Q1. What is an SME Loan or SME Finance?
SME loans are specially designed loans for SME’s and small businesses. They are designed to be in sync with the unique requirements and operating constraints which small businesses encounter during various phases of their business.
Q2. Can moratorium period be allowed under this scheme?
Yes, moratorium period is allowed under this scheme, though the maximum period should not exceed 96 months.
Q3. What is Loan-to-Value or LTV Ratio?
LTV or Loan to Value ratio, is ratio of the loan amount to the realizable value of the underlying asset or security.
Q4. Is there any pre-payment penalty?
Yes. A small percentage of limit will be charged as pre-payment penalty.
Q5. What is ECS?
ECS stands for Electronic Clearance Service, and it is used to electronically transfer money between bank accounts, and is commonly used for making monthly EMI payments.
Q6. What is the usual repayment method for these loans?
The usual repayment methods include PDC, ECS, and more.
Q7. For what purposes can these loans be taken?
These loans are available for buildup of current assets, fixed assets, capacity expansion, modernization and short term working capital including shoring up of net working capital.
Q8. Are balance transfer or loan BT cases considered?
Yes. Loans can be availed through transferring an existing loan from other banks, NBFCs or financial institutions.
Q9. What is the range of tenor available with these loans?
You can avail this loan for a period starting from 12 to 84 months or 1 to 7 years.
Q10. Are there any Foreclosure and Part/ Pre-payment charges?
We offer pre and part payment facility at a very nominal charges. The amount charged may vary by sub-product and/ or location.
Q11. What are the typical business requirements for which business loans are given out?
Typical business requirements include new product launch, warehousing needs, expansion to new locations, entering new product categories, hiring new employees, marketing and many more such business related needs.
Q12. How to get financing / business loans for a small business?
Hero FinCorp provides loans to address the financing requirements of SMEs. We help SMEs with financing solutions which are user-friendly and can be adapted to the unique needs and requirements of SMEs & Small Businesses operating in India.
Q13. What are the documents required to avail a commercial loan?
The documentation requirement for availing corporate loans or loans for commercial purposes, vary by product, location and entity type.
Q14. How should you prepare to get a small business loan quickly?
The loan application process can be a lot simpler if one keeps the following in mind: 1. Update your financial records, 2. Know the value of your assets, and 3. Keep your banking/ financial statements handy.
Q15. What is a Machine Term Loan?
These are loans which help businesses acquire machinery & equipment for starting and/ or expanding a business or industrial unit.
Q16. How do I reach out to Hero FinCorp for a loan?
Fill in our Apply Now form on our website followed which we will get in touch with you or you can also call us on 1800-102-4145 or write to us at Customer.Care@HeroFinCorp.com.
Q17. How much loan can I avail? How is the amount decided?
The maximum eligible loan amount is decided based on your requirement, credit assessment, industry outlook, past performance and expected future cash flows.
Q18. Which bills are accepted for discounting?
Sales bills which are billed to reputed OEMs and companies are accepted for discounting.
Q19. What can be accepted as security/ collateral?
A wide range of securities are accepted. The includes properties such as land & real estate; equipment such as plant & machinery; Fixed Deposits, Deposit Certificates, Kisan Vikas Patra, National Savings Certificates, securities issued by Central and State Governments, gold and other cash equivalents; life insurance policies; and others. Please note the applicability of the above depends upon the overall assessment of the borrower.
Q20. How long does it take to get the loan?
It takes 10-15 working days to process the loan provided everything is in order.
Q21. Typically, how is working capital finance structured at Hero FinCorp?
At Hero FinCorp, working capital loans are tailored to suit the requirements of our clients, we offer various instruments individually or in combination with other products to best suit customer needs.
Q22. How is Acquisition Financing done?
There are various choices available for companies who are looking for acquisition financing. A line of credit or traditional loans are two common choices. Low rates for acquisition financing can help smaller companies reach economies of scale and is an effective method for increasing the size of the company's operations.
Q23. For what tenors does Hero FinCorp extend working capital finance?
Depending upon various facilities working capital finance is extended for tenors up to one year. Ad hoc requirements are also considered.
Q24. Who should I contact in case of any problem or if I have a query?
We have dedicated Relationship Managers for all corporate clients. You can get in touch with them if you have any queries about our products, services or in case of any issues regarding our loan application or approval process. Also, you can use the customer care section of this website to raise any query.
Q25. Is there any impact on my credit score if I foreclose my loan?
No, foreclosure of your loan will have no impact on your credit score. Once the loan is foreclosed the same will be reported to credit rating agency as closed.
Q26. What is Project Financing?
Project Finance is a method in which the lender looks essentially to the revenues generated by a single project, it can be both for repayment or a as security for the exposure. Project financing is usually for large, and expensive installations that could include, for example, power plants, chemical processing plants, mines, transportation infrastructure, and telecommunications infrastructure.
Q27. What are the typical characteristics of Infrastructure Projects?
Few typical characteristics of Infrastructure Projects are:
- Large capital costs
- Long gestation periods
- Tariffs are politically sensitive
- Vulnerable to regulatory policies
- Revenues is only in the local currency
- Assets cannot be transferred easily
- Tradable services are not provided
- Social aspects involved
Q28. What is Acquisition Financing?
Acquisition Financing is the capital that is financed to acquire/ buy another business. Acquisition financing provides funds to the user to help acquisition aspirations by providing the resources required to complete the transaction.