₹
Business Loan
Business Loan
Fuel your business growth with fast and flexible business loans. Whether you are an SME, startup, trader, or self-employed professional — get funds for working capital, expansion, machinery, or operations with minimal documentation and quick approval.
Overview
Business Loan Services
About Business Loan
A Business Loan is a credit facility provided by banks and NBFCs to business owners, entrepreneurs, traders, manufacturers, and self-employed professionals to meet their business-related financial needs. It can be secured (against collateral) or unsecured (without collateral), depending on the lender and the loan amount.
Business loans are ideal for managing working capital, purchasing machinery or equipment, expanding operations, renovating business premises, meeting bulk orders, or bridging cash flow gaps. With flexible repayment tenures and competitive interest rates, a business loan is the smartest way to grow your enterprise without liquidating your assets.
- Available for proprietors, partnership firms, LLPs, Pvt. Ltd. companies, and MSMEs
- Secured and unsecured loan options available
- Loan amount from ₹50,000 to ₹20 Crore and above (varies by lender)
- Quick disbursal — funds credited within 3–7 working days of approval
- Use for any business purpose — working capital, expansion, equipment, inventory
- Government-backed MSME schemes available (MUDRA, CGTMSE, Stand-Up India)
Key Features
- Loan amount from ₹50,000 to ₹20 Crore+ depending on business turnover and lender
- Competitive interest rates starting from 10.50% per annum
- Flexible repayment tenure from 12 months to 15 years
- Unsecured loans up to ₹50 Lakhs — no collateral required
- Minimal documentation with digital KYC and online processing
- Overdraft and cash credit (CC) limit facilities available
- Government scheme-linked loans at subsidised rates for MSMEs
- Top-up loan available on existing business loan accounts
- Balance transfer facility at lower interest rate
Note: Business loan eligibility, interest rate, and maximum loan amount depend on your business vintage, annual turnover, ITR filing, CIBIL score, and existing credit obligations. A business with 2+ years of operation and clean repayment history gets the best terms.
Eligibility Criteria
Self-Employed / Business Owner
- Age: 21 to 65 years
- Business vintage: minimum 2 years in operation
- Annual business turnover: ₹10 Lakhs and above
- ITR filed for at least 1–2 years
- CIBIL score: 700 or above preferred
- Stable income from business / profession
Company / Firm / LLP
- Proprietorship / Partnership / Pvt. Ltd. / LLP / OPC
- Business operational for minimum 2–3 years
- Annual turnover as per GST / ITR: ₹20 Lakhs+
- Profit-making business for last 1–2 years
- No major defaults or NPA in credit history
- GST registration required for higher loan amounts
Tip: Startups and new businesses with less than 2 years of operation may apply under government schemes like MUDRA Loan or Stand-Up India for collateral-free funding up to ₹10 Lakhs to ₹1 Crore.
Required Documents
KYC & Identity
- Aadhaar Card (proprietor / directors)
- PAN Card (individual + business entity)
- Passport-size photographs
- Business registration certificate
- GST registration certificate
- UDYAM / MSME registration (if applicable)
Financial Documents
- ITR for last 2 years (with computation)
- Audited / CA-certified P&L and Balance Sheet
- Bank statements — last 12 months (business account)
- GST returns for last 6–12 months
- Sales / purchase invoices (if required)
- Existing loan sanction letters (if any)
Business Proof
- Business address proof (utility bill / rent agreement)
- Shop and Establishment Certificate
- Partnership deed / MOA-AOA (for companies)
- Trade licence / professional licence
Collateral (for Secured Loans)
- Property documents (title deed, registry)
- Machinery / equipment valuation report
- Stock / inventory details
- Property tax receipts (for property-backed loans)
Interest Rates & Charges
| Loan Type | Interest Rate (p.a.) | Tenure | Max Amount |
|---|---|---|---|
| Unsecured Business Loan | 14% – 26% | 12 – 60 months | Up to ₹50 Lakhs |
| Secured Business Loan (LAP) | 10.50% – 16% | Up to 15 years | Up to ₹20 Crore+ |
| Working Capital / OD / CC | 12% – 18% | Revolving / Annual | ₹5 Lakhs – ₹5 Crore |
| MSME / MUDRA Loan | 8.50% – 12% | Up to 60 months | Up to ₹10 Lakhs (Tarun) |
| Machinery / Equipment Loan | 11% – 18% | 12 months – 15 years | Up to ₹5 Crore |
| Invoice Discounting | 12% – 20% | 30 – 180 days | As per invoice value |
Other Charges
- Processing fee: 1% – 3% of loan amount (varies by lender)
- Prepayment / foreclosure charges: 2% – 4% on outstanding amount (after lock-in)
- Late payment penalty: 1% – 2% per month on overdue EMI
- Documentation / legal charges: applicable for secured loans
- GST: applicable on all fees and charges as per government norms
Important: Rates mentioned are indicative and may vary across banks and NBFCs. Government-backed MSME schemes (CGTMSE, MUDRA) offer lower rates with no collateral requirement. Always compare lenders and read the fine print before signing.
Types of Business Loans
- Term Loan — Fixed loan with regular EMIs. Best for capex, expansion, or one-time business needs.
- Working Capital Loan — Short-term loan to manage daily operations, stock, salaries, and receivables.
- Overdraft / Cash Credit (CC) — Revolving credit line. Withdraw as needed, pay interest only on amount used.
- Machinery / Equipment Loan — Loan for purchasing machinery, tools, vehicles, or industrial equipment.
- MUDRA Loan — Government-backed collateral-free loan for micro enterprises under Pradhan Mantri MUDRA Yojana (up to ₹10 Lakhs).
- Loan Against Property (LAP) — Secured loan against commercial or residential property at lower rates.
- Invoice / Bill Discounting — Finance against outstanding invoices. Best for businesses with delayed receivables.
- Startup Business Loan — Specially designed for new ventures with innovative business models and revenue projections.
Business Loan Process
- 1Fill the Online Application Form with your business and personal details including turnover, nature of business, and loan requirement.
- 2Submit Required Documents — KYC, business proof, financial statements, ITR, bank statements, and GST returns.
- 3Credit & Business Assessment — lender evaluates CIBIL score, business vintage, profitability, existing EMIs, and repayment capacity.
- 4Loan Approval & Sanction Letter — approved loan amount, rate of interest, tenure, and terms are communicated in the sanction letter.
- 5Document Verification & Agreement Signing — final KYC, legal verification (for secured loans), and loan agreement executed.
- 6Disbursement — loan amount credited directly to your business bank account within 3–7 working days.
Why Choose Us
30+ bank & NBFC partnerships
Fast approval in 48–72 hours
Best interest rate guarantee
Minimal documentation process
Transparent — no hidden charges
Dedicated business loan advisors
MSME & government scheme expertise
End-to-end digital application
24-hour advisor response guarantee
Apply Now
Business Loan Enquiry Form
₹
Business Loan Enquiry
Fill in your details. Our expert business loan advisor will contact you within 24 hours.
✓ Enquiry Submitted Successfully
Thank you! Our business loan advisor will contact you at within 24 business hours.
Frequently Asked Questions
What is a Business Loan and who can apply?
A business loan is a credit facility for business purposes such as working capital, expansion, machinery purchase, or operations. Proprietors, partnership firms, Pvt. Ltd. companies, LLPs, traders, manufacturers, freelancers, and self-employed professionals can apply.
What is the maximum loan amount for a business loan?
Business loan amounts range from ₹50,000 to ₹20 Crore and above, depending on the lender, business turnover, years of operation, CIBIL score, and whether the loan is secured or unsecured. Unsecured loans are typically capped at ₹50 Lakhs.
What CIBIL score is required for a business loan?
Most lenders require a minimum CIBIL score of 700 for the business owner / director. A score of 750 or above significantly improves approval chances and helps secure a lower interest rate. Both personal and business CIBIL scores are assessed.
Can I get a business loan without collateral?
Yes. Unsecured business loans up to ₹50 Lakhs are available from banks and NBFCs without any collateral. Additionally, government-backed schemes like CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) provide collateral-free loans up to ₹2 Crore.
What is a MUDRA Loan and am I eligible?
MUDRA Loan (Pradhan Mantri MUDRA Yojana) is a government scheme offering collateral-free loans to micro and small businesses. It has three categories — Shishu (up to ₹50,000), Kishor (₹50,001 to ₹5 Lakhs), and Tarun (₹5 Lakhs to ₹10 Lakhs). Any small business, trader, vendor, or artisan can apply through banks and NBFCs.
How long does it take to get a business loan disbursed?
After document submission and approval, business loans are typically disbursed within 3–7 working days. Some NBFCs and fintech lenders offer faster disbursals of 24–48 hours for pre-approved or digital loan products for existing customers.
What is the difference between a Term Loan and a Working Capital Loan?
A Term Loan is a fixed loan repaid in regular EMIs over a defined tenure — ideal for one-time capital needs like buying machinery or expanding premises. A Working Capital Loan (or OD/CC limit) is a revolving credit facility for managing day-to-day business expenses like salaries, inventory, and receivables.
Can a new business or startup get a business loan?
Yes, though it is more challenging. New businesses can apply under MUDRA, CGTMSE, or Stand-Up India schemes. Some NBFCs and fintech lenders also offer startup loans based on business projections and promoter profiles. Having a strong business plan and a good personal CIBIL score improves chances.
Are there any prepayment charges on business loans?
Prepayment charges typically range from 2%–5% on the outstanding loan amount if closed within the lock-in period (usually 12 months). Some lenders offer zero prepayment charges after the lock-in period. For MSME loans under government schemes, prepayment is generally allowed without penalty.
Is GST registration mandatory for a business loan?
GST registration is not mandatory for very small loan amounts under MUDRA, but it is typically required for business loans above ₹10–20 Lakhs. GST returns (GSTR-1, GSTR-3B) are used by lenders to verify actual turnover and business activity, which directly affects loan eligibility.