Compare Business Loan in Guwahati
Business Loan in Guwahati
Guwahati carries forward its rich history and culture in the form of renowned monuments, museums, markets, architectural cravings, wildlife sanctuaries, and temples. Among them, the Kamakhya Temple stands out, attracting countless pilgrims annually. The Umananda Temple, situated in the centre of the Brahmaputra River, is another noteworthy religious site.
The blend of modern and cosmopolitan culture in Dispur, The political capital of the state of Assam distinguishes Guwahati from the rest of the North-east. Additionally, the Assam Branch Indian Tea Association (ABITA) has its headquarters in the city.
The celebration of Bohag Bihu, marking the Assamese New Year draws tourists nationwide who come to indulge in the vegetarian delicacies and sweet dishes prepared to commemorate the occasion.
Table of Contents
What are the interest rates and charges for business loans?
The interest rates on Small Business Loans in Guwahati can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Guwahati:
| Business Loan Type | Interest Rate |
|---|---|
| Unsecured Loans | Starting from 16% p.a. |
| Working Capital Loans | Starting from 9% p.a. |
| Loans against Property | Starting from 8.85% p.a. |
| Equipment Loans | Starting from 9% p.a. |
| Bill Discounting/Invoice Discounting | As per the financial institution |
Check and compare business loan interest rates from different banks and NBFCs
| Bank/ NBFCs | Interest Rate | Tenure | Processing Fee |
|---|---|---|---|
| SBI Bank Business Loan | 14% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| IndusInd Bank Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| SMFG Business Loan | 17% – 21% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Bank of Baroda Business Loan | 17% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| HDFC Business Loan | 14% – 18% p.a. | 1-4 years | Up to 2% of loan amount |
| ICICI Bank Business Loan | 16% – 18% p.a. | 1-4 years | Up to 2% of loan amount |
| Axis Bank Business Loan | 15% – 18% p.a. | 1-4 years | Up to 2% of loan amount |
| Standard Chartered Bank Business Loan | 15% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Deutsche Bank Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Kotak Mahindra Bank Business Loan | 15% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| RBL Bank Business Loan | 15% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| IDFC First Bank Business Loan | 15% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Aditya Birla Finance Ltd Business Loan | 17%-18% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Yes Bank Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Tata Capital Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Hero Fincorp Ltd Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| Bajaj Finserv Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| NeoGrowth Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
| U Gro Business Loan | 16% p.a. onwards | 1-4 years | Up to 2% of loan amount |
Business Loan EMI Calculator
Applicants can use the Business Loan EMI Calculator given below to calculate the EMIs and total interest cost payable the loan tenure depending on the interest rate, loan amount and loan tenure offered by the lender.
Eligibility Criteria for Business Loan
To avail Business loan in Guwahati, the borrower must fulfil the following eligibility criteria for business loan:
| Particulars | Requirement |
|---|---|
| Citizenship | The business owner must hold Indian citizenship. |
| Age | The borrower must be at least 21 years old, and the maximum age must not be more than 65 years old at the time of loan maturity. |
| Business Vintage | The business must be at least 2 years old. |
| Credit Score |
Both the promoter and the business must have a good credit score of more than 650. The credit score of co-applicants is also checked wherever applicable. The credit score plays a crucial role in determining the creditworthiness of the borrower. It determines the limit of the lender’s credit exposure based on the repayment history of the business. |
Documents required for a Business Loan
The documents required for a Business Loan in Guwahati may vary based upon the type of business loan. However, the following documents are usually sought by banks and NBFCs for a small business loan in Guwahati:
| KYC Documents of the owner and the business: The foundation of your journey. For both you and your business, we require: |
1. Personal Identification: PAN Card, Aadhaar Card, Voter’s ID Card, Driving License, etc. 2. Address Proof: Passport, Utility Bills, Lease Agreement, Trade License, etc. 3. Business Legitimacy: GST Registration, UDYAM Registration, Business PAN Card, Licenses issued by Municipalities, Registration certificates from relevant authorities, etc. |
| Financials: Your economic blueprint, essential for a tailored loan strategy, includes: |
1. Narratives: ITR filings for the last 2 years, complete with Income Computation. 2. Business Health Check: Audited Balance Sheets and Profit & Loss Statements for the last 3 years, certified by a CA. Bank Statements from the last 2 years, revealing your financial journey. 3. License issued by Municipalities, GST Registration Certificate, Registration certificates by appropriate authorities, etc. |
| Proof of Ownership or Collateral Documents (In case of secured loans) | Proof of ownership or collateral documents, including property deeds, sale agreements, possession letters, and asset valuation (if applicable). |
Types of Business Loan
There are various types of Business Loans offered in Guwahati, some of which include:
| Business Loan Type | Uses |
|---|---|
| Unsecured Business Loans | These are term loans used to finance long-term or short-term business needs and can be used for Business Expansion/Business Operations. |
| Working Capital Loans | They are used to finance short-term business needs and can be used for cash flow management, Business Operations, and to fulfil short-term liabilities. |
| Loans against Property | Business Loans against Property are taken against the security of commercial, industrial, or residential property and may have a higher loan amount sanctioned based on the market value of the property and the LTV ratio. |
| Equipment Loans | Equipment Loans are usually taken to upgrade machinery or to buy new equipment. |
| Bill Discounting/Invoice Discounting | Bill Discounting is usually used to finance the working capital needs of a business. |
What is the Purpose of Business Loan?
The most common reasons for taking out a business loan include:
- Business loans can be used to ensure modern machinery, plantation development, and infrastructure improvement, helping tea businesses maintain the high quality of Assam tea.
- Business loans can aid companies in the energy sector with capital for technology upgrades, environmental compliance measures, and expansion projects, contributing to their growth.
- Business loans can support entrepreneurs in the hospitality sector, helping them establish or upgrade lodging facilities, and develop tourist-centric services.
- The loans can assist businesses in Guwahati in adopting the latest technologies, automating processes, and improving efficiency.
How to Apply for Business loans in Guwahati through OneNDF
The process of applying for Business loans in Guwahati may differ based on the type of business loan availed. Many banks at times provide business loans specifically catering to the business cash flow requirements of MSMEs, however, given the lack of knowledge about business loans offered and the opaqueness in the loan application process, small businesses are often unable to get any financial support and end up running from pillar to post to get a business loan.
To apply for a business loan on OneNDF, please follow these streamlined steps:
1. Sign-Up Process:
- Click on the “Sign-up” button to begin your journey with OneNDF or Click here
- Enter your mobile number to receive a One-Time Password (OTP) for verification.
2. Business Authentication:
After signing up, provide your PAN number. This step is crucial for verifying your business identity.
3. Registration and Profile Completion:
Complete the registration process to build your profile on the platform. A comprehensive profile increases the success rate from initial login to loan sanction.
4. Credit Score Check:
We will conduct a soft-pull of your credit score. This process does not generate an inquiry, thus not affecting your credit score.
5. Financial Information:
You can upload the Downloaded ITR for your business (detailed PDF) or you can authenticate the credentials for the ITR portal and we will fetch this information and give you a snapshot . This helps in assessing your business’s financial stability.
6. GST Returns:
Authenticate the GST credentials. Loans are provided to MSME clients, including both self-employed professionals and non-professional business owners based on their GST returns. ((This information can serve as a quick snapshot to help you understand your business better. It allows you to identify your top suppliers and buyers and monitor your returns effortlessly with just a click, eliminating the need to rely on your accountant for this data.))
7. Banking:
Provide banking details for the last 12 months. This helps in analysing your banking turnover and financial transactions.
Upon completing these steps, we will tailor loan offers from lenders that best fit your requirements. Additionally, a comprehensive profile of your business will be created. This profile not only helps you understand your current business health but also provides recommendations on improving key financial ratios to maintain a healthy bottom line.
FAQs
Q: Does the bank have foreclosure charges on the prepayment of the Business loan?
Yes, the bank has foreclosure charges of typically 2% – 4% on the prepayment of the Business loan.
Q: What is the minimum CIBIL score required to avail Business loan in Guwahati?
A minimum score of 750 is required to avail Business loan in Guwahati.
Q: Which loan is the best for business?
There are various types of business loan products offered by banks and NBFCs, these include term loans, working capital loans, equipment financing, etc. It is essential to choose the business loan that matches your requirements as well as your eligibility.
Q: Which is the most popular type of business loan in India?
Term loan is the most popular type of business loan in India.
Q: Can business loans be availed by doctors in Guwahati?
Guwahati stands as a prominent centre for healthcare and has a lot of hospitals and clinics spread across the city. The business loan can be availed by doctors in Guwahati who intend to set up a new clinic, expand their spaces, or buy necessary equipment for their medical institution.
