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Business Loan Apply Online

Online Business Loan

Last Updated 23rd Sep 2020

  • A business loan is an unsecured loan which is availed for either starting a new business or expanding the existing business.
  • Compare best offers starting at 13.50% and get the loan at lowest business loan rates online.
  • Apply for business loans online without impacting their credit score.
  • Option to get overdraft facility on loan and pay interest on the utilized amount.
  • Check your repayment capacity with a business loan EMI calculator.

About Business loan

A business loan is a specific type of credit option which serves the purpose of either financing a new business or expanding an existing one. Every business requires an adequate amount for its functioning; business loans assist in meeting that requirement and thus functioning of the organisation. The organisation is obligated to pay back the amount and the interest according to the terms and conditions agreed.

How to apply for a business loan online?

Individuals can apply for the business loan by either visiting the bank or by 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. 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, ITR years 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 lowest rates and charges.
  • After this, MyLoanCare or bank representative will get in touch with you to discuss your loan requirement. He will verify all the eligibility details and will guide you about the complete loan process and documents required.
  • If you are eligible and interested, the bank representative will fix the appointment for document pick-up and further loan process.
  • 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.

Reasons for Applying for a Business Loan Online

It is obvious that applying for the 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 which the borrower has to bear for taking 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 the business loan with minimal documentation. 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 comfort of the home.

Benefits and Features of Business Loan

  • Unsecured loan: The business loan is unsecured in nature which means the loan is not offered against any security and it is collateral-free. However, banks take into account 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 13.50% 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

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%
Citibank 16.00% 60 Months Upto 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% 36 Months 2.00%
IIFL 16.00% 60 Months Up to 2%
Bank of Maharashtra 14.50% 36 Months 1.00% of loan amount, Min Rs. 1,000
IndusInd Bank 14.00% 60 Months 2.50%
Kotak Bank 16.00% 60 Months Upto 2%
Fullerton India 20.00% 48 Months 2%
Neogrowth 19.50% 24 Months 2.5% of loan amount

Business Loan Eligibility

An individual can get a business loan if he fulfils the following eligibility criteria:

  • Age: Individual should be a minimum of 25 years of age & should be no older than 65 years at the time of loan maturity
  • Profession: The individual should be a Sole Proprietor / Partnership firm / Private Ltd Co. / Trust / LLP involved in the business of Manufacturing, Trading or Services.
  • Income: Individual has to be in business for the last 3 years with a minimum turnover of ₹ 1 Cr. The business must have generated profit for a minimum of 1 year.

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

FAQs

Why should one take a business loan?

A business loan is an unsecured loan, and it helps the business in many ways. It helps in starting a business, expanding the business, hiring the employees, technological advancement and maintaining inventory.

Who can get Business Loans?

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

Is the interest rate fixed or floating?

The interest rate on Business Loan is fixed. So, if there is any increase in the rate in the future, it won’t impact the interest rate of your business loan.

What is the maximum and minimum loan amount offered 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.


Business Loan News - Sep 2020
  • 2020-09-18 : PSBs overtake private banks in 2020
    Public sector banks overtook private sector banks in offering retail loans like home, personal, gold, car, two-wheeler and education loan along with business and mudra loans. Since December 2019, PSBs overall lending has gone up to 57.7% as of June 2020, which is a jump of as much as 60 bpsover six months. During the same period, the share of private banks in overall lending has come down by 60 bps to 34.4%. The share of total loans outstanding that private banks have lost has been taken over by state-owned lenders.
  • 2020-09-16 : Lok Sabha passes bill to bring co-op banks within RBI ambit
    The Banking Regulation Bill, 2020, was passed in the Lok Sabha. The bill, moved by FM seeks to protect the interest of depositors by bringing cooperative banks under the regulatory framework of the RBI.
  • 2020-09-16 : SBI YONO could be a $40 billion goldmine
    SBI could be sitting on a goldmine when it comes to its digital startup YONO (You only need one). The super-app could be valued at $40 billion with the lender considering long term plans to hive it off as a separate entity once it assumes a certain size.
  • 2020-09-15 : FM introduces Banking Regulation Bill in Lok Sabha
    FM introduced Banking Regulation Bill, 2020 in the Lok Sabha. The law strives to protect the interest of the depositors by bringing co-operative banks under the regulatory framework of RBI.
  • 2020-09-11 : State Bank of India targets 3x growth in retail, MSME gold loans
    SBI is targeting 3x growth in retail loans which includes home, personal, car, two-wheeler and gold loans along with MSME loans. The bank has planned to use YONO, its digital banking platform, to cut down on response time and scale-up activity.
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