What is Business Loan?
A business loan is a type of financing provided to businesses to meet their various financial needs, such as expansion, working capital, or purchasing equipment.
Types of Business Loans:
- Term Loan
- Line of Credit
- Invoice Financing
- Equipment Financing
- Small Business Administration (SBA) Loan
- Microloan
- Online Loan
- Peer-to-Peer Loan
Eligibility Criteria:
- Business age: 6 months-2 years
- Annual revenue: Rs10 lakhs-Rs50 crores
- Credit Score: 600-750
- Business plan
- Financial statements
Documents Required:
- Business plan
- Financial statements
- Tax returns
- ID proof (Aadhaar/PAN)
- Address proof (passport/driving license)
- Business registration documents
Business Loan Features:
- Loan amount: Rs50,000-Rs50 crores
- Tenure: 3 months-10 years
- Interest rate: 12%-24%
- Processing fee: 1%-3%
- Foreclosure charges: 2%-5%
Benefits:
- Flexible repayment options
- Quick disbursal
- Minimal documentation
- Competitive interest rates
- Business expansion opportunities
Uses of Business Loans:
- Working capital
- Business expansion
- Equipment purchase
- Inventory financing
- Marketing and advertising
- Hiring staff
- Debt consolidation
Repayment Options:
- EMI (Equated Monthly Installment)
- Quarterly installments
- Annual installments
- Bullet repayment
Top Business Loan Providers:
- SBI
- HDFC Bank
- ICICI Bank
- Bullet repayment
- Bajaj Finserv
- Tata Capital
- Lendingkart
- Capital Float
Things to Consider:
- Interest rate
- Processing fee
- Foreclosure charges
- Credit score impact
- Repayment tenure
- Loan amount