Lending

Loan types vary because each loan has a specific intended use. They can vary by length of time, by how interest rates are calculated, by when payments are due and by a number of other variables.

1. Student Loans
Student loans are offered to college students and their families to help cover the cost of higher education. There are two main types: federal student loans and private student loans. Federally funded loans are better, as they typically come with lower interest rates and more borrower-friendly repayment terms.

2. Mortgages
Mortgages are loans distributed by banks to allow consumers to buy homes they can’t pay for upfront. A mortgage is tied to your home, meaning you risk foreclosure if you fall behind on payments. Mortgages have among the lowest interest rates of all loans.

3. Auto Loans
Like mortgages, auto loans are tied to your property. They can help you afford a vehicle, but you risk losing the car if you miss payments. This type of loan may be distributed by a bank or by the car dealership directly but you should understand that while loans from the dealership may be more convenient, they often carry higher interest rates and ultimately cost more overall.

4. Small Business Loans
Small business loans are granted to entrepreneurs and aspiring entrepreneurs to help them start or expand a business. The best source of small business loans is the U.S. Small Business Administration (SBA), which offers a variety of options depending on each business’s needs.

5. Payday Loans
Payday loans are short-term, high-interest loans designed to bridge the gap from one paycheck to the next, used predominantly by repeat borrowers living paycheck to paycheck.

MSME and SME Loans

What is a MSME Loan ?
Micro and Small and Medium Enterprises (MSME) are run by small entrepreneurs who provide various services within the community. A MSME loan is facility extended to micro enterprises to start micro business or improve the business.

Who can opt for a MSME Loan ?
Micro businesses encompassing small production units and rendering services can opt for the MSME loan. They can avail the loan either to start a new micro business or strengthen existing business. MSME loans are especially suited to women working in varied businesses such as catering, wellness, grooming, day care centres, flower shops and tailoring.  

Any entrepreneur intending to start a small or medium enterprise is eligible for SME loans. An entrepreneur already running a small or medium business is also eligible for SME loans to finance any improvements needed for the enterprise to improve its business.  

If you are above 25 years and below 65 years of age you are eligible for a MSME Loan also if your business,

  • Is profitable for three previous years
  • Is stable and growing
  • Is filing ITR

MSMEs can avail a business loan amount above Rs 3 lakhs and up to Rs 50 lakhs if they can show income and ability to repay. The loan tenure is between 12 and 36 months.  

For instance, you could be a small manufacturer or a service provider such as a hospital, nursing home or a small scale manufacturer, and if you satisfy the business loan eligibility criteria as above then you can avail the loan.  

You could be an owner of the SME or MSME business under any type of ownership structure such as:
Sole proprietorship
Partner in a partnership firm
Private limited company
Societies
Trusts
 
What are the interest rates offered ?
The MSME loan interest rate ranges from 18% to 24% depending on the financial and business profile of the MSME. You can go through detailed Business Loan Interest Rates and Charges.  

How much maximum amount can be given ?
The maximum MSME loan is Rs 50 lakhs.  
 
Are there special benefits or schemes for customers with low income ?
We provide loans to any low-income generation businesses run by women within the parameters of the loan eligibility criteria. We have specials schemes for women who run MSMEs such as catering business, beauty salons and day care centers.