Have you ever thought of getting business loan and then took a step back just because you cannot get yourself into the trouble of long plans & procedure. Let’s keep your dilemma in mind and discuss everything you should know before applying for a business loan.
As you must have researched or at least talk to your friends and family about what exactly business loan stands for, which bank you can approach to get it and so on. Queries are endless and we are here to help you with these endless questions in a simplified manner.
Getting business loan is as easy as getting any other loan like Personal Loan which is much more popular amongst borrowers. Not only for large scale companies, Banks provide funds for small & medium enterprises too. All the procedures can be done online which is not at all time taking. In less period of time and hassle – free approach you can get business loan today. At this point of time you can get your loan easily at attractive & affordable rate of interest. Business loan Interest Rates differ from one bank to another and also depends on your business stability & loan repayment track record. For example, Axis Bank Business Loan ranges from 10.15% – 20.00% whereas HDFC Bank Business Loan rate starts at 15.50% p.a.
Business loan can be availed by Traders, Small Businessmen, Manufacturers, Service enterprises etc.
After you know the basics of business loan, Let’s find out if you are eligible to get your own business loan today or not. If you fulfill the below written criteria then surely you are eligible to get loan for your working capital.
If you are an Individual with business registration, Proprietorship firm, Partnership, Limited liability partnership, Private limited companies, Unlisted public private companies, Trust & Societies, then you can surely apply for business loan.
The business for which you want to avail loan should have a good overall annual turnover.
Your age should be between 21 to a maximum of 65 years.
Factors that might affect your business loan eligibility :-
Past loan track
Financial ratios of the company
Credit bureau update
Repayment capacity of customers
Business longevity
Basic documents that you should be kept handy while applying for business loans are :-
Documents required
Proof of Identity : Passport Copy, Voter ID card, Driving License or PAN Card
Address Proof : Ration card, Telephone Bill, Electricity Bill, Rental agreement, Passport copy, Bank Passbook / Statement or Driving License
Age proof : PAN Card, Passport, any other certificate from a statutory authority
Audited Financials
Income Tax Returns
Form 16 A
Last 6 month bank statements
Proof of ownership of either residence or office in the name of applicant or jointly with family members.
Sole Proprietor Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association & Board resolution (Original).
Security / Collateral
Banking/Non-Banking institutions also require security and collateral while providing loan to the borrower. Basic security is required which may vary from bank to bank. There are some banking/non-banking institutions that does not require any collaterals. Here are the few examples :-
Andhra Bank – No collateral security or third party guarantee is required.
ICICI Bank – Collateral Free Term Loans also available, Up to Rs. 1 Crore under CGTMSE scheme.
Capital First – Provides loan up to ₹ 75 Lacs with no security or collateral.
RBL Bank – Loan upto ₹ 35 Lacs with no security.
HDFC Bank – No collateral or security needed.
Bajaj Finserv – Loan upto ₹ 30 Lacs is provided with no security.
Suppose you want to avail loan from Capital First, Then you can also check your loan EMIs with the Capital First Business Loan EMI Calculator in just one minute.
Top Cities where you can get Business Loan easily
Delhi, Mumbai, Bangalore, Kolkata, Ahmedabad, Chennai, Pune, Lucknow, Chandigarh, Baroda & Bhopal.
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