January 3, 2019

Business Loans

Business loans are customized loans to meet your business needs whether it is to launch a new store, buy machinery, arrange working capital etc. With Business Loans, lack of capital is no more a constrain to keep you ahead in the business.

Key Features of Business Loans

  • Loan Amount – Business loan from Rs 50,000 to Rs 100 cr can be availed. Different banks and NBFCs have different min. and max. loan amount that can be availed. For instance, with Tata capital and HDFC business loan upto Rs 50 Lakh can be availed while Bajaj Finserv offers business loans upto Rs 30 Lakh.
  • No Security or Collateral Required – With unsecured business loans, no collateral or security is needed. Most banks offer collateral-free business loans.
  • Tenure – Banks and NBFCs usually offer business loans for 12 months to 60 month duration

Types of Business Loans

You can avail a customized business loan based on the specific needs of your business

  1. Working Capital Loans
  2. Loan to buy Machinery or Equipment
  3. SME and MSME Loans
  4. Business Loans for Women

Who can apply for a Business Loan

All sorts of business whether being handled individually or in a partnership or as a company can apply for a Business loan.

  • Sole proprietorship firms
  • Pvt Ltd companies
  • Partnership firms
  • Self-employed professions

Benefits of Business Loans

A business loan can be used for variety of purposes such as

  • Business expansion to new cities or geographies
  • To upgrade technology
  • Purchase of machine and equipment
  • To maintain inventory
  • Working capital needs

Business Loan Eligibility Criteria

The eligibility criteria for a Business loan varies from lender to lender. However, below are the eligibility criteria for most Banks and NBFCs

  • Good Credit score is a must as most business loans are unsecured loans
  • Business must have existed for at least 3 years
  • A profitable business for last 2 consecutive years is desired
  • Most lenders desire people in the age group of 25 years to 65 years
  • High Turnover is needed showing an upward trend

Documents required to apply for a Business Loan

Your Business Loan application would need a passport size photograph with the below mentioned documents when applying for a Business loan

  • Photo Identity Proof – Any one of Passport/Driving License/ Aadhaar card/ Voter ID
  • Address Proof – Any one document among Passport/ Driving License / Bank Account Statement / Aadhaar card/ Electricity Bill / Phone Bill / Sale deed
  • Business Proof – Business ownership documents, Trade License/Establishment/Sales Tax Certificate
  • Income Proof – Last 6 month bank statement, latest ITR and audited financial statements