Equitas Small Finance Bank Business Loan: Guide for Kolkata Businesses

Finding the right financing for your business can be a crucial step towards growth and success. If you’re a business owner in Kolkata, you have a variety of options to explore, including partnering with a Best Loan DSA in Kolkata like Loanoffice.in to guide you through the process.

One such option you might consider is the Equitas Small Finance Bank Business Loan. Equitas Small Finance Bank, once a microfinance institution, obtained its banking license in 2016 and has since carved a niche for itself in providing lending solutions, especially for small and medium-sized enterprises (SMEs).

This guide provides a detailed overview of Equitas Small Finance Bank Business Loans, helping you understand their features, eligibility criteria, fees, and more.

Key Takeaways

• Equitas Small Finance Bank specializes in business loans for various entities, including doctors, partnerships, private limited companies, sole proprietorships, and self-employed professionals.
• Interest rates for business loans start at a fixed 18% p.a.
• Loan amounts range from Rs. 5 lakh to Rs. 75 lakh, depending on the specific loan product.
• Equitas also offers microfinance loans and MSME loans tailored to different needs and borrower profiles.
• Working with a Loan DSA in Kolkata can simplify the loan application process and help you find the best fit for your business.

Equitas Small Finance Bank Business Loan: An Overview

Equitas Small Finance Bank caters to a diverse range of businesses, including those in the retail, wholesale, service, and manufacturing sectors.

They offer specialized loan products tailored to specific professions like doctors, who can utilize the funds for clinic setup, equipment purchase, expansion, and more.

Who Can Benefit from an Equitas Small Finance Bank Business Loan?

• Doctors: Equitas offers specialized loans for medical professionals looking to establish or expand their practice. This includes funding for setting up clinics, purchasing medical equipment (like X-ray machines, ultrasound scanners, etc.), renovating existing facilities, acquiring ambulances, and managing working capital needs.
• Partnership Firms: Businesses operating as partnerships can access funds for a variety of purposes, such as purchasing inventory, upgrading machinery, expanding operations to new locations, covering operational expenses, and meeting short-term working capital requirements.
• Private Limited Companies: Registered private limited companies can utilize these loans for a wide range of business purposes, including investments in new projects, research and development, marketing and advertising campaigns, acquiring assets, and managing day-to-day operational costs.
• Sole Proprietorship Firms: Individuals running businesses as sole proprietors can benefit from these loans to manage their finances effectively. This includes financing for inventory purchases, equipment upgrades, marketing initiatives, hiring staff, and covering operational expenses.
• Self-Employed Professionals: Professionals like architects, chartered accountants, and engineers can access funds to support their business ventures. This could involve setting up offices, investing in software and technology, hiring staff, attending professional development programs, and covering day-to-day business expenses.

Equitas Small Finance Bank Business Loan Features

Equitas Small Finance Bank offers a variety of business loan products with features designed to meet the diverse needs of borrowers.

Key Features of Equitas Business Loans

Category/Loan Type	Loan against Financials	Loan for Professionals	Loan against POS machine sale	Loan for Doctors
Interest Rate	18% p.a. (Fixed)	18% p.a. (Fixed)	18% p.a. (Fixed)	18% p.a. (Fixed)
Loan Amount	From Rs. 5 lakh – Rs. 75 lakh	From Rs. 5 lakh – Rs. 10 lakh	From Rs. 5 lakh – Rs. 25 lakh	From Rs. 5 lakh – Rs. 25 lakh
Processing Fee	2% of the loan amount + GST	2% of the loan amount + GST	2% of the loan amount + GST	2% of the loan amount + GST
Offered to	Individuals/Enterprises	Architects/CAs/Engineers	Purchase of machinery	Doctors

Note: The interest rates, fees, and charges mentioned above are subject to change at the bank’s discretion and as per RBI guidelines. GST and service tax will be added to the charges.

Understanding Different Loan Types:

Loan Against Financials:

This type of loan is typically offered to businesses with a strong financial track record. Lenders assess the applicant’s financial statements, including income statements, balance sheets, and cash flow statements, to determine their eligibility and loan amount.

Businesses with consistent profitability and healthy financials are more likely to secure favorable loan terms.

Benefits of Loan Against Financials:

• Higher Loan Amounts: Businesses with strong financials may qualify for larger loan amounts compared to other loan types.
• Competitive Interest Rates: Lenders may offer more competitive interest rates to borrowers with a proven track record of financial stability.
• Flexible Repayment Options: Depending on the lender and the borrower’s financial situation, flexible repayment options may be available.

Loan for Professionals:

This type of loan is specifically designed to cater to the needs of self-employed professionals, such as doctors, lawyers, architects, and consultants.

Lenders consider the professional’s qualifications, experience, and income potential when evaluating their loan application.

Benefits of Loan for Professionals:

• Tailored to Professional Needs: These loans often come with features and benefits specifically designed for the unique needs of professionals.
• Minimal Documentation: Lenders may require less documentation compared to other loan types, as the professional’s qualifications and experience are considered key factors.
• Faster Approval Process: The loan approval process may be faster for professionals with established practices and a good credit history.

Loan Against POS Machine Sales:

This type of loan is offered to businesses that rely on Point of Sale (POS) machines for processing transactions.

The loan amount is typically based on the volume of sales processed through the POS machine. Businesses with a high volume of POS transactions are more likely to qualify for larger loan amounts.

Benefits of Loan Against POS Machine Sales:

• Easy Eligibility Criteria: Businesses that demonstrate consistent POS sales can easily meet the eligibility criteria for this type of loan.
• Quick Disbursal: The loan disbursal process is often faster, as lenders primarily rely on POS transaction data for assessment.
• Convenient Repayment Options: Repayments can be structured to align with the business’s cash flow, often through automatic deductions from POS sales proceeds.

Loan for Doctors:

As mentioned earlier, Equitas Small Finance Bank offers specialized loans tailored to the needs of medical professionals.

These loans can be used for a variety of purposes, including setting up new clinics, upgrading existing facilities, purchasing medical equipment, and managing working capital needs.

Benefits of Loan for Doctors:

• Specialized Features: These loans often come with features specifically designed for the medical profession, such as flexible repayment options and longer tenures.
• Lower Interest Rates: Lenders may offer lower interest rates compared to other business loan products, recognizing the stable income potential of medical professionals.
• Higher Loan Amounts: Doctors with established practices and a good credit history may qualify for higher loan amounts.

Fees and Charges Associated with Equitas Small Finance Bank Business Loans

Understanding the associated fees and charges is crucial before applying for any loan.

Breakdown of Fees and Charges:

• Delayed Payment: 2% of the outstanding EMI amount will be charged as a penalty for late payments. It’s essential to make timely EMI payments to avoid incurring these charges and maintain a good credit history.
• Cheque Bounce Charges: A fee of Rs. 500 will be levied for each bounced cheque. Ensure sufficient funds are available in your account before issuing cheques for loan repayments.
• Foreclosure Charges: The foreclosure charges vary based on the loan tenure and the number of EMIs serviced. Foreclosure refers to repaying the entire loan amount before the scheduled tenure.

EMI Serviced	12-23 months	24-35 months	More than 35 months
Less than 6 months	5%	5%	6%
6-12 months	3%	4%	5%
12-18 months	–	3%	3%
More than 18 months	–	3%	3%

Note: GST will be charged extra as per the applicable rates on all charges and fees.

Understanding Foreclosure Charges:

Foreclosure charges are levied by lenders to compensate for the interest income they lose when a borrower repays the loan before the scheduled tenure.

It’s essential to carefully consider the foreclosure charges before opting for early loan repayment. If the interest savings from foreclosure outweigh the foreclosure charges, it might be a financially sound decision.

Equitas Microfinance Loan: Supporting the Economically Weaker Sections

Beyond business loans, Equitas Small Finance Bank also extends microfinance loans designed to empower individuals from the Economically Weaker Section (EWS) and Low-Income Group (LIG).

These loans offer a lifeline for those who may not qualify for traditional banking products due to limited credit history or collateral.

Key Features of Equitas Microfinance Loans:

• Interest Rate:
  • 24% for loan amounts less than or equal to Rs. 25,000
  • 23% for loan amounts above Rs. 25,000
• Processing Fee:
  • Nil for loan amounts less than Rs. 25,000
  • 1% of the loan amount + GST for loan amounts above Rs. 25,000
• Loan Amount: Ranges from Rs. 2,000 to Rs. 35,000.

Impact of Microfinance Loans:

Microfinance loans have played a significant role in promoting financial inclusion and empowering individuals from marginalized communities.

These loans provide access to credit for small-scale entrepreneurs, enabling them to start or expand their businesses, generate income, and improve their livelihoods.

Examples of Microfinance Loan Usage:

• Starting a Small Business: Individuals can use microfinance loans to start small businesses like tailoring shops, food stalls, or retail stores.
• Purchasing Livestock: Microfinance loans can be used to purchase livestock, such as cows or goats, which can provide a source of income through milk or meat production.
• Investing in Agriculture: Farmers can utilize these loans to purchase seeds, fertilizers, or agricultural equipment to improve their crop yields.
• Meeting Emergency Expenses: Microfinance loans can also be used to cover unexpected medical expenses or other emergencies.

Equitas MSME Loan: Fueling Growth for Small and Medium Enterprises

Equitas Small Finance Bank Business Loan offerings also include MSME loans tailored specifically to meet the financial needs of self-employed individuals and small businesses.

Purposes of Equitas MSME Loans:

These loans can be used for a variety of purposes, including:

• Medical Expenses: Covering unexpected medical costs for the business owner or their family, ensuring that health emergencies don’t disrupt business operations.
• Home Renovation: Making improvements to the business owner’s residence, enhancing their quality of life and potentially increasing the value of their property.
• Children’s Higher Education: Financing higher education expenses for the business owner’s children, investing in their future and securing their long-term prospects.
• Debt Consolidation: Consolidating existing debts into a single, manageable loan, reducing the burden of multiple EMIs and simplifying financial management.
• Business Expansion: Investing in growth opportunities for the business, such as purchasing new equipment, expanding to new markets, or launching new product lines.

Fees and Charges for Equitas MSME Loans:

Fee/Charge	Amount
Processing Fee	1% of the loan amount + GST
Login Fees	Rs. 5,000
Renewal Fees	Min. 0.75% of loan amount
ROC Filing Charges	Rs. 3,000 + taxes per filing
Penal Interest for non-submission of Stock Statement	2% additional rate on existing ROI
Non-Submission of property/stock insurance	2% additional Rate of interest on the outstanding amount
Cheque Bounce Charges (Term Loan)	Rs 500 per instance + taxes
Late payment penalty (Term Loan)	24% p.a. (plus taxes) on the outstanding loan amount
Takeover Charges	4% of loan Outstanding for Term loan and 4% of the sanctioned amount for Working Capital Facility + taxes

Note: GST will be charged extra as per the applicable rates on all charges and fees.

Understanding Specific Charges:

ROC Filing Charges:

ROC (Registrar of Companies) filing charges are applicable when businesses need to file various documents and reports with the Registrar of Companies, as mandated by the Companies Act. These charges are typically associated with corporate compliance requirements.

Takeover Charges:

Takeover charges may be applicable if a borrower decides to transfer their existing loan from Equitas Small Finance Bank to another bank or NBFC. These charges are levied by the original lender to cover the costs associated with transferring the loan account.

Partnering with a Loan DSA in Kolkata: Simplifying the Loan Process

Navigating the loan application process can sometimes feel overwhelming, especially for first-time borrowers or those unfamiliar with the intricacies of financial products. This is where a Loan DSA in Kolkata, like Loanoffice.in, can be invaluable.

Loan DSAs act as intermediaries between borrowers and lenders, helping you find the best loan product that suits your specific needs and guiding you through the application process.

Benefits of Working with a Loan DSA:

• Expert Advice: Loan DSAs have in-depth knowledge of the loan market and can provide personalized recommendations based on your business requirements, financial situation, and credit profile.
• Simplified Application Process: They assist you with documentation, application submission, and follow-up with the lender, making the process smoother and more efficient. They can also help you understand the eligibility criteria and documentation requirements for different loan products.
• Wider Choice of Options: Loan DSAs work with multiple lenders, giving you access to a broader range of loan products and helping you compare offers to find the best deal in terms of interest rates, loan amount, tenure, and other fees.
• Negotiating Better Terms: Experienced DSAs can leverage their relationships with lenders to negotiate favorable interest rates and loan terms on your behalf, saving you money in the long run.
• Time Savings: By handling the legwork involved in the loan application process, DSAs save you valuable time and effort, allowing you to focus on your core business activities and avoid the hassle of dealing with multiple lenders directly.

Choosing the Right Loan DSA:

When selecting a loan DSA, it’s essential to choose a reputable and experienced agency with a proven track record of success. Consider factors like their industry knowledge, network of lenders, customer service, and fees before making a decision.

Conclusion

Equitas Small Finance Bank Business Loans offer a viable financing option for businesses of various sizes and sectors in Kolkata. Whether you need funds for working capital, expansion, or specialized equipment, exploring their product offerings can be a beneficial step towards achieving your business goals.

Remember to carefully evaluate the features, fees, and eligibility criteria before making a decision. Partnering with a reputable Loan DSA in Kolkata can further streamline the process and help you secure the best possible loan terms for your business, ensuring your financial journey is smooth and successful.

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