Business loan is a credit facility offered by Banks/NBFCs to meet the financial requirements of self-employed customers and enterprises. It can be availed by individuals, MSMEs, business owners, entrepreneurs, professionals (CAs/Doctors), and several other business entities.
Business loans are majorly classified into two types, such as secured loans and unsecured loans. Secured loans are types of loans that require collateral/security, that borrowers need to deposit with the lender to avail business loans. However, in the case of unsecured loans, there is no need to submit any collateral/security with the Bank, NBFC, or any other lender.
Banks/NBFCs offer both secured and unsecured business loans, including Term Loans (Short-term/Intermediate-term/Long-term), Working Capital Loans, Cash Credit, Overdraft, Letter of Credit, Bill/Invoice Discounting, Equipment Finance, Machinery Loans, Point-of-Sale (POS) Loans/Merchant Cash Advance, Loans under Bank Guarantee (BG), Loan under Govt. schemes, etc.
The minimum loan amount offered starts from as low as Rs. 10,000 that can be availed from Small Finance Banks (SFBs), Regional Rural Banks (RRBs), or Micro Finance Institutions (MFIs). Borrowers can avail collateral-free business loans of amounts up to Rs. 1 crore from leading Private and Public Sector Banks, NBFCs, etc. Small Business Loans are also available for Startups and MSMEs at competitive interest rates.
The following are the documents required for minimum Loan Application :
When applying for a business loan, you will need to submit the following documents:
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