Overview Features & Benefits Eligibility Criteria Documentation Q & A

Overview

A Business Loan is a type of finance provided to businesses by Banks or NBFCs for use in their operations or for economic goals such as extra investments into plant and machinery, business expansion, working capital and so on.

In other words, Business Loan is the ideal solution for all business needs. CreditsIn is one of the most trusted channel partner that works closely with its partner banks to get the lowest interest Business Loan.

Features & Benefits


1. Collateral Free
2. Flexibility - Borrowers could use loans to support them in achieving their business objectives
3. Competitive Interest Rates
4. Convenient Repayment
5. Helps in expanding the business
6. Quick Approvals
7. Extended Loan Tenure
8. Simplified Documentation Process
9. Higher Loan Disbursal Amounts
10. Tax Saving

Eligibility Criteria

Nationality - Indian
Age Criteria Min. 21 years at the time of loan application & Max. 65 years at the time of loan maturity
Business Vintage Min. 1 year or above
Eligible Entities Sole Proprietorships, Partnership Firms, MSMEs, Public and Private Limited Companies, Limited Liability Partnerships, retailers, traders, manufacturers etc
Annual Turnover Defined by the Bank/NBFC
Credit Score 690 or above (Preferred by most private and public sector banks)
Note: The above-mentioned eligibility criteria are for indicative purposes only. The Actual eligibility criteria defined by Banks/NBFCs shall vary as per their sole discretion and shall be defined at the time of loan application submission.Note

Documentation

Depending on the lender's requirements, the borrower will need to furnish below mentioned documents for Business Loan

* Identity Proof: Driving License / PAN Card / Passport / Voters ID Card / Aadhaar Card.
* Address Proof: Ration Card /Telephone Bill / Electricity Bill / Passport / Trade license / Lease agreement / Sales Tax certificate.
* Income Proof: Bank Statement of Last 2 Years.
* Financial Documents: Last 2 Years ITR along with computation of Balance Sheet, income & Profit & Loss a/c for the last 2 yrs.
* Proof of Business Continuation
* Business Ownership Proof: Such as Sole Proprietorship Declaration, Certified true copy of Memorandum & Articles of Association
* Last 3 years audited financials.

*Terms and conditions apply Business Loan at the sole discretion of Banks/NBFCs. Loan disbursal is subject to documentation and verification as per Banks requirement.

Frequently Asked Questions

1) Is Pre closure allowed in business Loans ?
Some banks have a lock-in period of 6 months to a year while some banks allow you to pre close even after the 1st EMI has been debited from your bank. There may also be restrictions that you can only use your own funds (and not the balance transfer cheque of another bank) to pre close a loan. In addition, banks may allow pre closure at no cost or may levy a pre closure fee (charges would vary from Bank to Bank).

2) Is Part Payment allowed in business Loans ?
Some banks allow part payment. However, there can be restriction on how many times in a year you can part pay and the minimum and maximum amount that you part pay.

3) How does business loan repayment happen ?
All business loan repayments happen in the form of an EMI (Equated Monthly Installment) through the customers bank account. The customer needs to give few PDCs (Postdated cheques) and sign an ECS mandate in favour of the bank disbursing the loan.

4) What is the minimum and maximum loan limit offered for Business Loan ?
Generally, the minimum amount loan amount is Rs 100,000 and maximum amount is Rs 50,00,000. Higher loan amounts are dependent on a personal discussion that a bank may want to have with the borrower and then take a call on the loan amount.

5) What is the maximum years of business loan?
Usually, an unsecured business loan can be availed for up to five years. This is the maximum repayment period for collateral-free business loans. The upper limit of the tenure is utilised by enterprises when they take a large sum, say Rs 30-50 lakh.

6) How is a business loan disbursed?
Depending on the lender's process, the loan amount may be transferred directly to your business account or provided as a physical check. Electronic transfers are more common and efficient, ensuring quick access to the funds.

7) How loan does it take to disburse business loan?
The loan is disbursed within 48 hours of loan approval into the borrower's bank account. The business loan's interest rate is attractive and affordable to ensure the repayment doesn't create a financial burden.

8) How much is the Rate of Interest and Processing Fee for business loan?
The rate of interest varies from 16% to 23% and a processing fee of upto 2.5% of the loan amount. In addition some banks insist on an insurance cover also.

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