"We Arrange Funds When You Need It Most."
CA, Naresh Bansal
(CEO, NKB Kredit Group)
Fuel your business growth with fast, flexible business loan to make your vision a reality!
What is a 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.
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.
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.
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: Business Loan
We have made quality our habit. This isn’t something we simply strive for – we live by this principle every day.
Generally, banks and NBFCs 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 to 65 years. Also, the business should be two to three years old and active. Also, the credit repayment tracks 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 for Business Loan
You may contact us for all kind of your funding needs for your business.
Business loans require a formal application where the lender evaluates the business’s financials, credit, operations, collateral, and the owners’ credentials before approving financing.