Looking for MSME Loan for Hospitality Businesses from Bank of Maharashtra?

You have landed at the right place. This page contains all the information you will need on Bank of Maharashtra’s Mahabank Loan Scheme for Units Engaged in Hospitality.

Bank of Maharashtra Mahabank Scheme for Units Engaged in Hospitality

This loan helps hospitality businesses under Micro, Small and Medium Enterprises sector get funds to meet their Working Capital needs and purchase Land and construct office premises for business (Term Loan). The maximum loan amount is Rs. 10 crore for term loans and Rs. 2 crore for Working Capital loans.

Features of Mahabank Scheme for Units Engaged in Hospitality

Why this Loan?

  • The Bank of Maharashtra MSME Loan for Hospitality Businesses is meant for hospitality businesses under the MSME sector (Hospitality businesses with less than Rs. 5 crore investment in equipment are classified as MSME as per the MSMED Act
  • The term loan can be availed for purchase of Land and Construction of hotel, restaurant, etc. as long the cost of land does not exceed 25% of total project cost
  • The Working Capital loan is ideal for any hospitality business meet its Working Capital needs

Loan Amount

  • Term Loan: The maximum loan amount is capped at Rs. 10 crore
  • Working Capital Loan: The maximum loan amount is capped at Rs. 2 crore
  • The minimum loan amount for Working Capital and Term Loans is Rs. 10 lakh

Interest

  • Loans up to Rs. 5 crore: One-year Marginal Cost of Funds based Lending Rate (MCLR) of Bank of Maharashtra + Business Strategy Spread (BSS) + Strategic Premium. As of now, one-year MCLR of Bank of Maharashtra is 7.50%, BSS is 0.25% and Strategic premium for this loan amount is 1.75% bringing the effective interest rate to 9.50%
  • Loans Above Rs. 5 crore: One-year Marginal Cost of Funds based Lending Rate (MCLR) of Bank of Maharashtra + Business Strategy Spread (BSS) + Strategic Premium. As of now, the one-year MCLR is 7.50%, BSS is 0.25% and Strategic Premium for this loan amount is 2.00% bringing the effective interest rate to 9.75%

Repayment

  • As of now, the repayment period and moratorium for this loan is not mentioned on the bank’s website. We suggest getting in touch with the bank to know these details when you apply for this loan

Security Needed

  • As of now the security needed for this loan is not mentioned on the bank’s website. Please talk with the bank representatives when you apply

Eligibility

  • All hospitality businesses such as Hotels, Restaurants, Fast Food Joints, Pizza Centres (Franchises), Caterers, Dhabas, Bakeries, Mess, Tour Operators, Water Sports, Amusement Parks, House Boats and Floating Restaurants in the MSME sector are eligible for this loan
  • This loan can only be availed for meeting the Working Capital needs or purchasing Land and construction of hotel, restaurant, etc. Please note that the cost of purchase of land should not be more than 25% of the total project cost

Borrower Contribution to Total Cost (Margin Money)

  • Micro and Small Enterprises: Bank of Maharashtra takes minimum 20% margin for these loans
  • Medium Enterprises: Bank of Maharashtra takes minimum 25% margin for these loans

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. For instance, if the total amount needed is Rs. 20 lakh, you will have to contribute 20% which comes to Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

Processing Charges

  • Working Capital Loans: The bank charges 0.25% of total loan amount as processing fee excluding GST for new Working Capital Loans. For review and enhancement requests, the bank charges 0.30% of total loan amount + GST
  • Term Loans: The bank charges 0.80% of total loan amount as processing fee excluding GST for new Term Loans. For review and enhancement requests, the bank charges 0.10% of total loan amount up to Rs. 1 lakh + GST for loans above 25 lakh and no processing charges for loans up to Rs. 25 lakh

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 Issuing 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 (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: Company’s Business Profile, Promoter/Guarantor’s Profile, Corporate Brochure, Business Experience Supporting Documents, Business References

Reference Facts

  • Bank of Maharashtra Website: www.bankofmaharashtra.in and www.mahaconnect.in (net banking)
  • Headquarters: Pune, Maharashtra
  • Call Centre Toll-Free Number: 1800 233 4526