A Business Loan that helps your business grow.
The Government of India has provided many business loan schemes and programs to encourage entrepreneurs to start new ventures. The Central and State government have undertaken numerous initiatives to uplift the small businesses across the country. Ultimately, the growth of businesses contributes to the development of the nation’s economy.
The commercial loan market in India is rapidly evolving. There are many lending institutions that provide capital for start-ups. Additionally, lenders also offer finance to fund working capital needs as well as for growth and expansion activities.
There are various types of commercial loans namely working capital loans, corporate term loans, and term finance.
Working capital loans
Working capital loans are provided to fund the daily operations of a business.
Corporate term loans
Corporate term loans, on the other hand, are used to fund startups and for growth and expansion purposes.
Term loans are provided to businesses for acquiring assets like land, plant and machinery besides others. It is imperative to make a right choice between the numerous types of loans based on the business requirements
Business loan features include loans of up to ’75 lakhs’, waiver of collateral or guarantor, and even the benefit of business loan balance transfer.
Benefits of Business Loans
Unsecured business loans enable businesses to fund their exact exigencies and repay their loan amount in easy EMIs (equated monthly instalments). These loans can be availed for a variety of reasons, including but not limited to, business expansions, working capital, etc.
Banks and financial institutions offering business loans also provide their customers with the flexibility of doorstep service. Additionally, business loans in India usually don’t expect any collateral, guarantor or security from the applicant.
Some banks offer customers with the facility of business loan eligibility in 1 minute, either online or in any of their branches. These speedy approvals ensure that customers don’t waste any of their time waiting to hear from banks about the status of their loan application.
Business loan eligibility criteria is applicable for self-employed individuals, proprietors, private limited companies and partnership firms.
Read the details below to know more about our business loan eligibility criteria.
The following people are eligible to apply for a Business Loan:
- Self employed individuals, Proprietors, Private Ltd. Co. and Partnership Firms involved in the business of Manufacturing, Trading or Services.
- The business should have a minimum turnover of Rs. 10-15 lakhs (Some Banks/NBFCs needs Rs.40lakhs and above)
- Individuals who have been in the current business for a minimum of 6 months. (Some Banks/NBFCs needs 3 years minimum business vintage)
- Those whose business has been profit making for the previous 2 years
- The business should have a Minimal Annual Income (ITR) of Rs. 1.5 lakhs per annum
- The applicant should be at least 21 years at the time of applying for the loan, and should be no older than 65 years at the time of loan maturity.
- Even some Banks/NBFCs doing business loans to non IT holders, non current account holders.
Simple and quick documentation, enabling speedy disbursals. Read more about the required documents for business loans below
The following documents are required:
- PAN Card – For Company/Firm/Individual
- A copy of any of the following documents as identity proof:
- Aadhaar Card
- Voter’s ID Card
- PAN Card
- Driving License
- A copy of any of the following documents as address proof:
- Aadhaar Card
- Voter’s ID Card
- Driving License
- Bank statement of the previous 6 months
- Latest ITR along with computation of income, Balance Sheet and Profit & Loss account for the previous 2 years, after being CA Certified/Audited
- Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
- Other Mandatory Documents [Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)]
Rack rates offered are usually in the range of 15.50% to 23%, though rates may vary from bank to bank. Usually a nominal processing fee is charged which can be up to 2.5% of the loan amount; subject to a minimum as well as maximum cap, depending on the bank. In some cases, a CIBIL Report Copy charge is levied
Why to apply for a business loan on FinFico.com?
FinFico.com, Tamilnadu’s premier financial market place has collaborated with various public sector and private banks to offer customized business loans for its users. Users can apply for a business loan online using FinFico.com online loan request tool.
Easy Eligibility Check: The loan calculator tool at FinFico.com checks for the user’s personal loan eligibility instantly. The tool also offers customized quotes for all eligible users as per their financial credit history and eligibility criteria.
Instant Quotes: The eligible loan applicants are offered instant quotes customized as per their profile and with a discounted interest rate.
Real time Loan Comparison: FinFico.com also offers a simple online business loan comparison tool allowing users to compare the loan offers of various banks. Feedback shared by previous successful personal loan applicants acts as a helpful tool for new applicants to get the best personal loan deal.
Assured Privacy: All business loan applications submitted with FinFico.com are sent only to the concerned bank department assuring complete privacy and transparency.
How to apply for a business loan on FinFico.com?
Applying for a business loan at FinFico.com involves three simple steps:
Step 1: In the first step, the user must fill the business loan eligibility form available online with required personal, business data. Once submitted the business loan tool automatically checks for eligibility of the applicant and personalized business loan options.
Step 2: In the second step, the applicant can compare various business loan options offered by the tool interface and apply for the best suitable loan.
Step 3: The last step involves receiving an instant e-approval from FinFico.com after successful submission of business loan application online.
The application is sent to the selected bank. The loan department of the concerned bank gets in touch with the applicant directly. Users can check the status through one simple call.
If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.
You can avail of a loan from Rs 50,000/- to Rs 75,00,000/- depending on your income, repayment capacity and respective location product cap.
You pay the loan in equal monthly installments (EMIs). In some banks, the loan will be paid through post-dated cheques. You can also pay through Electronic Clearing System (ECS) or a standing instruction to debit your Bank account with the EMI amount.
To obtain the loan, there is absolutely no need to provide any security or collateral.
You can repay your loan over a period of 12 to 48 months
No, you will not be asked for any personal information while calculating your expected EMI. The EMI calculator only requires the loan amount that you intend to apply for, the tenure of the loan and the rate of interest.
You can apply for a business for any of the following or related purposes-
• Small business finance
• Working Capital finance
• Home renovation
• Business expansion finance
• Child’s education, etc.
Business loans usually are offered speedy approvals and most banks offer applicants with the convenience of business loan eligibility in 1 minute. This facility can be availed online or any of the bank’s branches.