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SME Loan Loan Against Property

General

What products does Edelweiss SME Lending offer?
Edelweiss SME Lending offers 3 products as below:
  • SME Business Loans- Collateral free loans from INR 3.5 lacs upto INR 45 lacs
  • SME Equipment Loans- Loans from INR 5 lacs upto INR 2.5 crs offered against hypothecation of machinery
  • SME Secured Loans- Loans from INR 1 lac upto INR 25 crs offered against residential, commercial and industrial properties
Which locations does SME Lending operate from?
We are present in the following 82 locations:

West & Central : Ahmedabad, Amravati, Ankleshwar, Aurangabad, Bhiwandi, Bhopal, Bhuj, Himatnagar, Indore, Jabalpur, Jamnagar, Jamshedpur, Junagadh, Kalyan, Kolhapur, Mumbai, Nagpur, Nashik, Panvel, Pune, Raipur, Rajkot, Ranchi, Ratlam, Satara, Solapur, Surat, Surendranagar, Ujjain, Vadodara, Vapi, Vasai


North & East : Ajmer, Ambala, Bathinda, Bhubneshwar, Chandigarh, Dausa, Dehradun, Delhi and NCR, Jaipur, Jalandhar, Jodhpur, Kanpur, Karnal, Kolkata, Kota, Ludhiana, Panipat, Patiala, Rishikesh, Roorkee, Sangrur, Solan, Sri Ganga Nagar, Udaipur, Yamunanagar


South : Belgaum, Bellary, Bengaluru, Bijapur, Chennai, Cochin, Coimbatore, Eluru, Guntur, Hubballi, Hyderabad, Kakinada, Kalaburagi, Karimnagar, Kolar, Kurnool, Mangaluru, Mysuru, Nellore, Raichur, Shimoga, Tirupati, Tumkur, Vijayawada, Visakhapatnam

How do I get in touch with the Edelweiss SME lending team?
You can write to us at SME.Loans@edelweissfin.com
Who can avail benefits of our products?
Sole Proprietorship Firms, Partnership Firms and closely held Private Limited Companies can avail this product provided they have a good credit history.
Can Trusts / Societies apply for a loan?
No.
What documentation is required for availing the loan?
  • Financials & ITR
    • Business Loan – 2 Years
    • Equipment & Secured Loan – 3 Years
  • Primary bank statement for last 6 months
  • KYC documents of director(s)/partner(s)/ firm
  • Existing Facility/ Loan Sanction Letters
  • Machinery Invoice (if applicable)
What is SMERR?
SMERR is SME Reference Rate which is used as a benchmark rates for all SME Lending Loan products.
What is the current SMERR?
Current SMERR is 20.50%

SME Business Loans

Is the rate of interest fixed or floating?
We offer only fixed rate of interest under this product.
What is the tenure of loan offered under this product?
We offer a flexible tenure of upto 48 months for SME Business Loans.
How long does it take to process the loan application?
5-7 working days post receipt of complete and correct documentation required for processing the loan

SME Equipment Loans

What kind of equipments / machineries are acceptable under the SME Equipment Finance program?
Standard equipments /machineries across industries except those used for construction, infrastructure, mining, agriculture/farm and office fit outs.
Does SME Lending fund for both new purchase and refinance of machineries?
Yes. We fund for both purchase of new equipments and refinancing of existing equipments
For refinance of machineries, how old can the machines be?
Machinery should be less than 12 months old.
Does SME Lending offer moratorium period for Equipment Loans?
No there is no moratorium period offered under SME Equipment Loans.
How long does it take to process the loan application?
7-10 working days post receipt of complete and correct documentation required for processing the loan.

SME Secured Loan

What are the various funding options under SME Secured Loans?
  • Fresh loans against unencumbered property / ties to be used for business purposes.
  • Balance transfer and top-up against existing encumbered properties.
  • Purchase of commercial property /ties.
What kind of properties are acceptable as a collateral under the SME Secured Loan product offering?
Residential, commercial and industrial properties can be considered as collaterals.
Are under construction properties accepted as collateral?
No we accept only completed properties
Is there any moratorium period offered under SME Secured Loans?
No there is no moratorium period offered under SME Secured Loans.
Is paari-passu / second charge on the property offered as collateral acceptable under SME Secured Loan program?
Edelweiss SME lending should have first and exclusive charge on the property offered as collateral.
How long does it take to process the loan application?
7-10 working days post receipt of complete and correct documentation required for processing the loan.
Who can avail a Loan against Property?
Individuals
Salaried individuals: Any individual who is in permanent service in any government undertaking or any private sector company in India

Self employed professionals
Professionals like doctors, architects, chartered accountants, cost accountants, practicing company secretary, management consultants and lawyers

Self employed non professionals
Individuals like traders, manufacturers, distributors, service providers etc

Non individual entities
Proprietorship firms, partnership firms, private limited companies and public limited companies
How much finance can I avail against the property value?
You can borrow up to 70% of the market value of your property subject to income eligibility
Will I get a loan if I do not have financial documents or proof of income?
We have products under which we can offer you a loan: income based and surrogate income based. A thorough understanding of your business will help us determine your loan eligibility in case of surrogate income based
What would be the minimum and maximum tenure of my loan against property?
The minimum tenure of your loan against property from Edelweiss is 3 years and maximum tenure is 15 years. The term of loan will be restricted to the retirement age of 60 years in case of salaried customers and 65 years in case of self employed customers
Should there be a co-applicant to the loan?
Yes there needs to be a co-applicant to the loan. All co-owners of the property being mortgaged need to be co-applicants. For a sole property owner, one adult member in the immediate family needs to be a co-applicant. In case the property is owned by a partnership firm or a company, partners or directors / promoters need to be co-applicants
What is the applicable rate of interest?
The rate of interest varies depending upon your loan amount, property type, income etc
Will the interest rate change during the tenure of my loan?
Interest rates can be fixed, variable or part fixed and part variable. We offer variable rate loan against property which is subject to change depending on the economic conditions prevalent in the market during the tenure of the loan
Is there any option of prepayment of entire loan amount (foreclosure)?
Yes, there is an option of prepayment of entire loan amount (foreclosure) after 6 months from the date of final disbursement. Foreclosure charge will be levied as applicable
What are the foreclosure charges?
Foreclosure charges vary from 5% to 3% depending on the tenure of the loan. No foreclosure is allowed within the first 6 months from the date of final disbursement
How often can I part prepay my loan?
Part prepayments can be made after 6 months from the date of final disbursement. This payment can be made up to a maximum of 25% of the balance outstanding against your loan amount at the time of payment. All part prepayments made 12 months prior to the foreclosure of the loan will be charged with the applicable foreclosure rate at the time of foreclosure
How can I repay the loan?
You can repay the loan by way of Electronic Clearing System (ECS)
What is Pre-EMI interest?
Before final disbursement, you pay interest on the portion of the loan disbursed. This interest is called Pre-EMI. Pre-EMI interest is payable every month up to the date of commencement of EMI
What is an EMI?
An equated monthly instalment or EMI as it is called is the amount paid by the borrower to the lender (Edelweiss) at a specified date every calendar month for the loan taken. The EMI remains constant over the tenure of the loan. This consists of both principal and interest so that the loan is paid off in full in a specified number of years.
Edelweiss Financial Services Limited 2016

Edelweiss Retail Finance Limited (ERFL) | CIN: U67120MH1997PLC285490

The Company is having valid Certificate of Registration (CoR) No. B-13.02149 dated January 4,2017 issued by Reserve Bank of India (RBI) under Reserve Bank of India Act, 1934. However, RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of Company or correctness of any of the statements or representation made or opinion expressed by the Company.

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