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How to Apply for Business Loan

Business Loan Apply Online

Last Updated 12th May 2021

  • Apply for a business loan by visiting the bank, through the bank’s website or at an online marketplace.
  • To apply for a business loan, you will require to submit documents such as Income Proof, Address Proof, business proof etc.
  • Lowest business loan interest rate starts at 18.00%.
  • Do not forget to check the following eligibility criteria before you apply for a business loan.
Age21
Profession Sole Proprietor / Partnership firm / Private Ltd Co. / Trust / LLP
Annual Turnover ₹ 12 Lakh and above
CIBIL Score650 or above
Apply for Business Loan @ 18.00%*

How to Apply for a Business Loan Online?

Individuals can apply for a business loan by either visiting the bank or applying online through the bank’s or online marketplace website. However, it is always advisable to apply online as it saves time, cost and energy.Along with that, you can easily calculate your loan EMI and eligibility before making a detailed comparison of business loan offers of leading banks and NBFCs in India.
The detailed steps for applying the business loan through MyLoanCare is mentioned below:

  • Visit the MyLoanCare website or download the app and fill in your personal details like name, number, city, annual turnover, and loan requirement details.
  • After filling the form, submit the form. You will get offers of different banks based on your eligibility. You can compare the banks and select the bank with the lowest rates and charges.
  • After this, a bank’s representative will get in touch with you to discuss your loan requirement. He will verify all the eligibility details and guide you about the complete loan process and the required documents.
  • If you are eligible and interested, the bank representative will fix the appointment for document pick-up and further loan process. Nowadays, few banks give the option to upload documents online.
  • After all the documents are verified, based on your credit score and eligibility, the bank will decide to sanction or reject your business loan. If sanctioned, you will receive a sanction letter from the bank mentioning the key loan terms like interest rate, processing fees, tenure, prepayment charges.
  • Finally, the loan amount will be disbursed to the registered bank account.

Why Apply for a Business Loan Online through MyLoanCare?

Below-mentioned are the reasons for applying for a business loan online through MyLoanCare:-

  • You can save both time and efforts by applying for a business loan online.
  • If you apply for a business loan online, you can compare top lenders' business loan rates and get a loan at the best rates based on your eligibility.
  • Applying through MyLoanCare gives you the option of choosing the best deal offered by different lenders without impacting your credit score.

What are the Reasons for Applying for a Business Loan Online?

Applying for a business loan will save time, energy and cost. However, the benefits of applying for a business loan alone is not just only limited to these; there are multiple benefits of applying online. Some of the prominent ones are mentioned below:

  • Compare interest rates and other charges: Interest rates and charges are the extra cost the borrower has to bear to take the loan. Applying for a business loan online provides an individual with an opportunity to check the business loan interest rates and charges offered by different banks and select the bank offering the lowest interest rates and costs.
  • Checking business loan eligibility: The online application allows individuals to easily check their eligibility for a business loan by using the business loan eligibility calculator in a matter of minutes.
  • No impact on the credit score: Checking the eligibility criteria for a loan directly with the bank negatively impacts the credit score as it is a hard enquiry, whereas an individual can check the eligibility criterion online on a bank's website without even hurting their credit score.
  • Minimal documentation: An individual can apply online for a business loan with business loan documents. Thus it assists them in saving time and cost. The entire business loan online process is quick and convenient.
  • Tracking the business loan account: Using the online method allows an individual to keep track of all the essential transactions, EMIs, due date and other essential details in the home’s comfort.

What are the Benefits and Features of a Business Loan?

Below-mentioned is the benefits of applying for a business loan:

  • Unsecured loan: The business loan is an unsecured loan, which means the loan is not offered against any security and is collateral-free. However, banks consider the profit and loss statement, balance sheet and other vital documents before granting the business loan.
  • Fixed interest rate: The interest rate charged on the business loan is fixed, which means the interest remains constant during the tenure and it generally hovers between 18.00% to 33.50%.
  • Loan amount: Individuals can avail the loan amount of upto ₹ 1,00,00,00,000 provided they have a decent credit score.
  • Flexible repayment tenure: The business loan comes with a flexible repayment tenure. It means the individual can choose the tenure of the loan.
  • Helps in starting and expanding business: Business loan acts as a bridge in helping an individual to meet the capital requirement for starting the business. Further, it also helps the company in cashing in on the new opportunities for the existing business. Opportunities can be in the form of expanding its business in a new location, introducing a new product or opening new market avenues. Business loans help a company in meeting the requirement.

Top Business Loan Providers

Here are top banks that you must compare to apply for a business loan:

Bank Interest Rate Loan Tenure Processing fees
SBI 11.20% 48 Months From 2% to 3%
HDFC Bank 15.65% 48 Months Starting from 0.99%, Max 2.50%
ICICI Bank 16.49% 36 Months Starting from 0.99%, Up to 2%
RBL Bank 16.25% 36 Months 1.80-2.20% of loan amount
Tata Capital 21.00% 48 Months From 1.50% to 2.50%
Lendingkart 18.00% 36 Months 2% of loan amount
Bajaj Finserv 18.00% 48 Months Upto 2% of loan amount
IDFC First Bank 22.00% 48 Months 2.00%
IIFL 16.00% 60 Months Up to 2%
Bank of Maharashtra 14.50% 36 Months
IndusInd Bank 14.00% 60 Months 2.50%
Kotak Bank 16.00% 60 Months Maximum 2% of the loan
Fullerton India 20.00% 48 Months 2%
Ftcash 18.00% 36 Months 2% of loan amount
IDBI Bank 12.25% 60 Months 1.00%

What are the Documents Required For Applying for a Business Loan?

  • Identity Proof - PAN Card/Driving License/ Passport/ Voter's ID/ Aadhaar Card
  • Address Proof - Utility Bill/ Bank Statement/ Bank Account Passbook (Updated and no more than 3 months old)/ Passport/ Driving License/ Voter's ID/ Aadhaar Card
  • Firm Constitution: MOA/Partnership Deed/GST Registration Certificate
  • Shop and Establishment Certificate/Tax registrations: VAT/Service tax/GST registrations

Step by Step Guide on how to avail a Business Loan

Below-mentioned is the steps for availing a business loan.

  • Check Eligibility and Calculate EMI
    Before applying for an online business loan, you must check your business loan eligibility and calculate the monthly EMI. The eligibility for a business loan is determined by age, credit score, and current obligations.
  • Keep your documents ready.
    Keep your documents such as Income Proof, Address Proof, Bank statement of last 6 months and other mandatory documents ready for applying for a business loan.
  • Compare the Shortlisted Banks
    Compare business loan interests offered by all banks and NBFCs at online marketplace such as MyLoanCare. Along with the business loan rates, you must also check the processing fee, foreclosure charges and other associated charges of the loan in a consolidated way. Reduce your options to 2-3 lenders or shortlist your lender bank or NBFC by comparing all the rates and other charges.
  • Choose the Bank or NBFC based on their Service
    While shortlisting the lending institution, do not forget to consider services and transparency, turnaround time, doorstep services, loan process etc. Finally, check the lending institution’s reviews based on interest rates, services (pre and post-sale), and transparency to shortlist the lender bank.

FAQs

Why should I apply for a business loan?

A business loan is an unsecured loan and can be availed for starting a business, expanding the business, hiring the employees, technological advancement and maintaining inventory.

Who can apply for Business Loans?

Business loans can be availed by Sole Proprietorship, Partnership Firm, Private Limited Companies, Closely held Public Limited Companies, Societies and Trusts.

How much loan can be availed under the business loan?

Usually, the minimum loan amount offered on business loans is ₹ 1,00,000, and the maximum amount is ₹ 50,00,000. Banks may also disburse higher loan amounts which are dependent upon the credit score and the relationship between the customer and bank.

How can I apply for an online business loan?

You can apply for a business loan online through the specific bank website or an online marketplace like MyLoanCare. Borrowers can also apply through mobile banking by downloading the bank's mobile application at the play store.

Can I apply for a business loan if I don’t have collateral?

Yes, you can avail of a business loan without any collateral or security.


Business Loan News - May 2021
  • 2021-05-06 : Citibank donates Rs 200 crore aid for COVID relief efforts in India
    Citibank has announced the donation of an additional Rs 200 crore to support COVID-19 relief measures in India. The money will be allocated to immediate medical and humanitarian needs and it will be spent over the next three years.
  • 2021-04-30 : PNB Housing Finance posted ₹127-cr net profit in Q4
    PNB Housing Finance reported a consolidated net profit of Rs 127 crore in Q4 backed by retail loans like home, personal, LAP, two-wheeler, car, education and doctor loan along with deposits which include fixed and recurring deposits. Total income during January-March was down at Rs 1,834 crore from Rs 1,952 crore in the same period of 2019-20. Interest income dropped over 7% at Rs 1,670 crore during the quarter as against Rs 1,803 crore a year earlier.
  • 2021-04-30 : Bajaj Finserv reported a Q4 profit of ₹979 crore
    Bajaj Finserv posted a net profit of ₹ 979 crores in the January-March quarter, which marked an increase of 5 times from the profit of ₹ 194 crores during the same quarter last year. The NBFC reported the surge in profit backed by retail loans like home, personal, LAP, two-wheeler, car, education and doctor loan along with business and mudra loan.
  • 2021-04-30 : AU Small Finance Bank Q4 net profit up 38 per cent at Rs 169 cr
    AU Small Finance Bank reported a 38% hike in its net profit at Rs 168.98 crore for the last quarter of the fiscal ended March 2021. The profit was boosted by retail loans like home, personal, LAP, two-wheeler, car, education and doctor loan along with deposits which include fixed and recurring deposits. Total income during Q4 FY21 rose to Rs 1,569 crore as against Rs 1,366.60 crore. Interest income moved up to Rs 1,292.37 crore during the reported quarter from Rs 1,183.45 crore in the year-ago period.
  • 2021-04-27 : Bank credit increased by 5.33%; deposit rose 10.94%
    Reserve Bank of India reported that Bank credit which includes retail loans like home, LAP, personal, two-wheeler, car, education and doctor loan along with business and mudra loan grew by 5.33% to Rs 108.89 lakh crore. Further deposits which include fixed and recurring deposits rose 10.94% to Rs 152.15 lakh crore.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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