Loan for Hotels and Restaurants

Hotel or restaurant owners need quick and easy access to funds to stay ahead in the extremely competitive hospitality industry. Hotel loans can offer tailored funds to meet the needs of your business from restaurant expansion financing to improving customer experiences. 

At SMFG India Credit, you can get unsecured business loans for hotels up to INR 1 crore*. Our affordable interest rates and flexible repayment terms ensure that you can manage cash flows efficiently while focusing on growth and development opportunities.

Features and Benefits of Hotel Loans

Hotel business loans come with several attractive features designed to support the hospitality industry players:

• No Collateral Required: Get the funds you need to grow your business, without needing to pledge any personal or business assets as collateral.
• Flexibility of Usage: Whether you need a loan for restaurant equipment or working capital loans for hotels to manage daily operations, SMFG India Credit has you covered.
• Quick Approval Process: A quick and transparent process for hotel loans ensures you can get the funds when you need them the most.
• Affordable Interest Rates: Eligible borrowers can enjoy minimal and competitive interest rates that help lower the overall cost of loans for hotels.
• Flexible Repayment Tenures: You have up to 60 months* to repay the business loan for hotels. This gives you the flexibility to make sure that the repayment schedule aligns with your business capital requirements.

Eligibility Criteria and Documents Required

Eligibility Criteria 

Here are the basic eligibility criteria for business loans for hotels at SMFG India Credit:

• You must be a resident Indian.
• You must be self-employed with your own business or a proprietor/partner/director of an existing business.
• Your age must be between 22 and 65 (not more than 65 at the time of loan maturity)
• Your business must have been existing for at least 3 years, with stable income and profits for the last 2 years.
• You must have a minimum annual turnover of INR 10 lakhs and profit after taxes of INR 2 lakhs per annum.

*Please note that the final eligibility will depend on several factors including SMFG India Credit’s policy at the time of loan application.

Documents Required

The following basic documents are required to qualify for a hospitality industry loan:

• KYC documents for identity and address proofs (PAN card, Aadhaar card, etc)
• GST, ITR, or bank account statements
• Income proof
• Proof of business existence (example: Certificate of Incorporation)

*Additional documents can be requested depending on your profile and SMFG India Credit’s policy at the time of loan application.

Interest Rates and Fees Applicable for Hotel Loans

Interest rates for hotel loans depend on various factors like net income, location, existing financial obligations, business stability, and so on. SMFG India Credit offers competitive interest rates on business loans for eligible borrowers, ensuring manageable monthly payments and lower borrowing costs. Apart from interest rates, you can expect other nominal charges such as processing fees. Here is a quick overview of the fees you may come across:

• Processing fees: Up to 2.75% of the total loan amount + GST
• Loan cancellation charges (loan cancelled before the first EMI): INR 1,000 + GST
• Late payment charges (applicable per payment default): 2% per month (24% per annum) on overdue amount calculated on day to day basis payable from the relevant due date till date of actual payment.

Knowing all associated expenses will help you make informed decisions for choosing the most suitable option for hospitality business loan programs.

How to Apply for Hotel Loans

Financing for hospitality ventures becomes easy with a straightforward business loan application process at SMFG India Credit: 

• On the application page, click on Business/SME loan as per your requirements.
• Enter the requested information, along with loan amount and tenure, and upload the required documents.
• Within a short while, you will know whether your loan application will be considered going forward. If yes, you will receive a reference number which you can save.
• Your application will go through different stages of verification, after which you will get a customised loan offer and interest rate.
• The loan amount will be disbursed to your account once your loan is approved.
   

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