|Bank of Maharashtra has announced a loan product, designed specially for traders and micro small and medium enterprises (MSME). The loan intends to provide hassle free loans with minimum documentation and sanctioning formalities.
The Pune based bank is trying to attract the customers of smaller banks and cooperative lenders, whose loan sanctioning procedures are relatively hassle free, which makes such banks the choice of MSMEs and traders.
The loan would be property based loan, and the bank would offer loans upto Rs. 5 crore given the borrower pledges a property worth 140% of the loan amount. Bank's Executive Director, Mr. C.V.R. Rajendran further added, "It is not a real-estate loan. We just take the property from a loan seeker as collateral."
The bank would be offering the loan at a relatively lower interest rate of 14.5% against the norm of 16.5%, which is because of the security of the property associated with the loan. The bank maintained the loan would still be given after assessing the financial health and stability of the company