Business loans are generally available to sole proprietors, partnerships, private limited companies, LLPs, and self-employed professionals with a stable income and a good credit history. Eligibility also depends on factors like business turnover, vintage, and financial statements.
Common documents include KYC documents (proof of identity and address), business registration proof, bank statements, ITRs, financial statements (P&L, balance sheet), and GST returns. The exact list may vary by lender and business type.
Not always. Unsecured business loans don’t require collateral but may come with stricter eligibility criteria and higher interest rates. Secured loans may require assets like property, equipment, or inventory as collateral.
Interest rates vary depending on the lender, business profile, loan amount, and repayment capacity. They typically range from 12% to 24% per annum for unsecured loans.
Loan tenures usually range from 12 months to 60 months (1 to 5 years). Some lenders may offer flexible repayment options based on cash flow.
Foreclosure charges differ from one bank to another, as each financial institution sets its own policies and fee structures.
