The Best Business Loans in Mauritius

Compare the best option on the market before choosing the most appropriate option that best fits your daily needs.

Further Below: Our Guide To Business Loans in Mauritius, Everything you need to know.

Hongkong and Shanghai Banking Corporation Limited (HSBC) 

• Borrow up to Rs. 2.5 million
• Loan tenure of up to 7 years
• Low-interest rates
• Zero monthly service fee
• Fast loan approval
• No security required
• Available to non-HSBC customers
• Fast disbursement

Bank One

• Loan amount of up to Rs 1.75 million
• Repayment period of up to 8 years
• Attractive interest rates
• Available to non-Bank One customers
• Tailor-made financing
• Unsecured loan
• Credit life insurance
• Quick approval

BCP Bank Mauritius

• Maximum amount of MUR 500,000
• Maximum repayment term of five years
• Flexible interest rates
• Decreasing Term Assurance
• No charge for early repayment
• No capital contributions required
• Choose the preferred monthly payment day
• Fast application process

Business Loans in Mauritius, All You Need To Know:

We conduct a thorough examination of the market factors affecting consumer credit in a few minutes. We, therefore, arm you with all the knowledge you require to contract a business credit, the documents required and the steps to be followed to choose the best option that meets your financial needs with minimum struggles.

What Economic Measures Has the Government Implemented for Companies Through Covid-19?

During the Covid-19 pandemic, most of the economic sectors were affected to a point of winding up. However, the Mauritius government chipped into the economic sector to ensure there is financial stability within their economy. They also set regulations that will favor all economic sectors. Here are some of the measures set by the government to enhance a going concern objective for organizations;

• The Mauritius government proposed a scheme that will cover some proportion of the fixed cost incurred by organizations during the pandemic period. This scheme will cater to the losses incurred.
• The government initiated a two-step backed loan which has the scheme to provide up to MUR 26 billion. This helped in ensuring there is financial liquidity and money circulation in the economy. This eased consumer credits given to potential borrowers.
• Banks were offered state loans that gave credits to small and medium-sized enterprises to cover the losses caused by the pandemic and further financial support was proposed for increment during this crisis.
• Government Bond Fund was reinstated to increase the money supply and capital which will be a good source of funding for huge companies.
• Deadlines for submission of corporate tax and other tax returns were extended from May to August to reduce the pressure of income tax filing.
• Debt rules were reviewed and negotiated in favor of the businesses or entities affected by the pandemic and they find it tougher to comply with all the required terms and policies. 
• The growth facility periods were also extended in favor of the small growing enterprise so they can have extended periods of capital generation.
• Lending rates in the banks and other financial institutions were reduced and also the repayment periods were extended as it made it easier for borrowers to make their repayments more flexible and attainable.

Distinguishing Types of Company Profiles

When taking loans a variety of factors are considered by the lenders before deciding on which type of loan to approve. A business profile gives a brief explanation of the size of the organization, and the nature of activities carried out by the organization. Therefore, a business profile is a point of concern when taking loans. Here are different business profiles;

Companies

1. Large companies: These are organizations with a huge scale of operation either nationally or internationally. These companies have an extensive profile and they should select loans with higher limits to finance their operations.
2. Consolidated companies: These are companies that amalgamate together and undertake their operations in common making their company profile huge as they consolidate all their incomes and expenses. 
3. Start-ups: These are small growing financial institutions that haven’t stabilized in their operations and at times they might operate in losses. This type of business profile sometimes may have reduced access to loans. 
4. Entrepreneurs: This is an imaginary idea of a business opportunity that has not been developed. They are not legible to acquire loans as their profile is not defined by the actual size of capital required. 

Self-employed profile

• Natural person profile: These are individuals who tend to acquire loans for personal financial expenditures other than their own employment money. 
• Legal person profile: These are business entities that are legalized to undertake businesses in their names and can either be companies or other institutions. They have a wide profile hence they should consider undertaking loans with higher limits.

Characteristics of business loans

Though your business profile determines the nature of your organization, there are loan characteristics that are similar to all loans be it personal loans, business loans, or even online loans. These characteristics should be well known to the loan applicant as it helps in the evaluation of the loan. They include:

• Loan purpose: Before coming up with an idea of taking a loan, there must always be a driving reason to undertake that specific loan. The borrower should be in a position to answer the question why do you need a loan?

• Loan amount:  You should be in a position to give a specific amount that the purpose will need. The loan amounts changed from one purpose to the other depending on the financial need.

• Cost of acquiring the loan: Mauritius has a stable economy hence it offers business loans with attractive acquisition costs. However, this cost differs from one entity to the other and you should therefore analyze the cost of acquiring loans from different entities.

• Terms and conditions: Per the lending entity, different loans have different terms and conditions attached to them. These terms include the repayment period attached to the loan and the interest rates applied to the sum borrowed. Some entities offer more favorable lending terms.

• Loan security: Most business loans have high loan limits making it risky for lenders to lend out due to trust issues with the borrower. Some lenders have taken the initiative to secure their finances by asking for securities, collateral, or guarantors before offering a loan.

• Grace period: This is a period between the loan disbursement day and the time you pay the first installment. Most loan lending organizations offer this grace period to allow the borrower to have enough period of preparation before repaying the loan.

• Concessions and payout rate: Some financial needs require urgency and cannot be postponed. Before taking a loan, you should always make consideration of the time taken to make an application, through approval, and finally receive the funds applied for. 

• Linkage: Loan lenders may want to advance the relationship to other services such as opening a bank account with them, and taking insurance coverage with their organization before being approved for a loan. 

Where to Get Business Loans

In the past years, business loans were majorly acquired in banking organizations. They offer a broad base of financial products, favorable interest rates, and repayment terms that attracted many consumers. However, other financial lending institutions are rapidly emerging and are competitive as they also provide quality offers to consumers.

 Here are some of the entities where you can get your business loan. 

• Banking institutions: These are the major sources of business loans in Mauritius as it offers a wide range of financial products. Banks have stringent formalities to qualify for loans as they require to weigh out the credibility of the loan borrower. They offer finance from start-ups to large companies with favorable lending terms. 

• Private lending institutions: These entities provide loans with less stringent application processes and fast concessions and payout rates. They are attractive to borrowers with emerging needs as it is an immediate source of financing. Besides the attractive terms, they are quite expensive as it offers loans with high-interest rates and reduced repayment periods which are rigid to some borrowers.

• Other crowdlending financing platforms: These are websites that let businesses link us up with individual investors. These investors will determine whether or not to invest in your company once we have requested a business loan from them. The entire procedure is carried out online, and it could take two days to hear back. They provide loan limits following your credibility and transparency.

Business Loan Requirements

For you to undertake a business loan, there are requirements that you are to meet up before signing for the loan request. You should comply with the requirements to increase your chances of eligibility. Some of these requirements include:

• Be a Mauritius resident:  In Mauritius, you are required to give proof that you are a resident of that country, or if you are a foreigner you should have stayed in Mauritius until you are legalized for residency.

• Be of legal age: Different lending entities have their age limit for providing business loans. Some prefer 18 years while others prefer 20 and 23 years. Business loans are not given to minors irrespective of their ability to repay the loan.

• Credit history records: Your previous credit records is a compulsory requirement as borrowers with negative records are not subjected to business. This calls for clearance from your previous lender for you to be qualified for another loan

• Tax compliance: You should show you have been complying with the tax authorities and you have no tax debts outstanding in your name.

• Business registration: If applying for a business loan you should make the lenders have confidence in giving you a loan by proofing that the company is registered in Mauritius.

You should always be keen enough to ensure you meet all the requirements as it might be more or less of the above.

Documents Needed to Get Funding in Mauritius.

1. A national Identification Card or passport for citizenship
2. Bank statement if the application is on another bank
3. Salary slip  to show your source of income
4. Corporate tax compliance certification or approval
5. Clearance certificate from your previous loan lender if any.

These documents are attached to the loan application and hence should either be submitted manually or online depending on the contractual terms. You should therefore ensure you provide all the documents required for compliance purposes.

Other forms of financing for companies

1. Factoring method of financing

The lender pays for our invoices to one or more suppliers under this sort of financing for small business enterprises. The supplier will then expect us to pay the invoice in full with an additional interest amount, either partially or wholly.

2. Business lines of credit

With business or company credit, borrowers can withdraw cash until their credit limit. The total amount of the loan provided will not be repaid; rather, the borrower will only pay back the amount they have withdrawn plus any applicable interest. This product is provided by most financial lenders in Mauritius.

3. mortgage guarantee loans

With these types of loans, we can only receive funding if we can provide a mortgage to be utilized as a guarantee. Due to the lengthy evaluation procedures, these loans take longer to be granted and the concessions also take more time.

4. crowdlending loans

This occurs when a  private lender chooses to invest in our company through an internet platform. Borrowers will obtain varied services as they switch from one crowdlending platform to another ending up with the best option.

Products to Invest in Your Company

Crowdfunding for equity

On this platform, a borrower and an investor are connected. Until our company is stable, the private investor makes investments in it. It’s crucial to remember that after investing in your company, the investor will receive a portion of the company’s ownership and profits.

Enterprise Angels

Equity crowdfunding and business angels are similar in that a group of investors chooses a company in which to invest jointly. Similar to crowdsourcing, the investors will receive stock in your business.

3F (Family, Friends, Fools) 

The agreement between you and the lender will determine the terms of financing from each of these parties.

Aid for the Financing of Companies

• unemployment capitalization

This choice will be most advantageous to you if you’re self-employed and wish to launch a business, as the use of unemployed personnel to create resources helps in financing the individual.

• Subsidies

 federal subsidies and government assistance increased dramatically as a result of the Covid-19 pandemic, which expanded the financing options.

• Crowdfunding

You could find a private investor interested in supporting your company or project through these internet sites.

About this page, our methodology

What this page is for: We are a website that provides you with information about the wide range of financial products available to you as a credit consumer. As a result, before you apply for a loan, we teach you how to compare various economic factors such as interest rates, repayment periods, and additional fees involved. Additionally, we equip you with the analytical skills you need to become financially stable. 

Source: The information herein regarding consumer credit and in particular personal loans has been sourced from the Bank of Mauritius website, Banking institutions among other reliable sources.

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources. 

About FUNDGECKO: We are a group of experts who are dedicated to assisting you in making straightforward financial decisions that will see you meet your financial goals. You can compare the best financial options by using the information we provide herein, which has been verified and is reliable. Additionally, we provide simpler methods for selecting the option that best meets your requirements and preferences. Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.