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South Indian Bank is one of the leading private sector banks that also became a scheduled bank in Kerala. The bank provides a range of financial products that include domestic finance, working capital finance, long-term finance, non-fund-based finance, supply chain finance, business loan, commercial vehicle loan, etc. The business loan interest rates offered by South Indian Bank start from 12.55% p.a. onwards.
South Indian Bank Business Loan – 2022
| South Indian Bank – Business Loan – 2022 | |
| Interest Rate | 12.55% – 16.55% p.a. |
| Age Criteria | Min. 21 years and Max. 65 years |
| Loan Amount | Min. 5 lakh and Max. Rs. 50 lakh |
| Processing Fee | 2% of the loan amount |
| Repayment Tenure | Min. 12 months and Max. 48 months |
| Credit/CIBIL score | Min. 650 |
| Pre-closure Charges | 3% of the outstanding loan amount |
Note: South Indian Bank’s 1-year MCLR with effect from 20th Sep 2022 is 8.85%.
Check & Compare – Business Loan Interest Rate of Top Banks
Business loans offered by South Indian bank can be availed by self-employed professionals, self-employed non-professionals, manufacturers, traders, wholesalers, etc.
Documents Required for Loan Application
PAN Card – For Company/Firm/Individual
A copy of any of the following documents as identity proof:
- Aadhaar Card
- Passport
- Voter’s ID Card
- Driving License
A copy of any of the following documents as address proof:
- Aadhaar Card
- Passport
- Voter’s ID Card
- Driving License
- Bank statement of the previous 6 months of current account
- Latest ITR along with computation of income, Balance Sheet and Profit & Loss account for the previous 3 years, after being CA Certified/Audited
- Tax Paid, Possession Certificate, Title Deeds, Encumbrance Certificate of the property to be mortgaged
- Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
- Other Mandatory Documents [Sole Prop. Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution
For takeover of existing loan, provide the sanction order copies and the account statement
Factors Affecting the Interest Rate of Business Loan
The business loan can be offered to any person who is running a legitimate business and has good turnover or want to start a new business. Different banks have different criteria and terms to validate and authenticate a person’s business. After all the evaluation the loan amount, tenure and rate of interest or even whether to provide loan falls under the purview and authority of the bank. Some of the parameters taken under consideration are:
- Credit score of the company or in the case of a new business the owners’ credit score
- Type of business: Proprietorship, Partnership, Private Limited or Public Limited
- Turnover of the business
- Profit made by the business
- Cash flow of the business
- Track record of business
Also Read: How to Get loan for startup business without security in India
FAQs
Q. What is the South Indian Bank business loan interest rate in 2022?
Ans. The South Indian Bank Business loan interest rates currently start from 12.55% p.a. onwards
Q. What is the loan amount offered by South Indian Bank?
Ans. The minimum loan amount offered is Rs. 5 lakh and the maximum loan amount offered is up to Rs. 50 lakh.
Q. What is the processing fee charged by South Indian Bank?
Ans. The processing fee charged is 2% of the sanctioned loan amount.
Q. How to calculate Interest/EMI on Business Loan?
Ans. Once your loan specifics are finalized, there are business loan EMI calculators available online which can be used to know your Interest and principle breakdown each month and also keep track of the amount paid and the amount pending which can be useful when planning to repay the loan.
Q. How to check South Indian Bank business loan status?
Ans. You can check the South Indian Bank business loan status by contacting the customer care number or if you already have an account can log in to your account and check the status there. You can also check with your account manager if you have been allotted one.