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.