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.

The details of the product are mentioned below:

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.