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611 days ago

EMI Calculator for Machinery Loan

Unfiled. Edited by Finance Seva 611 days ago

Finance S EMI Calculator for Machinery Loan

With the help of a machinery loan EMI calculator, one can easily do the evolution of loan EMIs or monthly instalments which becomes much easier. To get a quick result, borrowers are required to enter basic loan variables, such as desired loan amount, loan duration and offered interest rate.

Advantages of Using Machinery Loan EMI Calculator?

Below listed are the advantages of using a machinery loan EMI calculator:

Helps in managing finances better

Loan amount can be decided as per the repayment capability

Support in managing business cash flow

Helps in overcoming urgent short-term cash requirements

Can be accessed from anywhere via mobile, laptop, desktop or tab

Machinery Loan EMI Formula

Machinery loan EMIs are computed with the aid of following formula:

This universal formula is used by almost all financial bodies to provide loan EMIs related information

[P x R x (1+R) ^ N]/[(1+R) ^ (N-1)]

Here,

P stands for the loan principal

R stands for the rate of interest on a monthly basis

N stands the loan repayment tenure in months

Machinery Loan – Features & Eligibility Criteria

Features:

Interest Rate: These interest rate varies from bank to bank and shall depend on applicant’s profile and financial stability

Loan Amount: The desired loan amount depends on the machinery that to be purchased (New or Pre-owned).

Repayment Tenure: Based on the loan tenure, the longer repayment tenure for higher loan amount are given by the bank.

Collateral: Depends on the loan amount/lender and type of loan (secured or unsecured)

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629 days ago

Home Loan Interest Rate in India

Unfiled. Edited by Finance Seva 629 days ago

Finance S Home Loan Interest Rate in India

Home Loan Interest Rate in India

Home loans can be provided for the purchase of a house/flat, construct a house, renovate/repair an existing house, or purchase a plot for the construction of a house/flats.

These are provided by public and private sector banks as well as housing finance companies as listed on National Housing Bank's website Banks and HFCs (housing financial companies) based on interest rate in India. There are two types of home loan interest rates charged by most of the banks, Fixed interest rates and Floating Interest Rate.

In comparison the lowest home loan interest rate starts from 6.65% p.a. and applying for the best home loans.

Home Loan Interest Rate of all Banks 2022

There are some banks from India with their interest rates on home loans that are given below:

Banks Starting Interest Rate (p.a.) Processing Fees

Kotak Mahindra Bank 7.50% p.a. onwards 0.50%

Citibank 6.65% p.a. onwards Rs. 10,000

Union Bank of India 7.40% p.a. onwards -

Bank of Baroda 7.45% p.a. onwards Contact the bank for information

Central Bank of India 7.40% p.a. onwards Rs. 20,000

Bank of India 6.90% -

State Bank of India 7.55% p.a. onwards 0.35% onwards

HDFC LTD 7.55%* 0.5% or Rs.3,000 whichever is higher

LIC Housing Finance 7.55% p.a. onwards Rs. 10,000 -Rs. 15,000

Axis Bank 7.60% p.a. onwards Rs. 10,000

Canara Bank 7.05% p.a. to 9.30% p.a. 0.50% of the loan amount subject to a minimum of Rs. 1,500, and a maximum of Rs. 10,000

Punjab and Sind Bank 7.40% p.a. onwards Full Waiver

IDFC First Bank 7.50% p.a. onwards Rs. 5,000 - Rs. 5,000

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631 days ago

Machinery Loan for Startup

Unfiled. Edited by Finance Seva 631 days ago

Finance S Machinery Loan for Startup

What is a machinery loan?

It is a business loan for the purpose of buying new/used machinery or equipment for a business. Machinery plays a significant role in the success of a business and achieving the production target.

Machinery loan upgrades to newer technologies using which production can be increased in less time. As a result, production will be able to meet customer needs within time. Naturally, manufacture products that will be high in quality

The machinery you invest in via machinery finance solutions will improve your manufacturing efficiency and result in timely delivery of products. Improved productivity will naturally improve sales, leading to greater ROI (Return on Investment). Moreover, the increase in productivity will reduce the cost per unit, further enhancing profits.

You can apply online via website of various banks and other financial institutions and have your loan approved or You can physically visit any of our nearby branches of banks.

The following documents in addition to filled out loan application is required for the approval of a Machinery Loan for Startup for most banks and other financial institutions.

Photo Identity Proof – copy of Voter ID/Passport/Driving License/Aadhaar Card.

A copy of certified bank statements for the last six months.

Business Proof documents – Trade License/Sales Tax Certificate/Sole Proprietorship Declaration/ Partnership Deed/Income Tax Returns along with computation for the last two years/Profit and Loss Statement and Balance Sheet for the last two years.

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634 days ago

Mudra Loan Eligibility Documents

Unfiled. Edited by Finance Seva 634 days ago

Finance S Mudra Loan Eligibility Documents

Mudra loans are offered by various banks and financial institutions that can be used by the applicants with a minimum age of 18 years and a maximum age limit of 65 years. The applicant should not have any past loan defaults with any financial institution and primarily should have a good repayment history.

These loans are often availed by individuals, self-employed professionals, business owners, women entrepreneurs, MSMEs, and other business entities engaged in the services, trading, and manufacturing sectors. There are the following categories and required documents are motioned below:

Vehicle Loans

Mudra Application Form

Vehicle loan application form

2 passport size color photographs

Photo Identity proof

Address proof

Income proof

Bank statement (last 6 months)

Business Installment Loan

Mudra Loan application form

BIL application form

Photo identity proof

Address proof

Establishment proof

Bank statement (last 6 months)

Ownership proof of residence/office

Proof of continuity of business

Proof of qualification

Trade references

2 years ITR

CA certified financials

Business Loans Group and Rural Business Credit

Mudra application Form

BIL/RBC application form

Photo identity and age proof

Address proof

Ownership proof of residence/office

Business vintage proof

Bank statement (last 12 months)

Income tax return (last 2 years)

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638 days ago

Project Report for Loan

Unfiled. Edited by Finance Seva 638 days ago

Finance S Project Report for Loan

In order to get a business secured loan from bank for a new startup or existing business, the borrower should submit the project report for loan with the bank. All the necessary requirements and official documents have to be submitted with the project report.

The project report must be represented in such a way that entails the whole idea of the business in short and up to the point that can be easily understood by the lender.

Further, discussed are the components of the Project Report required to be submitted in order to avail business loan.

Key Components of Project Report

In the below, let us examine the major components required for preparing a project report for secured loan:

Introductory page: Give the introduction of the business, aim with its purpose.

Summary of the project: Summary of the project should consist of the overall status of the business

Scope of the project: It must entail the percentage of work that has been planned

Details of promoters: The details of the promoters and their educational qualifications and work experience and so on.

Infrastructure facilities: Information about infrastructure facilities should also be mentioned like whether the tools have been deployed or not.

Means of financing

Balance Sheets:

Profit and Loss Statements

Fund Flow Statement

Break-Even Points Evaluations

Conclusion

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640 days ago

LC Discounting India

Unfiled. Edited by Finance Seva 640 days ago

Finance S LC Discounting India

LC discounting is a credit facility offered by various banks and financial institutions. In this process, the financial institution purchases bills or documents from exporters and provides a loan after discounting the bill amount. For example, reducing the applicable charges.

What is LC Discounting India?

LC discounting is a main method of financing in international trade that is also known as documentary credit.

Generally, it is a guarantee provided by a financial institution to pay sellers on behalf of buyers in case of default on their part. Letter of Credit discounting acts as financial security for businesses involved in export and import or both in some cases.

LC discounting is a typical funding option as lending institutions follow a necessary verification process to confirm the authenticity of both the parties. Also, the chance of manipulating the discounting rate is minimal as only the prevailing rates apply to a Letter of Credit.

Types of LC Discounting India

The following are the 5 types of letter of credit available in India:

Revocable: It can be changed or cancelled by a banking institution at any time and for any reason. It cannot be transferred to a third party.

Irrevocable: This type of LC can only be changed or cancelled if all concerned parties agree to it.

Transferable: A transferable LC can be transferred from one beneficiary to another.

Confirmed: A confirmed irrevocable LC Discounting India is more secure as it is backed by guarantee

Unconfirmed: Letter of credit reaches the beneficiary with only the issuing bank's payment undertaking, without any confirmation added by another lender.

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646 days ago

Home Loan Eligibility

Unfiled. Edited by Finance Seva 646 days ago

Finance S Home Loan Eligibility

Home loan eligibility criteria has common parameters across all banks and Non-Banking Financial Companies (NBFCs). However, there could also be specific criteria that is applicable for each lender according to their requirements.

It is essential to understand the criteria that is required to be eligible for a home loan. It helps to ensure that the process of application becomes smoother and easier for you.

Eligibility Criteria for Home Loan

Age 18 – 70 Years

Income Rs. 25,000

Credit Score Above 750

Employment Status Salaried or Non-Salaried

Work Experience 2 Years

Loan Amount Decided by the Lender

Residence Type Permanent resident or Non-resident Indian (NRI)

LTV Ratio Up to 90%

Property Type Completed /Under Construction Project, Land/Plot, build on own Land, Buy Land and Build Home

What are the Factors Affect Home Loan Eligibility?

Age Limit: The limit of age foremost factor a lender/ financier considers when one applies for a housing loan. Normally, financial institutions attempt to limit the house loan term to the primary applicant's age of superannuation.

Income: The applicant falls into, a steady and regular source of income is a must. Basically, there are fewer risks in loaning money if the applicant is an earning individual.

Rate of Interest: Home finance eligibility is always inversely proportional to the rate of interest. If the rate is higher, eligibility will be less and vice versa.

Loan Term: If you opt for a longer tenure, your eligibility will improve. EMIs too will be lesser and manageable. But the downside to this is, that you will end up paying more interest.

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