What is Business loan ? Business loan apply processing steps
Now the process of business loan has also become very easy. The government has launched various loan schemes to promote small enterprises (MSMEs) in the country. Now all you need to know is how to get a business loan. Most people do not even know how to take a loan to start a new business. Today we will provide you complete information related to business loan.
Nowadays the government is also running many government schemes for business loans and new startups. Which includes small scale industry, medium industry, or large scale industry, especially msmes loan.
It has become easier to take a business loan than before, there are many banks in the market that provide business loans, such as: – SBI Bank, Bandhan Bank, HDFC Bank, Axis Bank, ICICI Bank, etc. You can get loan through banks. Are there, and can start business with new business idea by increasing their capital, to take business loan first of all some parameters have to be fulfilled, only then you will be eligible for the loan. In which bank loan is available at relatively cheaper rate of interest. Their comparative information has also been given. Banks and NBFCs provide business loans to people to start a business, expand their business and meet other business needs.
Types of business loans
By taking a New Business loan through government schemes, you can take a loan ranging from Rs 30,000 to Rs 10 lakh. If you need more money, then you can take a business loan of up to 2 crores or more through Government Bank, Private Bank, NBFC Bank. There are two types of business loans: secured and unsecured loans.
Secured Business Loans:- In case of secured loans, the applicant pledges any security/guarantee with the bank for the loan.
Unsecured business loan:- Whereas in case of unsecured loan, the bank is not required to provide any security/guarantee.
Most of the banks/NBFCs offer unsecured business loans only. For example, term loan, working capital loan, business loan under government schemes, overdraft loan, etc. Banks also provide secured loans like, letter of credit, bill discounting, equipment finance, POS loan, etc.
Name of the Bank / NBFC with business Interest Rate (p.a.)
Axis Bank 14.25%-18.50%
Kotak Mahindra Bank 16%- 19.99%
HDFC Bank 10.00% – 22.50%
ICICI Bank starting from 17%
IDFC First Bank starting at 14.50%
Bajaj Finserv starting from 17% onwards
Tata Capital Finance starting from 19%
Fullerton Finance 17% – 21%
Hero Fincorp up 26%
NeoGrowth Finance 19%- 24%
IIFL Finance 11.75% – 25.75%
Lendingkart Finance 1.5%- 2% p.m.
ZipLoan 1%-1.5% per month
RBL Bank 17.50% – 25%
What are the benefits of taking a business loan?
You can start your new business.
It helps in taking the old business forward.
The need of money for short term or long term is fulfilled.
The scope of cash flow increases.
Central government and state government are also supporting for startup or business loan.
The tension of raising capital is reduced.
Eligibility for business loan?
You are a citizen of India.
Your age should be between 21 years to 70 years.
You can be a self employed person.
You are starting a new business, your old business should be at least 1 year old.
Your credit score should be 750.
If you already have a business, then the minimum annual turnover of the existing business should be Rs.12 lakhs.
Who can take business loan?
The person who is already a businessman and wants to increase his business.
Private companies or self employed individuals.
Shopkeeper or small trader or entrepreneur.
Partnership Firm.
To start a small business, women who want to start their new business or want to expand their old business will also get a special interest rate discount.
What is the Time taken to get a business loan?
It takes 10 to 15 days for the approval of the business loan. Taking a business loan from public sector banks takes a relatively longer time. If you take a loan through a private bank or NBFC bank, take a loan for small business, then within two to four days you get the loan approved. The loan also depends on your eligibility. How is your credit score, CIBIL score? It will also depend on that, if all this is good for you, there are chances of getting the loan quickly.
What are the documents required for business loan?
KYC documents of the applicant which include PAN Card, Passport, Aadhaar Card, Voter ID Card, Driving License, Utility Bills (Electricity/Water Bills).
Bank statement of last 1 year.
Copy of non-collateralized overdraft, if any.
Copy of Business Incorporation.
Any other document required by the bank / loan institution.
What is the business loan interest rate, tenure, amount?
Interest rates for business loans start from 10.00%, in this the interest rate of other banks may vary, under this, Rs. 2 crore for 5 years.
How to apply business loan?
There are two ways to apply for business loan :- Online & Offline
How to apply business loan online?
First of all, whichever bank you are selecting to get the business loan.
Have to go to its official website.
Registration has to be done by clicking on the type with business loan option.
After some time you get a call back from the bank or from the NBFC company.
In which, what documents do you need for business loan, what will be the rate, all the schemes are told with details.
How to apply business loan?
There are two ways to apply for business loan :- Online & Offline
How to apply business loan offline?
The bank from which you are going to take a business loan through offline, you can take the loan by going to your nearest branch.
Along with the required documents, show the complete information about your business, business model etc. report to the bank manager.
After this, if everything is found correct, the loan is approved by the manager. And after some time money comes in your account.
Conclusion :-
Friends, in today’s post, you know how you can apply for a business loan from the bank. What documents will you need for a business loan from the bank, for how long will you get a business loan from the bank, how much interest will be charged and much more in today’s post. Friends, if you like this post then please share this post. Friends, thank you for reading this post so carefully and giving it your precious time.
Read Also – State Bank Of India Personal Loan 2024: Interest Rate, Easy Application Process & Benefits
