Business Loan

🏢 Types of Business Loans

1. Term Loan
   • Lump sum borrowed and repaid over a fixed period
   • Ideal for long-term investments like expansion or equipment
2. Working Capital Loan
   • Supports daily business operations
   • Helps manage cash flow, inventory, or payroll
3. Equipment Financing
   • Used to purchase machinery or equipment
   • Equipment often acts as collateral
4. Invoice Financing
   • Advance against unpaid invoices
   • Improves liquidity and ensures smooth operations
5. Line of Credit
   • Access to funds as needed, up to a limit
   • Pay interest only on the amount used
6. Startup Loan
   • Designed for new businesses or early-stage startups
   • May require a solid business plan or projections

🔍 Eligibility Criteria

• Business vintage (usually 1–3 years)
• Minimum annual turnover
• Good credit history and score
• Valid business registration and documentation
• Profitability and cash flow history

📑 Documents Required

• Business registration proof (GST, incorporation certificate, etc.)
• PAN Card and Aadhaar of owner(s)
• Bank statements (6–12 months)
• Income tax returns
• Financial statements (P&L, balance sheet)
• Ownership/lease documents of business premises

💡 Why Choose a Business Loan?

• Quick access to funds
• Flexible repayment options
• Boost working capital
• Invest in technology, expansion, or manpower
• Enhance market competitiveness

📊 Interest Rates & Repayment

• Interest rates typically range from 9% to 24% per annum
• Repayment tenures vary from 12 months to 5 years
• EMI and interest depend on loan type, creditworthiness, and lender

✅ Tips for Business Loan Approval

• Maintain a healthy credit score (usually 700+)
• Keep financial documents up-to-date
• Clearly outline your loan purpose and repayment plan
• Reduce existing liabilities before applying
• Offer collateral for better terms (if needed)