Looking for a Corporate Business Loan from ESAF Small Finance Bank?

We have summarised some important information so it is easier for you to choose the right loan

Business Loans from ESAF Small Finance Bank

Being one of the up and coming small finance banks in India, ESAF Small Finance Bank offers a range of business loans to different segments of its customer base. The bank cites a few business loan schemes on its website that its corporate customers can use to raise funds for their business.

The business loan offered by ESAF Small Finance Bank are:

  • Business Loan
  • Clean Energy Product Loan
  • Loan Against Property

We give you a brief introduction to the business loan below.

ESAF Small Finance Bank Business Loan

ESAF Small Finance Bank offers term loan schemes to help businesses to meet working capital or capital expenditure needs. Businesses in the manufacturing, trading and service sector are eligible for this loan.

Features of ESAF Small Finance Bank Business Loan

Why this Loan?

  • The ESAF Small Finance Bank Business Loan is meant for you if your business needs funds to meet its capital expenditure or working capital needs
  • This is a secured loan with maximum loan amount capped at Rs. 10 lakh

ESAF Small Finance Bank Clean Energy Project Loan

This loan is designed to help businesses get the funds to execute solar-based power generators, biomass-generated power generators, etc. The maximum loan amount sanctioned under this loan is Rs. 10 lakh.

Features of ESAF Small Finance Bank Clean Energy Project Loan

Why this Loan?

  • The ESAF Small Finance Bank Clean Energy Project Loan is the perfect corporate business loan to help businesses raise funds to execute clean energy projects successfully
  • The borrower must present a feasibility certificate issued by the state electricity board to avail this loan

ESAF Small Finance Bank Loan Against Property (for Business)

This loan helps business owners raise capital towards expanding their business or individuals to set-up their business by availing a loan against property. The maximum loan amount is capped at Rs. 10 lakh.

Features of ESAF Small Finance Bank Loan Against Property (for Business)

Why this Loan?

  • The loan is meant for you if you are looking for funds to set up your business, expand your business or for other needs against property
  • The repayment period for this ESAF Small Finance Bank Business Loan Against Property is 7 years and the maximum loan amount sanctioned under this loan is Rs. 10 lakh

Important Note: Even though the bank’s website has information available for three business loan schemes at this time, there is a possibility that the bank may offer more corporate loan options that are not yet published on the website. We suggest that you get in touch with the nearest branch to check the loan schemes they offer. This will also help you get a custom quote since many loan schemes are need-based and certain charges such as application charges, service charges, etc. may be decided on a case-to-case basis.

Interest Rate for ESAF Small Finance Bank Business Loans

  • As of October 2020, ESAF Small Finance Bank mentions that the interest rate on its loans will be a sum of the Marginal Cost of Funds-based Lending Rate (MCLR) or Repo Rate and a specific range of additional interest which is called spread in banking terminology
  • The bank offers fixed interest rate and floating interest rate loans
    • For fixed rate loans below 3 years the benchmark rate is MCLR and the spread varies from 0.80% to 9.70%
    • For fixed rate loans above 3 years, the Repo rate is the benchmark applicable and the spread is in the range of 6.25% to 19.50%
    • For floating rate loans across all tenures, the interest rate is the sum of the Repo rate and a spread range of 4.26% to 11.85%
  • Specific interest rates on business loans are not mentioned on the bank’s website except for mean interest rate for MSME loans for February 2020 which stood at 23.12%. Please check with the bank for more details

Eligibility for ESAF Small Finance Bank Business Loans

  • Individuals, Proprietors, Partnership Firms, Private Limited and Public Limited Companies can apply for these loans

Documents Needed for Individuals

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card/ PAN Card Issue Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income/Banking Proof: Last 6 months Bank Account Statement of applicant and co-applicant, Loan Statement of Running Loans, Latest Closed Loan NOC, Net Worth of the applicant and co-applicant
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report

Documents Needed for Proprietorship and Partnership Firms

  • Loan Application Form duly filled and signed
  • Partnership Deed and Partnership Registration Certificate
  • ID Proof of the Firm: Firm PAN Card or PAN Issuing Letter
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income Proof: CMA Data and Project Report, Debtors and Creditors Certificate, GST Return, Last 3 years ITR of applicant and co-applicant, Audited or CA Certified Computation of Income/Trading Account/Profit and Loss Account/Balance Sheet, Annual Audit Report and Tax Audit Report if audited, Form 16A if applicable, Net Worth of applicants, co-applicants and guarantors
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security (as applicable): Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Partnership’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Documents Needed for Private Limited and Public Limited Companies

  • Application Form duly filled and signed
  • Company ID Proof: Company’s PAN Card
  • Office Address Proof: Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Business Proof: AOA and MOA, Company Incorporation Certificate, Business Commencement Certificate, Board Resolution, CA/CS verified Share Holding Pattern, ROC Annual Return, DIN Certificate, List of Directors on Company Letter Head, GST Number, Form 32 in case of Director Change
  • Income Proof: CMA Data and Project Report, Last 3 Years ITR Acknowledgement copy of Company and all Directors, Last 3 Years Annual Credit Report or Tax Audit Report with Article 3CB, Article 2D, Article 3CD, TDS Certificate/Form 16A, Net Worth Certificate
  • Banking Proof: Last 1-year Statement of Company’s Major Account, Current Account, Cash Credit Account, Overdraft Account, Loan Statement of Running Loans, Latest Closed Loan NOC and Last 6-months Bank Statement of Applicant and Co-applicant’s Savings Account
  • Security: Margin Money, Previous and Current Sales Deed, Plant and Machinery list, Plant and Machinery Current Valuation Report, Property Photographs, Previous Property Search and Valuation Report
  • Other Relevant Documents: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Reference Facts

  • ESAF Small Finance Bank Website: www.esafbank.com
  • Headquarters: Thrissur, Kerala
  • Customer Care Toll-Free Number: 1800 103 3723