BUSINESS LOAN

Loan amount 50k to 100 lakhs
Rate of interest 12% to 30%
Processing fee 2% to 3.5%
Loan Tenure 1 year to 5 years
Age 21 years to 70 years
Resident Type Resident Indian
CIBIL score Minimum 650
Apply for Business Loan @ 15%* & Get Upto Rs.15000* Cashback













      BUSINESS LOAN: – Many bank provide business loan to meet your business needs, it can secured as well unsecured.

      Business loan interest rates
      BANK RATE Processing Fee
      Axis bank 17.00% Upto 1.75%
      Bajaj finserve 16.50% Upto 3%
      Citi bank 16.25% Upto 0.5%
      Fullerton india 19.00% Upto 2%
      HDFC 16.00% Upto 2%
      ICICI bank 16.00% Upto 2%
      IDFC First bank 21.00% Upto 1.5%
      Indusind bank 17.00% Upto 1.75%
      Kotak mahindra bank 16.00% Upto 2.5%
      Muthoot finance 22.00% Upto 3.5%
      RBL bank 16.50% Upto 2%
      Standard chartered bank 17.00% Upto 1%
      Tata capital 18.00% Upto 2.5%
      Yes bank 17.00% Upto 2%
      Neo growth 20.00% 2%
      Ugro 18.00% 2%
      Hero fin corp 17.00% 2%
      Lending Kart 22.00% 3%
      Zip loan 22.00% 2%
      Advantage and Disadvantage

      Business loan also have many advantages and disadvantages like business loan. It is very important for you to know all so that you can make a prudent decision according to your needs.

      Advantages: –

      • It’s simple and hassles free to process.
      • Their rate of interest will be fixed for entire tenure.
      • It’s simple and hassles free to process.
      • It requires minimum documents.
      • Takes less processing time as 3 to 5 days
      • Quick disbursal as after the final submission of your documents you get funds to your   Account within 1 hour, while if you go for a Home loan or Loan against property, it can takes much time.

      Disadvantages: –

      • Rate of interest of the business loan is much higher than that on secured loans like Loan against property, Gold Loan, Loan against fixed deposits, Loan against shares or bonds, or Loan against Life insurance policies.
      • Because it is a short term loan so that their EMI is relatively high.
      • You can’t avail this loan for the other requirements becauseit is only for business needs.
      Various type of Business loan
      • In form of Working Capital loan– You can avail this loan as working capital and use this as cash credit facility.
      • Inform of Term loan– You can take it as a term loan where your EMI will be fix for a certain period.
      • Loan for Machinery purchase– You can also take this loan to purchase a new machine as well as an old machine.
      • Bill discounting– If your Debtor or Creditor is a renowned company then you can also go for a bill discounting or invoice funding it is a very short term loan.

      MSME Loans– Now days it is a very popular product whether you can avail an unsecured loan at the lower rate of interest, but it is required some eligibility criteria, to know more about this you can contact “Loanbhumi”.

      Factors for Business loan eligibility

      It is only for those who either a self-employed or a self-employed professionals.

      • Financial eligibility
        • Based on Net profit In this product find your eligibility based on your net cash flow which is shown in your financial. They assume that you can give annual installments ranging from 60% of your cash flow.
        • Turn over Based– Some banks calculate your eligibility based on your annual business turn over.
        • Based on your gross receipt, Gross profit– Some Banks have this product. They consider 5% of the gross profit will be your EMI.
        • Based on your Average Bank balance– They can calculate your eligibility based on your average bank balance.
      • Running financial  liabilities– If you have any running loan or credit card outstanding or CC limit then all are consider as your financial liabilities and all can affect your loan eligibility.
      • Business stability– Minimum 3 years or it is better that it can be minimum 5 years is a basic factor to apply for a business loan.
      • Purpose– Because this loan is only for the business needs, so it is important that please prepare your business proposal before you applying. Because the credit person minutely check it.
      • CIBIL history– It is best practice for everyone that they maintain their credit history to improve their CIBIL score, because it is always an important factor for all underwriters who authorize to approve your loan.
      Some Important Things You Need To Know
      • Business loan rate of interest– Rate of interest for a business loan depends upon the various factors-
        • Financial product
        • Business Stability
        • CIBIL History– It is a major factor for the rate of interest. If your CIBIL score not meet  the parameter of the specific bank then your loan application can be rejected
      • Business loan processing fee- Most of the banks charged a processing fees in between 2% to 4% so it is better for you to about this before applying.
      • Business loan prepayment charges- When you decided to pay your loan before the completion of your loan tenure. Bank can impose these penal charges upon your outstanding principal amount. It may also have three conditions in this case.
        • Lock-in period– if a lock-in period is placed by your bank then you can’t make the prepayment of this loan, even can’t prepayment by giving the penalty. This period could be varied by the bank to the bank. May it is for 1 month, it is 6 months, or it can be 1 year.
        • Prepayment with penal charges– After the lock-in period you can prepayment your loan with prepayment penalty charges. It is also varied by the bank to the bank from 2% to 5% of the outstanding principal amount.
      • Multiple Banks- Please avoid to apply in multiple bank because it can reduce your sanction possibilities.
      • Insurance- Nowadays major banks and NBFC want to secure their loan by insurance. It is also beneficial for you, but their one-time premium charged to you so it is necessary for you to check their premium amount.
      Documents Required For Business Loan
      REQUIRED DOCUMENTS FOR RESIDENT INDIAN
      Identity proof PAN card, AADHAR card, Driving license, Voter ID,Passport, I D card isuued by Governement institution
      Address proof AADHAR card, Driving license, Voter ID, Passport, Bank statement, Electrisity bill, Mobile bill, Telephone bill, Water bill
      Signature proof PAN card, Passport, Signature attested by your banker where is your salary account
      Age proof PAN card, AADHAR card, Driving license, Voter ID, Passport, Birth certificate, Secondary board certificate
      Income proof 3 months salary slip, Form 16 for last 2 years, 6 months of your salary account bank statement
      Photo Photograph-1
      Other documents All loan schedules or their loan statement(if have any existing loan)
      REQUIRED DOCUMENTS FOR NON RESIDENT INDIAN
      Yours Residence proof
      Passport
      Visa copy
      Official email id
      Salary slip for last 6 months
      Offer or joining letter
      Work permit
      6 months bank statement of your salary account
      NRO/NRE bank statement of last 6 months
      Credit report
      Guarantor Identity and Residence proof
      Property Document Same as Resident indian
      Step by Step Process to Get a Business Loan
      Apply for a loan and Submit your KYC, all income documents and Bank statement with the details of existing banking liabilities (if have any)
      Bank verify your documents
      They Check your CIBIL score and repayment History
      Bank check your financial eligibility
      If the above factors are positive then you get a final Sanction, in which they mention 1.Offered Loan amount 2.Rate of interest 3. All other conditions and also send an agreement to you
      Then you need to send an acceptance copy of this agreement with required documents  to the bank
      Then Bank Disbursed your loan
      FAQs

      Is any collateral required for a business loan?

      There are many reason which can affect your business loan eligibility, in can be your salary, your current financial liabilities, your CIBIL history or it can be your job stability as well as your residential status.

      Can I avail a business loan on my equity?

      If you have an equity of any blue-chip  company then you can avail this loan.

      Can I make a part-payment of my business loan?

      Yes you can make a part-payment, but some bank have a condition of lock in period, so after this period you can make some payments.

      Is co-applicant is mandatory for a business loan?

      No it is not mandatory of a co-applicant for a business loan.

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