Unsecured credit facilities for small businesses from ICICI Bank
Today, there are two types of unsecured credit facilities open to small business owner. Whether it is to be a business overdraft or a business installment loan, the choice would ultimately depend on the needs of your company and how capital will be utilized.
If your company needs a safety net for rainy days, your best bet would be an unsecured bank overdraft facility. It is an excellent way to minimize your interest expense especially if the funds are used for a short period. Some banks even pay you preferential interest rates if your account has credit balances in it. Your current banker probably has offered you this facility before so take it. With the credit line being reviewed on a yearly basis take the maximum quantum offered. After all, there’s no certainty that you will be getting the same or better deal in years to come.
On the other hand if your company is planning to expand, go with the unsecured business installment loan. This way you get to maximize your business potential without the fear of your sources of livelihood being taken away from you. Most banks do not restrict the usage of the funds thus the flexibility is a big bonus to any small business owner.
Most banks have slightly different policies on unsecured credit facilities for small businesses.You should shop around for more information before deciding whether debt financing is suitable for your company and if so, which bank to acquire this source of funds from.
Business Loans From ICICI Bank
Overdraft:
Easy Access Money
* Working capital as Overdraft facility
* Validity of 12 months
* Interest to be levied on the amount utilized*
* Enjoy the flexibility to pay a minimum amount every month*
* Interest Rate (IBAR + Cash Credit Premia – 2.7.5% )*
* Processing Fees of 2.5%
Business Installment Loan:
Seize growth opportunities
* Credit facility in the form of Term Loan / Business Installment Loan
* Payment in the form of equated monthly installments
* Repayment tenure of 12-36 months
* Plan and control your cash flows–
* Interest Rate (IBAR + Term Premia (0) + 3.5%)*
* Processing Fees of 2.5%
Advantages:
* Faster loan sanctions with minimum documentation*
* One stop solution with a bouquet of products
* Attractive rate of interest*
* Query resolution at local branches
Other benefits:
* Facility to deposit cash in the current account**
* Online repayment facility**
* Availability of local cheques
* Flexibility to open accounts at local branches
Eligibility:
* Income Tax Payee
* Good business track record
* Comfortable business vintage
Documents required:
* Latest sales tax/VAT/service tax return
* Latest income tax return
* Bank statement
* Certificate of registration
* Proof of ownership: Title Deed, Municipal Tax/Municipal Charge Bill / Receipt, Property Tax Paid Bill
* Residence Proof: Telephone Bill/Electricity Bill Driving License/Valid Passport
* Identity proof: Driving License, Passport, Pan card