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Business Loan Features

Business loan is a credit facility offered by Banks/NBFCs and various other financial institutions to meet the business requirements of individuals, self-employed customers, business owners, MSMEs, and other business entities. Business Loan can be availed by startups, entrepreneurs, retailers, traders, manufacturers, self-employed professionals (CAs/Doctors), existing businesses, and several other business entities.

Business loan is majorly classified into two types, such as Secured loan and Unsecured loan. Secured loans are types of loans that require collateral/security, that borrowers need to deposit with the lender to avail funds. However, in the case of unsecured loans, there is no need to submit any type of collateral/security with the Bank/NBFC, or any other financial institution.

Banks/NBFCs offer a range of both Secured and Unsecured Business Loans that include Term Loans (Short-term/Intermediate-term/Long-term), Working Capital Loans, Cash Credit, Overdraft, Letter of Credit, Bill/Invoice Discounting, Equipment Finance, Machinery Loans, Point-of-Sale (POS) Loans/Merchant Cash Advance, Fleet Finance, Loans under Bank Guarantee (BG), and Loans under Govt. schemes, such as, SIDBI, PMEGP, CGTMSE, Stand Up India, PSB Loans in 50 minutes, PMRY, etc. Financial institutions also offer Startup Loans, Small Business Loans, Instant Business Loan and Micro Loans of loan amount up to Rs. 15 lakh or more depending upon business requirements.

Business Loan Eligibility

  • Minimum age of the applicant should be 20 years and maximum up to 60 years at time of loan maturity
  • Work Status: Self-employed
  • Business Tenure: Minimum 1 year or above
  • Minimum Annual Turnover: Shall vary from lender to lender
  • Credit Score: 650 or above
  • Applicants with no past loan defaults with any financial institutions

Eligible Entities

  • Individuals, Business Owners, Entrepreneurs, Self-employed professionals (CAs/CSs/Doctors/Architects), Startups, and MSMEs
  • Private and Public Limited Companies, Sole Proprietorships, Partnership Firms, Limited Liability Partnerships (LLPs), and Large Enterprises engaged only in the Manufacturing, Trading, or Services Sectors
  • NGOs, Co-operative Societies and Trusts, etc.

Document Required to apply for Business Loan

When applying for a business loan, you will need to submit the following documents:

  • Duly filled application form along with passport-sized photographs
  • KYC Documents of the applicant, including PAN card, Passport, Aadhar Card, Driving License, Voter ID card, Utility Bills (Water/Electricity Bills)
  • Last 1 years’ bank statement
  • Copy of Non-Collateral Overdraft, if any
  • Copy of Business Incorporation
  • Any other document required by the lender

Business Loan Fees & Charges

The business loan fees and charges or any type of business loan shall vary from lender to lender and case to case. Usually, the fees and charges depend on the applicant’s profile, creditworthiness, nature and type of business, desired loan amount, offered interest rate, repayment tenure, and several other factors.

  • Processing fees: Maximum 2% of the loan / facility amount (Plus GST)
  • Documentation Charges:
    • Loan amount less than 10 Lakhs – Rs.3500/- (Plus GST)
    • Loan amount greater than 10 Lakhs – Rs.6000/- (Plus GST)

How to Apply Business Loan Online

Apply for Business Loan by following below mentioned 4 simple steps:

Step 1: Fill in the required fields as mentioned in the form and Check the box to agree on terms and further Click to ”Unlock Best Offers”.

Step 2: Further you will be required to mention your company details, and basic personal information, along with your registered mobile number and email address.

Step 3: After submitting all the details, the bank’s representative will contact you to proceed with loan formalities.

Step 4: Once your loan application and documents are verified and approved by the bank, within defined working days the loan amount shall get disbursed in your mentioned bank account.

Apply for Business Loan