Business Loan

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Loan Experts is committed to provide the world class financial services among itscustomers. We are serving our renowned associate Bankers and valuable customers forlast 15 years.

Sachin Vashishth
(Managing Director)

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Ever since the Startup India campaign was announced in the year 2015, the number of new Micro, Small & Medium Enterprises (MSMEs) has been on the rise. The campaign is based on an action plan aimed at promoting bank financing for Startups and new businesses. It has encouraged startups, which will eventually lead to more job creation, equity and shall help in the nation’s socio-economic growth.

Several leading financial institutions offer Startup loans for new businesses at low interest rates. Further let’s discuss the eligibility required to start a new enterprise, along with popular business loan schemes

Eligibility Criteria for New Business (Startup) Loan

  • 1.   Applicant should be minimum 21 years and maximum 65 years at the time of loan maturity
  • 2.  Work Status should be self-employed
  • 3.  Startup to be formed must as a sole proprietorship, partnership firm, private or public limited company, or a limited liability partnership (LLP)
  • 4.  Credit score: 750 or above
  • 5.  Applicant with no previous loan defaults with any bank shall be considered more
  • 6.  Total annual turnover of the firm should not exceed Rs.25 crore

Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs

Bank/NBFCsInterest Rate
Axis Bank10.75% p.a. onwards
Flexi loans1% per month onwards
HDB Financial Services Ltd.8% – 26% p.a.
HDFC Bank10.75% – 25% p.a.
IDFC First Bank10.50% p.a. onwards
Indifi1.50% per month onwards
Kotak Mahindra Bank16% – 26% p.a.
Lending kart12% – 27% p.a.
M capital2% per month onwards
Neo Growth Finance15% – 40% p.a.
Tata Capital12% p.a. onwards
UGRO Capital9% – 36% p.a.

Documents Required

  • 1.  Duly filled application form with Passport-sized photographs
  • 2.  KYC documents of applicant and co-applicants that include Passport, AADHAR card, Voter’s ID card, Driving License, PAN Card and Utility Bills (Telephone & Electricity Bills)
  • 3.  Last 12 months’ bank statement
  • 4.  Last 1-year ITR
  • 5.  Business Incorporation Certificate
  • 6.  Business Address Proof
  • 7.  Any other document required by the lender

Benefits of Startup Loans

  • 1.  The new entrepreneurs are granted tax relief for 3 years
  • 2.  Funds from venture capital are quite expensive for a startup with investors of venture capital asking for as much as 5 to 10 times the return on their investment. However, a bank loan does not require any equity dilution and the rate of return to the bank is fixed at a nominal interest rate
  • 3.  Banks are easier to approach. With numerous Banks and NBFCs in India, it is simpler to approach local bankers and request for funds and credit facilities
  • 4.  Banks in India have an established and well-structured framework for processing the funding request of entrepreneurs. Therefore, loan requests are usually processed quickly with minimum documentation
  • 5.   Another significant benefit is that the profit (as well as the loss) of the business belongs only to the borrower. Borrowers are not answerable to the bank regarding the profit and loss of their businesses

About Us

Loan Experts is committed to provide the world class financial services among itscustomers. We are serving our renowned associate Bankers and valuable customers forlast 15 years.

Sachin Vashishth
(Managing Director)

Contact Info