Business Start-Up Loans: Solution For Every Expense

Business Start-Up Loans: Solution For Every Expense

Expansion of your company is a big commitment that can place a burden on your budget, making it tough to keep things operating smoothly. This is where a business loan can assist you to grow your company multiple times over. You’ll be able to afford larger offices and additional resources to better serve your clients. Even the government is trying hard to revive our economy by boosting industrialization and Aatmanibhar campaigns. The only hurdle which takes us back in this process is the need for money and this problem can be solved by opting for Business Loan.

Feature Of Business Loans

Flexible Loan Option: The loan term spans from 12 to 60 months, and you can make punctual repayments based on your company’s cash flow. You can also pay off the loan early without incurring any additional fees or facing foreclosure.

Easy Financing: With a quick and easy financing option for small enterprises of up to Rs 50 lakhs*, you can efficiently accomplish all of your company goals.

There will be no collateral: To get a business loan to finance your small business, you don’t have to put up any assets as collateral.

Customized Loan Solutions: Because every organization is unique and has its own set of needs, tailor-made financing solutions can help you achieve your objectives while also boosting your growth.

Business Loan Eligibility Criteria

Documents needed 

  • Identity Proof (anyone)
  • Driving License
  • PAN
  • Voter ID
  • Valid Passport
  • Residence Proof (anyone)
    • Copy of Electricity Bill/Water Bill/Telephone Bill
    • Copy of valid Passport/Aadhaar Card/Driving License
  • Other Documents
    • Employer identification
    • Duly crammed application type pasted with three passport size pictures
    • Loan accounting for the previous twelve months if the individual has the other ongoing loan from other banks/financial establishments
    • Bank account statements for all the bank accounts closely held by the individual for the last six months
  • Income Proof Documents for Self Employed Applicant/Co-applicant: Income Tax Returns for the last three years, Certificate of Qualification (for Doctors/CA and alternative professionals), Balance Sheet audited by a licensed CA, Profit and Loss account for the previous three years, Business License Details, Business address proof, TDS Certificate
  • Income Proof Documents for Salaried Applicant/Co-applicant: Salary Slips for the last 3 months, Copy of type sixteen or revenue enhancement Returns for the last 2 years.
  • Documents Needed from All Non-Resident Indians (NRIs) Candidates
  • Identity Proof (any-one): PAN, Valid Passport, Driver’s License, Voter ID Card
  • Residence Proof (anyone): Telephone bill, Electricity bill, Water bill, Piped Gas bill, Valid Passport. Driving License, Aadhaar Card
  • Other Documents: Attested copy of the applicant’s/co-applicants’/guarantor’s valid passport and visa, Proof of residence indicating the applicant’s current overseas address, Employer identification, If the individual is employed within the businessperson or Navy, the individual is needed to submit a replica of Continuous Discharge Certificate (CDC), PIO Card issued by the govt. of Asian nation just in case the applicant/co-applicant may be a Person of Indian Origin (PIO), The completed application type punctually crammed with 3 passport size pictures of the individual and co-applicants, the attestation of the documents are often done by Indian Embassy.

Your CIBIL (Credit Information Bureau Limited) score is how banks and other financial institutions determine your creditworthiness. It’s a personal identification number that notifies the bank how responsible you are with your loans and credit cards. The CIBIL score is one of the most important factors in determining whether or not a loan will be approved. The CIBIL score was India’s first credit rating system, and it is recognized by all banks as a reliable source of information about a person’s credit rating. To avail business loan your credit score has to be above 750. 

Business Loan Interest Rates from Top Banks/NBFCs

 Kotak Mahindra Bank is a bank based in Mumbai, India. 75 lakh is the maximum loan amount provided at an interest of 14% per annum. the repayment tenure is within 6-48 months.

Business Loan from HDFC Bank is at 16 percent for 50 lakh sanctioned amount. repayment duration is 12-48 months. Flexi Loans gives 16 percent onwards Business Loan on 10 lakh amount with repayment duration of 12-36 months.

Axis bank provides at 17 percent on 30 lakh with a repayment period of 12–36 months

Fullerton Finance is a financial services firm and provides a 17 percent interest rate of 50 lakh with a repayment duration of 12 – 48 months. Bajaj Finserv is a financial services company based in India that gives an interest rate of 17 percent up to 45 lakh for a duration of 12 to 60 months. Business Loan from ICICI Bank gives at 18 percent interest rate on 40 lakh

For 6 – 48 months for repayment. Lending kart Finance is an online lending platform that provides an interest rate of 18 percent on 1.2 crores for repayment duration of 12–36 months. From 18 percent to 25 lakh, Hero Fin Corp also provides a repayment window of 12–36 years months. IIFL Finance is a financial services firm that specializes in

Interest rates of 18 percent on 50 lakh for 12 – 36 months.

Business Loans for Women Entrepreneurs

Shringaar and Annapurna from Bhartiya Mahila Bank – offer a variety of loans to women entrepreneurs to assist them to start new enterprises or expand current ones. Shringaar and Annapurna are two of the most popular choices in this category. The Shringaar loan is for women who want to open beauty parlors, while the Annapurna loan is for women who want to start a food catering business and sell lunch packs. BMB Shringaar – Beauty Salon, Saloon, or Spa Loan

Features: The applicant’s age should be between 20 and 60 years old. The repayment period is limited to seven years. The CGTMSE scheme will cover collateral-free loans. Naturals, Cavinkare, and Lakme are all partners.

Shakti Scheme from Bank of Baroda – Dena Bank’s Shakti Scheme helps women entrepreneurs in a variety of industries, including agricultural and associated activities, retail commerce, microcredit, education, housing, and direct and indirect finance, manufacturing, and services. The maximum credit limit varies depending on the industry in which the company works. On loans up to Rs. 5 lakh, there is no processing fee and a 0.5 percent discount.

To conclude we can say having a business loan gives us a surety and helping hand for our start-ups. It will help us to boost our productivity and can be applied easily.