Standard Chartered Bank provides business loans to Micro and Small Enterprises (MSEs). The loan amount can be used to establish or expand trade, service or manufacturing business. Standard Chartered offers business loans at an interest rate of 17.25% p.a. onwards.
| Standard Chartered Bank Business Installment Loan |
|
| Category | Value |
| Maximum Loan Amount | Up to Rs. 75 lakh |
| Interest Rate | 17.25% p.a. onwards |
| Repayment Tenure | Maximum up to 48 months |
| Collateral/Security | Not required |
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
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Comparison of Business Loan offered by Standard Chartered vs other Banks/NBFCs
| Bank/NBFCs | Interest Rate | |
| Axis Bank | 10.75% p.a. onwards | Apply Now |
| Flexiloans | 1% per month onwards | Apply Now |
| HDB Financial Services Ltd. | 8% - 26% p.a. | Apply Now |
| HDFC Bank | 10.75% - 25% p.a. | Apply Now |
| IDFC First Bank | 10.50% p.a. onwards | Apply Now |
| Indifi | 1.50% per month onwards | Apply Now |
| Kotak Mahindra Bank | 16% - 26% p.a. | Apply Now |
| Lendingkart | 12% - 27% p.a. | Apply Now |
| Mcapital | 2% per month onwards | Apply Now |
| NeoGrowth Finance | 15% - 40% p.a. | Apply Now |
| Tata Capital | 12% p.a. onwards | Apply Now |
| UGRO Capital | 9% - 36% p.a. | Apply Now |
Standard Chartered Bank Business Loan – Interest Rate & Processing Fees
The rate of interest and processing fees associated with Standard Chartered Bank business loan are:
| Category | Fees & Charges |
| Interest Rate | 17.25% p.a. onwards |
| Processing Fees | 2% of the amount disbursed |
| Prepayment Penalty | 5% of outstanding Principal |
| Penal Interest | 24% p.a. |
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.
Standard Chartered Bank Business Loan – Eligibility
Applicants must fall under the following categories in order to be eligible for Standard Chartered Business loan:
- Sole proprietors or proprietorship firms
- Partnership firms
- Private limited companies
- Closely held and public limited companies
- Professionals – doctors, architects, chartered accountants, business consultants
Calculate Your Monthly EMI on – Business Loan EMI Calculator
Standard Chartered Bank Business Loan – Categories
Currently, Standard Chartered Bank offers two types of business loans; Business Installment Loan and Guaranteed Installment Loan, which are explained further.
Business Installment Loan
- The interest rate charged on Business Installment Loan starts from 17.25% p.a. onwards
- Applicants can avail Interest refunds of up to Rs. 50,000 in a year on making timely payments on the loan amount and maintaining the minimum balance in the current account
- Customers get access to various SME related offerings such as foreign exchange and cash management offerings, trade and working capital solutions, and other banking products
Guaranteed Installment Loan
- The interest rate charged on Guaranteed Installment Loan starts from 14% p.a. onwards
- It can be bundled with Business Installment loan. Hence maximum loan amount that can be applied for becomes Rs. 100 lakh
- The loan is covered under CGTMSE scheme. Customers only have to pay a nominal guarantee fee
Standard Chartered Bank Business Loan – Tenure
The maximum tenure offered on Standard Chartered Bank business loan is 4 Years.
Customers must pay the loan amount before the end of their repayment period or face hefty fines. Moreover, if customers fail to repay the loan amount then they may be labelled as Defaulter. This will greatly lower the customer’s credit score thus, lowering their ability to apply for a loan in the future.
Documents Required for Loan Application
Documents required when applying for Standard Chartered business loans are listed below:
- Bank statements for previous 6 months
- GST statements for the past 1 year
- Last 2 years balance sheet, income tax returns and financial statements detailing profit or loss
Additional documents required are:
| Identity Proof | Aadhaar Card, Passport, Voter ID Card, PAN Card, Driving License |
| Address Proof | Aadhaar Card, Passport, Voter ID Card, Driving License |
Also Know: What are the documents required for applying for Mudra loan?
FAQs
Who can apply for Standard Chartered Bank Business Loan?
Ans. Indian Residents who run Small Micro Enterprises (SMEs) can apply for Standard Chartered business loan
Can a customer pre-pay the loan?
Ans. Yes, customers can make prepayments on their loans. Do note that they can only do this after 12 months and will have to pay applicable pre-payment charges
What is the minimum loan tenure that a customer can avail if applying for Standard Chartered business loan?
Ans. The minimum loan tenure for Standard Chartered business loan is 1 Year. Also, the maximum loan tenure can go as high as 5 years.
Does Standard Chartered Bank seek collateral or security for business loans?
Ans. No, Standard Chartered Bank does not require collateral or security for its business Installment loans.
Can customers get a line increase on Standard Chartered bank’s existing loan?
Ans. Yes, customers can get a line increase on Standard Chartered business loan after making regular payments for 10 months.