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How to get Business Loan from Bank of Maharashtra

Hello friends, today we will know the complete details Bank of Maharashtra is a public sector bank, which offers banking and financial products at competitive interest rates. Apart from various lending products and MSME loans, Bank of Maharashtra in collaboration with the Government of India also offers loan schemes under Pradhan Mantri Mudra Yojana (PMMY) and Stand-up India. Bank of Maharashtra offers a variety of business loans for the self-employed and entrepreneurs who need urgent funds for expansion or financing working capital requirements.

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If you need money to expand your own business or already operated business, then you can get business loan from Bank of Maharashtra. How to get Business Loan from Bank of Maharashtra? Along with giving information about this, here you are being told about Bank of Maharashtra Business Loan – Eligibility, Interest Rates.

Bank Of Maharashtra Business Loan Types

Bank of Maharashtra provides various types of loans for the people doing business, which are as follows.

Mahabank GST Credit Scheme

Mahabank Scheme for Contractor

Maha MSME Project Loan Scheme

Maha Lap – Mortgage Loan

Mahabank Scheme for Units Engage in Hospitality

Mahabank Vehicle Loan

Mahabank Loan Scheme for Doctors

Maha MSME Machinery/Equipment Scheme

Stand Line of Credit

Bank Of Maharashtra Business Loan Interest Rate

Bank of Maharashtra offers business loans starting at an interest rate of 14.50%. The interest rate remains in the range of 14.50% to 15.50%. Rates vary depending on the loan amount, business and type of loan taken.

Interest rate

14.50%

processing fee

up to 3% of loan amount

Tenure

12 months to 36 months

EMI per lakh

Rs 3,442

Loan amount

Minimum 50,000 and maximum 1.50 lakh

Part Prepayment Fee

Allowed after 1 EMI,

Initial foreclosure charges

Not Charged

Factors affecting interest rate

There are many factors on the basis of which the bank calculates your interest rate. Some of these factors are as follows.

  • Loan Amount: Higher the loan amount, lower will be the interest rate. The bank gives a minimum loan of 50,000 to 1.50 lakh.
  • CIBIL Score: The higher the CIBIL score, the higher the chances of a business loan getting a loan with minimum interest. However, to take a loan from Bank of Maharashtra, your CIBIL score should be at least 700.
  • Revenue: If your monthly revenue is high then Bank of Maharashtra will provide you loan at low interest rate. The bank gives loans to those borrowers whose annual turnover is at least 0.
  • Time in Business: If you have significant business experience, Bank of Maharashtra offers loans at low rates.

Benefits of Bank of Maharashtra Business Loan

Some of the benefits of taking a business loan from Bank of Maharashtra are as follows.

  • You can prepay part of your loan any time after paying 1% prepayment fee.
  • You can foreclose your entire business loan any time after paying 0 EMI on foreclosure charges.
  • Bank of Maharashtra has more than 1,922 branches in India where you can avail the service.

Bank Of Maharashtra Business Loan Eligibility

Self Employed Individuals, Proprietor, Private Limited Company and Partnership Firms engaged in the business of manufacturing, trading or services.

The applicant should be at least 21 years of age at the time of applying for the loan, and not more than 65 years of age at the time of loan maturity.

Loan amount

Maximum Rs.5 crore

Tenure

maximum 7 years

Bank Of Maharashtra Business Loan Interest Rate

12% to 17%

Loan processing fee

Up to 3% of the loan amount

Bank of Maharashtra Business Loan Required Documents.

  • PAN Card – For Individual / Partnership Firm / Company.
  • Identity Proof – Any one (like Voter ID / Driving License / Passport / Aadhar Card)
  • Address Proof – Any (like Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement)
  • Proof of ownership of residence or office in the name of the applicant or jointly with a family member.
  • Passport size photographs of all the applicants and co-applicants applying for the loan.

Required financial documents

Grade

List of documents

Self Employed Individual / Sole Proprietorship

·       Latest Audited ITR and Financials for the last 2 years. (Balance Sheet, Profit and Loss Account, Computation of Income with all Schedules.)

·       Bank statements from the main account/s of the borrower for the last 6 months

For Self Employed Professionals

·       Latest Audited ITR and Financials for the last 2 years. (Balance Sheet, Profit and Loss Account, Computation of Income with All Schedules)

·       Certificate of Competency and Degree Certificate for professional professionals (Doctor, Architect, Chartered Accountant etc.)

For Partnership Firms / Private Limited Companies

·       Latest Audited ITR and Financials for the last 2 years (Balance Sheet, Profit and Loss Account, Computation of Income with all Schedules)

·       Bank details from the main account for the last 6 months and 3 months of all other bank accounts mentioned in the balance sheet

·       Partnership deed and partnership authorization letter for partnership firms

·       Memorandum and Articles of Association and Board Resolution from the company

·       Certificate of Incorporation (COI) for companies

Bank Of Maharashtra Business Loan Repayment

You can repay Bank of Maharashtra Business Loan in three ways, which are as follows.

Standing Instruction (SI): If you are an existing account holder with the lending bank, then standing instruction is a good way to pay your EMI. Your EMI amount will be automatically debited from your Bank of Maharashtra account at the end of the monthly cycle. It is simple and you don’t need to worry about paying off the loan manually every month.

Electronic Clearing Service (ECS): If you do not have an account with the lending bank, you can opt for the electronic clearing service where you allow the lending bank to automatically withdraw funds each month directly from your other bank.

Post-dated checks (PDCs): Post-dated checks can be deposited to the lender bank for a tenure period, which the bank will deposit every month on a date specified by you. Most of the banks provide this facility only in those areas where ECS or SI facilities are not available. This method also has a drawback, where the bank may lose the check because the tenure or tenure is longer.

Tax Benefits Available in Business Loan

Interest paid on business loans is a tax-deductible expense, meaning that interest paid is an expense for the business and is deducted from gross income. However, the principal amount is not tax deductible as repayment of principal means paying back the money borrowed, hence it cannot be considered as an expense.

As tax is paid on the net income earned by a businessman in a financial year. So, interest can be subtracted from gross income to calculate net income. Net income is obtained by deducting interest expense from gross income on which income tax is paid.

As after deduction of interest from the gross income of the business, the net taxable income on which tax is to be paid is reduced and hence the businessman is required to pay less income tax.

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