Grow your business with the perfect funding!
Fuel your business growth with fast, flexible funding to make your vision a reality!
What is a business loan?
A business loan in India is essentially a financial arrangement where a company borrows a specific sum of money from a lender, usually a bank or financial institution.
This borrowing serves to address diverse business needs, spanning from expanding operations and acquiring equipment to managing cash flow or covering various expenses. The borrower commits to repaying the loan amount within an agreed-upon timeframe, often accompanied by an interest component.
Here are some key things to know about business loans
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, credit unions, 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 36%. 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. Strong business plans and credit help.
Security
Business loans may be secured by business or personal collateral like real estate, equipment, accounts receivable, etc. or be unsecured. Secured loans get better terms.
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 good personal and business credit score of over 750 will be required, as it determines the perceived ability to repay the loan on time.
Collateral
Loans above Rs 10 lakhs may require 100% to 200% worth of business or personal assets like property, equipment, etc to be pledged as collateral security against default.
Debt-to-Income Ratio
Existing debt obligations should be limited enough to accommodate the additional business loan’s EMIs within the operating profits.
Our Loan Process
We assess on upfront basis the funding requirements based on the long-term vision of the stakeholders, and accordingly, funding possibilities are explored with various lenders/ investors through effectively devising the underlying risks of the borrower’s business & opportunities.
Our foremost approach is to raise funds for business without any collateral and only on a business loan basis After understanding the business and its USP the best possible options including MSME promotional schemes are explored.
After appropriate assessment of Business, we are confident to bring on board Nationalized Banks, Private Banks, NBFC & other Financial Institutions for raising the desired funds either as unsecured funds, secured funds and Equity participation in Business.
We help ensure proper reporting and monitoring reviews by financial institutions not only before fundraising but also after fundraising.
Eligibility:
We have made quality our habit. This isn’t something we simply strive for – we live by this principle every day.
Generally, banks and financial companies in India prefer to give business loans to companies with a turnover of Rs 50 lakh or more.
To avail a business loan, your age should be between 21 years and not more than 65 years. Also, the business should be two to three years old and active. Also, the credit score of the business should be good.
Beyond all this, if you are going to start a new business, you can feel free to apply under the Central Government’s business loan scheme, “Pradhanmantri Mudra Yojana”.
Consult with us
You may contact us for all kind of your funding needs for your business.
