How To Get A Loan To Start A Business

If you need money to start a business or grow an existing one, consider applying for a Startup business loan from a bank or NBFC. The bank’s interest rate on your loan will be based on the total amount borrowed and the time over which payments are spread out.

Borrowers can expect to pay different interest rates from various financial institutions based on the size and length of their loans.

We will cover how to get a loan to start a business within 72 hours.

Business Loan Quick Recap

Interest rate11.99% – 26% p.a.
Loan AmountUp to Rs. 50 lakh
Loan Tenure36 months – 60 months
Approval ProcessOnline
Eligibility Age23 years or above
Processing Fees2%-3% + GST
Eligible forSelf-Employed
Also Read: MSME Business Loan

Benefits of New Business Loan

Hassel-Free Loan: Unlike other forms of credit, obtaining a business loan requires very little paperwork and no collateral, making it very convenient and accessible.

Quick Approval: Loans up to 50 lakh are available without any additional paperwork or waiting time, and Banks / NBFcs are approved instantly.

Easy Payment Process: The Business loan is available for 5 years with an easy installment process. This functionality allows you to pay both online and offline. The utilization of this feature is totally and completely free of charge.

Higher Loan Amount: Loan Amount available up to 50 lakh to you, and you have the option to make use of it. Different banks and NBFC companies have a different amount of loan amounts, it depends on your cibil score and bank statement.

Best Interest Rate: Some government banks offer up to 9.65% interest rate per annum and other hand NBFCs companies offer an 11.99% interest rate per annum. You can choose the best interest rates for your needs.

Eligibility Required for Business Loan

  • Cibil Score required 700 or above
  • Age should be 23 yr
  • Should be valid ID prove
  • Indian Residence
Also Read: PSB Loans in 59 Minutes

Documents Required For New Business Loan

  • KYC documents (Aadhaar Card, Pan Card)
  • 3 years Business Vintage proof (IT File, Trade License)
  • Recent 6 months Bank Statement
  • Electricity Bill or Rent Agreement

Interest Rate & Charges

Interest rate11.99% – 26% p.a.
Processing fee 2%-3% + GST
Late Payment ChargeDepends on Banks
Also Read: Paytm Business Loan

Business Loan Interest Rates Different Banks/NBFCs

Bank/NBFCsInterest Rate
SBI e-Mudra8.40% – 12.35% p.a.
Axis Bank14.25% – 18.50% p.a.
IDFC First Bank14.50% onwards
Kotak Mahindra Bank16% – 19.99%
Fullerton Finance17% – 21%
Bajaj Finserv17% p.a. onwards
ICICI Bank17% onwards
IIFL Finance1.5% per month onwards
Lendingkart Finance15% p.a.
Tata Capital Finance14% p.a.
Hero Finance12% – 18% p.a.
Also Read: Mudra Loan

How to Apply for Business Loan

Business loan applicants may research and compare available loan programs to choose the one that best meets their needs. Here are the measures you need to take to get a loan for your company:

Step 1: Narrow down your options by selecting a bank or non-bank financial institution from which to apply for a business loan.

Step 2: Access the site in question by clicking the “Apply” tab.

Step 3: Include your business name, its purpose, its industry, its gross annual profit, your bank account number, the amount of any current EMIs, your full name, your gender, your address, your Social Security number, your date of birth, and your email address.

Step 4: Bank representative will get in touch with you to complete the loan paperwork.

After your loan application is accepted, the funds will be sent to the account you have specified within the specified number of business days.

FAQs