Sources of Long term funds from hsbc bank

Financial Instruments

Equities
Equities are a type of security that represents the ownership in a company. Equities are traded (bought and sold) in stock markets. Alternatively, they can be purchased via the Initial Public Offering (IPO) route, i.e. directly from the company. Investing in equities is a good long-term investment option as the returns on equities over a long time horizon are generally higher than most other investment avenues. However, along with the possibility of greater returns comes greater risk.

Mutual funds
A mutual fund allows a group of people to pool their money together and have it professionally managed, in keeping with a predetermined investment objective. This investment avenue is popular because of its cost-efficiency, risk-diversification, professional management and sound regulation. You can invest as little as Rs. 1,000 per month in a mutual fund. There are various general and thematic mutual funds to choose from and the risk and return possibilities vary accordingly.

Bonds
Bonds are fixed income instruments which are issued for the purpose of raising capital. Both private entities, such as companies, financial institutions, and the central or state government and other government institutions use this instrument as a means of garnering funds. Bonds issued by the Government carry the lowest level of risk but could deliver fair returns.

Deposits
Investing in bank or post-office deposits is a very common way of securing surplus funds. These instruments are at the low end of the risk-return spectrum.

Cash equivalents
These are relatively safe and highly liquid investment options. Treasury bills and money market funds are cash equivalents.

Non-financial Instruments

Real estate
With the ever-increasing cost of land, real estate has come up as a profitable investment proposition.

Gold
The 'yellow metal' is a preferred investment option, particularly when markets are volatile. Today, beyond physical gold, a number of products which derive their value from the price of gold are available for investment. These include gold futures and gold exchange traded funds.

Various types of loans

Loan for business property
We understand that expanding and growing your business to the heights of success is a dream of every entrepreneur like you. Obtaining an office premise of the right size and at the right location at most times is integral to the success of your business. HSBC's Loan for Business Property enables you to make the best choice for further expansion of your business.

Features
Purchase a business property to suit your requirements
Loan amounts range from Rs. 500,000 to Rs. 10,000,000.

Choose a loan tenure convenient to you

Loan can be taken for up to 10 years.

Option to choose the interest type you want

Fixed or floating interest rates, with the flexibility to change once every year without any penalty charges.

Prepay the loan at your convenience

Flexibility to prepay up to 25% of your loan every year, after the first 6 months without any pre-payment charges.

Enjoy the special treatment from HSBC

If you are a HSBC customer for 6 months or more, you are entitled to a special relationship discount on the processing fee.

Eligibility

Loans offered to the following type of concerns

Sole Proprietorships Partnerships Private Limited Companies Unlisted Public Limited Companies.

Income requirements

Net Income of the concern should be greater than Rs. 200,000 p.a. A maximum of two incomes of the partners/directors holding a minimum of 25% stake each can be clubbed to the income of the concern.

Turnover requirement

Minimum turnover of the concern must be Rs. 1,000,000 p.a.

Age of the guarantor (wherever personal guarantee is applicable)

Minimum age of the guarantor to be 21 years Maximum age of the guarantor to be 65 years at the time of the loan maturity Sole Proprietorship

Proof of identity of the Sole Proprietorship Firm (any one of the following):

Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR PAN ID / IT return of the concern OR Water / Electricity / Municipal tax bill in the name of the concern OR MAPIN card in the name of the concern

Proof of individual identity to be submitted for the Sole Proprietor (any one of the following):

Passport OR Voter's identity card OR Photo PAN card OR Driving license OR MAPIN card

Proof of residence address to be submitted for the Sole Proprietor (any one of the following):

Passport OR Voter's identity card OR Driving license OR Ration card OR Society outgoing bill OR Life Insurance Policy OR Electricity bill OR Telephone bill (land / mobile)

PAN ID / PAN allotment letter / Form 60 of the concern Financial documents (all of the following):

P & L and balance sheet for last two years audited by a C.A. AND Copies of IT returns for the last two years AND Bank statements for the last 6 months Top Partnership

Proof of identity of the Partnership Firm (any one of the following):

Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR PAN ID / IT return of the concern OR Water / Electricity / Municipal tax bill in the name of the concern OR MAPIN card in the name of the concern OR

Proof of individual identity to be submitted for the all Partners (any one of the following):

Passport OR Voter's identity card OR Photo PAN card OR Driving license OR

MAPIN card

Proof of residence address to be submitted for all partners (any one of the following):

Passport OR Voter's identity card OR Driving license OR Ration card OR Society outgoing bill OR Life Insurance Policy OR Electricity bill OR Telephone bill (land / mobile)

Partnership Deed PAN ID / PAN allotment letter / Form 60 of the concern Financial documents (all of the following):

P & L and balance sheet for last two years audited by a C.A. AND Copies of IT returns for the last two years AND Bank statements for the last 6 months Top Private Limited Company

Proof of identity of the Limited Company (any one of the following):

Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR PAN ID / IT return of the concern OR Water / Electricity / Municipal tax bill in the name of the concern OR MAPIN card in the name of the concern

Memorandum and Articles of Association Board resolution Copy of annual return establishing the shareholding pattern Proof of individual identity to be submitted for the authorised signatories and 2 Directors (including the managing Director) (Any one of the following):

Passport OR Voter's identity card OR Photo PAN card OR Driving license OR MAPIN card

List of directors Copy of Form 32 filed with ROC PAN card / PAN allotment letter / Form 60 of the concern Financial documents (all of the following):

P & L and balance sheet for last two years audited by a C.A.AND Copies of IT returns for the last two years AND Board resolution for borrowing and creation of mortgage AND Bank statements for last 6 months for Business Credit upto Rs. 15 Lakhs and 12 months for Business Credit above Rs. 15 Lakhs

Business finance Features

Choose from a range of finance options at competitive interest rates
Besides overdraft / cash credit solutions for short term financing to meet your working capital needs, we also offer:

Export/import financing options in foreign currency (at LIBOR linked rates) or in Indian Rupees, both at the pre-shipment and post-shipment stage. Discounting of export receivables by negotiating bills drawn under a DC (Documentary Credit) or discounting bills under collection, with the latter available both for D/P (Documents against Payment) and D/A (Documents against Acceptance). Bank Guarantees for your business requirements from Bid Bonds to advance payment to performance guarantees. Treasury Lines to manage your cross currency transaction risks, when you deal with buyers/suppliers overseas.

Get an amount suited for your business need

Avail of loan amounts upto Rs. 10 crores.

Provide collateral of your choice as security

(Micro and Small Enterprises (MSEs) can avail of loans upto Rs 10 lakhs without any collateral security.) Enjoy the flexibility of placing your residential, commercial or industrial property as collateral or avail business loans against SBLC (Standby Letter of Credit) or Business Guarantees.

Flexible quantum and tenor of loans

We offer a range of finance options ranging for your working capital needs with flexible tenors for facility amounts ranging upto Rs. 10 Crores.

Eligibility
Business finance is offered to the following type of concerns

Sole Proprietorships Partnerships Private Limited Companies

Positive profit after tax (PAT) Age of the guarantor (wherever personal guarantee is applicable)

Minimum age of the guarantor to be 21 years Maximum age of the guarantor to be 65 years at the time of the loan maturity Common documents for loan Last 3 year audited financials along with audited report (Provisional financials for the latest 12 months ended if not covered to be provided.) (Details of Investments, Loans and advances to Group companies as of last audited results). Three years income tax returns Three years sales tax returns Copy of monthly stock, age wise book debt and creditors statement for the last 3 months Copy of last 6 months bank statement of main banker / copy of bank statement for the term loan Duly filled up Common Application Form, Click here for Form Details of all business entities where either of the promoters or direct family (spouse/children) singly or jointly hold more than 10% stake and are involved in any other business An undertaking duly signed by the promoters that all business entities where the promoters in their individual capacity or through their immediate relatives (spouse / children) are stake holders has been duly disclosed to HSBC All copies of property documents proposed to be offered as security wherever applicable. These would include the sanctioned plan, title deed, registration receipts, Index II, Property card extracts etc. Any other document as may be necessary to capture information as specified by HSBC from time to time Top Documents required for sole proprietorship

Proof of identity of the sole proprietorship (any two of the following):

Proof of identity of the sole proprietorship OR Registration under Shops and Establishment Act OR PAN ID / IT return of the concern OR Water / Electricity / Municipal tax bill in the name of the concern OR MAPIN card in the name of the concern

Proof of individual identity to be submitted for the sole proprietor (any one of the following):

Passport OR Voter's identity card OR Photo PAN card OR Driving license OR MAPIN card

Proof of residence address to be submitted for the sole Proprietor (any one of the following):

Passport OR Voter's identity card OR Driving license OR Ration card OR Society outgoing bill OR Life Insurance Policy OR Electricity bill OR Telephone bill (land / mobile)

PAN ID / PAN allotment letter / Form 60 of the concern Financial documents (all of the following):

P & L and balance sheet for last two years audited by a C.A. AND Copies of IT returns for the last two years AND Bank statements for last 6 months Top Documents required for partnership firms

Proof of identity of partnership firm (any two of the following):

Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR PAN ID / IT return of the concern OR

Water / Electricity / Municipal tax bill in the name of the concern OR MAPIN card in the name of the concern OR

Proof of individual identity to be submitted for all the partners (any one of the following):

Passport OR Voter's identity card OR Photo PAN card OR Driving license OR MAPIN card

Proof of residence address to be submitted for all the partners (any one of the following):

Passport OR Voter's identity card OR Driving license OR Ration card OR Society outgoing bill OR Life Insurance Policy OR Electricity bill OR Telephone bill (land / mobile)

PAN ID / PAN allotment letter / Form 60 of the concern Financial documents (all of the following):

P & L and balance sheet for last two years audited by a C.A. AND Copies of IT returns for the last two years AND Bank statements for last 6 months Top Documents required for private limited companies

Proof of identity of private limited company (any two of the following):

Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR PAN ID / IT return of the concern OR Water / Electricity / Municipal tax bill in the name of the concern OR MAPIN card in the name of the concern

Memorandum and Articles of Association

Certificate of Incorporation Board resolution Copy of Annual Return establishing the shareholding pattern

Proof of individual identity to be submitted for the authorised signatories and 2 directors (including the managing director) (any one of the following):

Passport OR Voter's identity card OR Photo PAN card OR Driving license OR MAPIN card

List of directors Copy of Form 32 filed with ROC PAN card / PAN allotment letter / Form 60 of the concern Financial documents (all of the following):

P & L and balance sheet for last two years audited by a C.A.AND Copies of IT returns for the last two years AND

Documentation for collateral security

Micro and Small Enterprises (MSEs) can avail of loans upto Rs 10 lakhs without any collateral security). Residential Property, Commercial Property, Industrial Property, DUL and other Liquid Assets can be provided as collateral

Loan against property

Whatever the size of your business and type of industry, you will at some point of time need financing either to meet a dire need or make the most of a business opportunity. At these times, your property can be a suitable security, among others, to finance this need. HSBC has designed 'Loan against Property' to enable you to make use of the power of your property to structure your loan to meet your business requirement.

Features
Take an amount to suit your business need
loan amounts range from Rs. 500,000 to Rs. 10,000,000.

You provide the Collateral most convenient to you

collateral offered can be commercial or residential property. Loan can also be offered against the property of the directors / partners.

Take a loan tenor convenient to you

Loan can be taken for a tenure up to 10 years.

Meet your business need or opportunity on time

Quick disbursal of the loan, within days of the submission of the application form and required documents.

Choose the interest type you want

Option to choose between fixed and floating interest rates with the flexibility to change once every year without any penalty charges.

Prepay your loan as per your convenience

Flexibility to prepay up to 25% of your loan every year, after the first 6 months without any pre-payment charges.

Enjoy the special treatment from HSBC

if you are a HSBC customer for 6 months or more, you are entitled to a special relationship discount on the processing fee. Top

Eligibility
Loans offered to the following type of concerns

Sole Proprietorships Partnerships Private Limited Companies Unlisted Public Limited Companies

Income requirements

Net Income of the concern should be greater than Rs. 200,000 p.a. A maximum of two incomes of the partners/directors holding a minimum of 25% stake each can be clubbed to the income of the concern.

Turnover requirement

Minimum turnover of the concern must be Rs. 1,000,000 p.a.

Age of the guarantor (wherever personal guarantee is applicable)

Minimum age of the guarantor to be 21 years Maximum age of the guarantor to be 65 years at the time of the loan maturity Sole Proprietorship

Proof of identity of the Sole Proprietorship Firm (any one of the following):

Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR PAN ID / IT return of the concern OR Water / Electricity / Municipal tax bill in the name of the concern OR MAPIN card in the name of the concern

Proof of individual identity to be submitted for the Sole Proprietor (any one of the following):

Passport OR Voter's identity card OR Photo PAN card OR Driving license OR MAPIN card

Proof of residence address to be submitted for the Sole Proprietor (any one of the following):

Passport OR Voter's identity card OR Driving license OR Ration card OR Society outgoing bill OR Life Insurance Policy OR Electricity bill OR Telephone bill (land / mobile)

PAN ID / PAN allotment letter / Form 60 of the concern Financial documents (all of the following):

P & L and balance sheet for last two years audited by a C.A AND

Copies of IT returns for the last two years AND Bank statements for the last 6 months Top Partnership

Proof of identity of the Partnership Firm (any one of the following):

Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR PAN ID / IT return of the concern OR Water / Electricity / Municipal tax bill in the name of the concern OR MAPIN card in the name of the concern OR

Proof of individual identity to be submitted for the all Partners (any one of the following):

Passport OR Voter's identity card OR Photo PAN card OR Driving license OR MAPIN card

Proof of residence address to be submitted for all partners (any one of the following):

Passport OR Voter's identity card OR Driving license OR Ration card OR Society outgoing bill OR Life Insurance Policy OR Electricity bill OR Telephone bill (land / mobile)

Partnership Deed PAN ID / PAN allotment letter / Form 60 of the concern Financial documents (all of the following):

P & L and balance sheet for last two years audited by a C.A AND Copies of IT returns for the last two years AND Bank statements for the last 6 months Top

Private Limited Company

Proof of identity of the Limited Company (any one of the following):

Sales tax / VAT /Service tax / Excise registration OR Registration under Shops and Establishment Act OR PAN ID / IT return of the concern OR Water / Electricity / Municipal tax bill in the name of the concern OR MAPIN card in the name of the concern

Memorandum and Articles of Association Board resolution Copy of annual return establishing the shareholding pattern Proof of individual identity to be submitted for the authorised signatories and 2 Directors (including the managing director) (any one of the following):

Passport OR Voter's identity card OR Photo PAN card OR Driving license OR MAPIN card

List of directors Copy of Form 32 filed with ROC PAN card / PAN allotment letter / Form 60 of the concern Financial documents (all of the following):

P & L and balance sheet for last two years audited by a C.A.AND Copies of IT returns for the last two years AND Board resolution for borrowing and creation of mortgage AND Bank statements for last 6 months for Business Credit upto Rs. 15 lakhs and 12 months for Business Credit above Rs. 15 lakhs.

Business overdraft
We understand that expanding and growing your business to the heights of success is a dream of every entrepreneur like you. At times, to fuel this growth, your enterprise would require urgent finance. At such times,

an overdraft against your investments would be just the right option for you. You need not liquidate your precious, farsighted investments and at the same time, meet the financial needs of the present.

overdraft against rbi bonds

This is an overdraft facility against permitted series of RBI Bonds held in dematerialised form. Amount Maximum tenor Value From Rs. 100,000 to Rs. 25,000,000 One year. The tenor can be renewed, subject to HSBC's discretion The overdraft facility is provided up to a maximum of 130% of the face value of the RBI Bonds, depending upon the remaining maturity period of the RBI Bonds as per the following table: a. 1 years residual maturity - 130% b. 2 years residual maturity - 115% c. 3 years residual maturity - 105% For the interest rate applicable, contact the nearest HSBC branch Interest charged on a monthly basis on the actual amount utilized

Interest rate Interest calculation method Processing fee Ownership Important information Guarantor

1% The facility can be granted to the company / partnership / proprietorship against the security of Bonds held in the name of the director / partner / proprietor of the firm Facility can be extended only against permitted series of RBI Bonds Personal guarantee of partners in partnership firm and directors in private limited company. Not applicable to sole proprietorships.

b. overdraft against debt mutual funds

This is an overdraft facility against the security of select Debt Mutual Fund units.

Amount Maximum tenor Value

From Rs.100,000 to Rs.2,000,000 One year. The tenor can be renewed, subject to HSBC's discretion The overdraft facility is provided up to a maximum of 60% of the Net Asset value of the Debt Mutual Fund units and is subject to periodic review. This facility is not available against Equity Mutual Fund units. For the interest rate applicable, contact the nearest HSBC branch Interest charged on a monthly basis on the actual amount utilized

Interest rate Interest Calculation

method Processing fee Ownership Important information Guarantor 1% The facility can be granted to the company / partnership / proprietorship against the security of units held in the name of the firm or director / partner / proprietor For an approved list of Debt Mutual Funds, contact your nearest HSBC branch Personal guarantee of partners in partnership firm and directors in private limited company. Not applicable to sole proprietorships.