Business loans, also known as commercial loans, can be availed from Banks or Non-Banking Financial Institutions. Loans of this type serve primarily to meet the urgent needs of growing businesses. Companies can obtain term and flexible loans from most financial institutions to meet their business needs. You can get them for every kind of business, including Proprietorships, Partnerships, Self-Employed Individuals, Public Limited (Ltd) Private Limited (Pvt Ltd) and Limited Liability Partnership (LLPs)companies.
Business loans are categorized both as unsecured and secured loans, for loans which are high loan value the banks or NBFCs ask the customers to provide some kind of collateral or security.
Business loan is availed by self-employed category people like businessman, doctors, Chartered Accountants, Company Secretaries who are practicing professional under their individual name.
The loan amount can be utilized for all business expenses like utility expenses development and expansion of business, new projects etc.
The loans have a duration ranging from 6 month to 60 months. Shorter tenure results in higher EMI amounts, while longer tenure results in lower EMIs.
Interest rates on business loans are above 12% In a fix interest rate the percentage is calculated on the principal amount The interest rate on a personal loan varies from one bank to another bank and even NBFCs. It also depends on your credit score
The documentation for applying a business loan depends on the nature of the business and the loan amount. The standard documentation includes Individual KYC like PAN Card, Aadhaar Card Home address proof and Company KYC like GST certificate, Shop and Establishment certificate Business Registration certificate etc. and Financial documents like returns filed for last 3 years, Bank statement for personal and current account for last 1 years
To become eligible, one must be 21 years or would have attained 60 at loan maturity with all valid and updated financials along with a credit score of 750 Plus
The loan amount for business loan can depend on the purpose of loan
Who can get a Business Loan?
Professionals and self-employed individuals can apply for Business Loans. Doctors are eligible for exclusive loans for self-employed professionals. The loans are approved quickly and have competitive interest rates. Under Business Loans, the following segments of customers are covered:
● Sole Proprietorship
● Partnership Firm
● Private Limited Companies
● Public Limited Companies
● Limited Liability Partnership firms
Is it possible to get a Business Loan without collateral?
Yes, it is possible to get a Business Loan without a collateral.
How can I repay a Business Loan?
The repayment method can either be postdated checks, ECS(Electronic Clearing Service), or direct debit.
How can I apply for a Business Loan?
We make it easy for you to apply for a Business Loan. Easy, fast, and free! Fill out a short form and you're good to go. That's how we know you'd like to speak with us. One of our representatives will contact you shortly!
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