Business Loan

Want to setup something new in business? Or want to change its interior? Or want to invest for something?

Business Loan Overview

The growth and sustainability of a business depend on the continuous inflow of funds. The funds might be required to expand the business or purchasing equipment. The funds can be borrowed in the form of a loan from banks and other financial institutions. Business Loans are typically unsecured in nature which means no collateral or security is required to borrow a loan. Business Loan is a debt provided to the company or the self-employed professionals or business owners that are to be repaid along with the principal amount. The rate of interest is usually pre-determined by the lending institutions. A Business Loan in India is offered at competitive interest rates, with a low processing fee, and without any security or collateral. Several leading banks and NBFCs including HDFC Bank, ICICI Bank, IDFC First, Citibank, Fullerton India, Tata Capital, and so forth are offering business loans.

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Business Loan Eligibility Criteria

Age  
  • Minimum- 21 years
  • Maximum- 65 years
       (Age may vary from bank to bank)
Who can apply?  
  • Sole Proprietorship
  • Partnership Firm
  • Private Limited Companies
  • Closely Held Public Listed Companies
  • Societies
  • Trusts
Business Profitability Business should be in the profitable state for at least 3 consecutive years.
Company Financials Complete financials including Balance sheet and Profit & Loss statement for latest 2 years, Tax audit reports.
Credit Score Good Credit Score (650 and above)

Documents Required for Business Loan

Type of Document Salaried / Self employees
Identity   Proof  

Any one of the following:

  • Aadhaar Card
  • PAN Card
  • Driving License
  • Voter ID
  • Passport
Address   Proof  

Any one of the following:

  • Aadhaar Card
  • PAN Card
  • Driving License
  • Voter ID
  • Passport
  • Bank Statement (Bank Account Passbook updated and of recent three months)
Ownership   Proof Proof of ownership of residential or commercial property (including parental property)
Financials Complete financials including Income Tax Return of latest 2 years, Balance Sheet, Profit and Loss Statement, Tax audit reports, and so forth.
Other    Documents  
  • Loan application form
  • Passport Size photographs duly signed across

Business Loan Interest Rate

Business Loan Interest Rate Competitive interest rate starting at 12.15%
Loan Amount  
  • Minimum 3 Lakhs
  • Maximum 1 Crore
Nature of Business Loan Unsecured (No mortgage required)
Loan Tenure Ranges from 24 months to 60 months
Processing Fee Up to 2% of loan amount