Business Loan

Business Loan – Check information about Loan Interest Rates, Eligibility, Documents, Processing Fee, Loan Tenure, Loan Amount, Loan Types.

Business Loan is an secured/unsecured loan offered by Banks and NBFCs in India for Salaried and Self-Employed Sole Proprietorship Firm, Partnership Firm, Limited Liability Partnership, Private Limited Companies, Unlisted Public Limited Companies, Trust and Societies (for educational institutes, Hospitals). Business Loan can be avail for Professionals such as Doctors, Engineers, and Chartered Accountants.

Business loan is basically used for fulfill the daily basic requirement of the business. Business loan can be used for the various purposes such as expansion of business, renovation, buying new tools and machinery, upgrade the latest technology, inventory, cash flow, increase in working capital. Availing a secured business loan require security or collateral to be kept as mortgage or guarantee but in un secured loan it do not require any kind of collateral, security and guarantor.

Eligibility Criteria of Business Loan

  • Salaried
  • Self – Employed Non professional – Individual, Firms, Companies, LLP like Traders, Manufacturer and Service Provider.
  • Self – Employed Professionals – Doctors, Engineers, and Chartered Accountants.
  • To avail the business loan the applicant must be minimum age of 21 years and maximum age is 70 years at the time of maturity.
  • Availing a secured business loan require security or collateral to be kept as mortgage or guarantee but in unsecured loan it do not require any kind of collateral, security and guaranter.
  • Business must be positive in all the ways cash flows, repayment of previous loans tracks.
  • The nature of the business always must be positive.
  • The applicant must have either a sales tax-registration of the business, Business license, Permit issued by any statutory authority, Accredited body.
  • The growth of the business and profit after tax should positive last year.
  • You business must have proper office set-up with signboard.
  • Either Office premises or Residence should be owned, but in the both rented case require rent agreement.
  • Your business experience must be at least 3-5 years in the same field.

Why to Choose Business Loan ?

  • You can take business loan for your day to day business operations.
  • You have full freedom to use funds as per your need.
  • It provides complete online and offline services.
  • Enjoy the quick and instant approval with minimum documents.
  • The loan disbursal process is very quick and fast.
  • It Provides prompt customer service to the borrower.
  • You can also experience the convenience of balance transfer facility.
  • You do not have to visit branch at the time of the loan, you will get all the services from the door to the door.
  • In case of Natural / Accidental Death of the customer, the customer / nominee can avail of Payment Protection Insurance, which insures the principle outstanding on loan up to a maximum of loan amount.
  • Whatever charges you have at the time of processing the loan, you will be told all the charge and fees will not be silent.
  • It provides you with online service and you can experience this service from anywhere.

Types of Business Loan

Different Banks/ NBFCs in India offer Business Loan tailor-made to meet your needs of expansion of business, renovation, increase in working capital, inventory and cash flow etc. Some of these have been listed below.

Term Loan – A term loan is a loan from a bank for a specific amount in which there is a specified repayment schedule and a fixed or temporary interest rate. A term loan is often suitable for an established small business, with the ability to reduce sound financial details and the amount of payment and reduce the total cost of the loan. It may be short and long term.

Working Capital Loan – A working capital loan is a loan that is taken to fulfill the company’s everyday activities. These loans are not used to buy long term assets or investments, and instead, the company is used to provide working capital covering short-term operational needs.

OD Facility – Overdraft facility is a credit agreement with a bank that allows an account holder to use or withdraw more money than the money in his account to the approved limit.

Machinery Loan – Who are operating manufacturing units, can focus on increasing and expanding their businesses by taking advantage of our machinery loans to buy new or renovated machinery from manufacturers and / or authorised dealers.

Medical Equipment Loan – For purchase of standard medical equipment including CT scanners, color doppler, sonography machine, MRI machine, X-ray machine and other medical devices.

Construction Loan – Construction loan is any value added loan where the proceeds are used to finance construction of some kind.

Top Banks Providing Business loan – Interest Rate, Loan Amount, Loan Tenure, Processing Fee

BANK/ NBFCs LOAN INTEREST AMOUNT TENURE PROCESSING FEES
HDFC Bank Up To 50 Lacs 15.65% – 21.20% 12 – 48 Months Up To 2.50%
ICICI Bank Up To 40 Lacs 6 Months MCLR + 4.20% Up To 60 Months 2% of Loan Amount + Taxes
Axis Bank Up To 50 Lacs 11.00% – 20.00% Up To 36 Months 2% + Services Taxes
Kotak Mahindra Bank 3 Lacs To 2 Crore 13.00% – 28.00% 12 – 60 Months 3% of Loan Amount + GST
Yes Bank 2 Lacs To 4 Crore 13.25% – 19.99% ( Fixed Rate ) 12 Months To 60 Months Up to 2.50% Of Loan Amount
Bank of Baroda 2 Lac To 10 Crore 09.30% – 11.10% 12 Months To 60 Months Nil
State Bank of India 10 Lacs To 25 Lacs 11.20% Per Annum 12 Months To 48 Months 1% of Loan Amount
IDFC First Bank Upto 40 Lacs 18.00% – 24.00% 12 – 60 Months 1% of Loan Amount
Bajaj Finserv Upto 30 Lacs 18.00% onwards 12 Months To 48 Months 2% of Loan Amount + Taxes
Tata Capital 5 Lacs To 50 Lacs 13.75% – 25.90% 12 Months To 36 Months 2% of Loan Amount + Taxes
Ziploan 1 Lacs To 5 Lacs 23.00% -29.00% Per Annum 12/18/24 Months 3% of Loan Amount

 

List of Business Loan Documents

  • Passport size color photographs.
  • Pan card
  • Identity Proof (Pan card Adhaar, card, Driving License, Passport)
  • Address proof ( Adhaar Card, Passport, Driving License, Voter’s Id, Electricity bill ,First page of bank statement.
  • Office address proof whether it is owned or rented.
  • Income tax return of last 3 year.
  • Processing fee cheque.
  • Professional Qualification Certificate and Degree Certificate for Professionals.
  • Partnership Deed and Partnership authority letter.
  • Business registration proof authorised by Government (Any one ) Shops & Establishment Certificate / Trade License Certificate / SSI Registration Certificate / Sales Certificate / Partnership deed for companies / Memorandum of Association for companies.
  • Your latest Bank Statement from where you are operating your business from the past 6 months.
  • Copies of all the property documents of the property concerned, which you had chosen for the pledge for the loan.
  • Latest shareholding pattern.
  • Declaration that borrower, Company or any of its Directors have not been debarred / blacklisted / penalised by any Stock Exchanges / SEBI/ RBI. Declaration that the proposed borrowing is within.

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