Brief Info About Business Loan
A business loan is funds borrowed by a company to fund its financial requirements, including increasing operations, purchasing equipment, or enhancing cash flow. Banks, NBFCs, and other institutions provide these loans with or without security, depending on the creditworthiness of the borrower and strength of the business. Amounts of the loan, interest, and repayment period may differ as per the lender and usage of the loan. Through judicious usage of business loans, businesses can capitalize on growth prospects, cover routine expenses, and address unforeseen setbacks. Effectively planned business loans can significantly contribute to a company’s stability and growth.
“We Arrange Funds When You Need It Most”
CA Naresh bansal
(CEO, NKB Kredit Group)
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Here are some key things to know about Business loan
Purpose
Business loans are used to cover short-term cash flow issues, purchase inventory or equipment, invest in growth opportunities, or handle other business finance needs.
Types
Common types of business loans include term loans, SBA loans, business lines of credit, equipment loans, invoice financing loans, merchant cash advances, etc. These come from banks, NBFCs, online lenders, and other sources.
Rates & terms
Compared to personal loans, business loan rates are often based on the perceived riskiness of the business and generally range from around 5% to 20%. Terms like repayment timeline, collateral required, fees charged can vary greatly.
Qualifying
Business loans require a formal application where the lender evaluates the business’s financials, credit, operations, collateral, and the owners’ credentials before approving financing.
Security
Business loans can be either secured or unsecured. Secured loans are backed by business or personal assets such as real estate, equipment, or accounts receivable, and typically offer more favorable terms.
Repayment
Business loans come with flexible repayment options, allowing you to choose a tenure and EMI structure that matches your cash flow, with the freedom to part‑prepay or foreclose under agreed terms.
Our Business Loan Process
We assess funding requirements on an upfront basis, aligning them with the long-term vision of the stakeholders. Accordingly, funding possibilities are explored with various lenders and investors by effectively analyzing the underlying risks and opportunities in the borrower’s business.
Upon conducting a comprehensive assessment of the business, we are confident in our ability to engage nationalized banks, private banks, NBFCs, and other financial institutions to raise the required funds—whether unsecured, secured, or through equity participation.
Firms can raise funds up to 200% of property value as working capital or unsecured loans of up to ₹5 crore, enabling them to expand their business, acquire machinery, meet working capital needs, or finance other operational expenses.
We also ensure proper reporting and monitoring reviews are in place—not just before the fundraising process but also post-disbursement—ensuring long-term financial discipline and compliance.
Eligibility Criteria for Business Loan in India
Business Vintage
Most lenders require that the business be operational for 2–3 years to demonstrate financial stability and viability. However, startups can also get loans.
Business Registration
The business needs to be legally registered and have valid documentation like GST registration, Udyog Aadhar, etc.
Revenue/Turnover
Many lenders set minimum annual revenue requirements varying from Rs 10 lakhs to Rs 2 crores depending on loan size.
Credit Score
A strong personal and business credit history is important, as it reflects the borrower's ability to repay the loan on time.
Collateral
Loans can be approved for up to 200% of your property value, provided your business turnover adequately supports the loan requirement.
Debt-to-Income Ratio
Existing debt obligations should be limited enough to accommodate the additional business loan’s EMIs within the operating profits.
Below 3 scenario table depicts the importance of "Right Mix of Debt & Equity"
Scenario 1
100% Capital
100% funds are invested by Business Owners
Annual Return 60%
Total earning is Rs.60 lakhs for owners on the investment of Rs. 1 crore i.e. ROI is 60% p.a.
Scenario 2
50% Capital & 50% Debt @15% p.a.
Rs 50 Lakhs are borrowed @15% p.a. & owners’ capital is also 50 lakhs
Annual Return is 105%
Interest payment will be Rs. 7.50 lakhs on 50 lakhs borrowed funds & Balance profit Rs 52.50 lakhs is for owners i.e. ROI is 105% .
Scenario 3
25% Capital & 75% Debt @15% p.a.
Rs. 75 Lakhs funds borrowed for Business @15% p.a. & remaining 25 lakhs invested by owners in the Business
Annual Return is 195%
Interest payment Rs 11.25 lakhs on Rs.75 lakh borrowed funds & rest profit is Rs 48.75 lakhs for owners on their investment of Rs 25 lakh, which translates into whopping 195% ROI from Business.
Consult with us for Business Loan
Get clarity on your business loan options in just a few minutes. Share your details or connect with our team to understand eligibility, loan amount, and the best structure for your business.
Vinay Modi
Proprietor @ Modi Scooter House
Vishal Marwah
Co-Founder@Indelog Solutions (P) Ltd
Pawan Badsiwal
Proprietor@ Satvik Polymers
Abhishek Negi
Chief Operating Officer @ Tagbin Services (P) Ltd
Contact Us
1204 GD – ITL Building, B- 08,
Netaji Subhash Place, Delhi-110034
Email: ceo@nkbkredit.com
Phone: +91 7503211000,
+91 9654981031
Services
Working Capital Loan
Business Term Loan
Unsecured Business Loan
Machinery Loan
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Disclaimer
This website functions as a business loan–focused advisory channel supporting individuals and businesses seeking structured funding solutions. Advisory, documentation, and lender coordination services are provided by NKB Kredit Solutions Pvt. Ltd, a registered Indian company offering business finance advisory services.
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