Loans
Business loans,to help you grow.
Money for stock, machinery, a new branch or to smooth out cash flow.
In one minute
- 1
Working capital or expansion
Money for stock, machinery, a new branch or to smooth out cash flow.
- 2
With or without security
Secured loans cost less; unsecured loans are faster but cost more.
- 3
Government schemes help
Schemes like CGTMSE and Mudra make it easier for small businesses to borrow without collateral.
Chapter 01
Kinds of business loan
01
Term loan
- What it’s for
- Machinery, expansion, renovation
- Typical rate
- 10% – 16%
- Security
- Usually yes
02
Working capital / cash credit
- What it’s for
- Stock, receivables, day-to-day needs
- Typical rate
- 10% – 14%
- Security
- Stock and receivables
03
Unsecured business loan
- What it’s for
- Quick needs up to about ₹50 lakh
- Typical rate
- 15% – 24%
- Security
- No
04
Loan against property
- What it’s for
- Large needs at low cost
- Typical rate
- 9% – 12%
- Security
- Property
05
Mudra / government-backed
- What it’s for
- Small and micro businesses
- Typical rate
- Bank’s rate
- Security
- Guarantee, not collateral
Chapter 02
What lenders look at
- At least 2–3 years in business
- Steady turnover and profits in your ITRs
- Regular GST filings and bank credits that match
- Personal and business credit scores
- Existing loans and how you have repaid them
Chapter 03
Documents you’ll need
- KYC of the business and owners/partners/directors
- Last 2–3 years’ ITRs with audited financials
- 12 months’ bank statements
- GST registration and returns
- Business proof: Udyam, shop licence or incorporation papers
- Property papers, if offering security
Chapter 04
Borrowing wisely for your business
- Match the loan to the need — short-term money for stock, long-term for machinery
- Keep 3–6 months of EMIs aside as a buffer
- Separate business and personal bank accounts
- Interest on business loans is a deductible business expense
Questions
Good toknow.
Can a new business get a loan?
It is harder without a track record. Mudra loans, government-backed schemes or a loan against property are the usual routes for newer businesses.
What is CGTMSE?
A government guarantee scheme that lets banks lend to micro and small enterprises without collateral, with the guarantee covering part of the bank’s risk.
How long does sanction take?
Unsecured loans can take a few days; secured term loans and limits usually take two to four weeks.
Keep reading
You mayalso need.
Loans are provided by partner banks and NBFCs and are subject to their credit assessment, terms and conditions. Interest rates, fees and eligibility vary by lender and borrower profile. We facilitate the process and do not lend directly. Rates shown are indicative ranges; the actual rate depends on the lender and your profile. Tax benefits depend on the law in force and your personal situation. The information on this website is for general educational purposes only and does not constitute investment, tax or legal advice. Please consult a qualified professional before making financial decisions.
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