HomeCorporate BankingBusiness LoansTrader / Service Loan

Trader / Service Loan

traders & service providers get loan to help your business grow

Learn more about our Loan for Traders & Services Scheme under TMB Business Loan Products.

Our traders and services loan scheme is suitable for all the general business community as well as the MSME sector that need funding for the working capital and other business related funding necessities.

This scheme is attractive and offers loan upto Rs. 25 Lakhs with interest on diminishing balance.

Purpose
To meet the working capital requirement, construction of shop / godown / office building inclusive of interior decoration for own usage / occupancy, to purchase Office / shop usage, fittings / furniture, equipments, AC machines and vehicles of brand new and other financial requirements related to the business of traders (Retail and whole sale Traders) and Micro & Small (Service) Enterprises such as small road & water transport operators, small business, professional & self employed persons and service enterprises.
Eligibility
Any Individual, Proprietary concern or a Partnership firm engaged in trading of any commodity subject to the applicant not enjoying any working capital limit with our bank / or from other Bankers after availment of this scheme. However if one of the partners is having proprietary concern, we can entertain the proprietary concern even though the partnership firm enjoying Working Capital limit with our bank / or from other bank.
Form of Advance
Term Loan / Demand Loan for working capital purpose as well as for acquiring assets as stated in purpose column with monthly repayment schedule and Overdraft Limit subject to renewal once in a year.
Loan Quantum
Up to Rs. 25 Lakhs.
Obtention of Financial Statements
Not compulsory. If the Financial statements are available, a copy of the same should be obtained & verified. If the Financial statement is not available, repayment of the Principle and interest should be assessed by enquiring the other income particulars available.
Repayment
The repayment of TL / DL / WCTL / WCDL / OD (WC) shall be fixed on the basis of income generation of the borrower (individual / concern / firm) and the repayment period shall be restricted to a maximum of 60 monthly instalments.
Security
  • Primary: For TL / DL: Asset to be purchased / created (including building to be constructed) out of Bank Term Loan / Demand Loan and collateral as shown below. For TL / DL / OD: Hypothecation of Stock / Book Debts.
  • Collateral: Agricultural Land will not be taken as collateral security. a) If located at Metro / Urban / Semi urban Areas: Land / House Plot / Building properties not less than 150% of the limit. (In case TL / DL is sanctioned for the construction purpose the total value of primary security after construction should not be less than 150% of the Loan sanctioned, if it is less than 150%, additional security to be obtained to cover at least 150%). b) If collateral located at Rural Areas: Land (except Agricultural) / House site / House building Properties in the prime area value not less than 200% of the limit. (In case TL / DL is sanctioned for the construction purpose the total value of primary security after construction should not be less than 200% of the Loan sanctioned, if it is less than 200%, additional security to be obtained to cover at least 200%).
As per RBI Mandatory Guidelines, no Collateral Security should be obtained for credit limits upto 10 lakh for Micro and Small Enterprises (both manufacturing & service enterprises). Banks in turn, can take cover for the collateral free credit facilities under CGS (Credit Guarantee Scheme of Credit Guarantee Fund Trust for Micro and Small Enterprises (Set by Government of India and SIDBI). The customer has to abide by the rules and regulations stipulated by the Bank in this regard.
Insurance
Comprehensive insurance has to be made on all the assets hypothecated to the bank. Machineries and Collateral Security like Building should also be insured.
Rate of Interest (Irrespective of Loan Amount)
  • BR + 3.00% (13.75% p.a.) if repayment period is upto 36 months.
  • BR + 3.50% (14.25% p.a.) if repayment period is above 36 months.
  • BR + 4.00% (14.75% p.a.) for all Over Draft Loans.
  • Additional 0.50% concession for Term Loans / OD [Reducing balance] if the loan amount is covered by urban property of 200% and above or rural property of 250% and above.
  • Current Base Rate for Lending (BR) is 10.75% p.a.
Margin
  • WCTL / WCDL / OD (WC) - Nil
  • TL / DL - 20%
Penal Interest
Any irregularity or default in repayment will attract penal interest of 2.00% p.a. over and above the above rate of interest on the balance outstanding.
Processing Charges
0.50% of the loan amount without any maximum cap in case of TL / DL. 1.00% of the OD Limit without any maximum cap and in case of renewal 0.50% of the OD Limit without any maximum cap.
Requisites
  • Application from the applicant in Form # 139 (Application for Financial Assistance to Retail Traders, Small Traders & Small Business).
  • Details of collateral security offered.
  • Suitable personal guarantee of third party.

All the above Terms and Conditions are subject to change and sanctioning of the loans is at the sole discretion of the Bank. Service Tax on All Service Charges extra wherever applicable.