Business Loans are the loans which does not require any collateral for the loan. This is an unsecured loan and it solely depends on the creditworthiness of the borrower. Business loans are the loans provided to you on behalf of your business profile. Unsecured business loan is similar to a personal loan. This loan helps for the expansion of an existing business. This loan is specially designed to meet all the business requirements.
Business Loan can be used
- For business expansion or relocation
- To meet working capital requirements
- To enhance business cash flow
- To purchase equipment/machinery/raw materials
- To stock inventory
- To pay rent/ salaries/ hire employees/ staff training, etc.
- To Scale-up operations or to upgrade technology
- For setup or installation of new product or technology
- For renovation of office premise’s
Business loan ELigibility
Below mentioned are the eligibility criteria for business loan:
- Age Criteria: Minimum 21 years at time of loan application & 70 years at time of loan maturity
- Applicant with good credit score and no past loan defaults
- Fees & Charges, Income, Business Turnover, Operational History, Business Vintage, Credit score and Profitability Criteria shall be defined by the respective financial institution
Below mentioned are the entities that can avail business loan:
- Artisans, Retailers, Manufacturers and Traders
- Private and Public Limited Companies
- Sole Proprietorship Firms, Partnerships and Limited Liability Partnerships
- Self-employed individuals / Professionals – CAs, Doctors, Architects, Company Secretaries, Designers, etc.
Features & Benefits
Immediate financial requirements :
You can avail this loan to tackle your immediate financial requirements like daily capital needs.
No collateral :
You don’t have to put anything as collateral or need a guarantee for a business loan up to Rs. 45,00,000.
Nature of Loan
Short- and Long-term, Working Capital, Secured and Unsecured Loans
A business loan can consolidate your existing loans that are running at a high rate of interest. This helps you save time and effort. You need not keep a track of too many debts.
Frequently Asked Questions!
Ans. Yes, any individual who is 21 years and above at the time of loan application is eligible to apply for business loan.
Ans. The minimum loan amount offered is Rs. 100,000 and maximum loan amount can exceed Rs. 50 crore, depending on the business requirements and applicant’s profile.
- Ans.The maximum age of availing a business loan is up to 65 years at time of loan maturity.
Ans. Interest rate offered by various banks and NBFCs starts from 11% onwards.
Ans.You can repay the loan amount in minimum 12 months and maximum up to 5 years, depending on the respective bank or NBFC.
Ans.No, you are not required to submit any collateral to bank or NBFC, for few specific secured business loans, collateral is required.
Ans.All the fees and charges of a business loan vary from bank to bank. Every financial institution has different charges, so you need to check online from their official website.