A Quick Intro to IndusInd Bank MSME Loans
A lot of private banks offer loans to the MSME sector. One bank for which we see a lot of queries is IndusInd Bank.
Originally a bank targeting NRIs, IndusInd Bank has now emerged as one of the stronger private sector players in the Indian banking industry right after the industry leaders such as HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra in terms of brand presence and size.
Today, we quickly look at what it offers for the MSME sector in India.
IndusInd Bank offers three loans for businesses:
- Working Capital Loan
- Term Loan
- Channel Finance
Let us skim through the details for reference.
IndusInd Bank Working Capital Loan
This working capital loan for MSMEs helps small businesses finance their everyday operations. This is a competitive loan scheme for businesses to buy current assets, purchase inventory, make salary payments, pay bills like electricity and so on.
Features of IndusInd Bank Working Capital Business Loan
- The loan amount can be used to manage day-to-day operations of the business
- The security needed is decided based on the bank’s risk perception of the borrower and other lending norms
IndusInd Bank Term Loan for MSMEs
This term loan helps businesses meet their business expenditure for long-term growth and expansion. This is a need-based loan and the maximum loan amount allowed for a borrower is decided on a case-to-case basis by the bank.
Features of IndusInd Bank Term Loan
Borrowers can use this IndusInd Bank Term Loan to set new industrial units, expand or modernise units, purchase long-term assets and for other such expenditures.
The repayment schedule is decided after checking various factors such as cash generation and repayment capacity, debt service coverage ratio, etc.
IndusInd Bank Channel Finance
This loan is meant for commodity dealers who get their supplies directly from manufacturers and for stockists who procure commodities from manufacturers or import them from abroad. The loan can be used by them for working capital needs.
Features of IndusInd Bank Channel Finance
- This is a need-based loan
- The funds can be used for working capital needs and not business expenditure
If you need a loan and have been running a business for 2+ years or working for 1+ years, you can simply apply for a digital loan (also called a paperless loan) from banks such as SBI, Bank of Baroda, HDFC Bank, IDFC Bank, Axis Bank, etc. with only one form here. There is no need to visit any branch or hand over hard copies of documents.
Best thing? It takes less than 15 minutes to fill it. All you need to do is ensure you have the soft copies of the necessary documents such as Aadhaar, PAN, GST certificate, audited accounts, bank statements. That’s it.