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.

Trader / Service Loan

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. 50 Lakhs with interest on diminishing balance.

Purpose
To meet the working capital / capex requirements (including construction of shop / office building, interiors, etc) relating to the business of Retail and Whole Sale Traders, Micro and Small (Service) Enterprises, Small Business, Professional & Self Employed persons.
Eligibility
Any individual, HUF, Proprietary Concern, partnership firms, Limited Liability Partnership firms and Private Ltd Company engaged in any trading and/or Service activity.
However on account of individual partners / directors having separate businesses either singly or in association with others, bank may extend credit limits to such firms/ businesses based on eligibility and merits.
Nature of Advance
Term Loan/ Demand Loan for capex relating to the trade or service and for the purpose of working capital and Overdraft (Running /Operative account) renewable every year / Overdraft for working capital purpose.
Loan Quantum
Up to Rs. 50 Lakhs.
Repayment
Term Loan (capex)- 84 months
Demand Loan / Term Loan (Business /WC purpose):
Demand Loan upto - 35 months
Term Loan upto - 60 months (subject to review every year)
OD (Reducing balance method) - For fresh loans - not exceeding 60 months (subject to review every year)
Overdraft (running facility) - One year (subject to renewal every year well before the due date)
The repayment period shall be fixed on the basis of income generation of the borrower (individual / concern / firm / Company).
Obtention of Financial Statements
Not Compulsory for exposure upto Rs. 25 Lakhs under the scheme. However if the borrower is eligible for compulsory Statutory Audit the same shall be obtained and analysed.
If financial statements are not available repayment of the Debt + interest should be assessed by obtaining details of existing income as well as future income of the applicant.
Security
  • Primary: For Term Loan (capex): Asset to be purchased / created (including building to be constructed) out of Bank Term Loan / Demand Loan and collateral as shown below. For WCDL / Business purpose Term Loan (BPTL) / OD for working capital purpose: Hypothecation of Stock / Book Debts.
  • Collateral: Agricultural Land will not be taken as collateral security. a) If located at Metro / Urban / Semi urban / Rural Areas: Land / House Plot / Building properties not less than 125% 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%).
Insurance
Primary Security of Fixed Assets acquired under our Bank Finance should be insured.
Rate of Interest
One year MCLR plus
Credit Risk Premium: For limits upto 25 lakh CRP - 50 bps, For limits from above 25 lakh - As per Credit Rating
Business Strategy Spread Upto Rs. 10 lakh - 175 bps, Above Rs. 10 lakh - 150 bps.
Margin
  • WCTL / WCDL / OD (WC) - Nil
  • TL / DL (for Capex) - 20%
Penal Interest
Any irregularity or default in repayment will attract penal interest of 1.00% p.a. over and above the above rate of interest on the balance outstanding.
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.
Processing Charges
0.50% of the loan amount without any maximum cap in case of TL / DL (Running Acct.). 1.00% of the OD Limit (Reducing Balance) without any maximum cap.

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