ING Vysya Bank
ING Vysya Bank considers micro, small and medium-sized enterprises to be an important part of the country’s economy, and has been dealing with them for the past 75 years. The bank is committed to helping MSME units meet their finance requirements, through a number of schemes (http://www.ingvysyabank.com/scripts/smenterprises.aspx).
The following are the major schemes offered by ING Vysya Bank to MSMEs in the country.
MPower - Business Loans Trade (MPower – BLT)
These loans are offered to SMEs with a credit requirement between Rs 5 lakh and Rs 200 lakhs, including retailers, shop owners, contractors, transport operators and commission agents. The loans are also available to professionals such as lawyers, consultants, doctors and women entrepreneurs.
Personalised attention to clients through specially appointed Relationship Managers and simplified documentation are the major attractions of these loans for MSMEs. Life and non-life insurance coverage can also be opted for, along with the loan.
The amount of loan sanctioned depends on factors such as the business’s track record in the past, reputation in the market, the everyday requirements of the business, as well as security that the firm has to offer.
MPower - Rent
Loans under this scheme are available to individuals, sole proprietary firms, partnership firms, trusts and other registered bodies, as well as public and private limited companies, against the security of their rent receivables.
The minimum loan amount under this scheme is Rs 25 lakh, while no maximum limit has been fixed. The amount of loan sanctioned would depend upon the net monthly rent receivable, after deducting TDS.
Hypothecation of the rent receivables for the period of the loan, mortgage over leased property or personal guarantee by partners/promoters/directors, or third party guarantee can be furnished as security for availing of such loans.
Business loans to small-scale industries (CGTSI)
Under the Credit Guarantee Fund Trust For Small Industries (CGTSI), ING Vysya Bank offers loans to small-scale business units, particularly those engaged in manufacturing, processing, information technology (IT) or business related to software.
Loans of up to Rs 25 lakh are available under this scheme, without any collateral and/or guarantee. However, units that wish to avail of these loans should pay a one-time guarantee fee of 2.5 per cent of the amount of credit sanctioned. Also, there would be an annual service fee of 1 per cent of the outstanding loan amount as on March 31 every year.
Competitive rates of interest are the major attraction of these loans for SMEs.
Under this scheme, loans are available to educational institutions, to finance their day-to-day activities, as well as for the construction of classrooms, laboratories, staff rooms, hostels, libraries, stadiums and hospitals (in case of medical colleges).
Existing educational institutions receive more preference from the bank, for the availing of loans under this scheme. Minimum student strength of 500 and teacher strength of 25 is required for educational institutions to avail of these loans.
Rs 20 lakh is the minimum loan amount that would be sanctioned under this scheme, while there is no maximum limit fixed for the same. Charge over the fixed assets possessed by the educational institution or mortgage over the building would be considered as collateral for availing of these loans.