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Business loan

A business loan a is a loan specifically intended for business purposes. As with all loans. It involves the creation of a debt, which will be repaid with added interest.

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Business Loan


Business loan

What is a business loan?


Your business requires working capital to run function smoothly. Lack of funds may sabotage the ambitious growth plans of your Business. Bank gives you money to run your business, which you have to repay with interest, called a business loan. Your business loan can be secured (you give a collateral) such as Company inventory, land or machinery and avail your loan at a lower rate of interest. Your business loan can be unsecured (you do not need to give a collateral). You are charged a higher rate of interest.

Eligibility criteria to avail a Business Loan

You need to be at least 21 years of age and 65 years when your loan matures. Your business needs to have a minimum turnover of INR 40 Lakhs. You need to have a minimum experience of 3 years of total business experience. Your business should be making profits for at least 2 years. You need to have a minimum annual income of at least INR 1.5 Lakhs for a loan of INR 15 Lakhs and at least INR 3 Lakhs for a loan above INR 15 lakhs. You need to have a minimum experience of 3 years in the current business and at least 5 years of total business experience. Your business should be making profits for at least 2 years. You need to have minimum annual income of at least INR 1.5 Lakhs for a loan of INR 15 Lakhs and at least INR 3 Lakhs for a loan above INR 15 Lakhs. You need to have a minimum CIBIL score of at least 700.

Document Required for Business Loan in India.


Address Proof.

Proof of Continuity of Business

Bank statement 6 month

ITR and statement of computation of income for last 2 years CA certified or Audited etc.