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Business Loan

Bank offers Business loan to develop the Business including purchasing of new machinery in India. Bank takes of care of customer needs and try to full up their financial needs by syndicating the Business loan at affordable rate of Interest. A borrower can apply for Business loan to investment in start up new Business. Unlike Secured loan, a borrower can get Business loan within seven working days subject to Creditscore & Financial Statements. Bank will process the Business Loan quickly and speedy.

Compare Rate of Interest & Processing with Banks

Bank/NBFC Rate of Interest Loan Processing Charges
HDFC Bank 11.49% onwards Not exceeding 2.5% of loan amount sanctioned. Min. Rs. 1000, Max. Rs. 25,000
State Bank of India 12.55% onwards 1% to 3% of loan sanctioned
Axis Bank 15.50% to 24%  1.5% to 2% of loan sanctioned
Tata Capital 12.50% onwards Min. Rs. 999
ICICI Bank 11.49% onwards Not exceeding 2.5% of loan amt.
Bajaj Finserv 11.49% onwards 2.25% to 3% of loan sanctioned

Documents Required for Business Loan

For all those who have a liability to register themselves, if fails to do the same than under section 75A of the finance act 1994 penalty for the failure of an assessed to get himself registered was fixed at Rs. 500/- as a onetime payment but subsequently this section was deleted by the virtue of the finance act 2004 and now the general penalty that is applicable is Rs. 1000/- as per section 77 of Finance act.

Documents required

  • 1

    Documents for Proprietor

    • Photo
    • PAN copy
    • Aadhar Copy
    • 1 year Bank Statement
    • MSME Registration / GST Registratioin for Business Proof
    • Telephone Bill
    • EB receipt of Own house in name of applicant / Guarantor
    • Income Tax Filing for two years ( Optional )
  • 2

    Other than Proprietor

    • Directors /Partners Photos
    • PAN Copy of the Directors / Partners & Organization PAN Copy
    • Aadhar Copy of the Directors / Partners
    • 1 Year Bank Statement
    • Incorporation Certificate / Partnership Deed
    • Telephone Bill
    • EB receipt of Own house in name of applicant / Guarantor
    • Income Tax Filing for two years ( Optional )
    • MSME Registration / GST Registratioin for Business Proof

HOW LONG DOES IT TAKES?

1 DAY

Collection of Documents

1 DAY

Preparation of Application

1 DAY

Submission of Application

1 DAY

Approval of Persoanl Loan

Frequently Asked Questions

What is a Business Loan?
Business loan is a unsecured loan, Which has repament period between 3 to five years. No colleteral secuirty required for applying business loan. Business loan can be used for working capital, meeting cash flow requirements, investment into plant & machinery etc.,
What are all the documents required to apply Business Loan?
1 year Bank Statement, 3 years business proof with normal kyc required to apply business Loan. Some asks morethan 4 years business proof to process the Business Loan application.
What is maximum amount of Business Loan offerd by Banks?
A bank can be sanctioned upto 40 Lakhs as a business loan for a applicant.
How long does take to disburse the Business Loan?
As of now many banks process the Business Loan application within 2 to 3 working days. Maximum banks will sanction the loan within 7 working days.
How will repay the Business loan by a borrower?
The Business loan will repay monthly in form of EMI ( Equal monthly Installements ). EMI consist of Principal & Interest. Many of the banks will collect the EMI inform of ECS or PDC Cheque
What happens if there is an ECS bounce or I miss an EMI payment?
The bounce charges and penalty are charged by banks when making failed by a borrrower. Non making of repayment in time will impact on borrower CIBIL Creditreport. So that a borrow cannot borrow any of the bank of financial Institution in future.
What is the rate of interest or processing fees?
The rate of interest will be from 16% to 26%. The processing fee for business loan is upto 2.5% on the loan sanctioned. Additionally the banks request insurance coverage.

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