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Q. What is LoanKuber?

A. LoanKuber is a transparent and the only online market place for business loans to entrepreneurs.

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Q. How do I get comfort that my information is secure?

A. LoanKuber applies encryption, auditing, logging, backups, and safe-guarding data commensurate with bank-level security standards to protect your data.

Also, be rest assured that no information is disclosed to any third parties without your explicit consent.

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Q. How does LoanKuber identify the Financial Investors?

A. We only associate ourselves with reputed financial institutions who are also committed to providing financial assistance to the emerging and growing small and medium enterprise segment in India.

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Q. Will my information be shown to all financial partners and can my application be sent to more than one financial partners?

A. We at LoanKuber are committed to protecting your privacy and we will seek your consent on the financial partners that you may wish to disclose your information to.

We also provide recommendations on the target financial institutions to ensure a smooth transaction process depending on the product specific requirement However, please note that we do recommend to display the application to multiple financial investors to improve the quantum and pricing competitiveness.

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Q. The information I need to put in LoanKuber takes me relatively more time than others?

A. The total time required for complete the entire application will on an average take 15-20 minutes. The information requested has taken into account the essential information required by Financial investors to provide an initial sanction to the Facility. By doing so, it will exponentially improve the time taken to obtain a feedback and reduce the iteration in query resolution from a financial partner by more than 50% which will ensure an average saving of more than a week in the overall transaction time.

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Q. Will I get any help while uploading the information?

A. To our clients, we provide a dedicated RM and an online support service to ensure a smooth transition within LoanKuber. You can also schedule a live demo at your office to assist you in collecting and uploading the information.

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Q. What are the real estate properties that can be offered for availing the Facility?

A. Generally, the property can be in the form of owned/ vacant / rented residential, commercial or retail asset class with clear and marketable title.

Financial Investors do not prefer to lend against under construction properties and also avoid providing such facilities only against a land collateral.

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Q. How do I Know how much I can borrow against my property?

A. It is always advisable to have your own independent valuer ascertain a value of the Property or use one that are common to most financial institutions.

Note that all Financial Institutions insist the valuation be done separately by their empanelled list of valuers. You may get in touch with LoanKuber if you width to find out more about the empanelled valuers.

Once, the value has been ascertained , Financial Institutions generally lend up to 70% of the value of the Property.

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Q. Is this the only criteria for determining the amount that can be borrowed?

A. The maximum loan value is also a function of the repayment ability of the business. The best method of enhancing the amount borrowed is to increase the repayment capacity by bringing in additional co applicants.

Please note that a co-applicant need not own part of the property, however, the co owner of the real estate property needs to be a co applicant or accede his rights on the Property in favour of the Financial Institution. Please note that the eligibility shall also include the general eligibility required for all entities.

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Q. Who can be my Co- Applicant?

A. As an Individual your parents, direct siblings, spouse and major children can be your co applicants. Also, the companies where the applicant is a director, partner / proprietor can be a co applicant provided they are in compliance with Existing laws.

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Q. What are the interest rate and other charges?

A. Generally, the interest rate varies from 11.00% to 13.00% depending upon the type of collateral offered and the repayment ability of the applicant. The interest rate costs are generally lower for self occupied properties with the interest rates being higher for commercial properties in off market locations that are not occupied.

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Q. What is the minimum and maximum amount one can Borrow?

A. A minimum quantum of INR 5 Lakhs is required for a loan against property. Though we do not insist on a maximum amount, it has been observed our Financial investors do not prefer to sanction LAP Facilities beyond INR 50 Crores .

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7

Q. How long does it take for my loan to get sanctioned?

A. Generally, 4-6 weeks is the average time for availing disbursement under Loan against Property if one tries to avail the facility on their own and 3-4 weeks once all documents are submitted..

However through Loan Kuber Platform the timelines can be crunched by 50% and loan disbursed in 1-2 weeks.

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Q. What is Loan Kuber Advantage?

A.

  • Expert Advice : Dedicated Relationship Manager to structure optimal solution and find the right Financial Institution.
  • Single Application to Multiple Lenders.
  • Find the lowest and the most competitive interest rates.
  • Reduce the disbursement time to 1-2 weeks.
  • Unmatched Transparency : No more hidden charges
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1

Q. What exactly describes a Unsecured Business Loan?

A. These are loans that the entrepreneurs may avail from financial institutions for host of activities that can include business expansion, margin money for working capital requirements or any alternate business Investments.

2

Q. How is it different from an Overdraft?

A. These products are similar to an Overdraft fund based working capital facility, the difference being these are available for longer tenors and are not subject to revalidation at the end of each year.

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Q. What is the minimum and maximum amount one can Borrow?

A. A minimum quantum of INR 500,000/- with a maximum limit of INR 50,000,000/- which differs between Financial institutions.

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Q. How long can I Borrow?

A. The tenor granted for unsecured is generally restricted to 5 year and are amortized monthly after a moratorium period.

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Q. What can I Borrow for?

A. The proceeds from the facility is intended to be utilized for business expansion and for business investments and are not intended to be used for speculative transactions.

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Q. How do I Know how much I can borrow?

A. A key financial indicator for working capital is the existing DSCR (Debt Service Coverage Ratio) for the entity and co borrowing entity availing the loan.

Unlike, project specific loans, the repayment needs to serviced from the existing cash flows accruing to the company on a historical basis, i.e. the average annual cash accruals for the last 3 years need to justify the debt servicing requirements.

This determines the maximum one can borrow.

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7

Q. Is this the only criteria for determining the amount that can be borrowed?

A. Eligibility Criteria for the Borrowing Entity:

  • Audited Financials of the last 2 years with filing of requisite tax returns
  • Positive Networth
  • No continuing cash loss for the last two years
  • Sufficient proof of continuation of business and Income

Some Financial Institutions consider an industry growth parameter to arrive at the future cash flow generating ability of the entity.

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Q. Who can be my Co-Applicant?

A. As an Individual your parents, direct siblings, spouse and major children can be your co applicants. Also, the companies where the applicant is a director, partner / proprietor can be a co applicant provided they are in compliance with Existing laws.

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Q. What are the interest rate and other charges?

A. Generally, the interest rate varies from 14.00% to 20.00% pa depending upon the loan servicing ability and the underlying Business risk to the cash flows and one time loan processing charges of 1% of Facility amount plus applicable taxes.

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Q. How long does it take for my loan to get sanctioned?

A. Generally, 4-8 weeks is the average time for availing disbursement under Unsecured Loan if one tries to avail the facility on their own and 3-4 weeks once all documents are submitted.

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Q. How can LoanKuber Assist me?

A. LoanKuber is a transparent and the only online market place where entrepreneurs along with their channel partners and financial investors meet to identify the best match possible.

By partnering with us:

  • You can reduce the disbursement time by up to 3-4 weeks
  • Find the lowest and the most competitive interest rates
  • Structured solutions to determine the kind of product to be availed
  • No more hidden transactions. Know your current position and feedback of your transactions live
  • Dedicated RM support to help you identify the right product and Financial partner and assist you with the documentation and transaction
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