Business Loan
About Business Loan A business loan is one type of loan that is applied for by people who aim to establish, expand, or buy equipment for their businesses. Entrepreneurs who look for capital to begin their businesses also apply for business loans. In general, there are two types of business loans: A secured business loan is when the individual provides collateral in the form of land, machinery, a house, etc, as security for the loan amount. This has the added benefit of a lower rate of interest. An unsecured business loan is when the loan amount is given without any collateral. The interest rates for unsecured loans are generally higher as there is a risk factor involved for the lender.
Reasons to Take a Business Loan Business loan for special needs:
There are multiple reasons for applying for a business loan. However, you should opt for this scheme only when:
If an entrepreneur has a business idea that he or she wants to turn into an endeavor with potential income, a business loan can be availed in such a scenario to meet his or her financial needs. However, in order to ensure your loan gets approved, you should make sure that your idea is good enough to generate substantial profits in order to repay the loan interest. You should also make sure that the overhead cost of the business is not high enough to cause a negative impact on the business and its profitability.
Opting for a business loan is a great way to arrange for the funds required during the expansion of an organization. Business expansion can include starting a new department, the launch of a new product, upgrading an operation or product, venturing a new area or market, etc. Additionally, the chances of loan approval for an existing business are usually high owing to the fact that it holds a proven track record.
When dealing with a high-demand product, it is essential for the business to maintain a regular supply to the market. In order to do this, the organization might have to increase production by investing in equipment and machinery with the latest technology. Furthermore, a company might also need to buy equipment during an expansion. Business loans are a great way to meet credit needs during such a situation.
It is difficult for small companies to ensure there is a healthy amount of cash flow within the organization. Therefore, a business might face a shortage of money to fulfill its liquidity requirements for working capital such as utility bills, overhead salary, inventory management, rent, etc. However, this problem can be solved if a business owner opts for a loan to meet the company’s temporary financial crisis.
When the cash flow is low within an organization due to reasons such as market boom and an increase in operating cycles, it is difficult to manage regular expenses such as salaries, supplies, and raw materials. In order to keep the business running and to recover from such a financial crisis, an entrepreneur might decide to avail a business loan and keep the business operational.
A business loan can also be availed to receive the funds required in order to make a business that has been incurring losses profitable. Even though many lenders are skeptical when funding a less successful/unsuccessful business, corporate applicants with a practical plan that includes major changes in business operations or the introduction of a new product might convince them to do so.
It is always a smart move to repay multiple small debts using a large loan in order to avoid paying a huge amount of money as interest. A businessman can also choose to do the same by availing a business loan.
If you are operating a business that is in demand only during a certain time of the year then it might be difficult for you to manage the expenses when the orders start rushing in. In that case, you can secure a short-term business loan to offer undisrupted service to your customers and can repay the loan using the profit earned after the peak season is over.
Types of business loan A few types of business loans are as follows:
In an overdraft facility, the business owner can withdraw a larger sum than the amount present in the account as a loan to meet his or her business needs. The maximum amount that can be withdrawn and the interest rate under this facility is based on a mutual agreement between the lender and borrower.
In the case of a term loan, a borrower can avail a secured or unsecured loan to receive the funds according to the situation and requirement of the business. These loans are helpful in acquiring long-term assets. There are three types of term loans based on tenure namely short-term loans, long-term loans, and intermediate loans that can be repaid on a monthly or quarterly basis. While the rate of interest for such loans can be fixed or floating, it varies according to the loan repayment tenure.
When an entrepreneur withdraws a demand loan to meet the financial requirements of his or her business, the amount has to be repaid whenever the bank or non-banking financing company (NBFC) recalls it. Demand loans can be both secured and unsecured and are ideal to meet a short-term financial crisis. While the maximum term for this type of a business loan can be 12 months, the merchant can choose to renew it when the term has ended.
At the time of a financial crisis, a business can also decide to opt for a loan against its financial securities that are approved by the bank such as mutual funds, fixed maturity plans, insurance policies, savings bonds, Demat shares, exchange-traded funds, etc.
This type of financing scheme can be availed by a business based on the creditworthiness of the buyer’s bank when the buyer and the seller do not know each other such as during international trade transactions. In this case, the bank pledges on-time payment to the seller after taking account of its origin certificate, insurance certificate, transportation documents, legal documents, and other commercial documents. However, if the buyer fails to make the payment, the bank is liable to pay the entire outstanding amount.
The cash credit facility is an overdraft loan that can be availed by a business to finance its need for working capital by offering its current assets such as receivables, inventory, etc. as collateral. The maximum amount that can be withdrawn using this scheme is dependent on the stock margin fixed by the bank. The tenure of this loan can be renewed at regular intervals of 12 months.
Whether you own a public/private limited company or proprietorship/partnership firm, you can avail of this pre-approved secured loan by offering the residential, commercial, or industrial property as collateral. This financing scheme helps companies secure down loans, buy the required equipment, or cover any additional costs that will help the organization grow. In this kind of a business loan, the financing company promises to pay the stakeholders of the guaranteed business in case it defaults.
In a bid to promote women empowerment, numerous banks and NBFCs offer special loan schemes to existing and potential women entrepreneurs. These exclusive schemes offer a lot of benefits and special discounts in terms of quantum of loan, interest rate, security, etc. Furthermore, female entrepreneurs can also benefit from the consulting, training, and counseling offered by several lenders to help them learn about various aspects of the market and industry. However, these loans are only available to women who hold more than 50% shares of a company.
Features of Business Loans Some important features of business loan are listed below:
features Business Loan Business Loan Monthly in arrears Interest Rate Fixed or variable Interest Only Option Yes Maximum Loan 80% of value (less existing debt) Minimum Loan Term Fixed for fixed rate term Maximum Loan Term 15 years 25 years (residential security) Repayment And Access Types Business Term Loan Repayment Type Principal & interest or interest only paid in arrears Repayment Frequency Yearly, monthly Additional Repayments Yes ATM Access No Internet Banking Access Yes
Benefits of Business Loan
Accessible is the best feature of banks, it is a very essential factor as well as there will be a need for regular conversations, depositing savings, or any withdrawals. After being a 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.
All banks promote various types of programs and schemes to encourage businesspersons setups to make use of these. The actual earnings for all bank are from the rate of interest charges on loans. Few options offered are standard business loans, term loans and others as per the need.
Angel investors and venture capitalists agree to offer a loan with the agreement of having partly ownership on the business, they will thus get the right to powers of the business and in decision makings also they will share the profits of the business along with the business owner. On the flip side, banks don’t put their hands into business money, everything you earned through your business is all yours. There is no share of profits or losses. Banks sanction a loan with the intention of getting their interest and partial loan-payment installments.
Rate of interest in banks is low as compared to those of the lending agencies and few finance instruments such as credit cards, etc.
Businesses taking bank loans can enjoy tax benefits since the ratio of profits is used to pay the loan amount; it is exempted from tax calculations.
Top Business Loan Providers in India HDFC Bank business loan is quick, easy, and provides attractive offers to its customers as well. One can use the online business loan EMI calculator present on the Finance Buddha website to know the approximate EMI which you need to pay against your business loan. HDFC bank gives fast approval and is ideal for a business loan. One can get a business loan up to ₹ 5,000,000 but it will totally depend on the borrower’s eligibility. HDFC Bank provides a business loan to expand your business, upgrade the equipment, purchase inventory, and pay your staff, and many more. Business loan processing with HDFC is totally a hassle-free and quick process, which is enough to boost your business. Details: Interest Rate: Processing Fees & Charges: Minimum Loan Amount: Maximum Loan Amount: Minimum Tenure: Maximum Tenure: Details: Processing Fees & Charges: Minimum Loan Amount: Maximum Loan Amount: Minimum Tenure: Maximum tenure : Details: Interest Rate: Processing Fees & Charges: Minimum Loan Amount: Maximum Loan Amount: Minimum Tenure : Maximum Tenure Details: Interest Rate: Processing Fee & Charges: Minimum Loan Amount: Maximum Loan Amount: Minimum Tenure: Maximum Tenure : Details: Interest Rate: Processing Fees & Charges: Minimum Loan Amount: Maximum Loan Amount: Minimum Tenure : Maximum Tenure :
15.65% to 21.20% per annum
Up to 2.50% + GST as applicable
₹ 50,000
₹ 5,000,000
1 year
4 years
IndusInd Bank is one solution for all your financial business needs. A business loan from IndusInd Bank has the capacity to boost your business and give it a new shape that can take it to the next level. The bank offers the lowest interest rates to the borrowers. The service provided by the bank is fast, flexible which is followed by speedy disbursal of the loan amount. The customer support system of the bank is very responsive and provides quick answers to all your queries.
Interest Rate:
10.6% -18%
0.5% + GST as applicable
₹ 100,000
₹ 1,500,000
1 year
5 years
IDFC Bank offers a high loan amount of business loan to its customers which starts from ₹ 100,000 and can go up to ₹ 4,000,000. The interest rate at which loan is offered is also lower than the other banks comparatively. It offers Comfortable tenure of 1 year to 5 years which makes it more comfortable for the applicants to borrow. The process is fast smooth and hassle-free.
11.69% – 15% per annum
1.5% + GST as applicable
₹ 100,000
₹ 4,000,000
1 year
5 years
ICICI Bank comes among the top provides of the business loan. It provides competitive interest rates and offers which makes it more e favorable for the borrowers. Convenience to the borrowers it the topmost priority for this bank and hence they have designed their system likewise.
12.9% – 16.65%
Up to 2% + GST as applicable
₹ 100,000
₹ 100,000,000
1 year
5 years
Axis bank offers business loans at attractive interest rates. The bank has different schemes for different groups of people which helps the existing enterprises to grow. In the case of professionals, it offers collateral-free business loan whereas for SMEs it has different offers which help them to flourish. This loan contains flexible repayment options and Competitive pricing.
The interest rates are based on the assessment of business profile, financial assessment, past business record, loan amount as well as on the tenure period.
Up to 1.25% + ST
₹ 50,000
₹ 15,000,000
1 year
3 years
Pre-requisites of a Business Loan The major 5 pre-requisites for applying for a business loan are mentioned below: 1. Good Personal Credit: The creditworthiness of a person is evaluated per the CIBIL score, the higher the score is, the more worth and eligible the person. 2.Good Business Credit: For an existing business, the years of operation, the revenue pattern, creditworthiness is evaluated before considering for processing. An Independent credit score for a company that is associated with the tax ID number and legally incorporated name is considered. 3.Large Asset Base: Having collateral or security will help in easy processing of the loan, the lesser the risk is, the faster will be the processing of loans by banks. 4. Solid Business Plan: Even if there is no existing business, having a great business plan with an execution blueprint will be legally considered and scrutinized by the banks for offering a business loan. 5. Industry Experience: Though it’s rare to get a loan for a business that has no experience, having industry experience will serve the purpose. Having ample knowing and experience in the industry is more than sufficient by banks.
How to Select the Right Business Loan? The best 6 steps of finding the right business loan is mentioned below: Step 1: Step 2: Step 3: Step 4: Step 5: Step 6:
Complete all paperwork well in advance.
Draw an estimate of how much money is required now and how much is need for the future.
Seek for experts’ help.
Check for what is the fee, interest rates, and other charges for each bank.
Decide whether you need a long term business partner or just quick capital.
Ask the right questions without hesitation.
How to Apply For Business Loan Online at Indian loan Bazaar ? One of the easiest and smart ways to apply for a business loan online is Indian loan bazaar; a one-stop solution provider for all business loan requirements is Indian loan bazaar. Indian loan bazaar has a mission to make the digital borrowing experience streamline and hassle-free one. As such we have a very simple, short, and easy to fill online application. Here are simple steps to apply for business loans online.
Different Business Loans You can get in India Business Loans for Bad Credit Women-owned companies have not only created a way for economic individuality but similarly, have created infinite job openings for everyone. Small business and enterprise development programs have an important role in the economic development of women in our country. But, it is a fact that women businesspersons have faced a lot of problems with regard to funding. A female businessperson should have detailed knowledge about the funding arrangements and sources while deciding to secure a business loan. Investment is the support of a business, lack of sufficient financial support puts the business to difficult situations. Some schemes exclusively for women for business loans are the Annapurna scheme, Stree Shakthi Scheme, Bharatiya Mahila Bank, Dena Shakti Scheme, Udyogini Scheme, Cent Kalyani Scheme, Mahila Udyam Nidhi Scheme, etc.
Business Loans for Start-ups and New Businesses
Many people who are planning for a business wonder do banks provide loans for new business- the answer is yes, it does. Every new business can apply for a loan for working capital as per their requirements. The loan is for provided for startups for research and development of technology, for buying equipment and technology, for stocking inventory with and without collateral or security. There are even specific schemes and offers provided by banks for new businesses.
Are you concerned about bad credits? It is not a show-stopper for availing a bank loan for your business. There are banks that are ready to offer banks loan even if the credit rating is poor. This is possible with your revenue status, the type of business, loan requirement as compared to the assets of the company- if the assets of the business have more value than your loan requirement; you have a good probability to get a loan.
Business Loan for Women Entrepreneurs
In the last few decades, women-owned businesses have increased in India. The growth and emergence of these women-owned companies have greatly funded towards economic development of India. Here most women-owned companies are connected with the service sectors.
Business Loan for Expansion or Working Credit
Has your small new business had a ‘eureka’ moment which has excited you to expand it? Is funding an issue for growing your business? Make use of business loans for expanding your business. A good credit score, revenue details and other documentation will help you get the money you are in need of. Make use of the online services to compare facilities offered by different banks for expanding your business and choose a best one that has good features like low-interest rate, maximum tenure, no hidden charges, and low processing fees and so on. Depending on the expansion requirement it is the duty of the borrower to decide whether they should go for a short term loan for a year or a long term loan that last for more than 3 to 5 years.
Business Loan Requirements
Documents required for a business loan in India are mentioned below. Each of these are essential for applying for a business loan:
Why Apply for a Business Loan Online with Indian Loan Bazaar? Here are a few reasons for you to choose Finance Buddha for online business loans:
Do’s & Don’ts of Business Loan There are always dos and don’ts for anything and everything, when it comes to applying for a loan especially for your dream business, you should be extra vigilant. Here are few Do’s and Don’ts of business loan: Do’s: Don’ts:
Comparison of Best Business Loan Offers from Top Banks / NBFCs
BANK/NBFC | INSTITUTION TYPE | MINIMUM LOAN AMOUNT | MAXIMUM LOAN AMOUNT | MINIMUM TENURE | MAXIMUM TENURE | INTEREST RATES | FEES & CHARGES |
---|---|---|---|---|---|---|---|
Axis Bank | Bank | ₹50000 | ₹50,00,000 | 1 Year | 15 Years | Custom | Up to 2% + GST as applicable |
Aditya Birla Finance Ltd. | NBFC | ₹50000 | ₹15,00,000 | 1 Year | 3 Years | 16.85% – 17.85% | Up to 2% + GST as applicable |
Arohan Financial Services Ltd. | NBFC | ₹500000 | ₹75,00,000 | 9 Months | 2 Years | 20.70% – 26.99% | 1% + GST as applicable |
Bajaj Finsery | NBFC | ₹100000 | ₹30,00,000 | 1 Month | 8 Years | 18% – 40% | Up to 3% + GST as applicable |
Capital First | NBFC | ₹1000000 | ₹75,00,000 | 1 Year | 5 Years | 16.00% – 24.00% | Up to 2% + GST as applicable |
Capital First | NBFC | ₹1000000 | ₹50,00,000 | 1 Year | 3 Years | 12% – 15% | Up to 2% + GST as applicable |
Deutsche Bank | Bank | ₹1000000 | ₹50,00,000 | 2 Years | 4 Years | 24% | Up to 3% + GST as applicable |
Edelweiss Financial Services Ltd. | NBFC | ₹350000 | ₹25,00,00,000 | 4 Year | 10 Years | 20.50% | 2% – 3.5% + GST as applicable |
Equitas Small Finance Bank | Bank | ₹500000 | ₹75,00,000 | 1 Year | 5 Years | 18% | 2% + GST as applicable |
Fortune Financial Services – Kapital Tech | NBFC | ₹200000 | ₹150,00,000 | 3 Months | 2 Years | 15% – 24% | 1.5% – 2% + GST as applicable |
Fullerton | NBFC | ₹1000000 | ₹50,00,000 | 1 Year | 4 Years | 13% – 16% | Up to 6.5% + GST as applicable |
HDB Financial Services Ltd. | Bank | ₹100000 | ₹30,00,000 | 1 Year | 5 Years | 12% – 36% | 2% + GST as applicable |
HDFC Bank | Bank | ₹50000 | ₹50,00,000 | 1 Year | 4 Years | 15.65% to 21.20% | 2% + GST as applicable |
ICICI Bank | Bank | ₹100000 | ₹10,00,00,000 | 1 Year | 5 Years | 12.9% – 16.65% | Up to 2% + GST as applicable |
IDFC Bank | Bank | ₹100000 | ₹40,00,000 | 1 Year | 5 Years | 11.69% – 15% | 1.5% + GST as applicable |
India Infoline | NBFC | ₹100000 | ₹50,00,000 | 1 Year | 5 Years | 18% – 25% | Upto 3% + GST as applicable |
IndusInd Bank | Bank | ₹100000 | ₹15,00,000 | 1 Year | 5 Years | 10.6% -18% | 0.5% + GST as applicable |
Kotak Mahindra Bank | Bank | ₹300000 | ₹2,00,00,000 | 1 Year | 3 Years | 16.00 % to 19.99% | Up to 3% + GST as applicable |
Lendingkart Finance Ltd. | NBFC | ₹50000 | ₹100,00,000 | 1 Month | 1 Year | 18% – 27%* | 2% + GST as applicable |
Magma FinCorp Ltd. | NBFC | ₹300000 | ₹2,00,00,000 | 1 Year | 4 Years | 17% – 21% | 2% + GST as applicable |
Neo Growth | NBFC | ₹200000 | ₹75,00,000 | 6 Months | 2 Years | 12% – 36% | 2% + GST as applicable |
RBL Bank Ltd. | Bank | ₹1000000 | ₹35,00,000 | 1 Year | 3 Years | 16.00% – 27.00% | 2% + GST as applicable |
Standard Chartered Bank | Bank | ₹1000000 | ₹75,00,000 | 1 Year | 5 Years | 13.5% – 20% | Up to 2% + GST as applicable |
Tribe Tech Private Limited | NBFC | ₹100000 | ₹20,00,000 | 1 Year | 3 Years | 12% – 36% | 2% + GST as applicable |
Yes Bank | Bank | ₹1000000 | ₹400,00,000 | 1 Year | 5 Years | 13.25% – 19.99% | Up to 2.5% + GST as applicable |
Eligibility Criteria for Business Loans
Factors Deciding Business Loan Eligibility Every bank that offers loans will look into many criteria prior to sanctioning it. Few important ones are:
The applicant should be min 21 years & max. 65 years.
Business should be profit-making at least for the past 2 years.
₹150,000 p.a. should be the minimum annual income.
This is optional to the applicant, not mandatory in case of a business loan.
Axis Bank Business Loan Eligibility Criteria No matter if you are a big corporate house or a small business owner if you are looking forward to the business loan than Axis bank is always there for you. Axis bank provides a business loan against the property. One of the most important features of the loan are competitive interest rate & doorstep service. Axis bank offers a business loan with the repayment tenure of 15 years. Eligibility Criteria:
Capital First Business Loan Eligibility Criteria If you are looking for flexibility in terms of processing & documentation then Capital First is the place for you. The highest loan amount offered by the bank is 75 lakh which is enormously huge when it comes to other banks & financial institutions. No guarantor is required when you are applying for the business loan at capital first. Eligibility Criteria:
ICICI Bank Business Loan Eligibility Criteria ICICI bank is amongst the top five banks in India. The business loan from ICICI is tailored by keeping the requirement of the customers in mind. When it comes to corporate house ICICI bank has several options like finance for technology & innovation, working capital loan & term loan. For SME the options available are term credit, bank overdraft & export credit. So, there are wide varieties available covering all the required segments for business loans for corporate houses as well as for small business enterprises. One of the most unique features of ICICI business loans is they have a business loan available for women too. Not to forget customer support through the customer care center round the clock. Eligibility Criteria:
Induslnd Bank Business Loan Eligibility Criteria Eligibility Criteria:
Well if you are the time-starved customer & need the interest rate & quotation in less time than choose Induslnd bank. They have designed the loan for various purposes that a business house would be looking from. Working capital loan, export loan, term credit, trade loan, you name it & they have it. They do have the unsecured business loan which gives you a business loan without Any guarantor or security. The bank offers the business loan up to ₹1,500,000. The tenure of repayment is ranging from 1 year to 5 years. Instant check for eligibility of business loans. Minimum documentation and rapid processing are the key features of the bank.
Kotak Mahindra Bank Business Loan Eligibility Criteria If you are looking for the bank for the purpose which no one else offers than Kotak Mahindra should be your choice? They offer business loan starting from business banking solutions, commercial vehicle finance, infrastructure finance. Kotak Mahindra offers the business loan up to ₹7,500,000. The rate of interest charged by the bank is based on a benchmark, Prime Lending Rate (BPLR) which offered by Kotak Mahindra is 16.00% per annum. Eligibility Criteria:
Tata Capital Business Loan Eligibility Criteria If you are in need of the financial institution which is very transparent than TATA capital is the way to go. The process of the TATA capital if very customer friendly & easy to go with. TATA capital is the institute by TATA & when it comes to TATA the trust & integrity is something that comes very handy. An online application option is also available for the one who is not in a position to go to the institute whenever it is needed. Eligibility Criteria:
HDFC Bank Business Loan Eligibility Criteria
Standard Chartered Bank Business Loan Eligibility Criteria
minimum ₹10 million and maximum ₹300 million
15 months to 36 months
min ₹500,000 to ₹50 million
All Sole proprietors/proprietorship firms, Partnership firms, Pvt. Ltd. Companies, Closely held Public-limited companies, Professionals such as chartered accountants, doctors, architects, business consultants are eligible
Ing Vysya Business Loan Eligibility Criteria
RBL Bank Business Loan Eligibility Criteria
Ways to Improve the Eligibility for a Business Loan Always look for a bank that offers quick service with less interest rate. A transparent bank will be more flexible in its eligibility criteria. All these eligibility criteria can be adjusted and overlooked by the bank manager, thus having a good long term relationship with the respective manager will be quite helpful. If you are planning to take a business loan in the future, keep an eye on your transaction and credit score from today because the past and present is considered by banks to decide your ability to repay the loan amount in future. Make use of all the options available in the market- at the same time be vigilant and take loans only from reputed banks.
Common Documents Required for Business Loan In order to apply for a business loan, you will require the following documents- Checklist of Documents Required for Business Loan To avail a business loan, an applicant needs to provide the following documents as per the lender’s requirements : Document Required for Self Employed (PVT ltd. Co and partnership firms) Document Required for Self Employed Professionals Document Required for Self Employed Non-Professionals AXIS Bank Business Loan Document Required Capital First Business Loan Documents Required Citi Bank Business Loan Documents Required ICICI Bank Business Loan Documents Required Induslnd Bank Business Loan Documents Required Kotak Mahindra Bank Business Loan Documents Required Tata Capital Business Loan Documents Required
Driving License / PAN Card / Passport / Voters ID Card / Aadhaar Card.
Ration Card /Telephone Bill / Electricity Bill / Passport / Trade license / Lease agreement / Sales Tax certificate.
Bank Statement of Last 2 Years.
Last 2 Years ITR along with computation of Balance Sheet, Income & Profit & Loss a/c for the last 2 yrs.
Other Mandatory Documents such as Sole Proprietorship Declaration, Certified true copy of Memorandum & Articles of Association
Sales tax / VAT /Service tax / Excise registration, / IT return of the concern, Water / Electricity / Registration under Shops and Establishment Act, PAN ID /Municipal tax bill in the name of the concern, Memorandum and Articles of Association.
Proof to be submitted for the authorized signatories and about two directors (which includes the managing director) (any one of the following): PAN card, Voter’s identity card, Driving license and Passport.
Proof of identity of the sole proprietorship
Passport, Driving license, Voter’s identity card, Photo PAN card
Driving license, Ration card, Passport, Voter’s identity card
(passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
(latest utility bill/ ration card/passport)
(Salary slip of last 6 months, 6 months bank statement, form 16 of current year)
(if applicable)
(passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
(latest utility bill/ ration card/passport)
income tax return & profit & loss & balance sheet of last 2 years, last 6 months bank statement & business proof
(passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
(latest utility bill/ ration card/passport)
(Passport/ Photo PAN card/Voter’s identity card)
income tax return & profit & loss & balance sheet of last 2 years, last 6 months bank statement & business proof
(passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
(latest utility bill/ ration card/passport)
income tax return & profit & loss & balance sheet of last 2 years, last 6 months bank statement & business proof
(passport/ voter’s ID/ driving license/ PAN card/ Aadhar card)
(latest utility bill/ ration card/passport)
(passport/ voter’s id/ driving license/ pan card/ aadhar card)
(latest utility bill/ ration card/passport)
What are the two types of business loans? There are two types of loan secured loans & unsecured loans. A secured business loan iswhen the individual provides collateral as security for the loan amount. An unsecured business loan is when the loan amount is given without any collateral.
What is the tenure for a business loan? Business loans have tenures that can extend up to 7 years.
What are the usages of business loans? Business loans are applied for by people who aim to establish, expand or buy equipment for their businesses. Entrepreneurs who look for capital to begin their businesses also apply for business loans.
What is the minimum and maximum age for applying for a business loan? The applicant should be a minimum of 21 years and a maximum of 65 years.
What security should I provide to avail a business loan? Ans. No security or collateral is required in order to avail a business loan, in most cases, though a thorough evaluation of your documents would be needed to confirm that. If you are required to submit security or collateral, you can check the lender’s terms and conditions to
know what is generally accepted.
I am a doctor and have been practicing for 10 years now. Can I get a business loan to set up my independent practise? Ans. Yes, business loans are offered to all practicing professionals, subject to proof of qualification being documented.
Will I be required to share my personal information to use the EMI calculator to calculate EMIs on my business loan? Ans. No, you will not be asked for any personal information while calculating your expected EMI. The EMI calculator only requires the loan amount that you intend to apply for, the tenure of the loan, and the rate of interest.
For what purposes can I avail a business loan? Ans. You can apply for a business loan for any of the following or related purposes-
● Small business finance
● Working Capital finance
● Home renovation
● Business expansion finance
How long will it take for me to find out if I am eligible for a business loan? Ans. Business loans usually are offered speedy approvals and most banks offer applicants with the convenience of business loan eligibility in 1 minute. This facility can be availed online or any of the bank’s branches.
What are the interest rate advantage when a loan is pre-paid?
Ans.
There is no interest charged on the amount that is pre-closed. Only on the outstanding amount interest are applicable.
What are the common documents and must submit documents?
Ans.
What is collateral and why it is needed for Business Loan?
Ans.
It is the security that is pledged with a bank to avail loan, the more the collateral value is, the benefits are more. This gives a security for the banks to offer bigger amount of loans as the risk is low. Not every bank needs collateral for approving loan.
What is tenure for business loan from Capital First?
Ans.
Tenure – minimum of 24 months to maximum of 36 months. While most of the banks have the minimum limit as 12 months, Capital First has minimum limit as 24 months.
What is tenure for business loan from Citibank?
Ans.
Tenure – minimum of 12 months to maximum of 48 months.
What the best possible rate of interest rate I can expect from Citibank?
Ans.
Anything between from min. 13% to 20 % is considered as a good deal.
What should be my CIBIL score for applying for a business loan?
Ans.
The credit score should be minimum 750+ to be eligible for a business loan at Citibank.
What is the easy way to get business loan?
Ans.
Make use of the option in India Loan Bazzar by giving few basic details like name, contact details, loan amount, type of business and income from business will give you a list of banks that can offer business loan, use this information to compare and apply. The application will be processed by banks and will contact you to the request to next level of processing.
How do I repay my business loan?
Ans.
It should be repaid through EMIs- Equated Monthly Installments; it can either be through standing instructions and post-dated cheque.
Apply here
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