About Business Loan

The borrowed amount can be used towards daily capital expenses, managing working capital gap, specific project funding and expansion of the business including the purchase of a new machinery. You can also apply for a business loan if you need capital to start a new business or ancillary units for your existing business. There are many banks & NBFCs that offer loans up to 30 lakhs, with or without collaterals and with pre-approved offers. The rate of interest applicable and tenure offered for the loan depends upon a number of factors such as your credit rating, the profitability of the business, future growth potential etc.

Grow your business with Business Loans from Afinoz. We provide you with a number of options in business loans from different banks and NBFCs. Now you can easily avail business loans through Afinoz without any hassles. We are always with you to help build your business.

Features & Benefits

Features & Benefits of Business Loans

  • Loan amount starts from Rs. 50,000 onwards
  • Simple and easy documentation process
  • Tenure for business loans ranges from 12 months to 60 months
  • No collateral or guarantor required
  • Business loan interest rates vary from 13% to 35% and depend on the eligibility of the applicant and the quality of business

Eligibility & Documents Required

Business loan eligibility required

A business loan can be availed with or without providing security or collateral. It depends on the bank and the amount of risk they are ready to take on a particular business. It also depends upon whether the loan is for an existing business or to start a new one. There are many banks & NBFCs in India that offer loans for both small and big businesses. Getting approval & disbursal is possible within a few days if you have all the essential documents and you meet the eligibility criteria. Given below is the list of eligibility criteria required to apply for a business loan in India.

Eligibility Criteria for Different Employment Types

Private Limited Company
Self-Employed Professionals
Proprietorship & partnership firms

Private Limited Company

Net income of the applicant or the concern should be more than Rs. 150,000 per annum (ITR) for a business loan of up to Rs. 15 lakhs and over Rs. 300,000 (ITR) for a business loan above Rs. 15 lakhs.

Factors Deciding Business Loan Eligibility

There are many factors that are considered while determining your eligibility for a business loan. Every bank or lending institution that offers you a loan will look into many aspects prior to sanctioning the loan. Few important ones are provided below:

Age Limit
Income
Turnover
Co-applicants

Age Limit

The age of a loan applicant must be between 21 to 65 years.

Customer Profiles that lending institutions consider for Business Loans

There are different types of customers for business loans. Some are individuals who are self-employed or salaried and others are entities or companies. A large bank will cater to both these types of customers. The eligibility criteria, interest rates, processing charges, tenure and other features extended by a bank will vary from customer to customer. Therefore, while applying for a business loan, check which category of customers you belong to and check your eligibility accordingly.

Self-Employed Professionals
Self-Employed Non-Professionals
Entities

Self-Employed Professionals

This includes Chartered Accountants, doctors, company secretaries, architects and designers etc. who are indulged in their own practices.

Document Required

Each bank has its own specific set of requirements, criteria and eligibility factors. Here is a general list of documents and information required from you to process your loan:

General Documents Checklist
Self-Employed (Private Ltd. Co. and Partnership Firms)
Self-Employed Individuals – Professionals
Self-Employed Individuals – Non-Professionals

General Documents Checklist

  • Identity proof - Driving License/PAN Card/Passport/Voters ID card
  • Address Proof (Ration card/latest telephone or electricity Bill/Passport/Trade license/Lease agreement/Sales Tax certificate)
  • Bank statement for the last 6 months
  • Proof of continuation
  • Other Mandatory Documents such as Sole Proprietorship Declaration, Certified true copy of Memorandum & Articles of Association
  • Audited financials (signed by a CA) for the last 3 years.
  • Copies of IT returns for the last two years

*Note:- Required documents may vary from institution to institution. Every lending entity has their own criteria for documentation.

Interest Rate & Charges

Interest rates & other charges applicable on a loan depend upon the health of the firm i.e. annual turnover and profitability amongst other factors. Has the entity been growing, reducing in size or been at the same level for the past few years? What is the amount you are looking to raise as debt? How many years are you planning to avail it for? How is the promoter’s credit history? Has he / she ever defaulted on any debt, credit card payments etc.?

We, at Afinoz, can assure you that we will get you the best interest rate available & possible ,considering all the above-mentioned factors.

Bank
Interest Rates*
Processing Charge
HDFC Limited15.50 % to 18.30%Up to 2% of loan amount + GST
ICICI Bank15.50% TO 18.50%Up to 2% of loan amount + GST
Bank Of Baroda14.10%UP to 2% of the loan amount
Axis Bank13% to 18.5%Up to 2% of loan amount + Service Tax
TATA capital18% to 24%Up to 2.5% of the loan amount
RBL bank20% to 22%3% of loan amount
Indusind bank18.5% to 19.5%2% of the loan amount
Kotak Mahindra18% to 19.5%2% of the loan amount
Fullerton india16% to 33.5%2% of the loan amount
Bajaj Finserv16% to 35%Up to 2% of the loan amount
IIFL18% to 25%3% of the loan amount
MUFIN Finance13% to 22%2% of the loan amount
Incred Finance18%3% to 5% of the loan amount
Prest loan18% to 26%2% of the loan amount
LendingKart18% to 28%2% of the loan amount
HDB Bank18% to 20%Up to 2% of the loan amount
Aditya Birla Finance18% to 24%2% of the loan amount
Vistaar Finance18% to 26%2% of the loan amount
Neo Growth18% to 24%2% of the loan amount

*Special Note:- Rates are subject to periodic changes. Business loan interest rates and other fees and charges are subject to regular review and can vary from customer to customer depending upon a number of factors ranging from the credit score to existing loans, amount of savings, company with which you are currently employed, the number of years of relationship with the bank or NBFC etc.

FAQ's

Q.
What is a Business loan?
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What are the minimum and maximum loan limits for a business loan?
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How much time does it take to disburse the business loan?
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What is the minimum amount of security that needs to be provided for availing the term loan?
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Is any collateral or additional security required for availing this loan?
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Is pre-closure allowed in business loans?
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Is part payment allowed on a business loan?
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How is a business loan repaid?
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What happens if the ECS bounces or I miss an EMI payment?
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What is the rate of interest & processing fee on business loans?