Business Loan in Bangalore for Mechanical Workshop

Mechnical Workshop

Are you planning to start your own mechanic workshop? If you have done enough research on the industry and if it is the right time to kick start a business, money should never be a concern. There are excellent business loan options available in Bangalore for starting a mechanical workshop. Most of the banks are ready to offer a decent amount as business loan if you have good credit history and an impressive business plan. Just like any other type of loan, getting business loan for mechanical workshop is not very tough. However, because this profession is related to skillset, you have to prove the lender that you have sufficient qualification and experience in this field to start business.

One of the main challenges for mechanical workshops is finding a source of fund for investing in machineries. It is not just about initial capital investment but also there will be need for working capital of the business. It is for this purpose everyone should grab funding opportunities that come in the form of business loans for Mechanical workshop. Here are some of the best banks that offer business loan in Bangalore for mechanical workshops:

Bank Name Interest Rate Range  Processing Fee Range  Loan Amount  Tenure Range 
SBI Home loan 9.35 % Floating Upto 0.35% (max. ₹11,500)Onetime fee Rs. 15L – 10Crs 1-30 Years
HDFC LTD 9.5 % Floating Up to 0.5 % Rs. 2Crs Max 1-25 Years
ICICI BANK 9.45 % – 9.70 % Floating 0.5 % (min. ₹11,500)One-time  fee Rs. 15L – 10Crs 3-30 Years
KOTAK MAHINDRA 9.4 % Floating Zero 90 % of the cost of the property 1-20 years
PNBHFL 9.55 % -9.8 % Floating 0.25 % to 0.5 % One-time  fee Rs. 5L Max 1-30 years
DENA BANK 9.5 % Floating 0.5 % Rs. 2Crs Max 1-25 years
FEDERAL 9.59 % – 9.84% Floating Up to 0.5 % One-time  fee Rs. 15L – 15Crs 1-30 Years
SBBJ 9.55 % Floating 0.25 % (min. ₹10,000)One-time  fee Rs. 10L – 35 Crs 30 Years
AXIS BANK 9.4 % – 11.75 % Floating Upto 11,500 Onetime fee Rs. 15L – 10Crs 1-30 Years
DBS 9.30 % Floating Upto 11,500 Onetime fee Rs. 40L – 5Crs 1-25 Years
ADITYA BIRLA 9.4 % – 9.55 % Floating 0 Rs. 20L – 10Crs 1-30 years
TATA HL 9.40 % Floating 5,750 to 11,500One-time  fee Rs. 15L – 10Crs 10-30 Years
YES BANK 10.25 % to 10.75 % Floating Upto 11,500 Onetime fee Rs. 5L – 500L 1-30 Years
DHFL 9.75% to 10.00%Floating 5,000 to 20,000 One-time  fee Rs. 1Crs – 5Crs 3 Years

Fees & Charges on Business Loans in Bangalore for Mechanical workshop:

Variable Fee and charges Variable rate 
(Base rate only, a margin may apply)
Small Business Loan Rate 5.24% p.a.
Small Business Overdraft Rate 6.44% p.a.
Business Development Rate 6.35% p.a.
Overdraft Business Rate 7.17% p.a.
Business Equity Access Rate 5.47% p.a.
Fixed Fee and charges Fixed rate for business loans
(Base rate only, a margin may apply)
1 year 5.19%
2 year 5.06%
3 year 4.99%
4 year 5.24%
5 year 5.33%
7 year 5.99%
10 year 6.74%

 

Documents Required for Business Loan in Bangalore for Mechanical Workshop are:

  • Borrower’s Identity proof- Driving License/PAN Card/ Passport / Voters ID card
  • Borrower’s Address Proof (Ration card, Telephone/electricity Bill/ Passport/ Trade license / Lease agreement/ Sales Tax certificate)
  • Bank Statement
  • Latest ITR along with computation of Balance Sheet, Income & Profit & Loss a/c for the last 2 years
  • Business continuation proof
  • Other mandatory documents such as Sole Proprietorship Declaration, Certified true copy of Memorandum & Articles of Association
  • Last 3 years audited financials

Requisites to be eligible for Business loan in Bangalore for Mechanical workshops:

  • Age limit of the applicant should be min 21 years & max. 65 years
  • Some banks require collateral or security for sanctioning huge amount as loan
  • Realistic and impressive Business plan has to be created
  • Financial details of the business
  • Complete details of Account receivable
  • Complete details of Account payable
  • Audited and reviewed financial statements
  • All personal financial details of the borrowers/ entrepreneur
  • Insurance information of the business (if any)
  • Past tax returns copies

Getting funding at the right time of the business is very essential. Though there is plethora of funding options available in India, most entrepreneurs choose business loans over other types of funding option and the reason for this is quick availability of fund, reliability and affordable rate of interest. Whether it is for a startup business or for an existing business, banks are ready to offer business loans in Bangalore for Mechanical workshops. Projected or estimated returns on the business along with a strong business plan are the key to impress banks to lend money.

If the credit score is low for the borrower, banks will demand high collateral or will even charge high rate of interest on the business loan. This might not be a great option especially when loan is taken for purchase of heavy machineries for the setup of mechanical workshops. Mechanical workshops can be started in a fully flourished manner or even with simple investment, the funding requirement depends on how complex and exhaustive the mechanical workshop setup will be. In case in future if you require a business loan top up, banks will scrutinize your working capital requirements and the progress of your business and will accordingly sanction business loans.

If you have plans to start a business, do it as early as possible. Make use of these business loan options offered by banks and non-banking financial institutions to fund for your business. Some of the basic requirements for a mechanical workshop is you need a space for workshop like a shop,               basic or sophisticated tools and machineries, set prices understand the market and customer demand, be smart at marketing your business, do promotions if required and above all be extremely good at negotiation. To enjoy the real taste of entrepreneur start your business at young age.

 

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