Concepts In Business Loan
What is a Business Loan?
Business loans are a form of financing that can be obtained from banks or other financial institutions for the purpose of starting, buying, expanding, or running a business. There are many different types of business loans available to suit your needs. For example, term loans and lines of credit are both options for businesses looking to borrow money. The benefits of business loans include lower interest rates and the ability to borrow more money than you would with a personal loan.
Features & Benefits of a Business Loan
- No Collateral/Security Required
- Loan Amount up to 50 lakhs
- Flexible End Use
- Flexible Part/Pre payment Options
- Minimal Documentation
- Easy Approval
- Quick Disbursal
Business Loan EMI Calculator
Types Of Business Loan
The working capital loan is a type of financing that is designed to help businesses meet their short-term cash needs. A working capital loan can be used for a variety of reasons, such as: To finance the purchase of inventory or raw materials to meet production schedules and increase productivity, For general business operations, To help cover operating expenses, To fund marketing initiatives, To finance the purchase of equipment or machinery
Eligibility criteria for Business Loan
- Age Limit- Minimum 21 years to Maximum 58 years
- Work status – Self Employee
- Business Experience – Minimum 2 year
- Income- Minimum net Profit Rs. 35,000/- and above, based on ITR.
- CIBIL Score- Minimum 650 and above
The above-mentioned Business loan eligibility criteria are indicative in nature. Lenders have the discretion to relax or make the documents for a Business loan more stringent from one applicant to another.
Documents/Check list for Business Loan:
- Adhar , Voter ID, Driving Licence, passport
- Pan
- Passport size photo
- Latest 3 years ITRs of company and partners/directors
- Company pan(pvt ltd/partnership)
- Minimum 2 yrs of business proof
- Latest 12 months bank statement
- Present address proof(adhar, voter id, driving licence, passport, HR letter, gas bill, rental agreement on Rs. 100 bond paper, postpaid bill).
- Business address proof(GST/Rental agreement/Labour licence/any govt register document)
- Own house proof(power bill/property tax/sale deed/water bill/any govt document)
- Additional Documents: Balance transfer documents(latest 3 months credit card statements/loan account statements)-These additional documents are not for all, for required customers only.
The above-mentioned Business loan documents are indicative in nature. Lenders have the discretion to relax or make the eligibility criteria for a personal loan more stringent from one applicant to another
Interest Rates For Business Loan
| Bank Name | Interest Rate (Onwards) |
Processing Fee | Max Loan Amount | Loan Tenure (Months) |
| HDFC Bank Ltd | 15% | 1.00% | 50 lakh | 12 — 48 |
| IDFC First Bank | 15% | 1.50% | 75 lakh | 12 — 48 |
| ICICI Bank | 15% | 1.50% | 40 lakh | 12 — 48 |
| Axis Bank Ltd | 15% | 1.50% | 40 lakh | 12 — 36 |
| Kotak Mahindra Bank Ltd | 15% | 2.00% | 50 lakh | 12 — 48 |
| Standard Chartered Bank | 16% | 2.00% | 75 lakh | 12 — 48 |
| Yes Bank | 16% | 2.00% | 50 lakh | 12 — 36 |
| Bajaj Finance Ltd | 17% | 2.00% | 45 lakh | 12 — 60 |
| Fedfina | 17% | 2.00% | 30 lakh | 12 — 36 |
| Fullerton | 17% | 2.00% | 50 lakh | 12 — 36 |
| Poonawala | 18% | 2.00% | 50 lakh | 12 — 36 |
| Tata capital | 18% | 2.00% | 50 lakh | 12 — 36 |
| Aditya Birla Finance Ltd | 18% | 2.00% | 30 lakh | 12 — 36 |
| Hero Fincorp | 18% | 3.00% | 25 lakh | 12 — 36 |
| Loan Frame | 18% | 2.00% | 25 lakh | 12 — 36 |
| IndusInd Bank | 18% | 2.00% | 50 lakh | 12 — 36 |
| UGRO | 18% | 2.00% | 25 lakh | 12 — 36 |
| Edelweiss | 18% | 2.00% | 75 lakh | 12 — 36 |
| Axis Finance | 18% | 2.00% | 30 lakh | 12 — 36 |
| SMC Finance | 19% | 2.00% | 30 lakh | 12 — 36 |
| Lendingkart | 19% | 2.50% | 75 lakh | 12 — 36 |
| Indifi | 20% | 3.00% | 50 lakh | 12 — 36 |
| Dhanvarsha Finvest Limited | 21% | 2.00% | 30 lakh | 12 — 36 |
| Loantap | 21% | 2.00% | 15 lakh | 12 — 36 |
| Neogrowth | 24% | 3.00% | 75 lakh | 12 — 36 |
| Growthsource | 24% | 2.00% | 25 lakh | 12 — 36 |
The above-mentioned Business loan rate of interests is indicative in nature. These are all last month interest rates this month might be varies.