What is a Business Loan?

A business loan is money borrowed from a bank or financial institution to help a business grow, cover expenses, or manage cash flow. It's like borrowing money to invest in your business. Just like personal loans, you have to pay back the loan amount plus interest over a certain period of time, usually with monthly payments. The loan can be used for various purposes like buying equipment, hiring staff, expanding operations, or even just covering day-to-day expenses. However, it's important to carefully consider the terms and interest rates before taking out a business loan to ensure it's manageable for your business.

Features and Benefits of Business Loans

Some of the key points and benefits of business loan at are as follows:

• You can borrow a minimum of Rs. 1 lakh as collateral free business loans and Rs. 1 crore as the maximum loan amount. The funds can be only used for business related purposes.
• The tenure is between 1 Year and 5 years.
• There are suitable loan amounts available for small and medium sized enterprises as well, besides large-scaled businesses.
• We offer easy and simple online application and paperless process for business loan India.
• Interest rate depends on your profile and other factors, but starts at 13%.
• You can have co-applicants for the loan to improve your chances of getting the loan approved.
• This loan can have co-applicants, which can help raise the approval chance for the loan.

Eligibility Criteria for Business Loan

If you want to choose business loan service, But, before applying, do go through some of the important eligibility criteria for business loan.

• You should be able to meet minimum business profit and turnover requirement per annum, as given by the financial institute.
• Your age should be between 21 years and 65 years till the loan completion.
• The business must have at least been in existence for 3 years.
• The loan can be provided to self-employed individuals, manufacturers, service providers etc, or the application can also come from private limited or limited company.
• You need to submit Income Tax Return statement of the past 3years.

Documents Required to Apply for Business Loan

• If you want to apply for unsecured business loan, then do go through the following documents you have to submit.
• Identity proof such as PAN Card, Voter ID card, Aadhar Card, etc.
• Ownership proof of possessions utilized for business purposes
• Bank account statements, practice certificate etc.
• Last 3 years income tax Returns with computation, P&L Account, Balance sheet & GST Returns.
• Your KYC documents and that of the co-applicant
• Recent passport size photographs and residence proof

Business Loan Interest Rates in India

The interest rate of business loan India will vary from a financial institute to other; however, it is based on some crucial factors given below:

• Your age and profile
• Your Credit score
• Company’s and your financial position
• The chosen loan scheme
• In case of secured business loans, the security submitted
• Your relationship with the fund providing bank or NBFC