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Below-given are business loan details:
There are several types of loans for business that are provided by banks and NBFCs today. Some of the popular types of business loans are mentioned below:
Below given are the eligibility requirements:
If you want to apply for an unsecured business loan, then you have to provide KYC (PAN Card, Aadhaar Card) - of Business /Directors/Partners/Proprietor. Apart from these, you have to submit the following documents.
The business loan interest rate starts at 12%. The rate of interest is influenced by the following factors:
NOTE: To better understand the factors that impact a loan’s interest rate - click
EMI (equated monthly instalment) amount is a combination of both principal and interest component, which you have to pay every months towards repayment. You can use our FREE business loan EMI calculator before applying for a business loan India. With EMI calculator, you can get the following details:
Here is an example on total cost of a business loan:
Here are some of the factors to consider before you apply for an unsecured business loan:
As a one-stop destination for your business funding needs, Loanbaba provides you a variety of business loan offers from top banks and NBFCs in India. Here is how you can ease your borrowing decision through our website.
Below-given are business loan FAQs:
Follow the below mentioned steps to get your business loan application processed faster:
Those who can apply for a business include: self-employed individuals such as architects, doctors, CAs, or self-employed non professionals such as partnership firms, sole proprietors, public limited companies, and private limited companies involved in the business of manufacturing, trading, and services.
Banks and NBFCs offer loans to those between 21 years and 65 years of age.
The time taken for loan amount disbursal varies from one financial institution to other. If you submit correct documents, the loan can be processed faster. Usually it takes 3 to 4 days to process the loan.
The tenure is between 1 year and 5 years, but may vary as per the discretion of the financial institution.
For a financial institution to take a lending decision, it is important that your business has enough vintage and a growth figure. It gives the lender an assurance of your company’s stability, authenticity, and profit over years. These factors together decide your repayment capacity. Banks typically need at least 3 years of business stability and profitability. The lender may specify the minimal annual growth rate or turnover in their eligibility criteria.
Lenders check financial stability to understand your repayment ability. For this purpose, the lending institution will check your company’s (and in some cases, your personal account) bank statement of the recent 6 months or a year. The bank/NBFC will consider your average account balance, outbound and inbound cheque bounce information, credit track record, etc to determine your loan eligibility.
The bank/NBFC will prefer that you submit audited financial reports and statements. This is because such reports are authentic and have lower chances of errors or discrepancies. It will reduce the bank’s work on spending time on verifying these documents. Also, it will increase your ability to get the funds as audited reports are more accurate, which is needed to give a real idea to the lender about your financial information.
Pre-closure fee is charged if you wish to close the loan before the end of tenure. Financial institutions may impose this fee to cover the loss. The fee can be up to 3% (sometimes more) of the outstanding amount.
If you take a loan on a fixed rate, then the interest rate will not change throughout the tenure. But if you take a loan on a floating rate, the interest rate pay change time and again, and so will the EMI amount. Most of the business loans carry fixed interest rates. However, in certain cases, a floating rate may be applicable. Check details of the loan scheme to understand the type of interest rate applicable.
The below 3 factors influence the rate of interest:
You can lower the loan EMI if you opt for full or partial prepayment. Most financial institutions may allow foreclosure or par pre-payment after the complete payment of the initial 6 to 12 EMIs. So you can choose to repay the loan sooner and save yourself on the interest payout. Partial payments can also help to lower the EMI burden for the rest of tenure.
Co-applicants are equally responsible as the primary applicant, to shoulder the responsibility of the loan. So if the primary borrower fails to repay the loan on time, it will affect the co-applicants. In case of a default, all the applicants are liable. Thus, credit scores of every applicant will be negatively affected.
Very safe reliable and convenient process. Pooja madam and her team assisted very professionally and completed the loan process. Thanks team and loan baba. BR Sahana Ragavendra
Thank you for your support. I never seen this type of good service. You are (Loanbaba) the best in the industry . I have taken short term loan from other NBFC and they are rude. Great experience and great help Thank you...
It has been great. Hope I will avail the facility I have applied for.
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