Nowadays, the government is also running many government schemes for business loans and new startups. Which includes small scale industries, medium industries, or large scale industries, especially msme loans.
It has already become easier to take a business loan, there are many banks in the market that give business loans, such as Bandhan Bank, HDFC Bank, SBI Bank, Axis Bank, ICICI Bank, etc.
Nowadays, the government is also running many government schemes for business loans and new startups. Which includes small scale industries, medium industries, or large scale industries, especially msme loans.
It has already become easier to take a business loan, there are many banks in the market that give business loans, such as Bandhan Bank, HDFC Bank, SBI Bank, Axis Bank, ICICI Bank, etc.
You can easily get a loan, and start a business with a new business idea by enlarging your capital.
By taking a new business loan through the government’s schemes, you can take a loan from Rs 30,000 to Rs 10 lakh.
However, if you need more money, then you can take a business loan of up to Rs 1 crore or more through government bank, private bank, Nbfc bank.
There are two types of business loans:-
- Secured Business Loan – In case of secured loan, the applicant has no security/security with the bank for the loan. The guarantee keeps the givri.
- Unsecured business loan – Whereas in case of unsecured loan, the bank will not have any security/security. There is no need to give a guarantee.
Most of the banks/banks NBFCs offer unsecured business loans only as –
- Term loan
- Working Capital Loan,
- Business loans under government schemes,
- Overdraft loans
Banks also offer secured loans such as letter of credit, bill discounting, equipment finance, POS loans, etc.
Under business loans, a minimum of up to Rs 30,000 is given, such small business loans are mostly offered by NBFCs, small finance banks and micro finance institutes.
An applicant can take an un-secured business loan of up to Rs. 1 crore.
MSMEs and start-ups can also take small business loans.
Benefits of taking a Business Loan
- You can start your new business
- It helps to grow the old business
- The need for short term or long term money is met
- The scope of cash flow increases
- Helps to take your business to a new height
- The central government and the state government are also supporting startups or business loans
- The tension of raising capital is reduced
- You are able to pay full attention to the development of the business
Eligibility for Business Loan
You are taking a business loan to increase your capital. So for that you have to fulfill some qualifications. Only then will you get a loan for business.
- You are a citizen of India
- You should be between 21 and 70 years of age
- There may be people with their own money
- Or you can be a self-employed person
- You are starting a new business
- Or your old business is at least 1 year old
- Your credit score should be 750
- If you already have a business, the minimum annual turnover of the existing business should be Rs. 12 lakh
Who can get a Business loan?
- A person who wants to start a new business
- A person who is already a businessman and wants to grow his business
- Private companies or self-employed persons
- Partnership Firm
- A shopkeeper or a small trader or entrepreneur
- | to start a small business
- Women who start their new business , Those who want to grow old business will also get a special discount in the interest rate
How long does it take to get a Business Loan?
It usually takes 10 to 15 days to approve a business loan. It takes a little longer to get business loans from public sector banks.
At the same time, if you take a loan through a private bank or an NBFC bank, take a loan for a small business , then within two-four days you get the loan approved.
This loan also depends on your eligibility. What is your credit score, cibil score. If you have all this good, then there are chances of getting a loan quickly.
Compare the interest on business loans by private government and NBFC banks:
Documents for Business Loans
If you are going to take a business loan, then prepare the necessary documents in advance so that it is easier to get the loan.
- For kyc – Aadhaar card/ pan card/ voter ID card/ passport / water bill / electricity bill
- Statement of your bank account for the last 1 year
- Registration of Business
- Business Plan Report / Receipt of expenses incurred in business
- And other documents demanded by the bank will also have to be submitted
Business Loan Interest Rate
Interest rates for business loans start from 14%, in this, the interest rates of other banks may be different which is given to you in a table you can compare from there.
Apply Online for Business Loan
- First of all, whichever bank you are selecting, to get a business loan
- You have to go to his official website
- You have to register by clicking on the type with business loan option
- After that, you have to give information about your business
- After some time you are called back on behalf of the bank or on behalf of the NBFC company
- In which what documents you need for a business loan, what will be the rate, all the schemes are explained with details
Apply Offline for Business Loan
- Through offline, the bank from which you are going to get a business loan can go to your nearest branch and take a loan.
- Show you the bank manager the complete information about your business along with the necessary documents, the report of the business model, etc.
- After this, if all is found to be right, you are approved by the manager.
- And after some time, money comes into your account.