Bandhan Bank offers a wide range of business loans catering to the financial requirements of small, medium, and large-scale businesses. These loans help borrowers expand their businesses, improve cash flow, fund working capital needs, and invest in new opportunities.
In this blog, we’ll discuss the Bandhan Bank Business Loan Types, their purpose, eligibility criteria, and the documentation required to avail them.
Types of Bandhan Bank Business Loan
Bandhan Bank business loans can be classified into loans for small businesses, medium and large businesses, and top-up loans for existing borrowers.
Loans for Small Businesses
1. Srishti Loan: This group-based individual microloan is provided for equipment upgrades, staff hiring, raw material investments, and other growth-related requirements.
- Loan amount: Rs 15,000 to Rs 1 lakh
- Tenure: 1 year/2 years
2. Sahayata Loan: For individuals engaged in income-generation activities, this loan facility can help meet their financial needs.
- Loan amount: Rs 50,001 to Rs 3 lakhs
- Tenure: 1 to 4 years
3. PM SVANidhi Loan: This loan is for ULB-identified street vendors to finance working capital requirements.
- Loan amount: Up to Rs 10,000 (in the first cycle)
- Tenure: Up to 1 year (in the first cycle)
4. Micro Bazaar Loan: Small entrepreneurs can use this loan to meet their working capital needs, such as salary payments, raw material purchases, and power charges.
- Loan amount: Rs 26,000 to Rs 1.5 lakhs
- Tenure: 1 year/2 years
5. Small Enterprise Loan: Suitable for small enterprises, this loan can be used for both term loans and working capital requirements.
- Loan amount: Above Rs 3 lakh to Rs 25 lakh
- Tenure: Term Loan – Up to 3 years and Working Capital – repayable on demand
Also read, Shriram Finance Business Loan
Top-up Loans
1. Subriddhi Loan: This top-up loan facility is offered to existing micro-banking borrowers needing liquidity support.
- Loan amount: Up to 50% of the existing loan disbursement amount
- Tenure: 1 to 4 years
2. Suyog Loan: Existing Sahayata loan borrowers needing liquidity can benefit from this top-up loan facility.
- Loan amount: Up to 50% of the existing Sahayata loan disbursement amount
- Tenure: 1 to 3 years
Loans for Medium and Large Businesses
1. Term Loan: Bandhan Bank offers term loans to small and medium enterprises (SMEs) to finance new businesses or expand existing ventures.
- Loan amount: Depends on the applicant’s documents assessment and the bank’s internal policies
- Tenure: Up to 7 years, including a maximum moratorium period of 3 months
2. Working Capital Loan: This loan is provided to existing profit-making MSME units to meet their working capital requirements.
- Loan amount: Depends on the applicant’s documents assessment and the bank’s internal policies
- Tenure: Repayable on demand
3. Loan against Property: This loan is granted against property to existing businesses for meeting working capital requirements, business expansions, renovations, and investments.
- Loan amount: Up to Rs 10 crore
- Tenure: Up to 15 years
4. Commercial Vehicle & Construction Equipment Loan: This loan is offered to self-employed individuals and businesses to purchase commercial vehicles and construction equipment.
- Loan amount: Rs 1 lakh to Rs 5 crore
- Tenure: Up to 7 years
Bandhan Bank Business Loan Types Comparison
| Loan Type | Loan Amount | Tenure |
|---|---|---|
| Srishti Loan | Rs 15,000 to Rs 1 lakh | 1 year/2 years |
| Subriddhi Loan | Up to 50% of the existing Sahayata loan amount | 1, 2, 3, or 4 years |
| Suyog Loan | Depends on the assessment of the applicant’s documents and the bank’s internal policies | 1, 2, and 3 years |
| Small Enterprise Loan | Above Rs 3 lakh to Rs 25 lakh | Term Loan – Up to 3 years; Working Capital – repayable on demand |
| Sahayata Loan | Rs 50,001 to Rs 3 lakhs | 1, 2, 3, 4 years |
| PM SVANidhi Loan | Up to Rs 10,000 (in first cycle) | Up to 1 year (in first cycle) |
| Micro Bazaar Loan | Rs 26,000 to Rs 1.5 lakhs | 1 year/2 years |
| Term Loan | Up to 1 year (in the first cycle) | Up to 7 years |
| Working Capital Loan | Depends on the assessment of the applicant’s documents and the bank’s internal policies | Repayable on demand |
| Loan against Property | Up to Rs 10 crore | Up to 15 years |
| Commercial Vehicle & Construction Equipment Loan | Rs 1 lakh to Rs 5 crore | Up to 7 years |
Bandhan Bank Business Loan Eligibility Criteria
To secure a business loan from Bandhan Bank, it’s crucial to meet the following eligibility criteria:
1. Age: Minimum 23 years, maximum 60 years by the loan maturity.
2. Business Existence: Your business should have been operational for a minimum period, typically ranging from 1-3 years, depending on the specific loan product you are applying for.
3. Financial Stability: Your business should demonstrate a good track record of regular income and have minimal outstanding debts.
4. CIBIL Score: A decent CIBIL score, ideally above 700, is necessary as it reflects your creditworthiness and repayment history.
5. Non-Individual Applicants: For businesses not owned by individuals, such as partnerships, corporations, or trusts, a 2-year operational track record in the same line of business is essential.
6. New Entrepreneurs: Understanding the challenges faced by new entrants, Bandhan Bank also opens its doors to eligible new entrepreneurs.
Documents Required for Bandhan Bank Business Loan
The following documents are required to apply for Bandhan Bank Business loan:
- KYC documents for yourself and the business (proprietor/partner/company directors).
- 3 passport-size photographs of the borrower.
- Trade License or any other business license.
- Income proof and financial statements (ITR/GST Returns).
- Residence ownership and stability proof.
- Last 6 months Bank account statement.
- Copy of the partnership deed.
Conclusion
In this blog post, we’ve explained the different types of loans, their purpose, eligibility criteria, and required documentation so that you can avail of the most suitable loan for the growth and expansion of your business. If you like this article, please share it with your friends and family.
Frequently Asked Questions (FAQs)
Bandhan Bank offers various types of business loans, including loans for small businesses, top-up loans, and loans for medium and large businesses.
The Srishti Loan amount ranges from Rs 15,000 to Rs 1 lakh, with a tenure of 1 or 2 years.
Yes, Bandhan Bank offers Subriddhi Loan and Suyog Loan as top-up loan facilities to existing borrowers.
Term loans are available to small or medium enterprises, such as partnerships, sole proprietorships, or LLPs. The business should have at least a 2-year track record, though the bank also considers new eligible entrepreneurs.
The documentation varies depending on the type of loan. Common documents include identity proof, address proof, passport-size photographs, and financial statements.
Loans against Property can be used by businesses to meet their working capital requirements and general business needs like renovation, investment, expansion, and repairs.
The Commercial Vehicle & Construction Equipment Loan offers amounts ranging from Rs 1 lakh up to Rs 5 crore.
The Sahayata loan is offered to people engaged in active income-generation activities. Applicants should be between 20 and 65 years old at the time of loan maturity.
Yes, Bandhan Bank offers loans like the Srishti Loan, Micro Bazaar Loan, and Small Enterprise Loans specifically designed for small entrepreneurs.
