About Business Loan

Each business is unique & have specific requirements. Business loan is offered by various banks & financial institutions across the country are customized & customer centric. These are made to offer the business owners with the wide array of financing alternatives.

The small business loan is safest & easiest option to appropriately finance the business objectives. Banks & financial institutions offer tailor made loans based on nature, scope & goal of the requirements.

Business Loan is one the great way to increase financing towards various business needs. There are many banks that offer loan upto 30 lakhs with and without collateral with pre-approved offers. It is the money that is credited to your account with certain percentage of interest and fixed tenure for repayment. This amount can be used for expansion of existing business or the start a business from the scratch. According to the needs of the business, the loan amount will be approved by each bank.

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Features & Benefits

Business Loan is one the great way to increase financing towards various business needs.

The followings are the ways a business loan can be benefitted:

Accessible and Convenient

Accessible is the best feature of banks, it is very essential factor as well as there will be a need for regular conversations, depositing savings or any withdrawals. After being customer for a specific bank for years, the customer gains trust on the bank and simultaneously a good track record will help bank to be lenient with its customers too. This familiarization helps in having personalized services.

Multiple Loan Options

All banks promote various types of programs and schemes to encourage businesspersons set ups to make use of these. The actual earnings for all bank is from the rate of interest charges on loans. Few options offered are standard business loans, term loans and others as per the need.

Lower Rates of Interest

Rate of interest in banks is low as compared to those of the lending agencies and few finance instruments such credit cards, etc.

Business Loans Offer Tax Benefits

Businesses taking bank loan can enjoy tax benefits, since the ratio of profits is used to pay the loan amount; it is exempted from tax calculations.

Eligibility Criteria

To qualify for a business loan, you have to meet certain criteria. Below are the important factors that lenders take into consideration to decide your eligibility for a business loan.

Business Type

Most lenders provide loans to various types of businesses, including sole proprietorships, partnerships, limited liability companies (LLCs), corporations, and more.

Credit Score

A good credit score is often required to qualify for a business loan. Lenders use your credit history to assess your ability to repay the loan.

Business Age

Some lenders require a minimum operational history for your business, usually ranging from a few months to a year or more.

Annual Revenue

Lenders may have a minimum annual revenue requirement to ensure your business has a stable income.

Age Criteria

Min. 21 years at the time of loan application & Max. 65 years at the time of loan maturity.

Eligible Entities

Individuals, MSMEs, Sole Proprietorships, Partnership Firms, Public and Private Limited Companies, Limited Liability Partnerships, retailers, traders, manufacturers, and other non-farm income-generating business entities engaged only in the services, trading, and manufacturing sectors

Business Vintage

Min. 1 year or above

Business experience

Min. 1 year, business location to remain same

Annual Turnover

Shall be defined by the Bank/NBFC

Credit Score

700 or above (Preferred by most private and public sector banks)

Nationality

Indian citizens

Additional Criteria

Applicants must own either a residence, office, shop, or Godown.

Documents Required

Below is some of the basic documents which are required at the time of Business Loan

  • ITR for the past 2-3 years
  • Current Bank Account Statement for the last 12 months
  • Photocopy of PAN Card
  • Address Proof for Residence such as Voter Card, Passport, Aadhar Card, Telephone Bill, Electricity Bill
  • Address proof for Business such as the Telephone Bill or Electricity Bill
  • Last Financial Year's provisional Financials and future year's projections.
  • Company's business profile on the letterhead
  • 2 photographs of promoters and property owners.
  • Sanction letter and Repayment schedule of existing loan
  • GST registration certificate and GST returns of latest 2 years.
  • D-Vat/Sale tax registration copy
  • Udhayam Aadhar registration certificate
  • Rent agreement copy of factory and residence (if property is rented)
  • Business Continuity proof of 3 years (3 years old ITR/Company registration etc)
  • Company PAN Card, Certificate of Incorporation, MOA, AOA, List of Directors, and Shareholding pattern for Pvt Ltd companies
  • Partnership Deed, Company pan Card for Partnership Companies

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, then have a look at some of the basic FAQs.

A business loan is money borrowed from a bank or lender to support business-related expenses, such as expansion, equipment purchase, working capital, or other operational needs. The borrowed amount is repaid over time with interest.

There are various types of business loans, including term loans, lines of credit, equipment financing, SBA loans, invoice financing, and merchant cash advances, each designed to meet specific business needs.

Qualification criteria vary but often include factors like your business's creditworthiness, financial stability, time in business, revenue, and the purpose of the loan.

Loan amounts depend on factors like your business's financial health, the lender's policies, and the type of loan. Lenders typically consider your business's revenue and ability to repay.

We can take the loan amount between 1 lakhs -1cr.

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