A PRESENTATION ON BUSINESS LOAN

BY-Utkarsh Yadav
(Institute of Technology & Science College)

PGDM 2017-19
MARKETING
 Industry Financial services
Founder Jamunalal Bajaj
Headquarter Pune, Maharashtra, India
Key people Rahul Bajaj, Sanjiv Bajaj
Revenue US$715 million
Parent Bajaj Holdings & Investments
Limited

The company employs over 20154 employees at 1409 locations,

 Business loan

•Businesses require an adequate amount of capital to

fund startup expenses or pay for expansions.

• As such, companies take out business loans to gain the

financial assistance they need.

• A business loan is debt, that the company is obligated

to repay according to the loan’s terms and conditions.
Business loans for your unique needs
Working Capital Loans: Maintain a healthy cash flow
with a Working Capital Loan without any security and
keep your business away from any financial roadblocks.
Machinery Loans: Install or upgrade to the latest plant and
machinery or equipment with a Machinery Loan and
meet bulk orders smoothly.
SME and MSME Loans: Small and medium enterprises
can now grow their operations and scale in an easy way
with SME and MSME Loans.
Business Loans for Women: Especially designed for
women entrepreneurs, Business Loans for Women offer
finance up to Rs.30 lakh to support their growing
business needs.
 Business Loan Features
Loan for Self Employed Features
Processing Fee Upto 2% of loan amount
Interest Rate 11% to 21%
Tenure From 12 months to 48
months
Lowest EMI per lakh Rs. 2,938
Loan Amount Min Rs. 5 Lakh and Max Rs.
30 Lakh
Part Prepayment, Charges Allowed after 1 EMI's, 2%
Early Foreclosure, Charges Allowed after 1 EMI's, 4%
 Benefits of Business Loan:
You can use a Business Loan to:
• Increase your business cash flow
• Lease bigger office premises
• Renovate your office
• Purchase, lease or repair machinery and equipment
• Upgrade to the latest technology
• Stock up on inventory
• Hire seasonal employees
• Purchase raw material for bulk orders
• Expand to another area or city
• Scale up operations and take on bigger projects and much
more.
 Opportunity
The SME loan are exceptionally composed advances for small business
startup and Medium-sized Enterprises. The little organizations and
undertakings are extending their business, expanding their profitability,
refreshing innovation and furthermore enhancing promoting efforts
alongside employing new faculty, step by step.
The advance causes associations to accomplish the accompanying:

• Building up new branches of the organization

• Remodeling the current foundation of the association
• Purchasing new hardware and machines for business tasks
• Establishing the stock things
• Enhancing and stimulating the promoting of the items
• Number of SMEs in India: The number is estimated to be at 42.50 million,
registered & unregistered together. A staggering 95% of the total industrial
units in the country.
• SME & Employment opportunity: Employs about 106 million, 40% of India’s
workforce. Next only to the agricultural sector.
• Products: produces more than 6000 products.
• GDP Contribution: Currently around 6.11% of the manufacturing GDP and
24.63% of Service sector GDP(2015)
• SME Output: 45% of the total Indian manufacturing output.
• SME Exports: 40% of the total exports.
• Bank Lending: Accounts for 16% of bank lending.
• Fixed Assets: Current fixed assets at INR 1,471,912.94 crores.
• SME Growth Rate: Has maintained an average growth rate of over 10%.

Sources: msme.gov.in/KPMG/CRISIL/CII.
 COMPARISON

COMPANY INTEREST RATE PROCESSING FEES

Bajaj Finserv 18.00% Upto 2% of loan

amount
Capital First 21.00% 2.00%
Business Loan
SBI Business Loan
11.20% From 2% to 3%
DFC Bank 15.65% Starting from 0.99%,
Max 2.50%
IndusInd Bank 14.00% 2.50%
Neogrowth 19.50% 2.5% of loan amount
Thank You
 Character
Character refers to the financial history of the borrower;
that is, whet kind of "financial citizen" is this person or
business?
• Character is most often determined by looking at the
credit history, particularly as it is stated in the credit score
(FICO score).
• Factors that will affect the credit score include:
•Late payments
• Delinquent accounts
• Available credit
• Total debt
• The fewer the problems, the higher the credit score.
• A high personal credit score (over 700) may be the most
important factor in getting a business loan
 Capacity
• Capacity refers to the ability of the business to
generate revenues in order to pay back the
loan.
• In other words capacity measures a
borrower's ability to repay a loan by
comparing income against recurring debts.
• Since a new business has no "track record" of
profits, it is riskiest for a bank to consider.
 Capital
• Capital refers to the capital assets of the business.

• Capital assets might include machinery and equipment

for a manufacturing company, as well as product
inventory, or store or restaurant fixtures.
• Banks consider capital, but with some hesitation,
because if your business folds, they are left with assets
that have depreciated and they must find someplace to
sell these assets, at liquidation value.
• You can see why, to a bank, cash is the best asset.
 Collateral
• Collateral is the cash and assets a business owner pledges
to secure a loan.
• In addition to having good credit, a proven ability to make
money, and business assets, banks will often require an
owner to pledge his or her own personal assets as security
for the loan.
• Banks require collateral because they want the business
owner to suffer if the business fails.
• If an owner didn't have to put up any personal assets, he or
she might just walk away from the business failure and let
the bank take what it can from the assets.
• Having collateral at risk makes the business owner more
likely to work to keep the business going, as banks reason
it.