Star SME Liquid Plus Loan Scheme – Bank of India
Star SME Liquid Plus Loan Scheme – Bank of India
Hello friends,
We all know that Small and Medium Enterprises (SMEs) play a vital role in the growth and development of the Indian economy. They contribute significantly to the employment and GDP of the country. However, SMEs often face challenges in accessing funds to grow their businesses. To address this issue, the Bank of India has launched the Star SME Liquid Plus Loan Scheme – Bank of India. This post will discuss the features and benefits of this loan scheme. We here discuss a loan scheme named Star SME Liquid Plus Loan Scheme – Bank of India.
Star SME Liquid Plus loan is a term loan, given to a proprietorship/partnership firm that qualifies to be a SME. The firms need to be doing business for at least 3 years and should be making a profit for the last 2 years to apply for this loan. The businesses must have an entry-level credit rating of SBS 5. The loan needs to be repaid through 84 installments, within 7 years with a moratorium of up to 12 months
Table of Contents
- What is the Star SME Liquid Plus Loan Scheme?
- Eligibility Criteria
- Loan Amount and Tenure
- Interest Rates
- Documents Required
- Application Process
- Repayment Options
- Benefits of Star SME Liquid Plus Loan Scheme
- Conclusion
- FAQs
What is the Star SME Liquid Plus Loan Scheme?
The Star SME Liquid Plus Loan Scheme is a specialized loan product designed to provide working capital to SMEs. This loan scheme is suitable for businesses that require short-term funds to manage their cash flow, purchase inventory, and meet other working capital needs.
The loan can be used for various purposes, such as business expansion, machinery purchase, and marketing expenses. Star SME Liquid Plus loan is a term loan, given to a proprietorship/partnership firm that qualifies to be a SME.
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The firms need to be doing business for at least 3 years and should be making a profit for the last 2 years to apply for this loan. The businesses must have an entry-level credit rating of SBS 5. The loan needs to be repaid through 84 installments, within 7 years with a moratorium of up to 12 months
Eligibility Criteria-Star SME Liquid Plus Loan Scheme – Bank of India
To be eligible for the Star SME Liquid Plus Loan Scheme, the applicant must meet the following criteria:
- The applicant must be a self-employed individual, partnership firm, or private limited company.
- The business must have a minimum turnover of Rs. 5 crore per annum.
- The business should be in operation for a minimum of 3 years.
- The applicant should have a good credit score.
Loan Amount and Tenure
The loan amount under the Star SME Liquid Plus Loan Scheme can range from Rs. 10 lakhs to Rs. 2 crores. The tenure of the loan can be up to 12 months.
Interest Rates-Star SME Liquid Plus Loan Scheme – Bank of India
The interest rates for the Star SME Liquid Plus Loan Scheme are competitive and vary based on various factors such as the loan amount, tenure, and credit score of the applicant. The bank charges a processing fee of up to 1% of the loan amount.
Documents Required
The following documents are required to apply for the Star SME Liquid Plus Loan Scheme:
- Application form with a photograph of the applicant
- Identity proof such as a PAN card, Aadhaar card, Voter ID card, or Passport
- Address proof such as an Aadhaar card, Voter ID card, Passport, or utility bill
- Business proof such as registration certificate, trade license, and GST certificate
- Bank statements for the past 12 months
- Income tax returns for the past 2 years
- Audited financial statements for the past 2 years
Application Process-Star SME Liquid Plus Loan Scheme – Bank of India
To apply for the Star SME Liquid Plus Loan Scheme, the applicant can visit the nearest Bank of India branch or apply online through the bank’s website.
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The applicant needs to submit the necessary documents along with the loan application form. The bank will verify the documents and assess the eligibility of the applicant before sanctioning the loan.
Repayment Options-Star SME Liquid Plus Loan Scheme – Bank of India
The Star SME Liquid Plus Loan Scheme offers flexible repayment options to the borrower. The borrower can choose to repay the loan in monthly, quarterly, or half-yearly installments.
The borrower can also choose to prepay the loan without any penalty charges. The loan needs to be repaid through 84 installments, within 7 years with a moratorium of up to 12 months.
Benefits of Star SME Liquid Plus Loan Scheme
- Quick disbursal of funds: The loan is disbursed quickly to meet the working capital needs of the business.
- Competitive interest rates: The interest rates are competitive and vary based on various factors such as the loan amount, tenure, and credit score of the applicant.
- Flexible repayment options: The borrower can choose to repay the loan monthly,
- Flexible repayment options: The borrower can choose to repay the loan in monthly, quarterly, or half-yearly installments, depending on their business needs and cash flow.
- Collateral-free loan: The loan is offered without any collateral, making it easier for SMEs to access funds.
- No prepayment charges: The borrower can choose to prepay the loan without any penalty charges, reducing the overall interest cost of the loan.
- Online application: The loan application can be made online, saving time and effort for the borrower.
- Customized loan solutions: The bank offers customized loan solutions based on the specific needs of the SMEs.
Conclusion of Star SME Liquid Plus Loan Scheme – Bank of India
The Star SME Liquid Plus Loan Scheme offered by the Bank of India is a great opportunity for SMEs to access short-term funds for their working capital needs.
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The loan is offered at competitive interest rates and without any collateral. The repayment options are flexible, and the loan application process is easy and hassle-free. SMEs can benefit from this loan scheme and grow their businesses.
FAQs
Q. What is the minimum and maximum loan amount that can be availed under the Star SME Liquid Plus Loan Scheme?
Ans: The loan amount can range from Rs. 5 lakhs to Rs. 2 crores.
Q. What is the tenure of the loan?
Ans: The tenure of the loan can be up to 12 months.
Q. What are the eligibility criteria for the loan?
Ans: The applicant must be a self-employed individual, partnership firm, or private limited company with a minimum turnover of Rs. 5 crores per annum and should be in operation for a minimum of 3 years.
Q. Is collateral required for the loan?
Ans: No, the loan is offered without any collateral.
Q. Are prepayment charges applicable on the loan?
Ans: No, the borrower can choose to prepay the loan without any penalty charges.
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