Aditya Birla Finance Limited (ABFL) is a renowned lender that provides financing to consumers by way of home loans and personal loans and small and medium-sized businesses (SMEs). When it comes to business loans, ABFL offers a revolving line of credit, unsecured business loans, secured business loans, working capital demand loans, and supply chain financing, i.e. invoice discounting.
Here is a summary of everything you need to know about ABFL business loans.
|Loan Types Offered||Line of Credit|
Working Capital Loans
Supply Chain Financing – Invoice Discounting
|Loan Amount||Up to Rs.25 crore |
|Loan Tenure||From 3 months up to 12 years|
|Interest Rate||Depends on the scheme and many other factors|
|Line of Credit||The lender provides a maximum loan balance to the customer to access or maintain based on their eligibility. The customer may draw the available credit line such that the drawn amount does not exceed a set limit. The money borrowed must be paid back within a specified time and specified interest rate. Note that only the money drawn or used will be charged with interest.|
|Unsecured Business Loan||An unsecured business loan is the financing of up to Rs.50 lakh provided for business without any collateral or guarantee. The loan is disbursed solely based on the business’s capability and the credit history of both the borrower and the business.|
|Secured Business Loan||This scheme is mostly for the SMEs that are looking to expand their reach and scale-up. The process involves pledging a property or providing collateral, which enables the lender to offer a significant loan amount for the overall development of the business, i.e. from Rs.1 crore up to Rs.25 crore.|
|Working Capital Demand Loan||It may not always be possible to have working capital at hand. There may be many points that require immediate cash, leaving you with no money for paying office rent, salaries, and other expenses. A working capital loan enables you to meet the financial needs of your business.|
|Invoice Discounting||Convert your receivables into cash when you need money the most. This scheme improves liquidity and ensures cash flow for your business. You can maintain your relationship with vendors and clients without taking a toll on your business flow.|
For Instant Small Loans:
Processing Fee: Up to 2% (varies from customer to customer)
On average, your business loan application’s turnaround time is 7-10 working days after receiving the complete set of documents as stated by the bank. This is mainly applicable to secured business loans.
You can choose a Working Capital Demand Loan to carry on with everyday operations, such as purchasing monthly office supplies, paying rent for the office space, paying employee salaries, and others. You cannot use this loan to pay for long-term goals, such as buying office space in a new location to expand your business.
The benefits of the Invoice Discounting scheme are:
You can make repayments using one of the methods: NEFT, RTGS, NACH, ECS, or cheque.