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Max Tenure

NA

Best Rate

Processing Fee

4%

View Details

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 Tenure

NA

Best Rate

1.50% P.M

Processing Fee

2%

View Details

Features

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

Pricing

  • 18% 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.

Max Tenure

NA

Best Rate

1.58% P.M

Processing Fee

2%

View Details

Features

  • Easy documentation - We work with minimum financial documents which also includes informal documents.
  • Transparent pricing - There are no hidden fees. We will always be upfront about our costs.
  • No guarantor Required - You do not have to depend on others to get a loan.
  • Service at your doorstep - Our staff connects with you at your business place or residence.
  • Multiple Channels - You can connect with us through our wide branch network, our field staff or through our centralized contact center.
  • Cluster Based Lending - We understand your business well. We have the experience of lending to 5 sectors and 100+ clusters.
  • How many days it will take to disburse the loan - Upto 5 working days within completion of online loan application

Pricing

  • Interest Rate: 18.96% P.A
  • Processing Fee : 2% - 2.5%

Documents Required

  • Latest 6 months banking statement
  • Identity proof(PAN, Voter ID, Passport)
  • Address Proof ( Voter ID, Aadhar Card, Passport, Bank passbook copy with photo)
  • Ownership proof: Any one of the following ( E-Bill/WaterBill/Property document)

Max Tenure

36 months

Best Rate

0.92% P.M

Processing Fee

2%

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 - 11.04% P.A
  • 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

Max Tenure

12 Months.

Best Rate

2% P.M

Processing Fee

2.5%

View Details

Features

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

Pricing

  • Interest rate - Flat 24% P.A
  • Processing fee - 2.5% + document charges, stamp duty.

Documents Required

  • PAN Card
  • Current Residence Address Proof
  • Cancel Cheque
  • Business KYC (All Business KYC except Udyam aadhar)

Max Tenure

2yrs

Best Rate

18%

Processing Fee

2.00%

View Details

Features

  • End to End Digital Journey for Loans up to Rs. 25 Lakhs
  • Flexible Repayment options (Daily, Weekly or Fortnightly, Monthly according to Loan Requirement)
  • Minimal Documentation Required
  • Unsecured Loans up to Rs. 75 Lakhs

Pricing

  • Interest Rate : 16.5% PA Onwards.
  • Processing Fee : Up to 2% of the loan amount + applicable taxes

Documents Required

  • PAN & Aadhar
  • Business registration proof
  • Last 6 months bank statement

Max Tenure

60 Months.

Best Rate

Nil*

Processing Fee

2.0%

View Details

Features

Pricing

  • Pricing - 16% P.A
  • Processing fees: 2% of the sanctioned amount

Documents Required

  • Aadhar Card
  • Voter ID
  • Passport
  • Driving License

Max Tenure

24 - 48 months

Best Rate

2%

Processing Fee

3%

View Details

Features

  • Choice based loan offers available
  • Faster Disbursal
  • Complete Digital Loan Process

Pricing

  • Interest Rate: 15.75 to 18.75% P.A
  • Processing fee - 2 to 2.5% P.A

Documents Required

  • KYC Documents
  • Last 6 Months Bank Statement
  • Business Proof - GST Certificate or Last 2 years ITR

Upon applying you provide Incred to pull your bureau Details to check the loan eligibility.

Tata Capital Business Loan

Tata Capital Business Loan

4

Max Tenure

12 - 48

Best Rate

1.42% P.M

Processing Fee

2.5%

M Capital

M Capital

4

Max Tenure

24 months

Best Rate

1.75% P.M

Processing Fee

3%

Janalakshmi Financial Services Ltd Business Loan

Janalakshmi Financial Services LTd Business Loan

4

Max Tenure

10 yrs

Best Rate

16%

Processing Fee

3%

Vistaar Finance Business Loan

Vistaar Finance Business Loan

4

Max Tenure

10 yrs

Best Rate

18%

Processing Fee

2%

TRIBE3 Business Loan

TRIBE3 Business Loan

4

Max Tenure

2 yrs

Best Rate

18%

Processing Fee

2%

Manappuram Business Loan

Manappuram Business Loan

4

Max Tenure

2 yrs

Best Rate

18%

Processing Fee

2%

Allahabad Business Loan

Allahabad Business Loan

4

Max Tenure

3 yrs

Best Rate

19%

Processing Fee

2%

Edelweiss Emillion Business Loan

Edelweiss EMIllion Business Loan

4

Max Tenure

25 months

Best Rate

21.55%

Processing Fee

2.5%

Capital Float

Capital Float

4

Max Tenure

2 Yrs

Best Rate

26%

Processing Fee

2.0%

SMEcorner Business Loan

SMEcorner Business Loan

4

Max Tenure

36 months

Best Rate

1.58% P.M

Processing Fee

2%

RBL Business Loan

RBL Business Loan

4

Max Tenure

12 months

Best Rate

21%

Processing Fee

2%

Zip Business Loan

Zip Business Loan

4

Max Tenure

36mns

Best Rate

16%

Processing Fee

2%

IIFL BUSINESS LOAN

IIFL BUSINESS LOAN

4

Max Tenure

09 to 60 Months

Best Rate

11.75%

Processing Fee

2%

Edelweiss Business Loan

Edelweiss Business Loan

4

Max Tenure

60 months

Best Rate

19%

Processing Fee

2%

Indifi Business Loan

Indifi Business Loan

4

Max Tenure

3 yrs

Best Rate

1.50% P.M

Processing Fee

3%

HDFC Bank Business Loan

HDFC Bank Business Loan

4

Max Tenure

NULL

Best Rate

15.50%

Processing Fee

2.5%

Protium  Business Loan

Protium Business Loan

4

Max Tenure

24 months

Best Rate

1.67% P.M

Processing Fee

1.50%

Axis Bank Business Loan

Axis Bank Business Loan

4

Max Tenure

NULL

Best Rate

11%

Processing Fee

NULL

SBI Business Loan

SBI Business Loan

4

Max Tenure

NULL

Best Rate

11.30%

Processing Fee

NULL

Icici Bank Business Loan

ICICI Bank Business Loan

4

Max Tenure

NULL

Best Rate

12.25%

Processing Fee

2%

Bajaj Finance Business Loan

4

Max Tenure

NULL

Best Rate

16.00%

Processing Fee

2%

HDFC Bank Business Loan

HDFC Bank Business Loan

4

Max Tenure

5 yrs

Best Rate

18.75%

Processing Fee

2.5%

Sorry! We couldn't find any offer matching this category.

What is a Business Loan?

A business loan is a loan that can be used by those who aim to establish or expand their firm. Whether it be for working capital needs, buying new equipment or machinery, investing in marketing efforts for the business, or for payroll expenses, a business loan is a good idea. They can be either unsecured or secured. Apply for a business loan on CreditMantri. Compare between 26 plus lenders and choose the most suitable one for you.

How to Apply for Business Loans on CreditMantri.com

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Let your entrepreneurial dreams soar high and get your company up and running by getting the best business loans through CreditMantri

Top Business Loan Lenders

Lender

Interest Rate

Loan Tenure

Loan Amount

Processing Fees

Prepayment or foreclosure fees

MCapital Business Loan

2% per month onwards

1 to 3 years

Upto Rs. 15 Lakhs

2% of the loan amount

5% of outstanding plus GST

Lendingkart Business Loan

1.25% per month onwards

1 month to 3 years

50 thousand to 2 crores

2 to 3% of the loan amount

No pre closure charges

Flexiloans Business Loan

1% per month onwards

Upto 5 years

Upto Rs. 10 crores

Upto 2% of the loan amount

-

IndiFi Business Loan

1.5% to 2.5% per month

1 to 3 years

50k to 50 Lakhs

3% of the loan amount

4% of the principal outstanding

Aye Business Loan

Upto 32% per annum

6 to 24 months

Based on the value of hypothecated assets, the maximum loan value is 2 Lakhs

2.5% + GST

7% of loan amount + applicable government taxes

SME Corner Business Loan

19% p.a.

1 to 3 years

Rs. 50K to Rs. 25 Lakhs

3% to 5%

5% of the principal outstanding

Protium Business Loan

1.5 percent per month onwards

Upto 2 years

Upto Rs. 30 Lakhs

Upto 2% of the loan amount

5 to 6% of the principal outstanding

Tata Capital Business Loan

Starting from 12% onwards

Upto 5 years

40,000 to 75 Lakhs

1.50% to 2.00% onwards

4.5% of the principal outstanding amount

HDFC Business Loan

11.90% p.a. to 21.35% p.a.

1 to 4 years

Upto Rs. 50 Lakhs

2.5% of the loan amount

2% to 4% of principal outstanding

ICICI Bank Business Loan

18% p.a.

Upto 7 years

Upto Rs. 40 Lakhs

Up to 2% plus applicable taxes of the facility amount

No charges applicable

Axis Bank Business Loan

11% p.a.

6 to 36 months

Upto Rs. 50 Lakhs

Upto to 2.00% + applicable taxes

2% to 4% of the principal outstanding at the time of prepayment + GST as applicable

SBI Card Business Loan

According to business requirements and linked with MCLR

Upto 5 years

Upto Rs. 25 lakhs

1% to 5% of the loan amount sanctioned

3% of the principal outstanding - allowed only after the payment of 6 EMIs

MCapital Business Loans

Key Highlights

  • Business Loans starting at interest rates as low as 2% per month
  • Business loan amounts up to Rs.15 lakhs.
  • Maximum repayment period of up to 2 years
  • Loans can be foreclosed after 6 months from the loan disbursement date
  • Response to customer queries within 72 hours. You can reach MCapital at connect@mcapital.co.in
  • Simple repayment options with daily to monthly EMI options
  • Easy KYC Process - submit business proof, bank details, and personal KYC
  • Obtain your business loan in 4 simple steps
    • Fill in your name, KYC, and contact details
    • Submit the online application
    • Get in-principle online sanction
    • Receive funds in 72 hours

Lendingkart Business Loans

Key Highlights

  • Business loans starting at interest rates as low as 1.25% per month
  • Huge loan amounts up to Rs. 2 crores
  • Flexible loan tenures ranging from 1 to 3 years
  • Zero pre closure fees
  • No collateral required
  • Avail business loans from the convenience of your home
  • Loans with minimum documentation
  • You can do a quick eligibility check in just 2 minutes before applying
  • Instant and hassle-free process

Flexiloans Business Loans

Key Highlights

  • Business loans starting at interest rates as low as 1% per month
  • Huge loan amounts up to Rs. 1 crore
  • Money disbursed to your bank account in 48 hours
  • Accessible and convenient
  • Tax advantages since the ratio of income used to repay the loan is not taxed
  • No documentation, online application form with few fields
  • Flexible repayment tenures up to 5 years
  • Multipurpose: Can be used for managing daily expenditures, buying required equipment, etc.

IndiFi Business Loans

Key Highlights

  • Flexible loan amounts ranging from 50k to 50 Lakhs
  • Flexible loan tenures ranging from 1 to 3 years
  • Competitive interest rates ranging from 1.5% to 2.5% per month
  • No hidden charges - transparent processing
  • Quick and simple process with minimal documentation
  • No collateral
  • Specific loan products for particular business needs
  • You can choose your loan tenure and repayment modes
  • One application, multiple lenders, and improved chances of loan approval

Protium Business Loans

Key Highlights

  • No credit history required
  • Business loans start at interest rates as low as 1.5% per month
  • Business loan amounts up to 30 Lakhs
  • Quick funds disbursal within 3 days
  • End to end digital application process and disbursal
  • Loan can be used for any business specific activity - renovation, business expansion, hiring new staff, purchase of equipment
  • No collateral

SME Corner Business Loans

Key Highlights

  • Business loans amounts ranging from 50,000 to Rs. 25 lakh
  • Loan disbursed in 3 working days
  • Strong Digital Interface and thus a simple, hassle-free, and quick process
  • No collaterals
  • Instant Loan Processing
  • Flexible loan tenures ranging from 1 to 3 years

Aye Finance Business Loans

Key Highlights

  • Loan amounts up to Rs. 2 Lakhs
  • Quick disbursal of the loan amount within 7 days
  • Flexible loan tenures up to 3 years
  • No hidden charges
  • Collateral free
  • Convenient and user-friendly

Features and Benefits of A Business Loan

  • High Loan Amounts: Business loan amounts can go up to a maximum of Rs.5 crores or more depending on the needs and requirements of the customer. The loan amount is typically 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 10 years based on the customer’s requirements.
  • Minimal documentation: Most business loans have a very simple loan process that needs minimal documentation from the customer. Some lenders offer doorstep services to collect the few documents that are required to make the process more convenient for the customer.
  • Speedy disbursal: Most lenders who give business loans ensure that the loan amount is disbursed to your bank account in 3 working days or sooner. In some situations, it can take longer due to document verification and other formalities that are followed.
  • No collateral required: Many banks and financial lending institutions give business loans to individuals without asking for collateral. This implies that businesses don’t run the risk of losing assets in case they default on their loan. This means that the business is evaluated based on its expected receivables and cash flow.
  • Helps in building your credit score: When you pay your business loan EMIs on time, it helps in enhancing your business credit score and personal credit score (in case of sole proprietorship). This will increase your opportunities to obtain credit in the future.
  • Easily accessible: Many banks and NBFCs provide business loans online. You can thus apply for a business loan from the comfort of your home or anywhere, anytime. Also, websites now provide facilities for tracking details about the loan even after disbursal, such as interest certificate, payment schedule, repayment history, etc.
  • Easy Repayment Options: They can be repaid in easy EMIs and come with flexible repayment options.
  • Multipurpose Loans: They can be availed for a variety of reasons like business expansion, working capital needs, marketing efforts, etc.
  • Business loans come with additional benefits such as Web Chat, SMS, Phone banking, etc. Some banks even give exclusive higher loan amounts to their self-employed customer base.
  • Doorstep Service: Many lenders provide their customers with the benefit of doorstep service.

Eligibility Criteria For Business Loans

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 70 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 partnerships, 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 Loans

  • PAN card for company, firm, or individual
  • ID Proof: Passport copy, voter’s ID copy, driving license, and Aadhaar card copy
  • Address Proof: Copy of Aadhaar card, passport copy, voter’s ID copy, driving license
  • Bank Statement for the last 6 months
  • Proof of business continuation: ITR/Establishment/Trade License/Sales Tax Certificate
  • Certified copy of partnership deed or sole proprietorship declaration
  • Certified true copy of Memorandum and Articles of Association.

How To Apply For A Business Loan?

On CreditMantri

Step 1: Click on ‘Check Eligibility’. If you want to read more about the loan, click on ‘Know More’.

Step 2: Post clicking ‘Check Eligibility’, you will be redirected to another webpage. Enter the basic details on this webpage, like name, mobile number, email id, business type, industry of the business, etc. Click on ‘Next’

Step 3: Proceed with the rest of the steps to complete the application.

On The Lender’s Website

Step 1: Go to the lender’s website, click on the loan product that you wish to apply for, and click on ‘Apply Now’.

Step 2: Post this, you will be redirected to another webpage. Here, you will be required to enter certain basic details into an online application form. You will be asked to enter your name, contact number, age, city of residence, details about your business, etc.

Step 3: Once you enter the necessary details, click on ‘Submit’. Post submission, a representative from the bank or financial institution will call you to take the loan application process forward.

Offline :

You can also walk into the nearest branch of a bank or the financial institution directly and apply for the business loan. You will have to submit the loan application form along with the required documents at the branch.

Factors That Affect Interest Rates For A Business Loan in India

  • Nature of Business: The most important factor affecting your business loan is the nature of your business. Your business should be positive and the place of doing the business should not be blacklisted. Lenders examine the previous nature of your business to see whether it is profit-making or is incurring losses before deciding the interest rates.
  • Credit score: A credit score is a three-digit number that is in the range of 300 to 900. It shows your creditworthiness to your lender. Lenders use your credit score to evaluate your reliability. If you have a good credit score, then the interest rates for your business loan will be much lesser. A credit score of 750 and above is considered a good score by most lenders. If you have a low credit score, then your lender will consider you to be a risky borrower and will increase the interest rate for the loan or reject your loan application. Always check your credit score before applying for a business loan.
  • Business Vintage: Your business experience or age is important. If you have a long and established business, then lenders may charge a lower interest rate for business expansion. Lenders may charge higher interest rates for startup loans due to defaults and non-payments. Individuals who have been doing business for a long time have many business loan products to choose from.
  • Annual Turnover: The lender sets the business loan interest rate according to the annual turnover. If the annual turnover of the business is high, the rate of interest and the EMI will be lower. If your turnover is low or does not satisfy the lender, then a higher interest rate will be charged. This will lead to a higher EMI amount
  • Revenue and Profit: The lender always checks the monthly, quarterly, and annual revenue of your business before deciding the interest rate. If your revenue is not good, then the lender may approve your application. But, they will levy higher interest rates.
  • Credit history: If you have a long credit history marked by 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 bad, the interest rates will be higher as you will be seen as a risky customer.
  • Relationship with the 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.

Additional Read: For more on factors influencing business loan interest rates,

What Are The Reasons For Taking Business Loans?

The following are the circumstances to apply for business loans

  • For starting out on a business: If you have a great idea for a startup that you want to turn into an endeavor for potential income, a business loan can be taken for the same purpose. You should make sure that your idea is good enough to generate enough profits and the overhead cost of the business is not so high.
  • While Expanding Your Business: The chances of getting a business loan approval are high when you take a business loan for expansion. This is because it will already have a proven track record. Business expansion can include the launch of a new product, starting a new department, upgrading an operation or a product, and exploring a new area or market, etc.
  • To Purchase Machinery and Equipment:it is essential for a business to maintain a regular supply to the market for a product that is high in demand. For this, the company has to invest in equipment and machinery with the latest technology. Furthermore, a company may also need to buy equipment during an expansion. Business loans are a great way to fund the purchase of machinery and equipment.
  • To Convert Business Losses Into Profits: A business loan can also be availed to convert a business that has been incurring losses into a profitable one. Lenders may hesitate to fund a business that has been running with losses. But, if you have a proper plan as to how you are going to improve the profits, you will succeed in finding a business loan.
  • To Settle Previous Debts: You can get a business loan to repay previous debts.
  • For Running A Seasonal Business: If you are operating a seasonal business, then orders may start rushing in that season. Then, it may be difficult for you to manage the expenses due to the high demand. In that case, you can secure a short-term business loan to offer continuous service to your customers. Then, you can repay the loan using the profits made after the season is over.
  • Working Capital For Business: When the cash flow within the organization is less due to a boom in the market or the increase in the operating cycles, It is tough to manage regular expenses such as supplies, raw materials, and salaries. In order to keep the business operational and recover from the financial crisis, an entrepreneur can take a business loan.

Dos and Don'ts Of Business Loans

Dos

  • Applicants should also have a viable business plan for the right allocation of funds.
  • Research the various types of business loans. Some business loans cater to specific segments of the society. This will help such people get loans at favorable interest rates and terms.
  • The applicant must cross-check all the mandatory documents required for this process.
  • Applicants must verify their credit score since some digital lenders consider it at the time of approving the business loan.
  • Compare between lenders before you apply for a business loan. Compare in terms of interest rates, flexi repay options, terms and conditions, prepayment penalties, and preclosure charges.
  • Borrow the right amount at the proper time
  • Calculating the actual business loan requirements in advance before applying is recommended
  • Understanding the lender’s repayment terms will help you repay the loan without hurting your credit score.
  • Verify the charges of the loan beforehand to understand the cost of the loan. Check the preclosure charges, prepayment charges, processing fee, documentation charges, part payment fee, and default fees.

Don'ts

  • Do not apply with multiple lenders
  • Do not fall for lenders offering low-interest rates
  • Don’t use the funds from the business during the incubation period in order to pay back too fast.
  • Applicants should be aware of fake lenders online. They charge an upfront fee for approving the business loan online. However, any credible digital lending platform will never ask for an upfront fee. However, it will levy a minimal percentage after loan disbursal.

Types of Business Loans

  • Overdraft Facility: The bank offers a withdrawal facility to its customer even if the account balance is zero. This is called overdraft facility. The interest rate is levied on the amount used from the approved limit. The bank sanctions a credit limit depending upon the account holder’s relationship with the bank, credit history, cash flows, and the repayment history if any. The overdraft limit is revised every year and can be used for any purpose if the interest is paid on time. The bank offers an overdraft facility against collateral/securities.
  • Working Capital Loan: A working capital loan is obtained to meet the company’s day-to-day expenses. It is obtained to meet the company’s expenditure during the off-season and meet the demand during the peak season. Most eligible applicants include service providers, manufacturers, wholesalers, retailers, or traders engaged in exports or imports.
  • Term Loans: Term loans are generally taken for a specific purpose, especially for capital expenditure. The loan amount lent is based on the business’s credit history. The tenure is fixed and ranges between 1 and 5 years for unsecured loans and between 15 to 20 years for secured loans.
  • Demand Loans: Demand loans can be both secured and unsecured. They can be used to meet a short-term financial crisis. The maximum term for these types of loans is generally 12 months, but the entrepreneur can choose to renew it once the term ends. For such loans, the merchant has to repay the loan when the NBFC or the bank recalls it.
  • Business loans for Women Entrepreneurs: Many NBFCs have schemes in place to give business loans to women entrepreneurs. The government of India has also designed schemes to encourage women who want to enter into and do business. The benefits of business loans for women entrepreneurs include concessional interest rates, flexible loan tenures, flexible loan amounts, and a faster loan process.
  • Bank Guarantee: a bank guarantee business loan is a type of guarantee provided by the bank to the stakeholders of the business. In this, the bank will take care of the losses or pay the stakeholders if the borrower fails to repay the loan.
  • Letter of Credit: This is a type of business loan where the bank or financial institution offers a payment guarantee to enterprises that deal in international trade. Companies that deal in international trade have to deal with many unknown suppliers. So, they would want a payment assurance before they do any transaction. This is when a letter of credit giving the same is issued by the bank or financial institution.
  • Loan Against Securities: A business can opt for a loan against its approved securities such as mutual funds, bonds, stocks, insurance policies, savings, demat shares, exchange-traded funds, etc.

Two Types of Business Loan:

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.

Business Loan EMI

The business loan EMI or the equated monthly installment is the monthly repayment you make to the business loan issuer. Before you take a business loan, you should compute your business loan EMI. This helps you manage your finances better. A business loan EMI calculator is the best tool to compute your business loan EMI. All you have to do is enter the amount, tenure, and interest rate. The result gets displayed instantly.

You also have a formula to compute the business loan EMI. It is as follows:

EMI = {P * R * (1 + R) ^ N} / {(1+R) ^ (N - 1)}

Business Loan Interest Rates

Business loan interest rates vary across lenders. It also depends on various factors like business and personal credit score, nature of the business, revenue, annual turnover etc.

Business Loan Eligibility

Lenders set various eligibility criteria, such as age, nationality, occupation, credit score, etc. to qualify for business loans. The business loan eligibility criteria may vary slightly across lenders.

Business Loan Status Check

Businesses can track the status of their business loan application using online portals or netbanking and mobile apps. They can also contact customer care.

Business Loan Schemes

Business loan schemes launched by the Government of India provide funds to Micro, Small and Medium Enterprises (MSMEs) and other business firms. There are many loan schemes that entrepreneurs can adopt based on their needs. Business entities can choose the right loan scheme which is most suitable to them.

Business Plan

A business plan is a written document that gives details about the business and how it is going to achieve its goals. A good business plan is required to get a business loan approval, preferential interest rates, and favorable terms for the loan.

Business Loan Rejection

For your business loan to be approved, there are multiple factors. Your loan application may be rejected in case these parameters are not fulfilled. Common reasons for business loan rejection could be poor credit score, absence of collateral, absence of proper business plan, etc. For more about business loan rejection and ways to overcome it..

Conclusion

Business loans are great sources of funds for entrepreneurs who are looking to kickstart and expand their business. Many business loan lenders offer these loans at attractive and competitive interest rates. Compare and apply for a business loan from 26 plus lenders on CreditMantri and take your business to great heights.

Business loan – FAQs

1. What are the two types of small 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.

5. What is a Business Loan?

A business loan is a loan that’s used to fund the day-to-day operations of a business. They're often used to cover day-to-day operating expenses such as payroll, rent, and other bills that come up without enough time to save money. They can also be used to make large purchases such as equipment or a franchise. They're the most common form of loans for small business owners.

6. What are the types of business loans available in India?

There are a wide variety of business loans to choose from when getting started. Some of the most common types of business loans include: - start-up loans - small business loans - term loans - expansion loans - equipment loans - working capital loans - acquisition loans - line of credit, and more.

7. What are the advantages of a business loan?

There are a lot of advantages to getting a business loan. The most common advantage is that a business loan is much easier to get than traditional loans. You don’t need to prove yourself or show any personal collateral, which makes it much easier to get a loan in a short amount of time. Another advantage of a business loan is that it allows you to make large purchases without having to put as much money down.

8. Who offers business loans in India?

Business loans are offered by a wide variety of lenders. The most common lenders are banks and NBFCs. You can also get business loans from online lenders, private lenders, and other financial institutions. Most businesses start by applying for a business loan with their local bank or NBFCs.

9. How much business loan can I get?

The amount of business loan you can get will depend on a variety of factors, including your company’s size, industry, and credit history. Most businesses start with a small business loan, which typically ranges from Rs.1 lakh to Rs.50 lakhs. As your business grows, you may be able to get a larger business loan, which can be used to fund your expansion, purchase equipment, or make large purchases.

10. What is the typical interest rate for business loans in India?

The interest rate for business loans in India is usually between 10% and 15%. The interest rate on your business loan will depend on a variety of factors, including your credit score, the business loan provider, and the lender’s lending policy.

11. What are the repayment options on a business loan?

The most common repayment options for a business loan are: - monthly; - weekly; - bi-weekly; and - in a single lump sum at the end of the loan term. The repayment options that work best for your business will depend on a variety of factors, including your company’s size, your loan provider’s lending policy, and the purpose of the loan.

12. How much credit score will I need to get a good business loan?

The majority of business owners apply for a small business loan with a credit score between 700 and 800. The minimum credit score that can be used to apply for a start-up loan is 700. The higher your credit score, the better your chances of getting a good business loan.

13. Do business loans need collateral?

The majority of business owners apply for a small business loan without any collateral. The only collateral that is typically required is an asset such as furniture, equipment, or a vehicle. Collateral is also sometimes required for a business loan with a large amount such as a franchise or high-end machinery.

14. Can I use my business loan to acquire assets for the business?

Yes. The majority of business owners use their business loan to make large purchases such as machinery, equipment, and a franchise for their business. The business owner can use the business loan to purchase the asset, make a down payment on the purchase, and then use the rest of the business loan proceeds to make the remaining payments on the business loan over the next few months. This allows the business owner to use the business loan proceeds for a larger purpose than just operating the business.

Latest & Update Business Loan News

M2P Fintech Announces The Launch of New Core Lending Suite For Financial Institutions 28 Sep 2022

M2P Fintech, an API Infrastructure provider for banks and NBFCs, will be launching a core lending suite (CLS). Through the consolidation of various solutions, M2P expects to provide a consolidated offering instead of having its clients partner with ...

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M2P Fintech, an API Infrastructure provider for banks and NBFCs, will be launching a core lending suite (CLS). Through the consolidation of various solutions, M2P expects to provide a consolidated offering instead of having its clients partner with various loan management systems. M2P Fintech cofounder and chief executive Madhusudanan R said that banks and large financial institutions currently have four or five LMS since they either launched different products or the current LMS did not have the ability to support their new products. He further added that lending products are not offered in an integrated fashion and that is where M2P will be providing an integrated approach where lenders will not be required to find and integrate with new LMS and can save time. The core lending suite is to provide end-to-end management from customer onboarding, loan management, customer underwriting and also payment clearing. With the core lending suite any lending institution can level up owing to it being a single solution from onboarding to collections to ‘go to market’ strategies. This means that one could seamlessly build or remove products, solutions, or services on top of their existing systems, depending on the shift in consumer behaviour without affecting business continuity.

Poonawalla Fincorp Starts Digital Consumption Loan Business21 Apr 2022

Indian-based NBFC Poonawalla Fincorp Limited has started the Digital consumption loan space through the partnership with KrazyBee. Under this partnership, Poonawalla Fincorp provides small-ticket Personal finance to the consumers. The new partners ha...

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Indian-based NBFC Poonawalla Fincorp Limited has started the Digital consumption loan space through the partnership with KrazyBee. Under this partnership, Poonawalla Fincorp provides small-ticket Personal finance to the consumers. The new partners have planned to disburse 1000 crores under this partnership. The main strategy of Poonawalla is to concentrate more on small business finance. The scheme will offer an end-to-end digital loan across the country. The credit underwriting for these loans is accomplished via a scorecard which allows the right consumer selection at scale, while the complete digital process supports democratizing the procedure of taking loans.

Ninjacart collaborates with Avanti Finance to Introduce Credit products to uplift the Agri Value Chain community6 Apr 2022

Ninjacart has announced its strategic tie-up with Avanti Finance to provide better digital financing to facilitate the agri-platform. This strategic partnership will provide speedy and hassle-free access to credit products and unique technical suppor...

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Ninjacart has announced its strategic tie-up with Avanti Finance to provide better digital financing to facilitate the agri-platform. This strategic partnership will provide speedy and hassle-free access to credit products and unique technical support to uplift the Agri value chain community. Ninjacart and Avanti will co-create an innovative digital lending platform to access credit flow at an affordable cost to serve the unserved parts of the Agri value chain community.

New Update on Kinara Capital’s HerVikas Business loan21 Mar 2022

Indian-based Fintech MSME loan provider, Kinara Capital has planned to promote women entrepreneurship by committing to disburse NRI 200 crores of Loan through its HerVikas women business scheme in the fiscal year 2022-2023. The HerVikas scheme provid...

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Indian-based Fintech MSME loan provider, Kinara Capital has planned to promote women entrepreneurship by committing to disburse NRI 200 crores of Loan through its HerVikas women business scheme in the fiscal year 2022-2023. The HerVikas scheme provides hassle-free access to collateral-free business loans with automatic discounts to women entrepreneurs seeking MSME business loans. The myKirana App will make the loan process instant and easy for women entrepreneurs as the automatic discount is applied digitally without any paper works.

Geojit credits introduce a digital platform for loans against shares14 Jan 2022

Geojit credits, a subsidiary of the geojit financial services group, introduced a new digital platform providing loans against shares. The NSDL Digital LAS is designed to deliver quick liquidity to investors to confront their expenditures. Geojit's L...

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Geojit credits, a subsidiary of the geojit financial services group, introduced a new digital platform providing loans against shares. The NSDL Digital LAS is designed to deliver quick liquidity to investors to confront their expenditures. Geojit's LAS digital platform will assist the consumers to apply for loans by pledging shares by opting for the scheme and finishing up all documentation through the online platform. Once the loan process is completed and the application has been digitally signed, the loan applicant will instantly receive the amount credited to their bank account. The interest amount will be levied on the amount that is utilized by the applicant. This initiative makes geojit credits become the first organization to digitally disburse Loans against shares to any Demat account owner who is registered with NSDL.

Business Loan - Customer Reviews

4 / 5 (90 Reviews)
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Suitable loan and card products.,Good website - easy to use,

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Usefulness of information,good

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Usefulness of information,

18 Sep 2020

Usefulness of information,its very useful

3 Sep 2020

Product offers,Usefulness of information,Credit Report Analysis,Website/app interface,

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