Business Loan

Business income generates livelihood for entrepreneurs hence it’s nurturing, growth & expansion is of utmost priority. Short term business loan is required at many stages like for setting up new business or expansion in form of working capital or term loans.

Generally, Business loans are unsecured no collateral is required, but one must possess any commercial or residential property for being eligible for business loan.

Unsecured/ Business Loans are given to meet urgent requirement of funds by the Business Organizations. As name itself refers no Security is required to be mortgage in case of unsecured loan. For People who don't have any collateral security to pledge an unsecured loan can be a attractive option. The unsecured loan is provided in terms of following :

  • TERM LOAN – EMI BASED LOANS
  • DOD- DROP LINE UNSECURED LIMIT

How can a Business Loan benefit -

  • Facilitate in expansion and scale-up plans.
  • Meeting up working capital needs and for asset purchase.
  • Increasing sales which leads to more profits.
  • Upgrading processes and advance technology to catch with market trends.
  • Branding and augmenting market presence.

Basic eligibility for a Business Loan

Different lenders have varying criteria for loan approval, but there are a few basic rules:

  • The business shall be registered as a proprietary firm, partnership firm, LLP or a Company
  • A credit score of 650+
  • Working from atleast 24 months with growing cash flow
  • Sound banking transactions
  • Product potential & margins

A self-employed individuals / business owners in the age group of 23 to 65 years

Rate of interest 21 % - 38%
Professional segment 11% to 16%
Minimum and Maximum loan amount 3 lakhs to 100 lakhs
Minimum Current Work Experience 2 years for Self Employed
Minimum and Maximum Age Min age - 23 years Max age - 65 years at the time of loan maturity

Documents For Business Loan

  • Photo of applicant & co-applicant
  • KYC of individual and co-applicant
  • KYC of firm or company-gst certificate, gumasta ,udyam licence
  • Electricity bill of residence & office
  • Gst return (3b) one year
  • 3 years itr, computation, p&l account, balance sheet or audit report
  • One year bank statement till date(all banks)
  • Business registration certificate latest and five years old
  • Sanction letter or amortization of all loans (if any)
  • Partnership deed /moa and aoa (if applicable)