Bank of Maharashtra is a public sector bank that offers banking and financial products at a competitive rate of interest. In addition to various lending products and MSME loans, the Bank of Maharashtra also offers loan schemes under the Pradhan Mantri Mudra Yojana (PMMY) and Stand-Up India in association with the Government of India.
The Bank of Maharashtra offers a variety of business loans, especially for self-employed entrepreneurs who might require urgent funding for financing the expansion or working capital requirements.
What are the Benefits of the Bank of Maharashtra Business loan?
There are some benefits of taking a loan from the Bank of Maharashtra:
- You can prepay part of your loan anytime after paying 1 % prepayment charges.
- You can foreclose your entire Business loan anytime after paying foreclosure charges.
- Bank of Maharashtra has over 2,263 branches in India where you can avail service.
What factors does the Bank of Maharashtra consider for business loan interest rate?
There are multiple factors on which basis a bank calculates your interest rate. Some of these factors are:
- Loan amount: The higher the loan amount, the lesser will be the interest rate. The bank gives a loan of a minimum of ₹ 50,000 to up to ₹ 10 Lakh.
- CIBIL Score: Higher the CIBIL score, the higher the chances of getting a loan at the lowest business loan interest. However, to get a loan from the Bank of Maharashtra, your CIBIL score should be at least 700.
- Time in Business: You should be the owner of the firm for a minimum of 3 years.
- Applicant should not be a defaulter of any other loans.
What are the Interest Rates of the Bank of Maharashtra Business Loan?
Generally, the Bank of Maharashtra determines interest rates based on RLLR. Their interest rates start from 8.5% onwards. Although, the rates vary by loan amount, occupation, and type of loan availed.
Interest Rate | 8.5% onwards |
---|---|
Processing Fee | 0% – 3% |
Tenure | From 12 months to 7 years |
Lowest EMI per lakh | 1,583 |
Loan Amount | Min ₹ 50,000 and Max ₹ 10 Lakh |
Part Prepayment, Charges | Allowed after 1 EMI’s, |
Early Foreclosure, Charges | NIL |
What are the Eligibility Criteria for the Bank of Maharashtra Business Loan?
The following candidates are eligible for the business loan
- Minimum age- 18 years
- The MSME units with a profitable business and fair functioning.
- The business should continue in the same line for a sufficient period.
- Professional and self-employed – Doctors, Dentists, Chartered Accountants, Cost Accountants, Lawyers, Solicitors, Engineers, Architects, Surveyors, Construction contractors or Management Consultants or a person trained/ qualified /skilled in the chosen vocation/field in which employed
- Existing house loan borrowers are also eligible for the personal loan.
What are the Documents Required for a Loan Application?
For a business loan at the Bank of Maharashtra, the following documents are required:
- Proof of Identity – Submit any one identity proof from your PAN card, voter’s ID card, driving license, or valid passport.
- Passport-size photograph along with filled application form
- Proof of Address – Such as utility bills, rent agreements, and proof of sales or ownership.
- Business plan/Project report
- Proofs of Continuation – Such as a trade license or your sales tax certificate.
- Financial Documents for Sole Proprietorships and Self-Employed Professionals – ITR of the last 2 years, balance sheets, profit & loss accounts, 6 months’ bank statements, professional qualification certificate, and/or your degree certificate.
- Financial Documents for Partnership Firms – Partnership firms must submit documents, such as partnership deeds, authority letters, and certificates of incorporation or records of stocks held by their company.
- Statement of accounts for the past 6 months from existing bankers.
- Passport-size photo (2 copies) of the applicant not older than 6 months.
In the above list, a Business plan also known as a project report is a crucial document when applying for a bank loan. The bank uses this document to analyze the overall feasibility, risks, financial viability, and potential of a project. A well-crafted and convincing project report increases the chances of loan approval. With Finline you can craft a compelling project report in less than 10 minutes. That too in your language. Also, our reports are accepted by all public and private sector banks working in India. Click to create your project report.