Key Offerings and Advantages of Our Business Financing Solutions
- Long-Term Business Loans – Ideal for funding major business projects or investments over an extended period.
- Short-Term Working Capital Support – Helps manage daily operational expenses and cash flow needs.
- Growth & Expansion Financing – Perfect for scaling operations, opening new locations, or increasing production.
- Equipment Purchase Funding – Get the tools and technology your business needs with flexible repayment plans.
- Receivables & Invoice Funding – Unlock the cash tied up in unpaid invoices through quick and efficient financing.
- Machinery Financing Solutions – Acquire or upgrade business machinery with structured, easy-to-manage loan options.
Eligibility Your Business Loan
To improve your chances of getting a business loan, prepare a solid business plan, check your credit score, decide the loan amount, compare loan options, and gather required documents early.
Essential Documents Needed
You must submit ID and address proof, business registration, financial statements, partnership deed, MoA and AoA, board resolution, PAN card, and other necessary supporting documents .
Business Loan Eligibility Criteria
Applicants must be aged 21–65 with 1–2 years of business history, minimum turnover in ITR, and at least one year of consistent profit before applying for the loan.
Eligibility Requirements & Qualified Applicants
Types of Businesses:
Most financial institutions offer business loans to a wide range of business structures, such as sole proprietors, partnership firms, LLPs (Limited Liability Partnerships), private and public limited companies, and others.
Creditworthiness:
A healthy credit score is generally needed to secure approval. Lenders use your credit profile to evaluate repayment capacity.
Business History:
Many lenders expect a business to be operational for at least 12 months, though the exact requirement can vary.
Revenue Threshold:
Your business should meet the lender’s minimum annual revenue standards to demonstrate financial stability.
Loan Security (Collateral):
For secured loans, you may need to pledge assets like real estate, machinery, inventory, or other business valuables.
Cash Flow Evaluation:
Your ability to repay the loan will be assessed based on your business’s current and projected cash flow.
Age Requirement:
The applicant should be at least 21 years old at the time of applying, and not older than 65 years by the time the loan matures.
Who Can Apply:
Eligible applicants include Indian nationals operating as individuals, MSMEs, sole proprietors, partnerships, LLPs, private/public limited companies, traders, retailers, manufacturers, and service providers (excluding agricultural businesses).
Business Age:
The business should have a minimum operational history of 1 year.
Entrepreneurial Experience:
Applicants should have at least one year of experience and should be operating from the same business location.
Annual Turnover:
Specific turnover limits are determined by individual banks or NBFCs.
Preferred Credit Score:
A score of 700 or above is typically considered favorable by both private and public sector lenders.
Ownership Proof:
Applicants must own either a house, office space, shop, or warehouse.
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Required Documents for Business Loan Application
Document requirements differ depending on the type of entity. Commonly requested documents include:
- Income Tax Returns for the last 2–3 years
- Bank statements (business current account) for the past 12 months
- PAN Card (applicant and business)
- Residential address proof (Aadhaar, Passport, Voter ID, Utility Bills)
- Business address proof (Telephone/Electricity bill)
- Provisional financial statements of the last year and financial projections for the next
- Business profile printed on company letterhead
- Two recent passport-size photos of promoters and property owners
- Existing loan sanction letters and repayment schedules
- GST registration certificate and returns for the past 2 years
- Sales Tax/D-VAT registration copy
- Udyam Aadhaar certificate
- Rent agreements for factory or residence if leased
- Proof of business continuity for at least 3 years (e.g., ITR or registration)
- For Pvt. Ltd. Companies: PAN Card, Certificate of Incorporation, MOA, AOA, Director list, and Shareholding details
- For Partnership Firms: Partnership Deed and company PAN card
How to Use a Business Loan EMI Calculator
An EMI calculator helps estimate your monthly loan repayment. Here’s how to use it:
- Input the loan amount, interest rate, and loan term (tenure).
- Click the “Calculate” button.
- The tool will show your monthly EMI, total interest payable, and overall repayment.
- Adjust the tenure to find an EMI that suits your financial plan.
- Factor in any additional charges.
- Ensure that the EMI fits within your monthly budget.
- Always verify the final numbers with your lender before applying.
FAQs
What is a business loan and what amount can I borrow?
A business loan is a type of financing offered to entrepreneurs and companies to meet various business needs like expansion, operations, or equipment purchases. Loan amounts typically depend on your business profile, financials, credit history, and lender policies, and can range from a few lakhs to several crores.
Who is eligible to apply for a business loan?
Business loans can be availed by self-employed individuals, proprietors, private limited companies, partnership firms, and MSMEs with a stable business history and adequate turnover.
What are the basic criteria for getting a business loan?
To qualify, applicants generally need a valid business registration, income proof, bank statements, GST returns, and a decent credit score. Some lenders may also require a minimum business vintage (1–3 years).
What is Udyam Registration?
Udyam is an official registration for Micro, Small, and Medium Enterprises (MSMEs) provided by the Government of India. It helps businesses access benefits like government schemes, subsidies, and easier loan approvals.
What is the minimum credit score needed for a business loan?
Most lenders prefer a CIBIL score of 700 or above. However, some NBFCs or fintech lenders may consider lower scores for smaller loans with higher interest rates.