Unlock the Value of Your Property
A Loan Against Property allows you to raise funds by leveraging your residential or commercial property. It’s an ideal solution for business expansion, personal needs, or large financial requirements—offering lower interest rates and longer repayment tenures.
Business Loan
1
Get high Business Loan Eligibility
Before applying for the loan, persons/entities must know their credit score, decide the loan amount, do some market research, evaluate business loan options, and keep the documents ready.
2
Common Documents Required
Proof of address & identity, owning proof of the promoting business, credit income proof, partnership deed or partnership firm, articles of association, memorandum of association, board resolution, PAN card, etc.
3
Criteria for Business Loan Approval
Applicants should be aged between 21 to 65 years, having business vintage of a minimum of 3 years. The minimum business turnover and a minimum annual turnover as per the ITR will be required. The business should be profit making for at least the last 1 year.
Features and Benefits of our Business Loans
- Term Loans
- Working Capital Loans
- Business Expansion Loans
- Equipment Financing Loans
- Invoice Financing & Bill Discounting
- Machinery Loans
Eligibility Criteria & Eligible Entities
- Business Type: Most lenders provide loans to various types of businesses, including sole proprietorships, partnerships, limited liability companies (LLPs), corporations, and more.
- Credit Score: A good credit score is often required for qualifying for a business loan because your credit history shows your ability to repay the loan.
- Business Age: Some lenders require a minimum amount of time that your business has been in operation, usually ranging from a few months to a year or more.
- Annual Revenue: Lenders may have a minimum annual revenue requirement to ensure your business has a stable income.
- Collateral: You might be required to provide assets as collateral to secure the loan. Collateral can be real estate, equipment, inventory, or other valuable assets.
- Cash Flow: Lenders often evaluate your business’s cash flow to determine your ability to repay the loan.
- Age Criteria: Min 21 years at the time of loan application & Max 65 years at the time of loan maturity.
- Eligible Entities: Individuals, MSMEs, Sole Proprietorships, Partnerships, Public and Private Limited Companies, Entities listed by Professionals, Retailers, Traders, manufacturing units with minimum turnover, profit-making businesses entities engaged only on the services, trading, and manufacturing sectors.
- Business Vintage: Min 3 years and above.
- Business Experience: Min 5 years, business location must remain same.
- Annual Turnover: Shall be defined by Banks / NBFC.
- Credit Score: 700 and above. (Preferably must be around 750 for better terms)
- Nationality: Indian citizens.
- Additional Criteria: Applicants must not with any record of default, shop, or business.
Documentation for Business Loans
The list of documents required for a business loan to be submitted varies based on type of business entity:
- ITR for the past 2-3 years
- Current Bank Account Statement for the last 12 months
- Photocopy of PAN Card
- Address Proof for Residence such as Voter Card, Passport, Aadhaar Card, Telephone Bill, Electricity Bill
- Address proof for business such as the telephone bill or electricity bill
- Last financial Year’s audited results and future year’s projections
- Company profile on the letterhead
- 2 photographs of promoters and proof of owners
- Sanction letter and repayment schedule of existing loan
- VAT/registration activities and GST returns of latest 2 years
- Udyog Aadhaar registration certificate
- Rent agreement, copy of factory and residential if property is rented
- Business continuity proof of 3 years (3 years old MSME/company registration etc)
- Company PAN Card, Certificate of Incorporation, MOA, AOA, List of directors, and Shareholding patterns for PVT Ltd companies
- Partnership Deed, Company PAN Card for Partnership companies
How to use Business Loan EMI Calculator
Using a business loan EMI (Equated Monthly Installment) calculator can help you estimate your monthly loan repayment amount. Follow these steps to use a business loan EMI calculator effectively:
- Enter loan amount, interest rate, tenure.
- Click Calculate.
- View EMI: EMI amount will appear.
- Adjust values if needed.
- Consider other costs.
- Check budget sustainability.
- Compare with different salary structures.
Fees and Charges for Business Loan
| Particulars | Charges |
|---|---|
| Loan Processing Fees | 1.5% to 5% of Loan Amount |
| Loan Cancellation | Usually Rs. 3000 to 5% of Loan Amount |
| Stamp Duty Charges | Rs. 100/- to 5000/- |
| Legal Fees | Nil |
| Penal Charges | Nil |
| EMI / Cheque Bounce Charges | Approx 450/- to 1000/- |
*Other fees and charges that lenders may levy on a business loan include documentation charges, verification charges, duplicate statement charges, NOC certificate charges and swap.