To be eligible for a Business Loan there are a lot of factors that are considered. Every bank that offers a Business Loan will look into many criteria prior to sanctioning it.

The following people are eligible to apply for a Business Growth Loan:

• Self employed individuals, Proprietors, Private Ltd. Co. and Partnership Firms involved in the business of Manufacturing, Trading or Services.
• The business should have a minimum turnover of Rs. 40 lakhs
• Individuals who have been in the current business for a minimum of 3 years, with 5 years total business experience.
• Those whose business has been profit making for the previous 2 years
• The business should have a Minimal Annual Income (ITR) of Rs. 1.5 lakhs per annum
• The applicant should be at least 21 years at the time of applying for the loan, and should be no older than 65 years at the time of loan maturity

The documentation requirements for business loans are minimal. You simply need to hand over the following documents to our representative.

Identity & Address Proof

Applicants need to provide identification proof with appropriate KYC documents including Aadhaar card, voter ID, PAN card, passport, driving license or any other valid document issued by the government.

Other Fees & Charges

Business loan interest rates are subject to change concerning RBI guidelines. Watch this space to keep track of the latest interest rates offered by banks and other lenders here. We. at Loanbaba, work closely with reputed banks, NBFCS, and financial institutions so that you can keep abreast of all details from business loans interest rates offered by the lenders to loan tenures and other charges like processing fees, foreclosure fees, etc.

Below mentioned is the detailed table that will help in understanding the latest unsecured business loan interest rates, processing fee and loan amount offered by popular financial institutions in India:

Interest Rate: 13.50% onwards

Processing Fee: Upto 3% of loan amount

Loan Tenure: Upto 5 years

Lowest EMI per lakh: ₹ 2,301 for 5 years

Business loan interest rates are subject to change concerning RBI guidelines. Watch this space to keep track of the latest interest rates offered by banks and other lenders here. We. at Loanbaba, work closely with reputed banks, NBFCS, and financial institutions so that you can keep abreast of all details from business loans interest rates offered by the lenders to loan tenures and other charges like processing fees, foreclosure fees, etc.

Below mentioned is the detailed table that will help in understanding the latest unsecured business loan interest rates, processing fee and loan amount offered by popular financial institutions in India:

• Interest Rate : 13.50% onwards
• Processing Fee : Upto 3% of loan amount
• Loan Tenure : Upto 5 years
• Lowest EMI per lakh : ₹ 2,301 for 5 years

It refers to completely paying off a loan before the loan tenure has ended. a bit like prepayment charges, foreclosure charges range from 2- 5% of the loan amount. Firstly, if the prepayment fully is often done relatively early into the tenure of the loan, a customer tends to save lots of tons on the interest. A loan generally features a lock-in of about one year after which the whole outstanding amount is often prepaid.

• Visit the bank where your Loan is active
• Carry the necessary documents such as ID Proof, Bank statements mentioning the final clearance of the last EMI, Cheque, or Demand Draft with which you will pay the entire balance amount.
• The lenders usually charge a foreclosure charge on the outstanding amount which must be paid along with the principal outstanding amount.
• Once the entire amount is paid either through a Cheque or Demand Draft, the Bank will give an acknowledgment letter which must be kept for future reference.

There are a number of repayment modes which are offered by lenders. Although these modes might differ from lender to lender, the most common modes of repayment can be summed up as follows:

• Electronic Clearance System or ECS: The ECS or Electronic Clearance System is one of the most commonly used repayment methods. It is an electronic mode through which funds are transferred from one bank to another.
• Post Dated Cheques or PDCs: Post Dated Cheques, as the name suggests, are cheques which are issued by you for a future date. The lender will use these cheques on the mentioned date to deposit or encash the amount mentioned on it.
• National Automated Clearing House: The National Payment Corporation of India (NPCI) offers a program called NACH to all the banks and financial institutions. The NACH allows the processing of transactions in real time. This method can be used for your loan repayments.
• Debit mandate or standing instruction: You can give an instruction to your bank to pay off a particular amount of money to another bank or bank account at a regular interval. This is known as standing instruction or debit mandate. Your bank will be paying off the stipulated amount towards the repayment of your loan on a regular basis through this system.

It is very important for a business owner to know which loan will be suitable for his business. There are different types of business loans available in the market today and you should be aware of the proper amount before starting the process of finding the best business loan.

• Term Loan (Short & Long-term Loan)
• POS Loans or Merchant Cash Advance
• Equipment Finance or Machinery Loan
• Loans under Govt. schemes
• Bill/Invoice Discounting
• Working Capital Loan
• Flexi Business Loan
• Overdraft Facility
• Letter of Credit

The borrower who has taken a business loan from a certain financial institution is eligible for the top-up. You can avail of this top-up facility after a certain number of EMIs paid. All financial institutions have different eligibility criteria. Some institutions give top up after paid off 3 EMIs, 12EMIs, and 15 EMIs. It all depends on the financial institution. The borrower who has taken a business loan from a particular financial organization is eligible for the top-up. you'll avail of this top-up facility after a particular number of EMIs paid. All financial institutions have different eligibility criteria. Some institutions give top up after paying off 3 EMIs, 12EMIs, and 15 EMIs. It all depends on the financial organization.

The Business Loan balance transfer facility gives customers the benefit of transferring their existing loan to another financial lender. This can be done if another financial lender is offering a better interest rate, the tenure is a lot more flexible, they wish for a top up on their existing loan, etc.

Key features and benefits

• Get a reduced interest rate on the existing loan amount.
• Option to top-up the loan.
• Avail flexible repayment options.
• Avail benefits such as zero processing fee, waiver of last EMI benefit, etc.
• To get better customer care service.

Business Loan is a financial aid provided by banks and NBFCs to attain the funds for expansion or to meet the expenses of the business. What makes Business loan special is that you can use it for any purpose of your business either to use it as your working capital or just to possess a new asset.

Our expected loan amount range shall be around 50,000 Lakhs to 40,00,00,000 Lakhs initially, though we are working on broadening this range. This also depends on the lenders who affiliate with us.

The loan amount offered by banking establishments and NBFCs for business purposes is usually pretty high compared to the regular personal loans or home loans. In general, you can take a business loan anywhere in the range of ₹ 50,000 to ₹ 1 crore, or sometimes even higher depending upon various factors, including your requirements and profile. Essentially, it is how well you meet the eligibility criteria laid out by the lender that will determine the quantum of the loan. The lending establishment will factor in your annual turnover and profit, type of entity, banking relationship, credit rating, business age, business stability and outstanding liabilities, among various other aspects, before deciding the business loan amount. You can make use of the business loan eligibility calculator available on our website to quickly learn the loan amount your business is eligible for.

Yes, you can apply for the business loan even with the bad credits and for that all you have to do is to give an assurance to the bank that you’ll be able to repay the loan.

As mentioned above, the maximum loan amount you can avail in the form of a small business loan will vary from person to person, based on multiple factors like the credit score, the lender type, business type, age of the business, existing relationship with the lender, annual turnover and profit and outstanding liability, among many others. In general, the amount of loan extended to small businesses can go up to ₹ 2 crore based on these factors. Please feel free to use the business loan eligibility calculator available on our website to quickly learn the maximum amount of small business loan you are eligible for.

The funded loan amount will be directly deposited to your marked bank account electronically. We believe in creating a transaction world where all is digital.

Yes, you can make the prepayment of loan after 6 months from the date of loan disbursal and it can be done once in a year only. The minimum amount of making the pre-payment should be INR 50 thousand.

You can use a small business loan for various purposes like increasing the cash flow of the business, leaving a bigger office space, office renovation, expanding business to a different city or town, scaling up operations, purchase of raw materials, adding to working capital, purchase of machinery, debt refinancing etc. Please keep in mind that how you are allowed to use the small business loan will also depend upon the type of loan you apply for. There are various government loan schemes for small businesses, for instance, MSME business loans, MUDRA loans, Credit Guarantee Fund Scheme for Micro and Small Enterprises, National Small Industries Corporation Subsidy etc. which are all meant for specific purposes.

Whether you’re allowed to take a business loan on your industrial property or a vacant commercial property is something that will depend entirely on the prospective lender. While some banks and NBFCs don’t accept any industrial and vacant commercial property as an acceptable security/collateral against business loans, there are others that might offer you credit in the form of Loan against Property (LAP). However, this type of loan is normally a personal loan variant and doesn’t fall under the business loan category. Hence the offered interest rates might be different from what are applicable on business loans.

It will depend upon the kind of loan you are currently running with the bank, the policy of the bank vis-à-vis such top ups and the extent of top up you require. Most of the banking establishments offer top up loans to their existing customers after analyzing their repayment behaviour and ascertaining that they meet the minimum requirements. These top up loans are also extended to existing business loan customers who might require more funds at a later date.

The EMI due date or cycle is dependent on the borrower. It can be the first of the month or 5th of the month. The borrower can choose the day as per their convenience. Some banks do give a set day as their processing day is automated.

It is best to pay your EMI on time. Most banks will tolerate any late payments for 1 or 2 times and if you don’t pay your EMI at all the bank has every authority to seize the car. Furthermore if you default on EMI your credit score will take a hit which will spoil your chances of getting any form of credit in the future.