Monthly EMI: 0
Principal Amount: 0
Interest Payable: 0
Before applying for the loan, prepare a business plan, know your credit score, decide the loan amount, do some market research on available business loan options, and keep the documents ready.
Proof of address & photo identity proof of the promoters, business proof, income proof, partnership deed for partnership firm, articles of association, memorandum of association, board resolution, PAN card, etc.
Applicants should be aged between 21 to 65 years, having business vintage of a minimum of 1-2 years. The minimum business turnover and a minimum annual turnover as per the ITR will be required. The business should be profit-making for at least the last 1 year.
In India, various types of business loans are available to cater to different needs and stages of businesses.
A term loan provides a lump sum amount upfront, repayable over a fixed period with monthly installments. It's suitable for equipment purchase, business expansion, or personal use. Interest can be fixed or variable, and terms vary based on the lender.
These loans support daily business operations. SMEs use them to cover operational costs, pay off debt, or manage seasonal fluctuations. Offered only to Micro and Small Enterprises, these loans ensure businesses stay financially fluid.
This involves selling unpaid invoices to a lender at a discount. It provides upfront cash flow instead of waiting for customer payment, helping businesses manage immediate needs without delay.
An LC is a bank-issued guarantee for a buyer’s payment to a seller upon meeting specific terms (like shipping documents). Common in international trade, it minimizes risk by ensuring payment security for both parties.
An overdraft facility allows businesses to withdraw funds beyond their current balance up to a credit limit. Useful for covering payroll, inventory, or short-term gaps.