your disposal, it's possible to finance
your long-term infrastructure or industrial.
 Equipment Finance: Take the advantage of they finance options to
acquire equipment that may be critical for your business.They unique SME
loans are designed to cater to your unique needs, be it for equipment leasing or
other refinancing options.
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12.  Corporate Loans: They have a wide array of financial options available
to suit your distinct needs. They corporate loans are designed to iron out your
interim financial needs catering to various corporate and business needs.
 Secured Business Loans: Whenever you are in need of financial aid,
look for the secured business loans for entrepreneurs. They secured business
loans provide you with sufficient leverage for financing your corporate
projects.
 Working Capital Loans: Any business cannot be run without the
financial aid. They working capital loans facilitate your daily business needs.
We ensure that your business is run as smoothly as possible with our hassle-free
and easy working capital loans.
(Continued…)
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13. (Continued…)
 Bill Discounting: Enjoy the distinctive features offered by they bill
discounting facilities. They ensure that corporate can successfully discount
their bills before the maturity date.
 Insurance Solutions: They basket of solutions for SME finance involves
facilitating all your business needs. With they unique insurance solutions, they
ensure your business safety for the future.
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14. Vyapar Mitra
Small traders and businessmen provide yeoman service to the community.
They are honest and hard working and not so educated community with low
financial means who need to be supported by banks.
 Bank has recognized their potential. They are trusted and trustworthy
people.
 Bank has devised a hassle free scheme to extend credit facilities to
them.
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15. The details of the scheme are as under.
Particulars
Purpose Small traders/ businessmen
Limit Amount Maximum cash credit of Rs.30 lacs or 70% of valuation of
Property or 30%of projected sales looking to last two year
growth whichever lower
Margin 40% of valuation of mortgage property
Repayment Period Renew of limit every year
Rate of interest 13.5% P.A at monthly rest (Subject to change at the discretion
of Bank) (not eligible for credit rating rebate)
Guarantee Guarantor possessing own property and also Income tax-payer
Security Mortgage of office/Resident – immovable property
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16.  Manufacturing, trading and services units
 Minimum track record of three years
 Profits in the last two years
 Minimum security coverage as per the product scheme
 The applicant shall be engaged with trading/ industrial/ Service
activity with valid Licenses.
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17. Apply for a Business Loan by submitting the completed Business
KALUPUR Loan application form with these documents:
 Balance Sheet & Profit and Loss Account of company
 Proof of ownership of Residential Or Commercial Property
 IT returns for last two years
 Proof of residence
 Proof of identity
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18. A) Proof of identity: (any one of the following)
 Passport
 PAN Card
 Voter's Identity Card
 Driving License
 Identity card issued by the Employer (subject to Bank’s satisfaction)
 Letter from a recognized public authoruty or public servant verifying the
identity and residence of the customer to the satisfaction of bank.
 Letter from a Gazetted officer verifying the identity and attesting photograph
and address.
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19. B) Proof of current address: (any one of the following)
 Telephone bill
 Electricity bill
 Letter from employer (subject to Bank’s satisfaction).
 Letter from any recognized public authority (subject to Bank’s
satisfaction).
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20.  Cash Credit/ Over Draft- A Cash Credit is a short-term cash loan to a
company and KALUPUR BANK provides it against collateralized security.
Loan limit is prearranged and companies can continuously draw up to the limit
as and when needed.
 Working Capital Demand Loans- KALUPUR BANK provides
working capital facilities in the form of Working Capital Demand Loan instead
of cash credit facility. The primary or collateral security will be as
mentioned in cash credit facility. Here also interest is levied on the amount
drawn rather than on the amount utilized.
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21. (Continued…)
 Term Loans- KALUPUR BANK caters to the need of long-term funds to
enable growth opportunities of business, capacity expansions, plant
modernization and other such requirements. Keeping these requirements in
mind we provide term loans up to acceptable tenor with suitable moratorium, if
required, and repayment options structured on the basis of companies estimated
cash flows.
These loans are primarily secured by a first charge on the fixed assets
acquired through the loan amount. This loan is against Suitable collateral
security.
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22. (Continued…)
 Bill Discounting Facilities- KALUPUR BANK provides bill
discounting facilities to fund customer's receivables. This is done by
discounting credit worthy bills or receivables and providing credit against that.
This facility is provided for a period of 3-6 months depending upon the tenor
of the bill.
 Export Finance- KALUPUR BANK provides finance for export activities
in the form of Pre-Shipment Credit against firm order and Letter of Credit and
Post shipment credit. Credit is available for procuring raw materials,
manufacturing the goods, processing and packaging the goods and shipping
the goods. Finance is provided in Indian or foreign currency depending upon
the need of the borrower.
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23. Stock & Debtors will be collateral security, only initial stock/debtors statement
will have to be submitted.
Important points for security :
 The property shall have clear & marketable title & saleability.
 Valuation Report of the Panel Values to be considered.
 The property shall not be older than 25 years.
 It should be self occupied.
 If the property is already mortgaged with the bank; the unencumbered
portion can be considered in deserving cases.
 The property will have to be mortgaged with registered mortgage.
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