If you are a business person who is looking to establish, expand or improve your business, you can apply for a business loan from a bank or a Non-Banking Financial Company (NBFC).
A business loan has very minimal documentation and can be applied entirely online in most cases. The interest rates begin at just 13% and can go upwards based on one’s credit score, credit profile, loan amount and relationship with the bank. Tenures range from 1 year to 5 years. Loan amounts can go up to 50 lakhs or more in some cases.
How to apply?
1. You can apply online by filling in the application form and turning in all the required documents.
2. 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.
A business loan requires certain financial statements such as a Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) and Board resolution in addition to one’s ID, address and age proof. Some lenders will require additional documents and so, it is best to check with the lender you are borrowing from as to what is needed.
If you have never borrowed before, there are Non-Banking Financial Companies (NBFCs) such as LendingKart that offer business loans to individuals who have no credit score.
To apply for a business loan, click here.