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Business Loan
Get quick financial support with a business loan to grow and manage your business needs. Compare multiple loan offers and access funding of up to ₹10 Lakh with competitive interest rates and an easy online application process.
100% End-to-End Digital Process
Complete the application online in minutes.
Minimal Documentation Required
Submit basic documents for faster approval.
Quick Approval & Faster Disbursal
Quick approval with direct account transfer.
Expert Financial Advice
Get end-to-end assistance from our financial experts.
2.3 Cr+
Satisfied Customers
95%
Instant Approval Rate
40+
Available Lenders
4.5 / 5
Max TenureNA
Best Rate1.58% P.M
Processing Fee2%
Features
- Minimum documentation
- No hidden fees
- Wide geographical presence
- Informal documents are also accepted
- Service at your doorstep
- Cluster based lending
Pricing
- Intrest Rate -22-29%
- Processing Fees-2-2.5%
Documents Required
- Identity proof (PAN, Voter ID, Passport)
- Address proof (Voter ID, Aadhar Card, Passport, Bank passbook copy with photo)
- Last 1 Year Bank account statement
- Business registration proof (any of the following) -
- Udyam Registration Certificate
- Shop and Establishment
- Trade License Certificate
- Small Scale Industry Certificate
- Export/Import Code Certificate
- Factory Registration Certificate
- Business Address proof (any of the following) -
- Any one of the Business Registration proofs from above with current business address
- Utility bills (Electricity, water or telephone bill in the name of business) not older than 2 months
Max Tenure12 - 36 months
Best Rate18% P.A
Processing Fee2.5% - 3.5%
Features
- 100% Online Process
- 10 Minute Loan Disbursal
- Direct Bank Transfer
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
- Krazybee Services Private Limited
- Vivriti Capital Limited
- Northern Arc Capital Limited
- MAS Financial Services Ltd
- PayU Finance India Private Limited
- Kisetsu Saison Finance (India) Private Limited (KSF)
- Piramal Finance Limited (Formerly Piramal Capital & Housing Finance Limited)
- Cholamandalam Investment and Finance Company Limited
- Mirae Asset Financial Services (India) Pvt. Ltd.
- Tata Capital Limited
- Oxyzo Financial Services Limited
Pricing
- Intrest Rate -18 % onwards
- Processing Fees-2.5%-3.5%
Documents Required
- Identity proof (PAN, Voter ID, Passport)
- Address proof (Voter ID, Aadhar Card, Passport, Bank passbook copy with photo)
- Last 1 Year Bank account statement
- Business registration proof (any of the following) -
- Udyam Registration Certificate
- Shop and Establishment
- Trade License Certificate
- Small Scale Industry Certificate
- Export/Import Code Certificate
- Factory Registration Certificate
- Business Address proof (any of the following) -
- Any one of the Business Registration proofs from above with current business address
- Utility bills (Electricity, water or telephone bill in the name of business) not older than 2 months
Max TenureNA
Best Rate1.50% P.M
Processing Fee2%
Features
- Extremely fast and Simple process
- Paperless process
- Collateral free - 100% Unsecured Loans and thus no collateral required
- No hidden charges
You may get a loan from any of the NBFCs or banks listed below, who are partnered with Lending Service Provider (LSP) to provide loans.
- Epimoney Private Limited.
Pricing
- 18% P.A. onwards (reducing interest rate basis)
- Processing Fee: 2% of the sanctioned amount + GST
- Annual Percentage Rate - Upto 48%
- Penal charges - Upto 36% p.a. applied on the EMI/s overdue amount/s for the prorate tenor of days in default.
- Annual Percentage Rate - Upto 48%
- Penal charges - Upto 36% p.a. applied on the EMI/s overdue amount/s for the prorate tenor of days in default.
Documents Required
- Identity proof (PAN, Voter ID, Passport)
- Address proof (Voter ID, Aadhar Card, Passport, Bank passbook copy with photo)
- Last 1 Year Bank account statement
- Business registration proof (any of the following) -
- Udyam Registration Certificate
- Shop and Establishment
- Trade License Certificate
- Small Scale Industry Certificate
- Export/Import Code Certificate
- Factory Registration Certificate
- Business Address proof (any of the following) -
- Any one of the Business Registration proofs from above with current business address
- Utility bills (Electricity, water or telephone bill in the name of business) not older than 2 months
Max TenureNA
Best Rate
Processing Fee4%
Features
Pricing
- Processing fees: upto 2.5%
- Interest rate: 16%
Documents Required
- Pan Card
- Adhar Card
- Last 6 months Bank account statement
- Business registration proof
Max Tenure36 months
Best Rate1.5% P.M
Processing Fee3-6%
Features
- Quick approval and disbursal time
- Dedicated assistance at every stage
- No Hidden Charges
Pricing
- Intrest Rate -18-34%
- Processing Fees-3-6%
Documents Required
- Identity proof (PAN, Voter ID, Passport)
- Address proof (Voter ID, Aadhar Card, Passport, Bank passbook copy with photo)
- Last 1 Year Bank account statement
- Business registration proof (any of the following) -
- Udyam Registration Certificate
- Shop and Establishment
- Trade License Certificate
- Small Scale Industry Certificate
- Export/Import Code Certificate
- Factory Registration Certificate
- Business Address proof (any of the following) -
- Any one of the Business Registration proofs from above with current business address
- Utility bills (Electricity, water or telephone bill in the name of business) not older than 2 months
Tata Capital Business Loan
Loan Amount Upto 35 lakhs
Max Tenure12 - 48
Best Rate1.42% P.M
Processing Fee2.5%
M Capital
Max Tenure24 months
Best Rate1.75% P.M
Processing Fee3%
NeoGrowth Business Loan
Max Tenure2yrs
Best Rate18%
Processing Fee2.00%
Lending Kart Business Loan
Max Tenure36 months
Best Rate0.92% P.M
Processing Fee2%
Janalakshmi Financial Services LTd Business Loan
Max Tenure10 yrs
Best Rate16%
Processing Fee3%
Vistaar Finance Business Loan
Max Tenure10 yrs
Best Rate18%
Processing Fee2%
Manappuram Business Loan
Max Tenure2 yrs
Best Rate18%
Processing Fee2%
Kinara Capital Business Loan
Max Tenure54 months
Best Rate24% P.A.
Processing Fee3%
Capital Float
Max Tenure2 Yrs
Best Rate26%
Processing Fee2.0%
SMEcorner Business Loan
Max Tenure36 months
Best Rate1.58% P.M
Processing Fee2%
RBL Business Loan
Max Tenure12 months
Best Rate21%
Processing Fee2%
Zip Business Loan
Max Tenure36mns
Best Rate16%
Processing Fee2%
IIFL BUSINESS LOAN
Max Tenure09 to 60 Months
Best Rate11.75%
Processing Fee2%
Indifi Business Loan
Max Tenure3 yrs
Best Rate1.50% P.M
Processing Fee3%
Incred Business Loan
Loan Amount Upto 10 lakhs
Max Tenure24 - 48 months
Best Rate2%
Processing Fee3%
Axis Bank Business Loan
Loan Amount Upto 15 lakhs
Max TenureNULL
Best Rate11%
Processing FeeNULL
SBI Business Loan
Max TenureNULL
Best Rate11.30%
Processing FeeNULL
ICICI Bank Business Loan
Max TenureNULL
Best Rate12.25%
Processing Fee2%
Business Loan EMI Calculator
Your Monthly EMI Payment
1
What Is a Business Loan?
Business requires finances to thrive, exist, and grow. At some point, a business needs external financing to expand, purchase new equipment, or manage day-to-day expenses. A business loan is one of the most reliable external financing options for addressing these needs.
Understanding the nuances of a business loan helps you apply for one with due diligence and obtain one for business growth and sustenance. Business Loans can be unsecured and secured. Apply for the best business loans through CreditMantri, compare from various lenders, and choose the one that suits your requirements.Types of Business Loans in India
Business Loans are provided for various purposes. Understanding the purpose for which you are planning to get your business loan helps you to get the most out of it. The following are some of the types of business loans in India. They are:
Term Loan for Business
A term loan is a loan that provides businesses with a lump sum of money to be repaid in fixed monthly instalments. This term loan is used for long-term investments, such as equipment or property purchases. It is ideal to check the lender's interest rate before taking the loan.Ideal ForExpansion, Equipment Purchase
Working Capital Loan
A working capital loan is taken to cover a business's daily operational expenses. These loans are ideal when there is a sudden decrease in cash inflow in the business. Most working capital loans are short-term, so it is wise to check with multiple lenders before finalizing the loan offer.Ideal ForRetailers, Traders, and Manufacturers
MSME Loan
An MSME loan is a type of loan offered to small and medium-sized businesses to finance business expansion, working capital, equipment purchases, and various operational expenses. MSME loans are given to individuals to foster entrepreneurship and sustain economic growth. Lenders provide MSME loans to increase productivity and make businesses more competitive in the market. Ideal For Registered MSMEs and Small Vendors
Startup Business Loan
Startup Businesses have limited access to funds. An enormous amount of funding is required at this stage, as expenses start early, but it will take time for revenue to flow in. Some of the primary reasons a start-up needs a business loan are to manage working capital, expand the business, rent office space, purchase business machinery and equipment, market the brand, and so on.Ideal ForEarly investors, founders, and start-up businesses
Business Loan Without Collateral (Unsecured Loan)
These are loans given to businesses without the need for security. Business loans without collateral are a boon to thriving businesses, as they do not require any collateral. Whether you are looking to scale up operations, buy equipment, or manage cash flow, an unsecured business loan offers a quick, flexible solution. Ideal For Small Businesses, self-funding businesses, MSMEs
Equipment / Machinery Loan
These loans are taken by businesses that are in the process of expanding. During business expansions, there may be a need for new equipment or machinery, upgrading or repairing essential assets, and helping businesses grow without reducing working capital. This equipment loan can be used across various industries, from manufacturing to construction. Ideal For Early investors, founders, and start-up businesses
Invoice Financing / Bill Discounting
Invoice Financing is a method in which businesses raise short-term financing by using outstanding sale invoices as collateral. This is mainly done by businesses to avoid the working capital crunch, which forms an integral part of the supply chain structure. Invoice Financing is sought by businesses when their working capital is blocked during complex payment cycles. Ideal For Business with long business cycles
Overdraft / Cash Credit Facility
An overdraft or cash facility allows you to withdraw cash from your savings or current account even when the balance is zero. Interest is charged only on the utilized amount from the sanctioned amount, and regularly. Banks and NBFCs offer this facility to businesses to help them pool the necessary funds, especially during cashIdeal For MSMEs, traders, manufacturers
Merchant Cash Advance
A Merchant Cash Advance is given to individuals to provide quick capital in return for a percentage of their future profits, sales, or revenue. Small and medium-sized businesses take advantage of bank and NBFC loans to relieve themselves of a cash crunch at a particular point in time. So effectively, you do not pay back the loan in terms of interest, but a portion of your future revenue. Ideal For Retailers, Restaurants, Salons, and various E-Commerce businesses
Business Loan Eligibility Criteria
Eligibility criteria for a business loan vary from lender to lender. Some of the standard eligibility criteria include the following
Nationality
Indian
Business Vintage
Minimum of 2 to 3 years of experience in the current business. Total business experience of minimum 5 years
Credit Score
750 or above
Age
Between 24 to 65 years
Occupation
- Self-employed professionals including doctors, chartered accountants, company secretaries and architects.
- Self employed non professionals including traders, manufacturers, etc.
- Entities include limited liability parterships, private limited companies, closely held limited companies, etc.
Minimum Turnover
Rs. 40 Lakhs
Profit Requirements
The business must be accomplishing a profit for the recent 2 years in the past
Minimum Annual ITR
Rs. 1.5 Lakhs per annum The IT returns for the last 1 year must have been filed.
Cities and Towns
Lenders may give business loans to only certain towns and cities
Documents Required for Business Loan
Applying for a business loan is easier when your documents are in order, as lenders use them to verify your identity, assess your business’s financial health, and evaluate your repayment capacity, which helps speed up approval and disbursal. They are:
Document Type
PAN Card
Document Required
Requirement for the company/firm/individual while applying for a business loan
Document Type
ID Proof
Document Required
Aadhar/Passport/Voters ID/PAN/Driving License
Document Type
Address Proof
Document Required
Aadhar/Passport/Voters ID/Driving License
Document Type
Bank Statement
Document Required
The previous 6 months' bank statement is required
Document Type
Financial Statement
Document Required
Latest Income Tax Return along with the computation of income
Document Type
Proof of Continuation
Document Required
Income Tax Return/Trade License/Shop & Establishment Certificate/Certificate of Incorporation
Document Type
Other Mandatory Documents
Document Required
Sole Proprietorship Declaration/Partnership deed/True Copy of Memorandum of Association and Articles of Association
Business Loan Interest Rates
Business loan interest rates ranges between 14% to 25% p.a. You need to review the processing fees, prepayment charges, flexi charges, bounce rates, and various other applicable fees before applying for a business loan. Understanding these costs prior helps you to choose the right loan and manage your repayments faster. The following table helps you to find the list of business loan lenders available and their possible interest rates.
Lender
Loan Amount
Interest Rates
Repayment Tenure
Processing Fees
Lender
HDFC Bank
Loan Amount
Up to Rs. 1 Crore
Interest Rates
Up to 24%
Repayment Tenure
Up to 84 months
Processing Fees
2.5% of the loan amount
Lender
SBI
Loan Amount
Up to Rs. 25 Lakhs
Interest Rates
Up to 30%
Repayment Tenure
Up to 240 months
Processing Fees
1% to 5% of the loan amount
Lender
RBL Bank
Loan Amount
Up to Rs. 35 Lakhs
Interest Rates
Up to 21%
Repayment Tenure
Up to 84 months
Processing Fees
2.5% of the loan amount
Lender
Yes Bank
Loan Amount
Up to Rs. 75 Lakhs
Interest Rates
Starting at 17.25%
Repayment Tenure
Up to 84 months
Processing Fees
2.75% of the loan amount
Lender
Bandhan Bank
Loan Amount
Up to Rs. 25 Lakhs
Interest Rates
13% to 21%
Repayment Tenure
Up to 60 months
Processing Fees
2% of the loan amount
Lender
ICICI Bank
Loan Amount
Up to Rs. 50 Lakhs
Interest Rates
Starting from 13.25%
Repayment Tenure
Up to 60 months
Processing Fees
2% of the loan amount
Lender
Axis Bank
Loan Amount
Up to Rs. 75 Lakhs
Interest Rates
Starting at 11%
Repayment Tenure
Up to 60 months
Processing Fees
2% of the loan amount
Lender
Tata Capital
Loan Amount
Up to Rs. 90 Lakhs
Interest Rates
Starting from 12%
Repayment Tenure
Up to 60 months
Processing Fees
3% of the loan amount
Lender
Flexi Loans
Loan Amount
Up to Rs. 50 Lakhs
Interest Rates
Starting from 12%
Repayment Tenure
Up to 36 months
Processing Fees
2% to 4% of the loan amount
Lender
Bajaj Finserv
Loan Amount
Up to Rs. 75 Lakhs
Interest Rates
Starting from 14%
Repayment Tenure
Up to 96 months
Processing Fees
4.72% of the loan amount
Lender
Shriram Finance
Loan Amount
Starting from 1 Lakh
Interest Rates
Starting at 10%
Repayment Tenure
Up to 84 months
Processing Fees
Up to 5% of the loan amount
Lender
Aye Finance
Loan Amount
Up to Rs. 2.5 Lakhs
Interest Rates
26% to 28%
Repayment Tenure
Up to 24 months
Processing Fees
Up to 2.5% of the loan amount
Lender
Muthoot Finance
Loan Amount
Up to Rs. 5 Lakhs
Interest Rates
28%
Repayment Tenure
Up to 36 months
Processing Fees
Up to 3% of the loan amount
How to Apply for a Business Loan Online?
The following is a step-by-step guide to applying for a business loan online. They are:
Click on ‘Check Eligibility’ on CreditMantri to start your application.
Enter your basic details such as name, mobile number, email ID, business type, and industry on the redirected page.
Verify your mobile number via OTP to continue the application process.
Fill in your personal and business details as asked on the form.
Compare the available loan offers and apply for the most suitable option.
Government Business Loan Schemes in India
Micro, Small, and Medium Sector enterprises are the backbone of India’s economy. MSMEs contribute 30% of India's GDP and employ millions of people. MSMEs are pivotal to the country's economic development. Unfortunately, MSMEs suffer due to a lack of credit. To support MSMEs and provide the necessary financing, the Government of India has introduced laudable schemes, especially after COVID-19.
Pradhan Mantri MUDRA Yojana (PMMY) Scheme
The PMMY Scheme was launched in 2015. Under the PMMY scheme, eligible individuals are given loans of up to Rs 10 Lakh for non-corporate, non-farm small enterprises. The scheme operates under three different categories. They are:- Shishu : Up to Rs.50,000
- Kishore : From Rs.50,000 to Rs.5 Lakhs
- Tarun : Rs. 5 Lakhs to Rs.10 Lakhs
- Tarun Plus : Rs. 10 Lakhs to Rs. 20 Lakhs (Available for entrepreneurs who have successfully repaid up to the Tarun loan)
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
CGTMSE was mainly set up with the primary objective of making credit available to micro and small enterprises to the tune of Rs. 200 Lakhs.The CGTMSE provides credit guarantee to various banks and NBFCs. These banks and NBFCs, in turn, provide credit to the micro and small enterprises. The credit given to micro and small enterprises is collateral-free. In case micro and small enterprises fail to repay the credit, the CGTMSE would make up for the lender's loss. Established in 2000, the CGTMSE corpus fund has recently been enhanced from Rs.2,500 crores to Rs.7,500 crores. The government guarantees that it will reduce banks' risk.For Loans Up to Rs.50 Lakhs:
- 75% guarantee of the loan amount
- 85% guarantee if: Loans will be up to Rs. 5 Lakh for micro-entrepreneurs.
- 80% guarantee if: A woman entrepreneur operates the enterprise.
- Enterprise is located in the North-Eastern Region of India. For Loans Above 50 Lakhs (Up to Rs.200 Lakhs)
- 50% Guarantee for the amount exceeding Rs.50 Lakhs
Prime Minister Employment Generation Programme (PMEGP)
A merger of the Prime Minister Rojgar Yojana Scheme and the Rural Employment Generation Program. The PMEGP is a central sector scheme that is administered by the Ministry of Micro, Small, and Medium Enterprises (MoMSME). The Khadi and Village Industries Commission implements the scheme.MSME Business Loans (59-Minute Loan)
A fast-track loan approval initiative taken by the GOI for MSMEs, in which the principal approval for the loan is granted within 59 minutes. It is designed to improve credit access to small businesses with a quick digital assessment.MSMEs can get loans up to Rs. 5 crores with minimal paperwork. The only eligibility criterion set by the government is that they need to have proper income records. The Government also provides competitive interest rates.Credit-Linked Capital Subsidy Scheme (CLCSS)
The CLCSS is a scheme that supports MSMEs by offering a capital subsidy to upgrade technology and machinery in line with market conditions. It also helps them to improve their productivity and competitiveness in the market.Under the scheme, the Government of India will provide an upfront subsidy of up to 15% on the eligible machinery to modernize the production equipment. It focuses on improving technology and is applicable for loans up to ₹1 crore for approved machinery. It encourages modernization and efficiency and applies to selected manufacturing and service sectors.PM SVANidhi Scheme (Street Vendor Loan Support)
The PM SVANidhi Scheme is a central sector scheme that provides collateral-free loans to street vendors. The scheme is launched to provide working capital, collateral-free loans of Rs. 15,000. After this, the loan amount will increase to Rs. 25,000 and Rs. 50,000, with a 7% subsidy. This PM SVANidhi Loan scheme was introduced to increase the use of digital transactions by street vendors. To encourage them, a cash-back incentive of Rs. 100 was given to these street vendors.Stand-Up India
The GOI introduced the Stand-Up India scheme with loan amounts ranging from Rs. 10 Lakhs to Rs.1 Crore to support the setting up of greenfield enterprises in manufacturing, trading, or agri-allied sectors. The scheme was introduced with the primary aim of promoting entrepreneurship among the backward classes and women entrepreneurs.Personal Loan vs Business Loan: Which Is the Right Choice for You?
Understanding the differences between a personal loan and a business loan will help you decide which one you need. The following table encapsulates the differences between a personal loan and a business loan. They are:
Aspect
Business Loan
Personal Loan
Purpose
Business
Is to provide the capital assistance to acquire, expand facilities, and operations
Personal
Is used to cover personal expenses like vacations or home improvements
Loan Amount
Business
Up to Rs.50 Lakhs
Personal
Up to Rs. 1 Crore (even higher depending on the lender)
Criterion
Business
Loans given based on your business financials and credit score
Personal
Loans are approved based on personal credit score or creditworthiness
Collateral
Business
Requires a Collateral in the form of your business assets or properties
Personal
Can be Secured or Unsecured
End Usage
Business
To be used only for business purposes
Personal
No end usage restrictions
Borrower
Business
Only businesses can borrow business loan
Personal
Any individuals or entities can borrow personal loan
Interest Rate Range
Business
14% to 25%
Personal
9% to 30%
Repayment Tenure
Business
Up to 96 months
Personal
Up to 96 months
Work Status
Business
Self employed
Personal
Salaried or Self employed
Eligibility
Business
Age: 21 to 65 years old | Monthly Income: Rs.50,000+ | Credit Score: 700+ | Business Vintage: 2-3 years
Personal
Age: 21 to 65 years old | Monthly Income: Rs.15k - 30k | Credit Score: 750+
Documentation Required
Business
KYC Documents, Proof of Business Ownership, Other Financial Documents
Personal
KYC Documents, Employee ID Card, Past 3 months salary slips/bank statements
Credit Score Importance
Business
Moderate importance. Performance of business also matters
Personal
Higher importance. Your creditworthiness is decided upon your credit score
Processing Time
Business
Lengthy processing time due to business documents verification
Personal
Quick processing and disbursal
Tax Benefits
Business
Interest can be claimed as business expense
Personal
No tax benefits on interest
Risk Impact
Business
Impacts both the business and owner’s credit profile
Personal
Non repayment affects your credit score drastically
Common Reasons for Business Loan Rejection
The following are some possible reasons a business loan application may be rejected. They are:
Low Credit Score
A low credit score is one of the main reasons a business loan application is rejected. Lenders consider a credit score below 700 to be risky, as it may indicate past financial difficulties or payment defaults.Insufficient Cash Flow
Lenders do a cash flow analysis before granting you a business loan. If your cash flow is sufficient enough to handle the monthly EMI after deducting your business operational expenses, then there is a high chance of your business loan application being approved.Excessive Debt:
Lenders will primarily assess your repayment capacity before granting you a loan. When you have too much excessive debt in your business, lenders might hesitate to grant you loans.Limited Business Track Record:
Lenders look into your business's past market performance before granting you a loan. If you are new to a business, alternative sources of funding, such as grants, small business loans, and government funding, can be helpful.Insufficient Cash Flow
Lenders do a cash flow analysis before granting you a business loan. If your cash flow is sufficient enough to handle the monthly EMI after deducting your business operational expenses, then there is a high chance of your business loan application being approved.Poor Financial Planning:
Submitting the business loan application with the requisite documentation requires a business plan for how you will carry forward your business.Insufficient Security:
Lenders require sufficient collateral to grant you a business loan. Make sure your assets are strong enough to support the loan amount you sought before submitting the loan application.Unclear End Usage of Funds:
You need to provide a concrete fact about what you are seeking the business loan for. Lenders will review the clear end use of funds before approving your loan application.Factors to Consider Before Taking a Business Loan
The following factors should be considered before taking a business loan.
1. Purpose of the Loan
The purpose of the business loan is to help you land the right type of business loan. Understanding the intent will also let you take advantage of the loan's benefits.2. Credit Score
An individual's credit score will also help determine the eligibility and interest rate for a business loan. Try to improve your credit score before applying for a business loan. This can be done by managing your debt and making timely payments.3. Financial Health of the Business
Your business statements, such as the Profit & Loss statement, balance sheet, and cash inflows, will determine your business's financial health. Consistent revenue, along with a strong financial position, will help you secure favorable loan terms.4. Collateral Requirements:
When you apply for a secured business loan, the chances of the loan getting approved are high. Having collateral will improve your chances of getting your business loan approved with low interest rates and comfortable terms and conditions. But the type and value of the collateral will also determine the loan terms.5. Repayment Capacity:
Your existing debts and cash inflow will also determine your business loan approval. If you have a high debt-to-income ratio, chances of getting your business loan approved are bleak.6. Financial Health of the Business
Your business statements, such as the Profit & Loss statement, balance sheet, and cash inflows, will determine your business's financial health. Consistent revenue, along with a strong financial position, will help you secure favorable loan terms.7. Interest Rates Comparison:
Not all lenders will offer the same interest rates for personal loans. Comparing the interest rates between lenders will help you save money in the long run.8. Loan Terms and Conditions:
Review the terms and conditions for the business loans. Look out for hidden terms; they might cost you dearly in the future.9. Documentation Requirements
Look for the list of required documents for a business loan. Make sure the documentation is clear and free of discrepancies.Factors That Affect Interest Rates for a Business Loan
One of the worrying factors that comes with any loan is the interest rate. There are some impending factors that, when taken care of, will reduce your business loan interest rates. The factors are:
1. Nature of Business
The most crucial factor affecting your business loan is the nature of your business. Your business should be positive, and the place of doing business should not be blocked. Lenders examine the previous nature of your business to see whether it is profit-making or is incurring losses before deciding the interest rates.2. Credit Score
An individual's credit score will also help determine the eligibility and interest rate for a business loan. Try to improve your credit score before applying for a business loan. This can be done by managing your debt and making timely payments.3. Business Vintage
Your business statements, such as the Profit & Loss statement, balance sheet, and cash inflows, will determine your business's financial health. Consistent revenue, along with a strong financial position, will help you secure favorable loan terms.4. Annual Turnover:
The lender will decide your business loan interest rate according to the annual turnover. If the business's annual turnover is high, the interest rate and EMI will be lower. If your turnover is low or does not meet the lender's requirements, you will be charged a higher interest rate. This will lead to a higher EMI amount.5. Revenue and Profit:
The lender continuously checks the monthly, quarterly, and annual revenue of your business before deciding the interest rate. If your revenue is low, the lender may still approve your application. But they will levy higher interest rates.6. Credit history:
If you have a long credit history with timely repayments of loans and credit card bills, then the interest rates that you will receive from your lender for your business loan will be low. If your credit history is poor, you will pay higher interest rates because you will be seen as a risky customer.7. Relationship with the lender:
If you have a good, healthy relationship with the lender you are borrowing from and are an existing customer, you can negotiate interest rates and get a lower rate.Why Choose CreditMantri for a Business Loan?
Getting a business loan is not only about funds. It is getting the right funds, on the right terms, and at the right time. That is why CreditMantri is making a huge difference.
1. Accessing Multiple Lenders Under One Platform
CreditMantri partners with leading banks and NBFCs, giving you access to multiple offers at once. So you do not need to settle for the first offer you receive.2. Applications Are Eligibility-Based
There is a clear-cut credit assessment plan that happens in the background. This is based on your credit profile, business vintage, and repayment capacity. This reduces the risk of your business loan applications being rejected.3. Complete Digital Process
Most business loan applications are processed digitally. This helps you minimize paperwork, achieve faster approvals, and disburse loans more quickly.4. Solutions Even for the Low Credit Score:
CreditMantri will find the desired lender partner even with a low credit score. You need not hesitate to apply for a loan, even with an average or recovering credit score.5. Expert Guidance
CreditMantri expert credit coaches provide expert credit guidance on the various lending options available. It helps them choose the right loan and improve their credit profile for better future offers.6. A Perfect Credit Partner:
CreditMantri acts as a perfect credit partner. They do not stop with approval—they help you to get to know better offers and grow with sustenance in a credit market.Awards & Recognitions
Years of Excellence
Years of Excellence
Celebrating 10 years of achievements and industry milestones.
Growth Story of the Year
The TiECon Chennai 2018 Award
The Start-Up Category
The Economic Times BFSI Innovation Tribe 2018 Award
For Exemplary Application of IT
The CII Connect Award 2018
Fintech 250
CB Insights 2017
Winner (2017)
Red Herring Asia 100
Presenter
Finovate Asia 2017
Frequently Asked Questions