What is a Business Loan?
Want a business loan to expand your business, machinery purchase or working capital?
A business loan is an unsecured loan used for buying machinery equipment and other working capital requirements of the business. Compare business loan interest rates of leading banks & NBFCs. Check your eligibility, documentation and process to apply for quick business loans. Business Loan for self-employed at a low-interest rate.
Features of business loans:
- Loan amount – Min 1 Lacs & Max up to 5 Lacs
- Tenure – up to 12 Months
- Interest Rate – 17% – 19% Fixed
- Processing Fee – 2%
- Pre-Payment Charges -NIL
Benefits of business loans
- No security or collateral is required
- working capital helps for business expansion,
- Quick and hassle free loan with fast approvals
- You should either be a self-employed professional/non-professional
- You should have the minimum age of a21 years and not more than 65 years at the time of loan maturity
- Loan amount eligibility is calculated on the basis of customer cash flow and banks lending criteria
- Audited annual reports for the last 2 years
- Proof of Residence – Passport / Voters ID card / Driving License / Adhaar Card
- Proof of Identity – Passport / Pan card / Voters ID card / Driving License / Adhaar Card
- Proof of Business : Shops & Establishment certificate / Trade license certificate / SSI registration certificate / Sales certificate / Partnership deed for firms / Memorandum of Association for companies
- Latest 6 months Bank Statement of business
- KYC documents of director(s)/partner(s)/ firm
- Existing Facility/ Loan Sanction Letters
What is SME loan / SME finance?
SME finance is funding for different types of small and medium-sized enterprises. Capital is provided in the form of bank loans and overdrafts; leasing and hire-purchase arrangements, equity/corporate bond issues venture capital or private equity. In addition, SME’s arrange finance through asset-based finance such as factoring and invoice discounting. Also, the Government provided funding in the form of grants or loans.
However, not all business finance is external/commercially supplied through the market. Much finance is internally generated by businesses out of their own earnings and/or supplied informally as trade credit, that is, delays in paying for purchases of goods and services.
SME loans are specially designed loans for SME’s and small businesses. They are designed to be in sync with the unique requirements and operating constraints which small businesses encounter during various phases of their business.
Type of SME loans
Project finance is to fund your long-term infrastructure or industrial and other major projects with comfortable repayment terms based on the project assessment.
SME loans are designed to cater to your unique needs for equipment leasing or other refinancing options.
Secured Business Loans
Secured business loans provide the entrepreneur with sufficient leverage for financing your corporate projects.
Working Capital Loans
Working capital loans facilitate your daily business needs. We ensure that your business runs as smoothly as possible with hassle-free and easy working capital loans.
Bill discounting facilities ensure that corporates can successfully discount their bills before the maturity date.
Lease Rental Discounting
Gain access to a term loan against your rental receipts that are derived from lease contracts with corporate tenants. Quick loan disbursement on the rental discounted value and the underlying property value.
SME Business Loans
Collateral free loans from INR 3.5 lacs up to INR 45 lacs
SME Equipment Loans
Loans offerer ranging between Rs. 5 lacs to Rs. 2.5 cr. against hypothecation of machinery
SME Secured Loans
Loans from INR 1 lac up to INR 25 cr. offered against residential, commercial and industrial properties
Frequently Asked Question
What is Loan-to-Value or LTV Ratio?
LTV or Loan to Value ratio is the ratio of the loan amount to the realizable value of the underlying asset or security.
What is ECS?
ECS stands for Electronic Clearance Service. It is used for making monthly EMI payments electronically between bank accounts.
For what purposes can these loans be taken?
These loans are available for the buildup of current assets, fixed assets, capacity expansion, modernization and short term working capital including shoring up of net working capital.
What is the range of tenor available with these loans?
You can avail this loan for a period starting from 12 to 84 months or 1 to 7 years.
How much loan can I avail? How is the amount decided?
The maximum eligible loan amount is calculated based on your requirement, credit assessment, industry outlook, past performance and expected future cash flows.
What can be accepted as security/ collateral?
A wide range of securities is accepted. The collateral includes properties such as land & real estate; equipment such as plant & machinery. In addition, you can also provide fixed deposits, deposit certificates, kisan vikas patra, national savings certificates. Also, other forms of collateral such as Central and State Governments issue securities, gold, other cash equivalents and life insurance policies.
Is there any impact on my credit score if I foreclose my loan?
No, foreclosure of your loan will have no impact on your credit score. Once the loan is foreclosed the same will be reported to credit rating agency as closed.
Who can avail benefits of SME Loan?
With a good credit history, sole proprietorship firms, partnership firms, private limited companies and closely held public limited companies can avail sme loan.