Business Loan in Bangalore for Mechanical Workshop

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Business Loan in Bangalore for Mechanical
Workshop
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• 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.

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• 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 in the form of
  business loans for Mechanical workshop.

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Fees Charges on Business Loans 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.
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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
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Documents Required for Business Loan for
Mechanical Workshop

• Borrowers Identity proof- Driving License/PAN
  Card/ Passport / Voters ID card
• Borrowers 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

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Requisites to be eligible for Business loan 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

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• 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.

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• 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.