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Processing Fee

2%

Max Tenure

36 months

Best Rate

16%

View Details

Features

  • Collateral-free business loan
  • Amount size - Rs. 50,000 to Rs. 1 Crore
  • Repayment tenure – 1 to 36 months
  • Online application and processing in 3 working days
  • Minimal documentation
  • Flexible repayment options (Bi-weekly, Monthly)

Pricing

  • Interest rate – 16-27% per annum
  • Processing fees – 2% of the sanctioned amount

Documents Required

  • Bank Statements – Last 12 Months Current Bank Account Statements of the entity (till latest date) for all accounts/ OD accounts (PDF copies generated through Net banking or email from the bank)
  • Aadhar Card (Front & Back)
  • VAT/Service Tax Returns/GST (whichever applicable) for last 1 year of the entity
  • PAN of the entity and Date of Birth of the proprietor / partners / promoters (in case the application form is not filled)
  • Proof of activity** in case of proprietorship firms and copy of partnership deed in case of partnership firms
  • Documents required for specific applications
  • For clients from Food/Pharma/Chemical/Oil/petroleum industries, relevant statutory licenses might be required
  • Last two year’s detailed ITR computation or Balance Sheet with schedules required for cases, where turnover is more than 1 Cr. Or loan required is more than 10 Lacs.
  • Provisionals may be required deplender_offersending upon the merit of the case.
  • Any one of the following documents can be accepted as proof of activity for the proprietorship firms.
  • Registration certificate (in the case of a registered concern)
  • Certificate / license issued by the Municipal authorities under Shop & Establishment Act
  • Sales and income tax returns
  • GST/VAT certificate

Processing Fee

2%

Max Tenure

12 months

Best Rate

21%

View Details

Features

  • Collateral free business loan
  • Designed exclusively for small businesses
  • Fast and easy process
  • Loan tenure of 1 to 2 years

Pricing

  • Interest Rate - 21% (reducing interest rate basis)
  • Processing fee - 2% of the sanctioned amount + GST

Documents Required

  • PAN Card – For Individual / Partnership Firm / Company, Passport Size Photographs of all applicants & co-applicants
  • ID Proof (any one) – Voter ID / Driving License / Passport / Aadhar Card
  • Address Proof (any one) – Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill / Registered Lease Deed or Sale Agreement / Bank Statement
  • Ownership proof of either residence or office (in the name of applicant or jointly with family members)
  • Business Continuity Proof – Any one document dated 5 years old - Bank Statement / Sales Tax Challans / IT Returns / Shops & Est. Certificate / Certificate of Incorporation / Partnership Deed
  • Letter certifying end use of the business loan funds on Business Letterhead
  • Latest audited ITR and financials for the last 3 years. (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Bank statements from the borrower's main account/s for last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet
  • Partnership Deed and partnership authority letter for partnership firms
  • Memorandum & Articles of Association, Board Resolution and Certificate of Incorporation (COI) for companies
  • Latest shareholding patterns for Private Ltd. / Public Ltd. companies
  • Professional Qualification Certificate and Degree Certificate for professionals

Processing Fee

2%

Max Tenure

36mns

Best Rate

16%

View Details

Features

  • Collateral free business loan
  • Fast and hassle-free process
  • Minimal documentation - No balance sheet needed
  • Receive fund in 3 days
  • No pre-payment charges

Pricing

  • Interest rate – 23% onwards (reducing interest rate basis)
  • Processing fees – Up to 3% of the sanctioned amount + GST

Documents Required

    Pre- ZipLoan Approval
  • Banking (Minimum 9 months) Repayment from current/ saving account only. Maximum 2 bank accounts can be included in the loan application
  • Saving account if cash traction is used for loan entitlement
  • Income tax return (min. last 02 years)
  • Post ZipLoan Approval
  • Pan Card (Mandatory) and also GST details (if applicable)
  • Aadhaar card (Mandatory)
  • Res Address Proof and Ownership Proof of Res/Office (mandatory)
  • Business entity Proof
  • Application (Obtaining email id to be encouraged)
  • Post- Sanction
  • Agreement with Promissory note
  • NACH – 02 Nos
  • GST details if applicable
  • SPDC- 05 Nos. (Account payee/ Crossed Only)
  • PSL certificate (Only for IDFC cases)

Processing Fee

2%

Max Tenure

NA

Best Rate

1.08%

View Details

Features

  • Extremely fast and Simple process
  • Paperless process
  • Collateral free - 100% Unsecured Loans and thus no collateral required
  • No hidden charges

Pricing

  • 20.3% p.a. onwards (reducing interest rate basis)
  • Processing Fee: 2% of the sanctioned amount + GST

Documents Required

  • Income Proof: Latest 3 months bank statement via PDF upload / netbanking (for new to credit customer only)
  • ID Proof: PAN Card, Election Card, Passport, Driving License, Aadhar card, UID (Unique Identification Document) issued by Govt. of India
  • UID (Unique Identification Document) issued by Govt. of India
  • Any of the above address proof acceptable for a close relative staying with applicant (Spouse/ Parents/ Son/ Daughter) with relationship proof confirmed with applicant.

Processing Fee

2%

Max Tenure

3 yrs

Best Rate

19%

View Details

Features

  • Collateral free business loan
  • Best in the segment interest rate
  • Fast and hassle-free process
  • Immidiate decision

Pricing

  • 11% onwards (reducing interest rate basis)
  • Up to 2% of the sanctioned amount + GST

Documents Required

  • Income Proof: Latest 6 months bank statement
  • ID Proof: Passport with same/different address, Voter ID with same/different address, Driving License with same/different address, Aadhaar, NREGA, NPR
  • Customer Address Proof: Voter ID with same address, Prop/Municipal Tax receipt, ELECTRICITY BILL-(<2M OLD), TELEPHONE BILL less than 2 Months old , NREGA CARD, PPO( ISSUED BY GOVT/PSU) , LEASED ACCOMODATIO BY EMPLOYER , DOC BY FORGN EMBASSY IN INDIA , LPG CARD/BILL/BOOK(< 2M OLD), POSTPAID MOB BILL - ( < 2M OLD), ACCOMO(GOVT/PSU/STAT/LIST CO.), WATER BILL(< 2M OLD), NPR
  • E-Sign
  • Passport Photograph

Processing Fee

3%

Max Tenure

10 yrs

Best Rate

16%

Processing Fee

2%

Max Tenure

10 yrs

Best Rate

18%

Processing Fee

2%

Max Tenure

60 months

Best Rate

19%

Processing Fee

2.5%

Max Tenure

25 months

Best Rate

21.55%

Processing Fee

2.5%

Max Tenure

5 yrs

Best Rate

18.75%

Processing Fee

NULL

Max Tenure

NULL

Best Rate

11%

Processing Fee

NULL

Max Tenure

NULL

Best Rate

11.30%

Processing Fee

2%

Max Tenure

NULL

Best Rate

12.25%

Processing Fee

2%

Max Tenure

NULL

Best Rate

16.00%

Processing Fee

2.5%

Max Tenure

NULL

Best Rate

15.50%

Processing Fee

NULL

Max Tenure

NULL

Best Rate

9.70%

Processing Fee

2.5%

Max Tenure

2yrs

Best Rate

14%

Processing Fee

2.0%

Max Tenure

2 Yrs

Best Rate

26%

Processing Fee

2%

Max Tenure

2 yrs

Best Rate

18%

Processing Fee

2%

Max Tenure

2 yrs

Best Rate

18%

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What is a Business Loan?

A business loan is one type of a loan that is applied for by people who aim to establish, expand or buy equipment for their businesses. Entrepreneurs who look for capital to begin their businesses also apply for business loans. There are two types of business loans:

  • Secured Business Loans:
  • A secured business loan is when the individual provides collateral in the form of land, machinery, a house, etc, as security for the loan amount. This has the added benefit of a lower rate of interest.

  • Unsecured Business Loans:
  • An unsecured business loan is when the loan amount is given without any collateral. The interest rates for unsecured loans are generally higher as there is a risk factor involved for the lender.

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Features and benefits of a Business Loan

  • Good loan amounts
  • Business loan amounts can go up to Rs.5 crores or more based on the needs and requirements of the customer. The loan amount is generally given based on the size of the business and the amount needed for operations such as expansion, inventory, working capital and more.

  • Flexible tenures
  • Business loans have tenures that can extend up to 7 years based on the customer’s requirements.

  • Minimal documentation
  • Most business loans have a very simple loan process that requires minimal documentation from the customer. Some lenders offer doorstep services to collect the few documents that are required so make the process more convenient for the customer.

  • Speedy disbursal
  • Most lenders who provide business loans ensure that the loan amount is in your bank account in 3 working days or sooner. In some cases, it can take longer due to verification of documents and other formalities that are followed.

Interest rates

The interest rates for a business loan generally begin at just 12%. Most interest rates are fixed at the sole discretion of the lender and can vary based on credit scores, current performance of the business and other factors.

Factors that affect interest rates for a business loan

  • Credit score:
  • A credit score is a three-digit number that ranges from 300 to 900. It shows your creditworthiness to your lender. Lenders use your credit score to assess your reliability. If you have a good credit score, then the interest rates for your business loan will be much lower. A credit score of 750 and above are considered a good score by most lenders. So, if you have a low credit score, then your lender will consider you to be a risky customer and will increase the interest rate for the loan or reject your loan application. Always ensure that you check your credit score before applying for a business loan.

  • Credit history:
  • If you have a long credit history that is good, then the interest rates that you will receive from your lender for your business loan will be low. This is because your lender will view your past transactions with your past credit products to check your creditworthiness. If you have a positive and long credit history, the banks will consider you to be reliable and will lend to you at lower interest rates. If you have a bad credit history, the interest rates will be higher as you will be viewed as a risky customer.

  • Loan amount:
  • A large business loan amount entails a lower interest rate than a small business loan amount. So, it is better to take a large loan for your business rather than a small loan as the interest rates will vary as per the loan amount that is taken by the customer. Ensure you calculate all the needs and requirements of your business including the cost for labour, equipment, inventory and other costs.

  • Relationship with lender:
  • If you have a good and healthy relationship with the lender you are borrowing from and are an existing customer with them, then the interest rates can be negotiated for and one can get a lower interest rate. This can help you lower the interest rates on your business loan. Most lenders aim to please their customers and so they can lower the interest rates if you have a positive and long-term relationship with them.

Eligibility criteria for Business Loans

  • Should be a self-employed individual, Proprietor, Private Ltd. Co or a Partnership Firm that is involved in the business of manufacturing, trading or services
  • Should have a minimum of 2 to 3 years of business experience in the current business
  • Should have a minimum turnover of Rs. 24 lakhs
  • The applicant should be a minimum of 21 years and a maximum of 65 years.

These criteria can vary from lender to lender and so it is best to check with your lender as to what their eligibility criteria are for their short-term loans.

Documents needed for Business Loans

  • PAN card of the individual or the company or the firm
  • ID proof (Aadhar card/passport/Voter’s ID/PAN Card/Driving license)
  • Address proof (Aadhar card/passport/ Voter’s ID/ Rent agreement/Driving license)
  • 6 months bank statement
  • Latest ITR with computation of income, balance sheet and profit and loss account for the last 2 years after being audited
  • Proof of continuation of business

These documents needed can vary from lender to lender and so it is best to check with your lender as to what documents are required for their short-term loans.

How to apply for a Business Loan

  • You can apply online by filling in the application form and turning in all the required documents.
  • You can apply in person by visiting the lender’s branch with all the needed documents and filling out the application form for the same.

Business loan – FAQs

1. What are the two types of business loans?

There are two types of business loans – secured and unsecured. A secured business loan is when the individual provides collateral as security for the loan amount. An unsecured business loan is when the loan amount is given without any collateral.

2. What is the tenure for a business loan?

Business loans have tenures that can extend up to 7 years.

3. What are the usages of business loans?

Business loans are applied for by people who aim to establish, expand or buy equipment for their businesses. Entrepreneurs who look for capital to begin their businesses also apply for business loans.

4. What is the minimum and maximum age for applying for a business loan?

The applicant should be a minimum of 21 years and a maximum of 65 years.

News

Gujarat government partners with SBI bank to provide MSME loans20 Feb 2020

The Gujarat government had signed a Memorandum of Understanding(MoU) with SBI to facilitate loan approval to entrepreneurs in the MSME sector. According to the MoU, the top public sector lenders are to provide working capital to budding entrepreneurs...

Read more

The Gujarat government had signed a Memorandum of Understanding(MoU) with SBI to facilitate loan approval to entrepreneurs in the MSME sector. According to the MoU, the top public sector lenders are to provide working capital to budding entrepreneurs looking forward to starting new micro, small and medium enterprises. Within 15 days of applying for the loan, the bank will provide the approval of the project. Chief Minister Vijay Rupani, at the signing event, had said that the number of applications for MSME loans has increased this year compared to last year. The Gujarat government had announced in October last year that MSME units will no longer be required to take various approvals to begin operations for the first 3 years.

Allahabad Bank reports a net loss of Rs. 1986 crores14 Feb 2020

Nationalized bank, Allahabad Bank, has reported a net loss of Rs. 1986 crores in the 3rd financial quarter. The bank has said that the loss is due to high provisioning against bad loans as the lender was trying to clear the balance sheet before its m...

Read more

Nationalized bank, Allahabad Bank, has reported a net loss of Rs. 1986 crores in the 3rd financial quarter. The bank has said that the loss is due to high provisioning against bad loans as the lender was trying to clear the balance sheet before its merger with the Indian Bank. The bank’s gross non-performing assets have increased to 18.93% from 17.81% a year back. This has compelled the lender to raise provisioning of to Rs. 3003 crore from Rs. 1900 crore in order to cover the bad loans. However, the GNPA has improved marginally from 19.05% three months back.

Start up that funded over 15,000 rural women entrepreneurs14 Feb 2020

Micro - entrepreneurs don’t get loans on time and are often ignored by financial institutions and the majority of these entrepreneurs are women. Taking this situation into consideration, Shweta Apremeya launched Arth, a social impact start-up in 2015...

Read more

Micro - entrepreneurs don’t get loans on time and are often ignored by financial institutions and the majority of these entrepreneurs are women. Taking this situation into consideration, Shweta Apremeya launched Arth, a social impact start-up in 2015. This startup delivers credit for small and micro-entrepreneurs, with a focus on financing rural women micro-entrepreneurs and micro-merchants. This company combines a deep branch network supported by end-to-end digital processes that are user-friendly, and allow for a way to identify customers and offer services to them. As this sector doesn’t have a credit score, by getting the credit they would be able to build a good score and later on avail loans to expand. Arth has delivered Rs. 25 crores worth of credit to women entrepreneurs in rural areas.

Heading - Government to introduce app that helps MSMEs complain about loan rejected by banks10 Feb 2020

Small businesses don’t have to worry about their loans getting denied by banks. The finance minister, Nirmala Sitharaman has said that an app-based loan financing system introduced by the government will be tracking the rejection of loans from differ...

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Small businesses don’t have to worry about their loans getting denied by banks. The finance minister, Nirmala Sitharaman has said that an app-based loan financing system introduced by the government will be tracking the rejection of loans from different banks. If your business is denied credit, the government will make sure that your loan is disbursed in time. The businesses that were denied a loan would have to file a complaint through the app with a copy to the bank manager. This app would also take care of the problems of delayed payments and cash flow mismatches for the MSMEs. The finance minister also said that the government would launch the system soon to ensure capital to MSMEs as they contribute to about 27% of the Indian economy.

Best business ideas from MSMEs & startups can win Rs. 15 lakhs from the government6 Feb 2020

The Ministry of MSMEs has invited business ideas from startups, technocrats, students and MSMEs from all over India under the scheme - ‘Support for Entrepreneurial and Managerial Development of MSMEs through Incubators’. These new ideas are being inv...

Read more

The Ministry of MSMEs has invited business ideas from startups, technocrats, students and MSMEs from all over India under the scheme - ‘Support for Entrepreneurial and Managerial Development of MSMEs through Incubators’. These new ideas are being invited from innovators and the selected candidates will be provided with a funding of Rs. 15 lakhs per approved idea through the business incubator chosen by them. The last date of receiving an application as stated on the official website is February 20, 2020. The selected applicants will be announced between February 22 and February 29. There are guidelines that are to be followed to participate in the program.

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