Looking for an Unsecured Business Loan from South Indian Bank?

Get all the information you need on the Collateral-free Business Loan from South Indian Bank below.

South Indian Bank Collateral-free Business Loan

This loan helps businesses in the manufacturing, trading and services sector meet their working capital needs. The maximum loan amount sanctioned by the bank under this loan scheme is Rs. 1 crore.

Features of South Indian Bank Collateral-free Business Loan

Why this Loan?

  • The South Indian Bank Collateral-free Business Loan scheme is meant for you if you need funds for meeting your working capital needs
  • As the name suggests, this is a collateral-free loan and self-employed professionals and businesses in the manufacturing, trading and services sector with a Bureau Score of 650 or above are eligible for this loan
  • The loan must be repaid within 4 years in Equated Monthly Instalments (EMIs)

Loan Amount

  • The minimum loan amount sanctioned under this loan scheme is Rs. 5 lakh and the maximum loan amount sanctioned under this loan scheme is Rs. 1 crore

Interest

  • The applicable interest rate on South Indian Bank Collateral-free Business Loan is defined as the sum of two parameters: One-year Marginal Cost of Funds based Lending Rate (MCLR)/Repo Rate and Credit Risk Premium. The Credit Risk Premium depends on the Bureau score/rating of the borrower
  • Please check the South Indian Bank interest rate page to check out the details

Repayment

  • This loan must be repaid within 4 years
  • Any standard moratorium period for this loan is not mentioned on the bank’s website. We suggest checking with the bank before applying for the loan

Security Needed

  • This is a collateral-free loan

Eligibility

  • Self-employed professionals, self-employed non-professionals and businesses in the manufacturing, trading and services sector are eligible for this loan
  • The applicant must be at least 21 years of age at the time of loan application and maximum 65 years of age at the time of loan maturity
  • The applicant must have a minimum Bureau Score of 650 to be eligible for this loan

Borrower’s Contribution to Total Cost (Margin Money)

  • Since this is a non-specific purpose loan, it is likely that the bank does not charge any margin. But it will help if you check with them for details

Processing Charges

  • The bank charges up to 2% of the total loan amount as processing charges for this loan

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
  • For term loans: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable

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
  • For Term Loans Only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable

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
  • For term loans only: Project report with details on product choice, market survey, projection of production and sales, infrastructural needs, etc.; projected cash and fund flow statement for the repayment period; and copies of all licenses and permits wherever applicable

Reference Facts

  • South Indian Bank Website: www.southindianbank.com
  • Headquarters: Thrissur, Kerala
  • Call Centre Number: +91 487 2420020, +91 487 2420058, +91 487 2420113, +91 487 2436666