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Business Loan
1
Get high Business Loan Eligibility
Before applying for the loan, prepare a business plan, know your credit score, decide the loan amount, do some market research on available business loan options, and keep the documents ready.
2
Common Documents Required
Proof of address & photo identity proof of the promoters, business proof, income proof, partnership deed for partnership firm, articles of association, memorandum of association, board resolution, PAN card, etc.
3
Criteria for Business Loan Approval
Applicants should be aged between 21 to 65 years, having business vintage of a minimum of 1-2 years. The minimum business turnover and a minimum annual turnover as per the ITR will be required. The business should be profit-making for at least the last 1 year.
Features and Benefits of our Business Loans
- Term Loans
- Working Capital Loans
- Business Expansion Loans
- Equipment Financing Loans
- Invoice Financing & Bill Discounting
- Machinery Loans
Business Loan Eligibility and Documents
Read on to know the criteria required to apply for our Business Loan.
Eligibility Criteria & Eligible Entities
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.
Collateral: Secured loans might require assets as collateral to secure the loan. Collateral can be real estate, equipment, inventory, or other valuable assets.
Cash Flow: Lenders often evaluate your business's cash flow to determine your ability to repay the loan.
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.
Documentation for Business Loans
The list of documents to be submitted varies based on type of business entity. Submit the following documents to begin with the loan process:
- 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
How to use Business Loan EMI Calculator
Using a business loan EMI (Equated Monthly Installment) calculator can help you estimate your monthly loan repayment amount.
Follow these steps to use a business loan EMI calculator effectively:
- Enter loan amount, interest rate, tenure.
- Click Calculate.
- View EMI, total interest, repayment.
- Adjust tenure if needed.
- Consider extra costs.
- Check budget compatibility.
- Confirm with the lender before finalizing.
Fees and Charges for Business Loan
The fees and charges of business loans usually vary from lender to lender and from case to case. The aforementioned table will give you a fair idea of the fees and charges related to business loans:
Particulars
Charges
Loan Processing Fees
4999/- to 5% of Loan Amount
Loan Cancellation
Usually 3000 to 5% of Loan Amount
Stamp Duty Charges
150/- to 300/-
Legal Fees
As per actuals
Penal Charges
Usually 2% per month
EMI / Cheque Bonus
Approx 499/- to 599/-
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.
Interest rates vary based on factors such as the type of loan, lender, your creditworthiness, and market conditions. Good credit and a strong business history may lead to lower rates.The rate slabs of different banks and nbfcs are attached in the last point of content.
Applying for a business loan involves filling out an application form, providing required documents (business plan, financial statements, etc.), and potentially undergoing a credit check.
The approval timeline can vary. Online lenders might provide quicker decisions, while traditional banks might take longer. Preparing all necessary documents can expedite the process.
Commonly required documents include business and personal tax returns, financial statements, business licenses, bank statements, and a business plan.
Some lenders offer loans to businesses with less-than-perfect credit, but interest rates may be higher. Exploring alternative financing options or working to improve your credit can be helpful.
Yes, alternatives include online lenders, peer-to-peer lending platforms, angel investors, venture capital, and crowdfunding.
Business loans can be used for various purposes, including expansion, purchasing inventory or equipment, hiring employees, refinancing existing debt, and more.
Many loans allow early repayment, but some may have prepayment penalties. Always review the terms and conditions before signing.
Remember, specific details may vary based on the lender and the type of business loan you're considering. It's important to research and understand the terms of any loan before proceeding.
