Apply for Business Loan in Patiala
Business Loan in Patiala
Patiala, in its true essence, is a city that beautifully merges its regal history with a lively present. With its captivating historical sites, diverse cultural heritage, and welcoming community, it becomes an enthralling place for those who wish to delve into the soul of Punjab. Over time, it has evolved into a hub of trade and industry, with activities such as weaving, cotton ginning, distilling, and manufacturing being an integral part of its economic fabric.
Punjab has long been recognized as a state that places great importance on agriculture, and Patiala is not an exception to this reputation. Moreover, it has been bestowed with a surplus of agricultural resources. Nevertheless, in recent times, there has been a shift in the economy, and industries have taken on a more prominent role in the area. As a result, Patiala is evolving into a thriving hub for industries across different sectors, attracting numerous enterprises to establish their operations here.
In Patiala, the industries engage in a diverse array of manufacturing activities. They skillfully produce a harmonious blend of customary agricultural goods and sophisticated precision instruments. These skilled artisans craft various commodities such as vanaspati ghee, potent power cables, sturdy bicycles, nourishing dairy products, and effective pesticides.
Table of Contents
Interest rates and Charges on Business loans
The interest rates on Small Business Loans in Patiala can vary from lender to lender. However, here is an overview of the interest rates and charges on various types of business loans in Patiala :
| 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 |
Interest rates by various banks and NBFCs for Business Loan
| 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 a Business Loan
To avail of a Business Loan in Patiala, the borrower must fulfil the following eligibility criteria:
| 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. |
Also Read: Business Loan eligibility criteria in India
Documents required for a Business Loan
The documents required for a Business Loan in Patiala 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 Patiala:
| 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 Patiala , 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. |
Purpose of Business Loan
- Businesses especially the ones in manufacturing and trading in Patiala require working capital for their daily operations. This includes but is not limited to; cash to pay employees, money to purchase raw materials and utility bills among others.
- To those entrepreneurs who desire to enlarge their businesses or venture into new businesses, taking commercial loans from Patiala would be a viable option. They can be used for various reasons including opening new branches, starting new product ranges or spending on advertisements.
- Specialized equipment and machinery often need to be purchased by manufacturing and industrial enterprises in Patiala. Such provisions are essential for enhancing productivity as well as competitiveness hence business loans become important in such procurements.
How to apply for Business loans in Patiala through OneNDF
The process of applying for Business loans in Patiala 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
Are there any special loans for women entrepreneurs in Patiala?
Yeah, there are special options for unsecured small business loans specifically for women entrepreneurs in Patiala. The financial institutions in the area have customized lending solutions that are meant to support ventures run by women. These loans come with flexible terms and competitive interest rates, which help empower women in Patiala to grow their businesses and achieve their entrepreneurial dreams.
How soon can I expect to get approved for the business loan in Patiala?
The time it takes to get approved for a small business loan in Patiala without collateral can vary depending on a few things. Usually, they’ll look at your application, credit history, and how viable your business is, and that can take anywhere from a few days to a couple of weeks. If you submit all the right paperwork on time and have a solid financial profile, it can speed up the approval process a lot.
Can I get a business loan in Patiala even if my credit score isn’t great?
Sure, you can apply for a small business loan in Patiala, even if your credit score isn’t great. There are plenty of lenders in Patiala who offer business loans that cater to different credit situations. While having a higher credit score might make things easier, many lenders also take into account factors like your business revenue, the feasibility of your plan, and the trends in your industry. It’s a good idea to check out lenders who are experienced in working with a variety of credit histories to meet your business requirements.
Are there government schemes or subsidies available for business loan in Patiala?
Yes, there are different programs and help from the government that can assist businesses in Patiala. People who want to start their businesses should look into these opportunities, as they can help reduce the amount of money they need to spend.
How can I improve my chances of getting a business loan in Patiala?
If you want a better shot at getting approved, try keeping up a good credit history, putting together a strong business plan, providing accurate financial documents, and showing that you can pay back the loan.
