Looking for loans against commercial and residential properties for MSME businesses from Indian Bank?

Get all the information you need on the Indian Bank Mortgage Loan for MSMEs below.

Indian Bank Mortgage Loan for MSMEs

This loan helps business owners raise capital towards expanding their business by availing a loan against property. The maximum loan amount sanctioned under this loan is Rs. 5 crore.

Features of Indian Bank Mortgage Loan (Loan Against Commercial and Residential Properties for MSMEs)

Why this Loan?

  • The Indian Bank MSME Mortgage Loan is perfect for businesses in the Micro, Small and Medium Enterprise sector to get access to funds for business growth and expansion-related activities
  • The loan is extended as a term loan and must be repaid within 10 years

Loan Amount

  • The maximum loan amount to be sanctioned under this loan scheme is Rs. 5 crore

Interest

  • Loans up to Rs. 2 lakh: The interest rate for this loan is defined as the sum of one-year MCLR of the bank and Spread where Spread depends on the quantum of the loan. As of now, the MCLR of Indian Bank is 7.30% and spread is 1.35% bringing the effective interest rate at 8.65%
  • Loans Above Rs. 2 lakh up to Rs. 10 lakh: The interest rate for this loan is defined as the sum of one-year MCLR of the bank and Spread where Spread depends on the quantum of the loan. As of now, the MCLR of Indian Bank is 7.30% and spread is 2.00% bringing the effective interest rate at 9.30%
  • Loans Above Rs. 10 lakh up to Rs. 50 lakh: The interest rate for this loan is defined as the sum of one-year MCLR of the bank and Spread where Spread depends on the quantum of the loan. As of now, the MCLR of Indian Bank is 7.30% and spread is 2.40% bringing the effective interest rate at 9.70%
  • Loans Above Rs. 50 lakh: The interest rate for this loan is defined as the sum of one-year MCLR of the bank and Spread where Spread depends on the quantum of the loan. As of now, the MCLR of Indian Bank is 7.30% however, the spread for this loan amount is not mentioned on the bank’s website. Please check with the bank for details

Repayment

  • This loan must be repaid within 10 years as EMIs
  • The moratorium period on this loan is not mentioned on the bank’s website. We suggest asking a bank representative at the time of applying for the loan

Security

  • The bank asks for equitable mortgage or registered mortgage of residential or commercial property as security for this loan

Eligibility

  • Sole proprietors, partnership firms, Limited Liability Partnerships (LLPs), Public Limited Companies and Private Limited Companies are eligible for this loan
  • This loan cannot be availed for speculative purposes

Borrower’s Contribution to Total Cost (Margin Money)

  • The bank charges 40% of the loan amount as margin for this loan

Processing Charges

  • The bank levies up to 1.18% 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 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
  • A4 size copies of the aforementioned documents

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
  • All A4 size copies of the aforementioned documents

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
  • All A4 size copies of the aforementioned documents

Reference Facts

  • Indian Bank Website: www.indianbank.com
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 00 000, 1800 425 4422