Nainital Bank Business Loan

Nainital Bank – MSME Loan (Naini Udhyog Suvidha) – 2022
Interest Rate	2.00% over Base rate
Min. Loan Amount	Rs. 15 lakh
Max. Loan Amount	Rs. 2 crore
Margin on collateral security	40%
Age of Property	Max. 25 years
Period	12 Months, Subject to annual review

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI. GST and service tax shall be levied extra on the mentioned charges

Check – Business Loan Interest Rate of Top Banks

Nainital Bank offer business loans to various businesses, entrepreneurs and professionals to start a new business and meet the working capital requirements of their existing businesses. Below are the loan schemes offered by Nainital Bank under Business Loan category:

1. Vyapar Suvidha Loan

Vyapar Suvidha Loan is offered to all the businesses, individuals and cooperative societies which are active in their legal business for last 2 years. The loan is given for meeting their working capital requirements or creating assets for the business.

Features:

• Rate of Interest – 2.00% over the base rate
• Loan Amount – The loan amount depends on the projected sales of the company / advance value of collateral / Rs. 2 crore (whichever is less)
• Security Required – Hypothecation of stocks / book debts / assets created using loan
• Loan Period – To be decided as per the repaying capacity and annual review. The maximum limit is 84 Equated Monthly Instalments (EMIs)

2. Naini Udyog Prasar for MSE

Naini Udyog Prasar Loan Scheme is a cash credit / term loan / demand loan offered to the eligible professionals, self-employed individuals and Micro and Small Enterprises (MSEs) such as advertising agencies, marketing / consultancy agencies, and small businesses involved in garage / bakery / transport, etc.

Purpose: For working capital requirements/ asset creation such as plant, building and machinery/ takeover of existing credit facilities.

Features:

• Loan Amount – Maximum Rs. 1 crore per borrower for MSE sector
• Security Required – Hypothecation of stocks / book debts / assets created using loan
• Working capital limit shall be for a period of 12 months (subject to annual review)

3. Naini Nirman for Contractors

Naini Nirman Loan is offered to the businesses / individuals / cooperative societies which are engaged in legal construction activities. The loan is extended to borrowers who are permanent resident of area which is located nearby the branch of Nainital Bank and who holds satisfactory social and economic status. The prospective borrower(s) should be an income tax assesse / payee for last 3 financial years.

Purpose:

For meeting the capital requirements, purchasing machinery, purchasing vehicles required for the business, for asset creation and for furnishing bank guarantee.

Loan Amount:

For Cash Credit – Maximum Rs. 2 crore

For Loan – Maximum Rs. 1 crore

For Bank Guarantee – Maximum Rs. 1 crore

4. Naini Healthcare for Doctors

Naini Healthcare Scheme is offered to individual doctors or company / society / firms engaged in providing healthcare services and holds minimum qualification as stipulated by the bank. Also, the doctors who wish to obtain a loan, must have a professional experience of at least 2 years.

Purpose:

• Asset creation in the form of land / construction of nursing home / clinic / health centre / pathology laboratory / hospital / blood bank, etc.
• Purchase of medical equipment required in disbursing healthcare services
• Purchase of equipment necessary for the operations, such as ambulances / generators, etc.
• Purchase of medicines and other materials necessary for healthcare

Features

• Interest Rate: Base rate + 1.25%
• Term Loan Amount: Maximum Rs. 4 crore
• Cash Credit: 75% of the cost of stock of medicine
• Overdraft: Maximum of Rs. 50 lakh (20% of annual projected revenue based on last years’ receipt)
• Collateral Security: Up to Rs. 10 lakh – Nil
• Overdraft: Base rate + 1.75% (To be renewed once in 12 months)

Margin:

For purchase of Land/Building: 50%

Construction building: 30%

For equipment, machineries, vehicles, etc.: 20%

Mortgage of Immovable property: 25%

Bank approved Liquid securities: 15%

5. Trade Finance

The Trade Finance can be availed by retail traders / businessmen / service providers who are already established and are making a profit for last 2 years. The entities which are active in other businesses along with trade / business / service, are also eligible for the loan.

Purpose:

• To meet the working capital requirements of the trade / business
• Asset creation / asset acquisition such as godowns
• Furnishing / renovating existing business premises
• Purchasing new tools / equipment / technology for the business

Nature of the Loan:

• Cash Credit (Hypothecation)
• Term Loan (Secured)
• Non-funded based limits (bank guarantee and LC)

How can I get in touch with the bank?

The Nainital Bank Limited
Head Office
Seven Oaks Building
Mallital, Nainital
Uttarakhand – 263001
Ph:-05942- ; Fax:- 05942-236939

Which are the proofs required for availing a business loan?

The bank requires identity proof, residence proof, business address proof, last 3 years’ balance sheet, IT/ Sales Tax returns, MoA & AoA of the company, Partnership Deed, Assets and liability statements, projected balance sheet for the next 2 years, etc.

Does Nainital Bank offers business loans for establishing educational institutes and hotels?

Yes. Nainital Bank offers business loans for educational Institutes through Shiksha Prasar Loan; and for hotels through Finance to Hoteliers.