Business Loan

Term Loans: Loan amount is released in one or more tranche on case to case basis.
Cash Credit / Overdraft: A limit is sanctioned which customer can use as per his flexibility. He just has to serve the interest debited by the Bank in the month end.
Bank Guarantee: If you require Bank Guarantee against property then you can get the limit sanctioned under which you can get the Bank Guarantees issued quickly.

It typically depends on following factors:

Credit score (personal and business)

Business turnover

Experience in the line of business

Collateral (for secured loans)

Common documents required include:

• Project report
  Last 2-3 years Financial statements (Balance Sheets, Trading and Profit & Loss account, cash flow statement)
• Income Tax returns of last 2-3 years for both promoter as well as business
  Business licenses and registrations, if applicable

Interest rates vary widely based on the lender, the type of loan, and the borrower’s creditworthiness, typically ranging from 8.5% to 15-18%.

Yes, depending on the recent credit repayment history some lenders cater to businesses with lower credit scores, but they may charge higher interest rates or offer smaller loan amounts and also ask for collateral security.

To improve your chances:

• Maintain a strong credit score
• Prepare a comprehensive business plan
• Show consistent revenue and profit history

The total cost of the loan (including interest and fees)

• Your ability to repay based on cash flow
• The purpose of the loan and its potential ROI
• The impact on your business’s overall financial health