Standard Chartered Bank Business Loan
Standard Chartered offer world class business loan products, starting at 17.25% per annum, for a maximum loan tenure of 48 months. The loan can be approved for a maximum amount of Rs. 75 lakhs can be used either as operating capital or to meet business expansion needs. Unlock an array of features with Standard Chartered bank business loan including quick application process, flexible repayment tenure and instant loan disbursal.
Features of Standard Chartered Bank Business Loan
Competitive Interest Rates: One of the major USPs of these loans is the competitive interest rates available to customers. The interest rates start at 17.25% per annum and can go up depending on various factors like credit history, business type, etc.
Hassle-Free Application Process: The Standard Chartered Business Loan application is fairly straightforward and can be done entirely online. The application form can be filled out within a few minutes, and it saves them time and effort of marching down to the bank for every little step.
Quick Loan Disbursal: The Standard Chartered Bank employees always guide you through the application. Once the application has been taken forward for processing by the bank executives, the loan amount will be disbursed within two days.
Dedicated 24/7 Customer Support: Standard Chartered Bank knows that a need for emergency assistance can arise at any time. This is why they have set up a dedicated 24/7 customer support team to address all the customers' issues.
No Collateral Required: The Standard Chartered Bank Business Loan is completely collateral-free. This means that the applicant will not have to provide any security about obtaining a business loan.
Flexible Loan Tenure: Standard Chartered offers flexible loan tenure subject to the applicant's credit history and other details. Currently, the loan tenure ranges from 12 months to 48 months.
Standard Chartered Bank Business Loan Overview
Standard Chartered offer world-class business loan products, starting at 17.25% per annum, for a maximum loan tenure of 48 months. The loan can be approved for a maximum amount of Rs. 75 lakhs can be used either as operating capital or to meet business expansion needs.
- The quick and easy online application process
- Customised repayment plans are available
- Instant loan disbursal
Standard Chartered Bank Business Loan Products
A Standard Chartered Bank Business Loan can be availed to meet the organisation's operating expenses or to meet expansion requirements. As it stands, Standard Chartered offers two types of business loans to its customers :
Business Instalment Loan
- The interest rate applicable on a business instalment loan starts at 17.25% per annum.
- There is very minimum documentation required for this loan as credit assessments are done automatically based on GST statements.
- Applicants making timely payments and maintaining the minimum required balance in the current account are entitled to refunds of up to Rs. 50,000 in a calendar year.
- This is a collateral-free loan option for a maximum loan amount of Rs. 75 lakhs with a maximum tenure of 4 years.
- A top-up facility is available to the customers based on their existing loan track record.
Guaranteed Instalment Loan
- The interest rate for this loan product starts at 14% per annum.
- The Guaranteed Instalment Loan can be bundled with the Business. Instalment Loan, increasing the maximum loan amount to Rs. 1 crore.
- Applicants will be required to pay a minimum guarantee fee as this loan comes under the CGTMSE scheme.
Standard Chartered Bank Business Loan Eligibility Criteria
- The need to be a sole proprietor or a part of various proprietorship firms.
- The applicant can also obtain a loan if they are a partnership firm.
- Only private limited companies or closely-held public companies are eligible for this business loan.
- Professionals like chartered accountants, consultants, architects, and doctors are eligible for this loan.
- The applicant's age should be at least 21 years with a maximum age limit of 60 years.
- The minimum in hand income of the applicant should be Rs.18,000.
Standard Chartered Bank Business Loan Fees and Charges
|Interest Rate||Starting at 17.25% per annum|
|Loan Processing Charges||2% of the approved loan amount|
|Prepayment Charges||5% of the principal amount due|
|EMI Bounce Fees||Rs. 495 per instance|
|Penal Interest||24% per annum|
Note: GST will be applied on all taxable aspects with effect from date due to being announced by the authorities. Any service that has not been mentioned in the above table will be charged separately at applicable rates.
Standard Chartered Bank Business Loan Interest Rates
|Maximum Loan Amount||Rs. 75 lakhs|
|Interest Rate||Starting at 17.25% per annum|
|Maximum Tenure||48 Months|
Factors Affecting Standard Chartered Bank Business Loan Interest Rates
Naturally, any borrower wishing to get a business loan would like to get low-interest rates with a higher loan limit. However, all the applicants do not get the same interest rate from the bank. The bank considers several factors before determining the appropriate interest rate for the applicant. Some of the factors affecting Standard Chartered Business Loan interest rate are as follows:
When the applicant submits the loan application, the institution analyses the credit risk using the applicant’s credit score. A low credit score may lead to the bank viewing the applicant as a credit risk; this might lead to high- interest rates or even rejection of the application. Maintaining good financial practices and a healthy credit score might help you get higher loan amounts and lower interest rates.
Type of Business
Businesses with a history of showing positive growth and recording profits have more chances of getting favourable interest rates from Standard Chartered. On the other hand, businesses with a history of questionable business practices or blacklisted in the past may get a higher interest rate.
Experience of the Business
Before the bank sanctions the loan amount; the bank carefully considers the applicant’s nature of business. A business with a clean and long track record has the possibility of getting better rates of interest. On the other hand, if the applicant company has a history of defaults/non-payments, they will be quoted a higher interest rate.
The business's annual turnover is extensively considered by most lenders while determining the appropriate interest rate. A business with a high annual turnover is not generally viewed as credit risk and thus can get a lower interest rate. On the other hand, businesses with lower annual turnovers will be quoted a comparatively higher interest rate.
Repayment History of the Applicant
A healthy repayment history and the timely repayment of any credit dues are signs of a good borrower. Properly maintaining these two aspects of your financial history can go a long way in getting a lower interest rate. Similarly, poor credit history may hurt your chances of getting lower interest rates and even lead to your loan application's disapproval.
Documents Required for Standard Chartered Bank Business Loan
- Bank statements from the previous 6 months.
- Financial documents from the previous 2 years, including Balance Sheet, Profit and Loss Statement, and Income Tax Returns.
- Identity and address proof documents.
- Documents stating the projected profit and loss of the business for the next 3 years.
- Net worth statement of the proprietor.
- An Organisational chart of the company.
- Summary of the company’s profile.
- Projected cash flow statement for the business.
How Does Standard Chartered Bank Business Loan EMI Calculation Work?Let’s assume a company takes a loan of RS. 75 lakhs at a rate of 16.5% per annum for 3 years.
|Loan Amount||Interest (%)||Loan Period||EMI||Total Interest||Total Amount|
|Rs. 75,00,000||16.5%||1||Rs. 6,82,257||Rs. 6,87,087||Rs. 81,87,087|
|Rs. 75,00,000||16.5%||2||Rs. 3,69,018||Rs. 13,56,423||Rs. 88,56,423|
|Rs. 75,00,000||16.5%||3||Rs. 2,65,533||Rs. 20,59,183||Rs. 95,59,183|
The table given below shows what the balance amount will look like in each of these situations:
|Year||Principal Amount||Accrued Interest||Balance Amount|
How Does Standard Chartered Compare with Other Lenders?
|ICICI Bank||Starting at 18% p.a.|
|Lending kart Finance||Starting at 18% p.a.|
|RBL Bank||Starting at 19% p.a.|
|IDFC First Bank||Starting at 20% p.a.|
|Neo Growth Finance||Starting at 18% p.a.|
|HDB Financial Services Ltd.||Starting at 22% p.a.|
Standard Chartered Bank Business Loan Customer CareIn case you need to contact Standard Chartered customer care during or after the loan process, you can do so in the ways given below:
- Visit the nearest branch of Standard Chartered.
- You can send an SMS to 9980033333.
- You can contact customer care via email at [email protected]
From refinancing to reducing your interest, we have the answers right here.
Can a customer prepay the Standard Chartered Business Loan?
Yes, customers can make prepayments on their Standard Chartered business loan. However, this can only be done after the payment of 12 EMIs, and the applicable charges will be levied.
Can customers get a top-up on their existing Standard Chartered business loan?
Yes, the customers can get a top-up on their business loan if they have made regular EMI payments for the last 10 months.
How can I speed up my Standard Chartered business loan approval process?
If you wish to speed up your loan approval process, it is advised that you get all your financial, business affairs and documents in order before applying for a business loan. Further, the process can also be sped up by applying for Standard Chartered Bank business loans online.
What is the maximum and minimum business loan amount I can get from Standard Chartered?
Standard Chartered Bank business loans range from Rs. 10 lakhs to Rs. 75 lakhs.
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