Get the Business Loan you want

Any business owner can apply for a Business Loan if they meet the eligibility criteria of the Bank or NBFC. Some of the eligibility criteria are business turnover (minimum Rs 1 crore), and a credit score of 650.

MSMEs, Limited Liability Partnership Firms, Proprietors, self-employed professionals, Private Limited Companies, Public Limited Companies, etc are eligible for a business loan. It is to be noted that, the eligibility criteria would vary across lenders depending on the business loan schemes to be opted for.

Business loan applicants can apply for small business loan directly through the official website or app of banks and NBFCs or by visiting bank branches. Also, applicants should visit online financial marketplaces like OneNDF to compare the interest rates, loan amount and other features offered by various lenders and opt for the lender that best suits their requirements.

MSME loan is a credit facility offered to Micro, Small and Medium Enterprises to meet the business related financial requirements, such as business expansion and working capital requirements.

An Overdraft Facility is a line of credit on your business bank account that gives you more short-term cash flow than your business can fund from its own capital. Much like, a flexible loan, the overdraft limit is there if needed and your business will only pay interest on the amount used.

No, you do not have to provide collateral to apply for a Business Loan.

You repay a Business Loan through Equated Monthly Installments or EMIs. The EMI for a Business Loan is paid via ECS/NACH from the Bank account. Each EMI pays of a portion of the principal amount and the interest amount.

This amount can range between 2% to 7% based on the lender. Different lenders have different repayment charges. The charges are calculated based on the remaining loan amount. However, as per RBI regulations, lenders are not allowed to charge any foreclosure charges on business loans offered on floating rates to individual borrowers.

The minimum and maximum tenure of a Business Loan ranges from 12 months to 60 months.

Business loan interest rates would differ widely depending on the lender, it can starts from 14%* the scheme opted for, and the subsidy provided to the applicant, if eligible, from the various government agencies. 

*Terms & Condition applied 

Business loans can be used for meeting the business requirements including working capital requirements like purchasing inventories/raw materials, salaries/wages, rent, etc. and capital expenditure requirements like purchasing machinery and equipment, acquisition of other fixed assets and for carrying out other activities for business expansion. 

The following can apply for a Business Loan: Self-employed Professionals (Medical Practitioners, Financial Professionals), Entrepreneurs (Both Men and Women), Business Entities (Private Limited Companies, Public Limited Companies)

Penal interest is an extra amount of money that you have to pay if you don’t follow the rules of your loan agreement, especially when you miss a payment deadline. In other words, not making a payment on time and being penalised or fines for it. The penalty is added to the regular interest you already owe. 

A dropline overdraft is almost similar to an Overdraft in all cases except the availability of the limit. This withdrawal limit reduces each month from the sanctioned limit. However, the calculation of the Interest rate is done daily and it is charged at the month’s end. 

Typically; the amount depends on the eligibility of the Business. But if we talk about the Lending Capacity of the Banks / NBFCs – it depends on the policy. Usually; anything upto 30 lacs most of the banks / NBFCs offer. Some Banks / NBFCs also disbursed upto 1 crore.

A business loan is the best option for those who want to start or expand their business. Applicants can check on the official websites of banks and NBFCs and even go to financial marketplaces like OneNDF.com to compare various interest rates and best loan options.

The minimum credit score or credit rating required for availing a business loan may vary widely across lenders. In case of credit scores, individual applicants having a credit score of 700 and above may have a higher chance of availing business loans, especially the unsecured ones.

Business Loans are usually not offered to salaried individuals. However, salaried individuals can avail loans having no end-usage restriction, like personal loans and loan against securities, to finance their businesses. Salaried individuals who are existing home loan borrowers can also avail top-up home loans, if eligible, to fulfil their business related financial requirements.

GST is not levied on the interest component of any loans. However, the GST is levied on the various fees and charges incurred during the pre and post-disbursal phase of a business loan.

The Interest Rate is Fixed.

Self-employed individuals and professionals, partnership firms and MSMEs are eligible for availing small business bank loans. 

This is decided keeping in mind the present future cash-flows of the business.

These are the loans for long-term business loans are large loans that can be used to fund business initiatives over a period of several years. They can be used for a variety of purposes such as, Business Expansion, technology upgrades, purchasing new machinery, etc.