Business Loan
A business loan is a type of financing that is used by businesses. The borrowed funds are made available as either a lump-sum payment or a line of credit.
Quick Approval
Wide Utility
Flexibility
Easy range and Payback
Benefits of Business Loan
- There are different types of business loans, each suitable for a different purpose and a different type of company.
- Business loans often have lower interest rates and more generous repayment terms than personal loans.
- Flexibility : Loans for the constant growth of your business.Â
- Convenience and ease: Securing a business loan is easy and straightforward as compared to looking for investors to finance your business.
- Better business credit: Availing a business loan and returning it on time improves the credibility of your business. A good track record will also help you to secure more funds at lower business loan interest rates in future.
Characteristics of Business Loan
- Competitive Interest Rates
- Quick Approval
- The convenience ok online transaction
- Extended Loan Tenure
- Simplified Documentation Process
Business Loan - Eligibility Criteria
| Business Loan Eligibility Criteria | Constraints |
| Age | 21-65 years |
| Eligible Entities | Self-Employed, Proprietary, Private Limited, Partnership, limited liability firms. |
| Business Vintage | 1 year minimum and profit |
| Business experience | A minimum of two years, with the same business location. |
| Annual Turnover | A minimum of Rs. 10 lakh and above for existing enterprises |
| CIBIL Score | 650 or above |
| Nationality | Indian citizens |
| Debt to Income Ratio | Less than 50% |
EMI Calculator for Business Loan
Business, be it big or small, is most of the time in need of additional funds to meet day-to-day business requirements. Business loans are a great option for gaining extra funds without hindering your growing business.Â
Calculate Your Business Loan EMI
Business loan is the most important aspect for developing your business.
The formula to calculate EMI for a Personal Loan is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- P represents the principal loan amount
- R represents the monthly interest rate, calculated by dividing the annual rate by 12 and converting it to a decimal.
- N denotes the loan tenure measured in months.
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| Period | Payment | Interest | Balance |
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Calculate Your Business Loan EMI
Business loan is the most important aspect for developing your business.
The formula to calculate EMI for a Personal Loan is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- P represents the principal loan amount
- R represents the monthly interest rate, calculated by dividing the annual rate by 12 and converting it to a decimal.
- N denotes the loan tenure measured in months.
Documents required for Business Loan
- Passport
- PAN Card
- Voter’s ID
- Aadhar Card
- Driving License
Tax Proof (Any one):
- IT returns (for 2 years)
- Form 16Â
- GST registration certificate, shops, and establishment certificate
- Trade License
- Declaration of the sole proprietorship
- Certified True Copy of the Partnership Deed
Address Proof (Any one):
- Passport
- Rent Agreement
- Utility Bill (telephone, electricity, water, gas) – less than 2 months old
- Aadhaar Card
- Driving License
- Ration Card
- Salary slips (Last 3 months)
- Bank statements for the last 3 to 6 months (showing salary credit)Â
- 2 years of audited financials
- The last 2 years of ITR
- 6 months of GST returns
Yes, business loans have tax benefits.
No business loans can be taken for a variety of purposes and hence no specific reason has to be stated.
Yes, a business loan can be taken to pay other existing loans at a better interest rate.
The ownership of the entity is not affected if a loan is availed rather than listing the company or taking in new investors.
When you need capital to cope with seasonal slumps, grow your business, or take care of urgent expenses, you can take a business loan.
Applicants must be 21 – 65 years when they apply for a business loan.