IDBI Loan for Service Sector

Loan for Service Sector banner Loan for Service Sector banner

IDBI Loan for Service Sector

Overview

IDBI Loan for Services Sector (ILSS) can be extended to all kind of business enterprises, self-employed and professionals, engaged in providing or rendering service.

Some examples of the service sector enterprises and professionals are
a. Professionals such as: Chartered Accountants, Company Secretaries, Engineers, Architects, Surveyors, Interior designers, Management Consultants etc.
b. Self-employed/service enterprises such as: Contractors, Travel Agents & Tour Operators, Clearing & forwarding agents, Beauty parlors etc.

Eligible Segments

All kind of business enterprises, self-employed and professionals, engaged in providing or rendering service.

Facility    

Term loan & Overdraft/ Cash Credit

Purpose

OD/CC: To meet Working Capital requirements
Term Loan: For Purchase of business premises, equipment, computers, furnitures, undertaking development/expansion/additions/repairs and renovation of business premises and infrastructure.

Loan Amount

Minimum: Above Rs. 10 lakh
Maximum: Rs. 500 lakh

Tenor   

Term Loan: Max 7 years
CC/OD: Max 12 months (Annual renewal)

Pricing

Linked to banks Repo Linked Lending Rate (RLLR) and Rating

Security

Term Loan:
Exclusive Charge on assets created out of bank finance.
Working Capital:
Hypothecation of stock, book debts and assets created out of bank finance.
Collateral:
Mortgage of residential/commercial properties of appropriate value.

Guarantee

Personal guarantee of the promoter directors, Partners

Margin

Cash Credit : 25% on stock and Book debts
Overdraft : NIL
Term loan : 25 %

Processing Charges

As per Extant applicable Schedule of Charges.