According to Small and Medium Enterprises chamber, this sector has been one of the fastest growing in the last five decades. This sector contributes immensely owing to low capital requirements, high export earnings, operational flexibility and low imports. However, crunch of funds has always been a limiting factor in their growth. To serve this end of the spectrum, reputed finance houses like Reliance Commercial have stepped in. It goes without saying that their loan and finance products have helped SMEs immensely in the past decade. Being from a Business group of Reliance, Reliance capital in particular is a highly respected name amongst the lending agencies. Their Loan against property is specifically aimed at funding SMEs’ operations. They also extend loans to salaried professionals against the property, to meet their commercial requirements.
The Reliability of Reliance Commercial Finance
Reliance Commercial finance, in its eight years of operations has reached out widely to around 130,000 Small and Medium Enterprises (SME) disbursing approximately INR 50,000 Crores. Reliance believes in the important role these SMEs are playing in India’s growth story and they firmly believe that assisting SMEs in realising their true potential is what will drive India’s economy as well.
Reliance Commercial Finance is a member of the Reliance Capital and both of these entities fall under the larger umbrella of Reliance group- India’s top private sector business house founded by late Shri Dhirubhai Ambani. Reliance Capital operates in over 80 locations with asset base of 15,157 Crore as on March 2016. Their financial products comprises of Business Expansion loans, Property loans, Vehicle loans, Construction Equipment Loans, Infrastructure, Micro finance and Agriculture Loans. On the other hand, Reliance Group serves over 250 million customers in telecommunications, power, financial services, infrastructure, media and entertainment, and healthcare sectors, covering 25,000 cities and 400,000 villages.
With such strong and robust backing, it is but natural that Reliance Commercial enjoys the trust and loyalty of Indian customers. They also pride themselves as one of the biggest employers of young talent in India.
Loan against property for SMEs and other Indian commercial ventures
As mentioned earlier, fund crunch is a restriction and constraint most of the SMEs operate in. Reliance Commercial Finance offers loan against property which helps in unlocking the true potential of property held by the owners of such enterprises while meeting the financial needs of the business and its operations. The property is basically mortgaged as security and based on the value of the property, the amount of loan is arrived at and extended.
Salient features of Loan against Property
- Loans are granted against residential, commercial, industrial property and land.
- Financial statements including balance-sheet are not required for loans up to 3 Crores.
- Higher Loan to Value ratio with longer tenures and flexible repayment options
- Active customisation of loans according to requirements and limitations of the client.
Who can apply for the loan
By definition, MSMEs include all those enterprises where the total investment in plant & machinery ranges from up to Rs. 25 Lakhs (Micro enterprises) to Rs. 10 Crores (Medium enterprises) that are involved in manufacturing. For service sector, this range is from up to 10 lakhs to 5 Crores.
For Salaried, Self employed and self-employed non-professionals, the eligibility criteria is as follows:
- Applicant must be of minimum 21 years and maximum 58-60 in case of salaried person and 65 for self-employed business personnel
- Minimum annual gross income should be maximum of Rs. 500,000.
- Minimum Property against which loan is granted- Residential Property - 500 Sq.ft and Commercial Property 250 Sq.ft
- Type of property Funded includes ready and resale properties, under-construction properties of pre-approved builders
Various Loans and Financial Products
Reliance Commercial has a well-rounded loan and financial services suite. Apart from loan against property and other loans focusing on MSMEs, they also extend following commercial loans thereby reaching out to different kinds of businesses, trades, enterprises and self-employed persons:
- Business Expansion loans
- Commercial property loans
- Commercial vehicle loan
- Used Car loans
- Construction equipment loan
- Infrastructure finance
- Agriculture loans
- Home loans
- Property solutions
- Micro finance
Reliance commercial offers the above loans for different types of commercial ventures. Their loan against property however is very popular as it helps in tapping maximum benefit from an existing or new property. Since it is a secured loan, it assists the borrower in better customisation of the loan package to suit his or her requirements since the loan is secured owing to mortgage. Being in this business for eight years and having a credible track record, Reliance Commercial is definitely a name that evokes confidence and reliability. Their comprehensive loan and financial solutions can help a borrower make the right choice and address multiple issues he might be having, all at one spot!