Apply For Hotel / Restaurant / Resort Business Loans

(Loan Starting from Rs 25 lacs to Rs. 25 Cr)

Hotel, Restaurant, Resort Business Loan up to Rs. 25 Crores at attractive Interest rate

At, we arrange Business Loans for Hotels, Restaurants & Resorts, up to Rs. 25 Crores, from our lending partners. With our 10+ years of expertise in SME Finance, we understand needs of hospitality sector thoroughly & we are better equipped to extend customized solutions for Hotels, Restaurants, Resorts . Along with arranging fresh loans for hotels, we are expert in Refinancing existing loans of hotels to reduce repayment burden.

We arrange following loans for Hotel & Restaurant business:

  • Mortgage loan against hotel & restaurant property up to Rs. 25 crores.
  • Loan against rental income from leased hotel property (also called Lease rental discounting loan) up to Rs. 50 crores and against the mortgage of hotel property.
  • Loan against restaurant rental income & mortgage of restaurant property.
  • Loan for purchase of ready made hotel & restaurant property upto Rs. 25 crores
  • Unsecured business loan upto Rs. 2 crores for hotel business, restaurant business & resort business

Hotel & Restaurant Business Loans can be availed for :
1) Fresh term loan or Overdraft or Line of Credit :

  • Expansion of existing Hotel, Restaurants, Resorts business
  • Repay unsecured loans from various private institutions or Directors or Relatives
  • Purchase or takeover of other Hotels, Restaurants business
  • Working capital finance to take care of day to day operations of business

2) Loan against Hotel Lease Rental Income (LRD) :

Many hotel properties are given on lease basis to listed companies or multinationals. This is one of the lucrative business in India now a days. Lease rental discounting ,also called LRD loan, is comparatively easy way of obtaining finance from banks & NBFCs, against hotel rent. This loan is sanctioned based upon the future monthly rental income over a period of time and market valuation of hotel property offered as collateral. It is the consideration between the borrower who owns the hotel premises, the tenant who has taken the said premises on lease and the bank or financial institution which is willing to finance against hotel rent. This type of hotel lending can be in form of term loan or line of credit or overdraft. Loan amount is available from Rs. 25 lacs to Rs. 50 crores, with processing time of 10-15 days. gives you easy access to LRD loan through highly simplified online application form, online documentation & easy loan process.

3) Refinancing of existing loan to reduce obligation

When the cash flow of Hotel & Restaurants business does not match with repayment schedule, it becomes difficult to repay the loan on time. In such situations, Hotels & Restaurants business can refinance existing loans, by takeover for higher tenure (10-15 yrs) with lower rate of interest. It will help them to reduce obligation for repayment of loan, without affecting credibility. For example: Current outstanding of the loan is Rs. 12 crores, to be repaid in next 3 years i.e. Repayment obligation is Rs.4 cr per year plus interest. Refinance by new finance institution for 12 years with lower interest will give new obligation of Rs.1 crores per year plus interest. Time required for such loan transfer is 20-30 working days.

4) Consolidation of many loans in to one loan

If the business has many loans going on (Project loans / Unsecured Loans /Machinery Loans) of different amounts and different tenures, consolidation all these loans in one loan for easy repayment and possibly making some properties free, is the lucrative option. Also, with such consolidation,hotel & restaurant business will save on interest cost. Time required for such loan consolidation is 15-30 working days.

5) Top up on existing loan

Sometimes, existing banker does not support Hotels or Restaurants for requirement of extra funds. In this case, SMEFundings can help to transfer existing loan to new financer with top up, without additional security.

6) Unsecured loans for Hotels & Restaurants

We arrange unsecured business loan for Hotels & Restaurants without giving any property collateral from Rs. 25 lacs to 3 crores. These funds can be used for any purpose of the business & is available for only those businesess which has minimum stability of 3 years. Time required to arrange such unsecured loans is 5-10 working days.

Documents Required for finance proposal of Hotels /Restaurants / Resorts :
  • 3 Years Audited Financials with IT Return, Computation & Detailed Audit Report
  • Last 12 months bank Statements
  • Existing Loan Sanctions letters & Loan Statements
  • MOA / AOA / Partnership Deed / Proprietory registration
  • KYC of Firm & Directors / Partners / Proprietors
  • Property Documents